“What we’re seeing now is a pretty permanent exodus from Russia,”
Lars Christensen, chief emerging market analyst at Danske Bank Danske
Bank A/S in Copenhagen, said by phone. “It will be very difficult for
the Russian central bank to fight it because a consequence of this is a
further drop in economic activity. Given the geopolitical risk, given
that this shock has been of a permanent nature, I think the S&P
downgrade is fully justified.”
end quote from:
Between the Sanctions the G-7 are leveling now against Russia:
and the loss of confidence of Russia in general from the knowledge of worldwide investors because of even the threat of Sanctions, the economy of Russia as it relates to the outside world likely is going to suffer now a lot in progressively worse ways as long as Putin continues what he is presently doing.
I suppose the Russian propaganda in the news would likely distort what is happening and say that there are no Russian troops or mercenaries or spies in Ukraine and say that Russia is only protecting Russians from a new Nazi Government in Ukraine. That is likely what Russian Newspapers and Internet publications are saying to the Russian people.
However, the financial exodus of investment money out of Russia from outside of Russia likely will continue to devastate businesses there ongoing. So, it looks like Putin has already successfully destroyed both democracy and capitalism in Russia over the next few years without barely firing a shot. This is pretty scary any way you look at it. (especially for democratic capitalists inside and outside of Russia who were invested in Russian Businesses before all this happened).
For example, all the McDonald's in Crimea have already closed and all executives, managers, accountants and food workers have already lost their jobs as well as anyone who invested in those businesses. This is only one type of business of thousands of businesses already shut down in Crimea with people without jobs or investments to sustain them.
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