Introduction Crises, Crises, Crises, are everywhere in the world from Co-VID-19 and surrounding issues, famines in nations due to sanctions on Russia and unfolding recession/currencies’ collapses to wars in Russia-Ukraine, the Mideast, and possibly war in Asia between China-Taiwan. These wars can lead to WW3.
There never has been a point in history where there have been so many crises at one time that all foretell of some form of calamity.
Now the USA and NATO are imposing these sanctions on Russia, one of the largest, resource-rich nations in world. This has jeopardized the world’s economy of needed resources such as oil, natural gas, wheat, and needed metals (platinum, palladium, aluminum, etc.) for a modern economy to run efficiently.
Biden was warned not to place sanctions on Russia, but the President believed the sanctions would collapse Russia’s economy in a matter of days. It didn’t happen.
Republican Sen. Rand Paul (R-KY) warned the Democrat Joe Biden's about sanctions against Russia and China and said they aren’t having any significant impact. He said sanctions are mostly useful as threats and don't have any serious effect.
Also. these sanctions have caused more shortages in the world and severe inflation, which was already exploding due to the CoVID-19 shutdown. The Federal Reserve printing up trillions dollars to stimulate the economies and banking of the world is also keeping inflation high although temporarily saving the world economies from collapsing.
In short, the purchasing power of nations’ currencies are declining and workers’ wages aren’t keeping up with inflation.
Social chaos is around the corner for most nations.
Only a few people have any understanding of the default of Russia’s bond crisis, Long Term Capital Management, in 1998. The world’s financial system was a few months from total collapse of all markets and economies. It was the Federal Reserve Bank who printed up billions of dollars to rescue the world’s banking system. For details see, CASE STUDY: LTCM. ____________________
The EU sanctions are now beginning to have some serious effects on Russia’s economy. They are also having a boomerang effect, especially on Germany and other nations of the EU. About 40-50% of oil and natural gas, 80% of fertilizer, others metals, etc., come from Russia.
World recession and currency collapse appear on the horizon. __________________
Russia was banned from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) Banking system, and its currency rubles, declined 80%. Russia can’t accept US$ or Euros for its oil. The Euros and the dollars can’t be used internally in Russia’s economy because their currency is rubles. Russia has no way of transferring Euros and dollars into rubles because of the ban from the International Banking System.
To obtain rubles and raise its value, Russia had to sell their oil in rubles. This increased the value of the Rubles and it is undermining the status of the US dollar, as the world’s Reserve Currency. This will eventually have a profound effect upon the world.
The trend in the world is slowly moving away from the US dollar.
The question is what will the America government do? Saddam of Iraq and Qaddafi of Libya were killed and their nations destroyed for not selling their oil in dollars.
This clearly is not going to happen with Russia with the largest stockpile of nukes. Currently, the US and NATO are using Ukraine as a proxy or puppet to fight Russia. They gave them arms and military intelligence. So let’s see where this going?