Topic: Russian sanctions keep rates higher for longer in the west (Read 174 times)

Yes, Ukraine is now recycling on its front almost all the remnants of Soviet military equipment, which is collected throughout Europe, and not only in Europe. This already outdated Soviet equipment is being replaced in Europe by newer models of NATO military equipment. In addition, equipment and ammunition whose service life and shelf life are expiring and NATO countries had to spend decent money on their disposal are successfully disposed of by Ukraine among Russian troops. Also, for NATO countries, Ukraine is a good testing ground for testing new types of weapons and equipment directly in combat conditions.

But Ukraine itself is also not lagging behind in this regard. Ukraine is the only country so far where a special type of military has been created - the force of unmanned systems. Moreover, Ukraine is now creating more drones than all European countries combined. When the United States suspended the transfer of military equipment and ammunition to Ukraine for eight months, the Ukrainian Armed Forces held back the increasing onslaught of the Russian invaders mainly through their drones.

Also, Ukraine is now actively developing and implementing robotic unmanned ground systems, since it is initially inferior to Russia in terms of the number of ground forces and the ability to mobilize its citizens. For the first time, war is becoming more technologically advanced, where the military controls their weapons at a safe distance, and in this regard, Ukraine has accumulated vast practical experience that no other country has. The Ukrainian Armed Forces is becoming one of the most powerful armies in Europe.

1.USA controlling the oil market? Really? What about OPEC?
2.You don't necessarily need dollars to buy oil. China started buying oil from Saudi Arabia by paying with the Chinese national currency.
The "petrodollar deal" between the USA and Saudi Arabia wasn't prolonged.
3.The high interest rates have nothing to do with the sanctions against Russia. The higher interest rates had to cool down the high inflation, which was caused by the "helicopter money/stimulus checks" that were printed and thrown into circulation during the COVID-19 pandemic.
4.The USA is benefiting from the Russian sanctions, by having more European companies leaving the EU and investing in the US economy.
You are right about this.

That's the thing with evil, sometimes many people have to make small sacrifices in order to defeat it. Ukraine is paying in blood and misery every day. Russia can stop this pointless war at any time, it was only started to feed Putin's ego and desire to rebuild the Soviet Union. Anyone who is decent would be supporting Ukraine right now, as they have been invaded by their neighbor in an attempt to steal land. Their hospitals, energy infrastructure and schools are getting bombed every day because they will not bow down to Russian aggression. They are destroying every invader who dares to enter their land and Russia gets more desperate by the day. Putin will lose and he will fall, then Ukraine will take everything that has been stolen back again.

The two major candidates are well known by Vladimir Putin, so he will know how to make his decisions. Joe Biden has shown so much support to Ukraine but it seems it is not still enough to match the power of Russia. So if he wins the elections, the stalemate with no end in sight might continue. Trump once said that he could end the Ukraine war within 24 hours but nobody knows how he intends to do it. But his term as a president showed that his policies were pro-Russia and he is an admirer of Putin. So we might see a major shift in American policy towards the Ukraine war if Trump wins.


You are very correct. Obsolete weapons are been disposed and replenish with modern sophisticated weapons. But you shouldn't assume that it is only NATO that is rearming and gaining strength. Russian and it's partners are also doing the same. The reason for the stalemate in the war is because both parties are becoming stronger.

Putin's Russia committed a stupid and fatal act by attacking Ukraine. Now even ardent supporters of this war are forced to admit that Russia is not able to occupy Ukraine. For Putin, the situation is a dead end, he cannot stop and understands that continuing attacks on Ukraine only aggravates the internal political and economic situation in the country. Therefore, he has no choice but to hope for random events that can save this hopeless situation. In particular, Putin is awaiting the results of the presidential elections in the United States. Therefore, he will not make serious decisions on the war until November.

This war is generally beneficial for the United States, because due to the growing threat of a global war, NATO countries are rearming and becoming stronger, the military-industrial complex is overwhelmed with orders, and at the hands of the Ukrainians, their potential enemy number one - Russia is losing its military and economic power and authority in the international arena.

Exactly.
To complement that even more, China keeps the costs low while USA has massive expenses since China isn't at war with the rest of the world US is.

All that expenses means even if US goes back to manufacturing days and revive that "American Dream" thing they still will not be able to compete or fix the mess since all that money and more will be consumed by hundreds of thousands of troops overseas in wars the regime keeps starting.

I think this explains the entire global economy. In addition to the leaders of countries, we can also add tycoons, they make good money on everything and don't really care about everything else. And it is not their children who go to war, but the children of ordinary people. These are the games of powerful people from all over the world, and with all the information available, I think people are living in even greater darkness than before, the propaganda machine has never worked harder than now.

I feel sorry for all those innocent people who die in various wars around the world, but let's be realistic, if someone didn't have many benefits because of it, those wars wouldn't even exist. That's why hatred is spreading, more and more weapons are being produced and sold... what good can we expect from all that?

