Posted on 02/28/2022 4:57:47 AM PST by Vigilanteman
The world is watching anxiously as the Russian military moves deeper into Ukraine, expanding an invasion that began Wednesday night. Although the human cost of military action is incalculable, global stock markets in general reacted to the invasion with wide swings before closing modestly lower. This is consistent with their response to previous similar events that we outlined in articles on the conflict published on January 31, February 22 and February 24.
The potential for global economic disruption from an invasion was most likely to come from sanctions. The chaos on the ground in Ukraine contrasts with the clarity on sanctions. As expected, the United States and the European Union announced a new tougher round of sanctions on Russia on Thursday in response to the invasion, with other major global economies following suit.
These sanctions are designed to hurt Russia’s economy without affecting global energy and agricultural supplies in a way that could inflict a "stagflationary" shock (the combination of high inflation and low growth) on the rest of the world. At this time, U.S. and EU leaders are not targeting Russian energy exports and Russia is not threatening to cut off oil and gas shipments in retaliation to the sanctions.
(Excerpt) Read more at schwab.com ...
It’s notable that Pakistan’s boss visited Moscow and Putin after the invasion, and India refuses to condemn it.
Combining Russian natural resources and advanced military tech prowess with China’s markets, factories and wealth, may result in a self-contained Eurasian economy that basically shrugs off the West’s sanctions.
So the EU loses Russian energy, and suffers massive inflation, and so does the USA. Our economies will also be damaged by this fracture, while Russia builds an entirely new economy extending across Eurasia to China.
It’s a long game, and very complex.
The Russian central bank will have a briefing at their 1 pm.
Stock markets will react to what they say.
The Green New Deal is soaked brightly in RED UKRANIAN Blood.
The Green New Deal is soaked brightly in RED UKRANIAN Blood.
Yes. It’s a long game.
Russian economy already weak, we will see how it goes. But, closing your banks only causes more of a run.
Can you be sure we weren’t always at war with Eastasia?
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