It’s whimsical
Russian GDP is $2.2 trillion
New York is $1.5 trillion
Russia gdp per capita is $15323
New York’s gdp per capita is $75734
The commodity markets don’t care about joules.
The currency markets are the only truth in war.
16% is less creditworthy than junk bonds.
Russia is a gas station with an economy 1.5x NY and 140million people.
GDP is measured in pieces of paper created by whimsy.
In fact, if you look at the GDP equation, you will see G as a prominent contributor. Govt Spending. That’s 6.4Trillion this year. About 25% of GDP and since the Fed balance sheet is about 9T, that much came from thin air.
Russia has a Central Bank, but they have never really had to lean into QE — because, of course, they run such a trade surplus.
Conclusion, markets are manipulated by running annual enormous deficits of money created from nothingness. It’s not how to measure wealth.
Joules are immune to manipulation. It is a pure measurement.