Sanctions Are Going To Devastate Russia Economically, But They Are Going To Devastate Us Economically Too

by Michael Snyder, End Of The American Dream:

The economic sanctions that have been imposed on Russia by western powers are really going to hurt.  But they aren’t just going to hurt the Russians.  The measures that are now being implemented are going to be quite a shock for the entire global economic system, and all of us will be affected.  Energy prices will be going much higher, food prices will be going much higher, and the sanctions are going to cause chaos in the financial world for months to come.  Of course things were already starting to get really crazy even before the war began, but now our problems are really going to start to accelerate.

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On Tuesday, Kamala Harris made a guest appearance on a radio show, and during that interview she was asked to explain the crisis in Ukraine.

This is how she responded

Appearing on The Morning Hustle, the vice president was asked to ‘break it down in layman’s terms for people who don’t understand what’s going on and how can this directly affect the people of the United States.’

Harris broke it down: ‘Russia is a bigger country. Russia is a powerful country. Russia decided to invade a smaller country called Ukraine so basically that’s wrong.’

It is frightening to think that Harris may soon be forced to take over for Joe Biden due to his failing health.

The Biden administration and other western powers have decided to punish the Russians by imposing economic sanctions on them.

Some have mocked the sanctions, but the truth is that they are definitely going to hurt the Russians.

For example, the value of the Russian ruble has already fallen so low that one ruble is now worth less than a “Robux”

Due to international sanctions against Russia, the ruble has tumbled in value—so far, in fact, it’s now worth less than a Robux. That’s really bad news for the ruble, because the Robux is a video game currency that’s mostly meaningful only to children.

Roblox, also known as “that game your kids play that looks like Minecraft but isn’t,” has been around for over a decade. But with an explosion of at-home players during the pandemic, it’s gone from fad to phenomenon, now boasting more than 100 million active players. It’s so popular that its virtual currency value, which can in fact be converted back into US dollars, is now worth approximately $.0125, which is more than the Russian Federation’s ruble.

That is crazy.

As the ruble has collapsed, Russians have formed extremely long lines at ATMs all around the country…

Long lines began forming at ATMs on Sunday as Russians braced for the ruble’s collapse by attempting to withdraw foreign currency. The trend occurred amid fears that banks will began limiting cash withdrawals — or that credit and debit cards could stop functioning entirely.

“I’ve stood in lines for an hour, but foreign currency is gone everywhere, just rubles,” Vladimir, a 28-year-old programmer who waited online at an ATM in Moscow, told Bloomberg. “I got a late start because I didn’t think this was possible. I’m in shock.”

We are witnessing a full-blown financial panic in Russia right now, and things aren’t going to get any better any time soon.

And JPMorgan is projecting that the Russian economy as a whole will contract by 20 percent on a quarter over quarter basis

JPMorgan told clients in a research note reviewed by FOX Business on Monday that sanctions announced against Russia could have a “severe” impact on the country’s economy.

“We tentatively assume that Russia’s economy will contract 20% [quarter-over-quarter], saar, in 2Q, and for the year around 3.5%. But the margin of error for any such guesstimate is incredibly high at this point, and risks are skewed heavily to the downside,” the note reads. “

Obviously the western powers want to make things painful enough for the Russian people that they will start to turn against the war.

But these sanctions aren’t just going to hurt the Russians.

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