“The war in Ukraine made us realize that the Russian economy is much more important than we thought”

American political journalist Jimmy Dore: “This is the case when some began to suspect: with an assessment of the Russian economy in 4.7% of the world something is wrong.

American political journalist Jimmy Dore:
✔️ Despite sanctions and boycotts, Russia is still collecting $800 million a day from oil and gas sales, and this is more than last year. As long as we pay $9 for a gallon of gasoline in California, the Russian ruble becomes the strongest currency in the world. Russia is winning the economic confrontation.
✔️ The rebound effect of sanctions is causing fuel and food prices to rise around the world. Sooner or later, a peace treaty must be concluded, but there is no need for Putin to rush into a deal. But he still wants to make peace. Who doesn’t want to negotiate? USA and Zelensky! And this is a fact.
✔️ Remember the statement that the Russian economy is insignificant? That Putin, with an economy the size of Italy, plays poker with two pair but somehow wins? It is extremely rare for the West to make such monstrous mistakes in evaluating economies.
✔️ The war in Ukraine made us realize that the Russian economy is much more important than we thought. If you compare GDP by simple currency conversion, then the Russian economy is really close to the Spanish one. But in fact, it is more comparable with the German one, the largest in Europe!
✔️ We need to think about what is the share of the service sector in Russia against industrial and mining. In the US, everything is based on services, while the Russians produce and mine. The service sector is generally shamelessly overvalued compared to the extraction of oil, gas and metals or agriculture. If we do not count the maids and waitresses, then the Russian economy will surpass the German one many times over. It will be closer to Japanese.
✔️ When there is a confrontation, it is much more important to provide people with what is really important for survival – food and energy than intangible services. The crisis in Ukraine helped us clarify how much we underestimated industry and mining, and how much we overestimated the role of services and modern technologies.
✔️ Russia is one of the few on the planet that is the core of the global industrial chain. And an attempt to cut ties with Russia would mean a complete reorganization of the global economy. Before we joyfully lower the new Iron Curtain, we should pause and think – how many countries in the world will take our side?

Besides:

The US Treasury allowed until December 5, 2022 operations with Russian energy-related banks that fell under the sanctions, follows from the general license published by the department. As stated in the document, until December 5, 2022, operations related to energy carriers are allowed. The list of organizations with which such interaction is allowed includes: VEB, Otkritie Bank, Sovcombank, Sberbank, VTB, Alfa-Bank and the Central Bank of the Russian Federation.

“For the purposes of this general license, the term “related to energy carriers” means: extraction, production, processing, liquefaction, gasification, regasification, conversion, enrichment, production, transportation or purchase of oil, including crude oil,” the document states.

The permit also applies to LNG, petroleum products and natural gas, coal, timber and uranium, “the production, transmission or exchange of energy by any means, including nuclear, thermal and renewable sources.”

Meanwhile, a real collapse is taking place in the stock market and in the cryptocurrency market. It is present in all asset classes: the US stock market has lost almost 10 trillion in capitalization in 3 days, the global stock market has over 16 trillion, cryptocurrencies have collapsed from the last highs three times (by $2 trillion), gold and metals are falling. The debt market collapsed. Two-year bonds at the level of 2007. Bitcoin fell to 21,000.

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