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For many this is the first time we have witnessed an economic war on this scale. The only recent memories of a similar situation was in the 1970 during the Oil Embargo but it will pale in comparison to what is happening in todays global market.
Russia recently came out and stated that the United States had declared economic war on them and that their retaliation will be felt by the West. Many may laugh at this and state that Russia cannot hurt America but considering the status of the global economy, we could witness many unthinkable situations going forward.
What can Russia do to the West during an economic war. The Russian economic strength is associated to commodities such as oil, natural gas and precious metals. These are all basic needs of world governments and without any of them, those economies stop, bringing Russian rivals to their knees.
It's not like Europe is completely dependent on Russian oil with only 30% of their oil imports coming for Russian lands. Im sure that Europe will just need to contact someone else and have them turn on the pump and get more oil, right?
That is preposterous and the oil consumption of Europe is just one aspect of this crisis. Considering all the other commodities and we can see this will get really ugly really fast. When shortages of commodities exist, inflation follows.
But what about the nuclear option? This is not considering the actual use of nuclear weapons but what if Russia allows its economy to crash and they default on their loans to Western banks? This is a complete possibility and is looking more likely everyday.
Contagion would engulf the Western banking sector and this would cause a domino effect throughout the world. We are already witnessing bank runs in Eastern Europe, what will happen when Western banks start to close at record levels?
The problem for Western powers is their exit strategy is to maintain the status quo. The American dollar’s reserve currency status and its use a the petrodollar would cause economically weaker countries to flock to the American markets as they witness their banking system collapsing.
This will only increase inflation and cause the exported dollars and American exported inflation to flow back to the United States, causing monetary expansion and allowing the value of the dollar to drop. More money in the system with decreasing goods will only increase the price.
For Russia, the stage has already been set for their exit strategy. Working closely with China and their alternative banking system BRICS, combined with their vast gold reserves, Russia is ready for a revaluing of commodities and assets.
In America we will see the decline in purchasing power as inflation ravages our economy, but in the East, they will witness a strengthening of their currency and an expansion of their banking system. Not every country will flock to the American banking system during the collapse when they have a viable option in the Chinese market that is not subject to American sanctions.
The world is already in an Economic and Military conflict with the East. We have already witnessed incredibly unthinkable events over the last couple years and these events will only continue to grow.
How will spoiled Americans fair compared to Eastern countries citizens during a global economic crisis? This must make anyone who truly thinks about this question laugh as the comparison is not even equal.
The western world could not even set aside their social differences to come together to wear a mask during a global pandemic, there is no way they will come together to help during an economic crisis. Americans are so greedy that we will consume ourselves, devouring each other until many are only left with violent solutions to their declining standard of living. We could be toppled economically without the East even firing one shot. If they did fire one shot, what would it be?
We have already heard that Russia is removing every vital asset from the internet and is moving those assets to a non-western based internet. Once this is complete, all it would take is the cutting of underwater internet cables and the west would lose access to everything based on our internet. Within days, civil unrest would occur as our spoiled neighbors are unable to function without their current way of living. People would riot and the government would have to focus on squashing civil disobedience vs military action overseas.
If a military incursion were to occur against the West, on their land, that would be the time as communication is key and mobilization of assets would be incredibly difficult, especially while being bombed.
We can all hope that this future is not true and that everything will go back to the way it was before the pandemic. We can all hope that Russia and China will forgive the West for their transgressions and will not retaliate for recent economic sanctions placed on their countries. We can hope that the world will rally toward their prior alliances instead of creating relationships with the East. We can all hope…..
What ever our future holds, we all understand that it will happen in short order. We will understand what is going to happen and the time to prepare has expired. We all must pray that this economic and military escalation concludes rapidly in a peaceful manner. Reality is that even with our prayers, our destiny may already be sealed for future generations to read as history!
