When Donald Trump was reelected in November, many investors declared the so-called Trump Trade would spur US stocks to new highs. But markets are now spooked by fears the world's largest economy is close to recession.
10 of the last 11 recessions happened under Republican presidents. Recessions are more effective at widening wealth inequality than even the most aggressive tax plan changes. The longer the recession, the higher the damage goes into the middle class, as privately owned businesses begin to fold and get scooped up by corporations.
Because russia is not prepared at all for a recession. They have high inflation and stagnation at the moment (because of burning cash for the war, among other things), this is called “stagflation” and is just by itself a hopeless mess; if you up the steering rate to stop the stagnation and you kill the economy (the rate is already at a ridiculous 21%), lower the rate to favor economic growth and the inflation (which is according to the kremlin somewhere at 10%, but at over 70% for food according independent alalysists) will spiral out of control.
It’s already an impossible problem to solve, add a global recession and it just gets way worse.
It’s a problem you encounter because money is just an abstraction for real world conditions and resources. I think people forget that. Printing more money doesn’t make your country magically have more resources. It doesn’t manufacture tanks for you or vanquish your enemies.
I still remember the picture from the history book where in Germany between ww1 and ww2 they were burning bank notes for warmth because inflation made the currency almost completely worthless.
The russian economy is not only tied to but dependent on the wests import of natural resources.
How in the world did you figure russias economy is not tied to “our” (I’m european, but the us and eu economies are all intertwined) economy? “Famously” so too?
If USA says don’t buy russian oil or you’ll get secondary sanctions (e.g. you can’t trade with the US) then india, china will (and are) stop buying russian oil. This is what is actually happening by the way.
I didn’t mean we can’t impact their economy. I meant the US economic success is not tied to theirs. If our economy collapses, theirs will actually improve, not get worse.
The person I was replying to implied that our coming recession would also be bad for Russia. I think it’s the opposite.
10 of the last 11 recessions happened under Republican presidents. Recessions are more effective at widening wealth inequality than even the most aggressive tax plan changes. The longer the recession, the higher the damage goes into the middle class, as privately owned businesses begin to fold and get scooped up by corporations.
The silver lining is that it’ll fuck up russias economy even worse
Russia’s stock market has been in a boom since Trump began his tariff tantrums.
https://tradingeconomics.com/russia/stock-market
Wow yeah that’ll save them lol.
No, their economy is in dire straits all right.
Oh for sure. This is just a representation of how Russian oligarchs are doing, not the working class.
Why
Because russia is not prepared at all for a recession. They have high inflation and stagnation at the moment (because of burning cash for the war, among other things), this is called “stagflation” and is just by itself a hopeless mess; if you up the steering rate to stop the stagnation and you kill the economy (the rate is already at a ridiculous 21%), lower the rate to favor economic growth and the inflation (which is according to the kremlin somewhere at 10%, but at over 70% for food according independent alalysists) will spiral out of control.
It’s already an impossible problem to solve, add a global recession and it just gets way worse.
It’s a problem you encounter because money is just an abstraction for real world conditions and resources. I think people forget that. Printing more money doesn’t make your country magically have more resources. It doesn’t manufacture tanks for you or vanquish your enemies.
I still remember the picture from the history book where in Germany between ww1 and ww2 they were burning bank notes for warmth because inflation made the currency almost completely worthless.
Yes, they are definitely trying to have the cake and eating it at the same time.
No, I mean why would US economics affect Russia, a country that’s famously not tied to our financial system?
The russian economy is not only tied to but dependent on the wests import of natural resources.
How in the world did you figure russias economy is not tied to “our” (I’m european, but the us and eu economies are all intertwined) economy? “Famously” so too?
If USA says don’t buy russian oil or you’ll get secondary sanctions (e.g. you can’t trade with the US) then india, china will (and are) stop buying russian oil. This is what is actually happening by the way.
I didn’t mean we can’t impact their economy. I meant the US economic success is not tied to theirs. If our economy collapses, theirs will actually improve, not get worse.
The person I was replying to implied that our coming recession would also be bad for Russia. I think it’s the opposite.