ZeroHedge: Whatever happens militarily in its clumsy Ukraine invasion, Russia will have huge success in the financial war with the West
The yen but especially the euro, will be heavily de-stabilised, even before the US dollar (sorry Ameriburgers you're not first)
Russia and China were prepared for this 'sanctions' game, China having stockpiled food and commodities for some time now.
Russia is like pre-WW1 USA - low taxes, little government debt. It had $550bn of exports, €297bn imports. But Russia's trade surplus will now be HIGHER thanks to sanctions.
With rising fuel prices, Russian exports may go higher, as even 'discount' sales to India etc involve higher prices than previously to Europe. Imports are now reduced, with China and India providing Russia's product needs more cheaply.
Blocking Russia from commerce in euros, dollars etc, serve as 'force majeure' in energy supply contracts, enabling Russia to demand payments in roubles from the 'unfriendly' Anglo-EU group and its allies, only 16% of global population baiting the bear. The rouble is now trading back to essentially pre-war levels, as traders wake up to reality.
Price inflation is highly dangerous above all to the oddly-constructed eurozone, with no true sovereign to address severe bond stresses, arriving shortly.
Russia and China have an estimated 2x the gold reserves of the West, putting them in prime position for when the global financial system moves toward comprehensive reset, somewhat further down the road.
"The Russian economy is inherently stronger in a currency shoot-out than even the dollar"
zerohedge.com
Visa and Mastercard cancelled Russia ... and right away Russian-Chinese MIR-UnionPay bank cards are replacing them. McDonalds cancelled, and overnight Russians took over, turned the golden arches symbol sideways, and it is now 'Uncle Vanya's' with similar products, local ingredients, profits kept in Russia. They were ready.
