Prompt Cast
How Russian businesses resorted to using bricks and IOUs as currency
TLDR After the collapse of the USSR, Russian businesses faced hyperinflation and cash flow issues, leading them to use bricks and Gazprom IOUs as alternative forms of currency, creating a unique monetary system in the country.
Timestamped Summary
00:00
Russia's economy heavily relies on oil, natural gas, and minerals, making it vulnerable to sanctions.
03:28
After the USSR collapsed, former Soviet businesses resorted to using bricks as currency due to the extreme devaluation of the ruble in 1992.
06:39
Soviet businesses faced challenges in competing globally due to high production costs and uncompetitive pricing, resulting in a need to resort to using bricks as a store of value amidst hyperinflation and cash flow issues post the collapse of the USSR.
09:49
Russian businesses resorted to using bricks as a store of value due to hyperinflation in 1992, leading to a bartering economy where goods like shoes became a form of currency.
13:21
In the early 90s in Russia, towels and bricks became better forms of money than the ruble due to hyperinflation.
17:32
Russian businesses started using Gazprom IOUs, known as vexels, as a new currency backed by the promise of actual gas, leading to a system where various companies issued their own IOUs for transactions.
20:58
Various companies in Russia issued their own IOUs, known as vexels, which became a form of currency backed by commodities like gas, leading to a unique monetary system in the country.
