While Russian troops advance into Ukraine, the Russian economy looks to be slipping further and further into inflation, recession, and dare I say even depression. The New York Times has a good article that articulates in non-Economics Professor terms just what the West is doing financially to try and curtail the Mad Dog of Moscow.
Last week I advocated for severe economic punishment for Russia’s blatant disregard for Ukraine’s national sovereignty and amazingly (because who thought the Western Allies could ever agree on doing something) that punishment has been meted out.
I’m hoping that the somewhat is only to give Vlad the Impersonator a taste of what could happen if full measures were in fact instituted. Hoping, but something tells me that somewhere along the line some country somewhere will do the “but we need their natural gas” and begin to fray the alliance. But as for now the sanctions currently in place are definitely worrying to Russia. Russians are lining up at ATM’s trying to get cash out. The Bank of Russia even went so far as to promise that
“The volume of bank notes ready for loading into A.T.M.s is more than sufficient. All customer funds on bank accounts are fully preserved and available for any transactions.”
Um, sure. But something tells me many Russians are getting ready to make a run on the bank which is never a good thing. Would that panic spread to the rest of the world? My college economics professor would have said yes, but the world has changed in the *cough cough* years since I took his class. As the sequel to Wall Street (the movie) said, “money never sleeps”. Besides with a government fiat against doing business with Russian banks in place, a default letter from any Russian bank will be laughed at by any foreign borrower.
Damn that let’s Trump off the hook for a while. No wonder he thought Putin’s Penetration was a smart move.
There’s more to the story, click the link below