In an overall philosophical perspective —
It’s essentially impossible to crush an economy that has a central bank that can create money.
The Soviets died because they had a silly regulation on their Central Bank that restricted money creation to amounts mandated by the Interior Ministry. When oil’s price fell, the Ministry’s 5 year plan was woefully inadequate.
In contrast, in 2008/9 when capitalism failed in the US and we faced systemic collapse, Congress passed gargantuan deficits to be funded by creation of money by Ben Bernanke’s Fed, with his newly pushed phrase Quantitative Ease.
That single event was insufficient. He did 3 or 5 rounds of QE. All to avoid the economy being crushed.
Russia can do exactly the same thing. Just create money from thin air, and then wait for oil production depletion in the rest of the world to bring it begging for help.
“then wait for oil production depletion in the rest of the world to bring it begging for help.”
What’s the timeline for that? 1 year? A decade? 30 years?
L