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As economist Milov mentions, >60% of Russia's cash reserves - the vaunted sovereign wealth fund - are to be released in December to finance the deficit.

But he was using the official figure of 2.12T Rubles, not the updated figure of 3.296 T.

Basically he's saying that Russia will need to drain over 92% of their reserves to finance this year's debt... which, btw, traditionally rises in Q4, likely draining the entirety of Russia's cash reserves... plus more, largely due to poor bond sales.

@KraftTea not knowing anything about economics, does it really matter if your money come from savings or you just print them? Maybe it matters for foreign investors, but does it matter internally? Let's say you had near infinite savings, you'd create inflation just the same?

@morten_skaaning @KraftTea All FIAT currencies are about trust. Trust that my lifetime savings won't dissappear. Printing the money and devaluating currency means people's savings are going to hell. When you lose trust in your countrie's currency, you will try to save in foreign one, that holds value. Which is hardly possible in dictatorships. At one point they will make a "money reform" and people will lose all their savings. Happened in my country during "socialist government".

@morten_skaaning @KraftTea They can actually have "infinite money" if they have infinite paper. But what will be the value of that money is another thing. Believe me that even in dictatorships it doesn't work. Just look at the North Korea. They can print whatever they like. What is the living standard there. Poverty!

@WashingtonIrving @KraftTea so the Russians will loose the means to buy foreign goods, except through bartering, or reserves of gold or oil. I wonder how willing a population near starvation will be to die for their dictator. If Putin looses face even more, would that break the camels back? There can't be glory without glory?

Mark Kraft

@morten_skaaning @WashingtonIrving In many cases, they already have. China doesn't want to take rubles, in most cases. And why should they, when they can basically demand payment in gold, in many cases... oftentimes at a premium.

That's right... they are using sanction-evading ways to trade Russian gold, for less than the price of gold. Which is basically the same thing as free money, IF you can find a legitimate buyer.

Of course, this tends to deflate the actual value of gold.