Russia's Dark Future Story by Willis Sparks • 1d • 4 min read
Russia’s dark future
© Sputnik/Mikhail Metzel/Pool via REUTERS
At first glance, Russia has coped well under the weight of Ukraine- related Western sanctions. In 2024, its economy grew at a faster rate than every G7 country. Though Europe has gone almost entirely cold turkey on Russian oil and gas supplies, thirst for these resources in China and India, quenched by a shadow tanker fleet that helps evade those sanctions, has kept Russia’s energy trade stable.
Longer term, climate change can help. Warming temperatures will open new Russian lands to farming and boost its agricultural output. They will open new sea routes that lower Russia’s cost of commerce and bring revenue from transit fees imposed on others. Perhaps most importantly, the Kremlin has long claimed it can transition from its currently heavy reliance on oil and gas exports to deeper investment in wind, hydro, geothermal, biomass, hydrogen, and solar energy.
But the realities of Russia’s future are darkening.
Its economy has become addicted to war in Ukraine. Its growth over the past two years was fueled mainly by the tidal wave of military spending needed to eke out modest gains in what’s become a war of attrition. Military and security spending now make up about 40% of Russia’s total government expenditure. This spending surge is sending inflation into overdrive, forcing Russia’s central bank to raise interest rates to a record 21%, raising borrowing costs for businesses and slowing future investment. Manufacturing has slowed and ordinary Russians aren’t spending.
Click for Full Text!
Poster Comment:
They must bite the bullet in Russia over the sanctions. But there is one overriding factor, Russia has a Rothschild controlled Central Bank.
In the US. in the 1930s, the banks refused to make loans, and this cut the flow of money greatly because of the banking rule of Fractional Reserve Banking where the banks create money out of thin air. They can loan out 10& of the money on deposit and the other 90# is created out of thin air.