As Konstantin also explains, on the civil side, the costs of everything goes up as the Ruble is devalued, and imports have to go through circuitous means because of sanctions (Turkey buys a sh!tload of Nikes, and re-sells 3/4s of them to Russia under the table), production of such essentials as eggs becomes more costly, but the price of eggs can only be hiked according to law by 33% every six months. So the egg producers go out of business and now eggs have to be imported. Factories are making war kit, and workers are unavailable, either because they’re out fighting in Ukraine, or because they hauled a@@ to other countries to avoid fighting in Ukraine, or because they died in Ukraine. So while the war-time production is way up and paying good wages, the civil side of the economy is in the toilet, but between the two sides of the economy, you have an average GDP growth of 3%, which looks great, only what it really means is that the civil side is depressed, while the war-time side is hyper-stimulated...for now. Once that’s over and the war ends one way or another, the other shoe has dropped. In this context, the ridiculous plan announced to invade Uzbekistan (after or during the invasion of Kazakhstan?), makes sense, sort of. Perpetual war would keep this crazy economy afloat.
And we are the World's reserve currency. What do you think a 34 trillion dollar national debt, coupled with a 212 trillion dollar unfunded liability will look like when, not if, that implodes?
Will China leave behind its economic woes in 2024?
After China’s long campaign against covid-19 and its disappointing reopening this year, the sentiment is popping up again. China’s growth prospects seem “structurally” weaker—one reason why Moody’s, a rating agency, said this week that it might have to cut the country’s credit rating in the medium term.
So, which economy is the most likely to fail in the most spectacular fashion?
I think we can travel around the globe assessing the economy of each nation & give a pretty grim report on all, except perhaps Ukraine which has all their expenditures covered by US taxpayers..
So, what point exactly are you trying to make?