Putin’s War Economy on the Brink: Parallels to Nazi Germany in 1945

The Allies do have a minor lesson to learn from their own past actions.

After two and a half years of relative stability, Russia’s business elites find themselves on a collision course with Putin’s trusted Russian Central Bank chief. The oligarchs are pushing for interest rate cuts to halt the wave of business bankruptcies sweeping the nation. In contrast, the Central Bank chief is advocating for further rate hikes to combat inflation and stabilize the free-falling ruble.

Nothing seems to be working for the Russian economy — it resembles a leaky pipeline: you patch one leak, only to see another burst with even greater intensity.

“The specter of stagflation isn’t just looming — it’s knocking at the door of Russia’s economy,” one Russian newspaper remarked. The comment caught my attention. In a society ruled by autocracy, it’s remarkable to see a journalist write so candidly about economic realities without fear of retaliation. This rare openness is likely a reflection of growing infighting within the ruling class over how to manage the crumbling economy, as the Kremlin appears increasingly directionless.

When armed robbers resort to stealing butter for resale, it becomes blatantly clear to the public how dire the situation is. So, while the newspaper’s analysis isn’t necessarily news to Russians, it underscores how deeply fractured the war economy has become. In many ways…