New global economic tsunamis, courtesy of Cold Warriors and Fed hawks
After trade wars and the pandemic depression, the West’s aggressive sanctions and US rate hikes will derail economic prospects worldwide. The devastation has only just begun.
PRIOR to the Ukraine crisis, the Biden administration promised targeted sanctions that would inflict pain on Russia. However, Russia’s broader economy, its people and the world economy would not be harmed. Yet, that’s precisely what has happened.
Ukraine is the means. The maximum sanctions were designed to default the Russian economy (see my “The avoidable Ukrainian crisis, the unavoidable global hit,” TMT, March 14, 2022). US allies will take a severe hit in Europe, but Asia will not remain immune.
The world economy will shoulder the collateral damage. Developing economies will suffer the most. The recent shocks are a prelude to the global tsunamis to come.
Energy and food shocks
Commodities…
