When we sanctioned Iran it didn't look like this at all. But, what is happening now is happening to Russia which is a really large country as countries go. Even though California likely has a similar GDP to Russia it still has a very mighty military and nuclear arsenal. So, I think it is important not to underestimate their wartime potential.
Though the U.S. likely didn't intend for the threat of sanctions to do what they already are, the consequences look like what Bear Stearns did to our economy and what Lehman Brothers did to our economy only it is happening this time in Russia. But, countries like Germany are very heavily invested in Russia to the point where Germany might not be able to withstand the losses that Russia might bring to that nation. Germany is the bulwark of EU and if Germany goes down under the collapse of the Ruble and the Near junk bond status of Russian Bonds then this really is bad for everyone isn't it? If Russia cuts off oil or natural gas to Europe that could be a whole other problem because many european nations get about 30% of their gas and oil and natural gas from Russia. Even if Russia raises it's prices on natural Gas or Gas or oil it could devastate many European countries and even the EU itself.
This is starting to look like a complete mess that no one nation or group of nations can seem to get a handle on. This is starting to look at the very least like an economic World War III with the potential in the long run for "too big to fail banks" in Europe and Russia to possibly go down. This isn't good for the world at all.
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