I think there was an accidental error in your post. It was not North America that sold Russia about five million shells, but North Korea. Yes, this country has taken advantage of Russia’s difficult situation and is selling it its defective shells in exchange for relatively new technologies from Russia. Many of the states you mentioned have some benefit from the Russian war, but Russia itself, which was counting on a completely different outcome of the war and a quick capitulation of Ukraine, will probably not have it.

Russia, due to its war of aggression and colossal losses in Ukraine, will lose a lot and will no longer occupy its former position as a superpower in the international arena.

It is very difficult to say who is benefitting from this war. Two countries that come to my mind are India and China. As per government estimates, India saved close to $25 billion so far, by importing discounted Russian crude oil and products. But this is from crude oil alone. India has also started importing huge quantities of other Russian commodities such as coking coal, wheat, Aluminum, Copper and Potash fertilizer. China is another beneficiary. North Korea has sold close to 5 million artillery shells to Russia, and they are also profiting from it. In case of US, it is a but messed up. They are benefitting from LNG exports, but at the same time higher price for gasoline is resulting in inflation within the borders.

Yes, the situation is interesting in any case. Putin, when attacking Ukraine in February 2022, did not count on confrontation from the United States and Europe. He thought of seizing the territory of Ukraine in a few weeks at most, placing his puppets there and making sure that the world simply did not have time to react to the aggression. But the Ukrainian Armed Forces ruined all the Kremlin’s plans. The war has been going on for more than two years, and Russia is receiving increasingly tough sanctions. A few days ago, the Moscow Trade Exchange was banned from trading in the dollar and euro, which caused a great panic with jumps in the price of the dollar up to 200 rubles. We'll see what happens next. Russia is now betting on the Chinese yuan, but China may not like it.

In any case, Putin is at a dead end. To withdraw troops from Ukraine and stop the war in order to gradually get rid of destructive sanctions actually means the collapse and death of Putin personally and his regime. To continue the war means risking Russia altogether, which could explode and disintegrate into many small republics. For now, Putin chooses preserving his life rather than preserving Russia.

And the United States simply has no choice but to take advantage of the situation.

Then why is the US raising the interest rates? Why don’t they print even more money to reduce the value of the Dollar? I know they are trying to lower the inflation but they can’t have cheap usd and low inflation both.

Either the UsD should be expensive and the inflation will be low or, the usd should be cheap and inflation will be high.

This is where China is winning.

They have cheap CNY and low inflation. *Brain explodes*

how?

It is because they make stuff. Lots of stuff. Their manufacturing power is simply unmatched.

The US used to be like that too, long time ago.

You are onto something here but things aren't that simple.
These sanctions helped US find new markets for exports of its own fossil fuels and other goods (specially weapons) but that also meant increased energy prices that caused inflation in US itself.

Same with interest rates. They tried to control that inflation by increasing rates but that caused a recession in the US which means those exports are affected now.

You also talked about "monopoly in economy" but you are missing the fact that keeping US dollar strong is actually hurting the US economy! Best way to understand this is to look at what China has been doing. They intentionally keep the Yuan exchange rate low to keep their products cheap in the global competitive market.
When your currency is too strong, your products also become too expensive to export. That is what dollar is, artificially strong which means US made products are too expensive to compete.

This is exactly why USA set another record in trade deficit last year of over a trillion dollars[1], and a $280 billion deficit with China alone[2]
[1] https://www.census.gov/foreign-trade/balance/c0004.html
[2] https://www.census.gov/foreign-trade/balance/c5700.html

The only reason why US economy hasn't crumbled to the ground is because it is now the biggest successful Ponzi scheme in the world. They print debt and sell it to other countries. This is why Japan as the biggest buyer of that debt is seeing a dump in their own currency and their economy is starting to see the consequences of "importing" US inflation...

This is how
The world is one big Market everybody doing buying and exchanging.
Currencies like usd itself are like commodities some ways some how.
We need oil right ? The crude oil so we need dollars to get that when rates higher dollar price higher when rates lower dollar price lower.
So you wanna get oil you need dollars If price of dollars are too High you don't want it you either will not buy that oil or you wait when dollar fall lower... but now we don't have options becouse of economical sanctions we see dollar price too High we buy oil from russia....but now we cant we have to buy the oil even If the dollar goes higher.
In other words russian sanctions are USA monopoly in economy among Western countries.
Off course many country leaders see that but they make good salary and their family and friends are good yes the average people might suffering but the leaders don't care but yes they Understood very well what i just explained.
Now the usa Control oil market and they want also to control crypto...so If rates will go much higher from here the another countries will pay for higher dollar that off course will make many countries whos in the west to over brics countries side.
And until the russia and east get sanctions more then more the Western countries will depend of USD and yes rates can go higher until there is strong sanctions placed.
So Putin war benefit USA mostly becouse of sanctions world is now forced to pay the vist of higher dollar. 
Not before ever had the USA so good opportunity to make rates higher of the dollar.