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Understanding the modern use of economics to wage war is paramount to seeing what is unfolding on our globe. We are witnessing horrific events in Eastern Europe and the world’s response is to restrict the flow of goods from the region. This action will only devastate already strained global supply chains as we move into a new economic setting.
The force in which the Western powers are flexing their economic might is rapidly growing in intensity and will only intensify as the military conquest of Russia expands. Yes, that is correct, there is strong indications that Ukraine is only the starting point for this expanding global conflict.
Knowing that as global supply chains are strained and economic cooperation between countries declines, we will witness greater changes to our monetary system. As supplies dwindle through the consumption of war and the decline of trade, governments and cooperations will grow increasingly desperate for resources. This will only intensify the global conflict.
The United States recently stated that they will restrict the purchases of Russian oil and major corporations has proclaimed their EXODUS from the Russian economy. On the surface this seems like the right course of action as Americans do not support Russian aggression in Ukraine and will use their pocketbook to show their distaste. Unfortunately, this will only complicate things more.
Russian President Putin has proven time and time again that he sees the world through a different lens. Either by supporting alliances with hostile countries like Iran and Syria or through trade agreements with countries like China, Russia has demonstrated an alternative view of globalization that is averse to Western views of global expansion. This contrast will only widen as both sides bring their alliances into fulfillment.
The entire world runs off oil and natural gas. Europe is completely dependent on Russian natural gas to supply heat to their homes. Without this resource, many will freeze under the harsh European winters.
That is one reason that the recent proclamation by the United States to restrict imports of Russian oil is so important. Not for the rise of oil that will ensue in America but because of the pressure it will put on Europe to follow suit. Europe will need to chose who they will support, Russia or the United States.
Currently, the United States would not be able to supply Europe with the natural gas needed to support their society. Global supply chains are battered and as the conflict intensifies, we will witness a further breakdown of trade. Countries that have resources will keep those resources vs selling them to another country.
This will be true for all commodes. Food, oil, natural gas, and rare metals will become vital to survival for many countries’ survival. What governments cannot trade for, they will pursue militarily.
But, lets hope that this war expansion does not occur rapidly and Europe will need to pursue another resource for their natural gas. Using Middle Eastern resources comes with the same stigma as using Russian resources and Saudi Arabia cannot supply the entire world with oil and natural gas. What is Europe to do?
The answer may lie with the large natural gas resources found off the shore of Israel and Syria. Large deposits of oil and natural gas have been found in disputed waters and those resources may become incredibly vital for the upcoming economic transition. The only problem is that both Israel and Syria have laid claims to this resource.
The stage may be being set for a military expansion into the Middle East. Russia will need to sell their resources to friendly allies while limiting the trade expansion of their foes. Why would Russia go through the strain of military conflict in Ukraine to only allow Europe to wiggle off the hook and move to another resource base? This would not justly their actions and would be an economic error by the Russian government.
We can hope that the conflict in Eastern Europe will go away and global supply chains will be fixed but the reality is that this will not happen. Pandora’s Box has been opened and we are witnessing the destruction of our society.
Military expansion will continue and global resources will become strained. When this happens, we may witness events that were only dreamt about in prophetic language from those who foresaw this day unfolding. Will their visions of global destruction come true? Only time will tell but right now it seems that every indicator is stating that those visions are not just dreams but warning of what will happen to our world.
