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Joined by Michael Bernstein of the Hoover Institution, my guide on the Russian economy under sanctions.

Reuters has a story up saying that the explanation for how Russia has survived nearly three years with the sanctions

rests on what Reuters characterizes as a war addiction.

Mr. Putin now is drafting a one and a half million man army, mobilization.

He is also promised, according to Reuters, not to raise defense spending unnecessarily, and that he's going to be modest in next year's

raise. Well it turns out the modesty is 25% increase over this year's budget. Is this sustainable? Well that's why I need

Michael. Michael a very good evening to you thank you for this. What we're looking

at is sometimes called war Keynesianism. Money is pouring into the economy to keep the

defense industry running. It sustained itself so far, but a 25% increase in defense spending next year sounds dramatic and drastic, especially because

it was promised that it wouldn't happen.

What's holding it together if it is being held together?

Good evening to you, Michael.

...