Sanction Against Russia Set the Stage for the Next Real Big Crash
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This entire war of sanction against Russia will contribute greatly to the economic decline next year from 2015.75. Even the US economic growth is slow and unemployment is more than twice as high as it was when the Great Depression began when it was just 5% back then compared to 10%+ currently. With China, emerging markets, Europe, and Russia all in a desperate declining phase economically, the USA is the last pin holding up the world economy. This pin will be pulled next year and from there into 2020, things can only get much worse.
The sanctions against Russia will push economic growth in Germany to zero. The Ukraine crisis is seems to have been felt even in the first quarter. In the coming years, Germany could still experience significantly larger problems economically from the sanctions. German Economics Minister Gabriel has apparently stopped a business of Rheinmetall with Russia. The company will now lose 100 million euros.
Against the USA, Russia is now looking at imposing capital controls with American dollar transactions. That will only hurt the Russian economy even more.
Meanwhile, the Russian authorities continue their counterattack against Western Imports. The Americans have an extensive product range of hard drinks. If the Russians now start to discover impurities that could give the Russian industry a boost. McDonald’s consumer protection authority now wants to stop the importation of precious whiskeys from the USA. In the U.S., the Americans have banned the best cigars from their market due to the Cuba sanctions. The sanctions cost government nothing, they shift the burden to the private sector and always cost jobs on both sides.
