I dont understand your point regarding the West block vs Russia or China. What I am stating is that the West economy dwarfs any other economy. Let it be in talent, capital access, or whatever variable we choose, it dwarfs any other economy. Its a fact not an opinion.
All based on the US dollar which is no longer backed by gold or anything else... it is a house with no foundations built in Tornado ally...
In times of turbulence, and I can't think any bigger one than war, people will try to save as much as they can, and capital flight out of Russia is expected.
How many average westerners have money in foreign banks? I would expect only the very rich, and mainly for the purpose of hiding its existence to avoid paying tax.
That is why there must be implemented capital flight safeguards, otherwise it can be a downhill ball, with major effect on currency exchange for example.
I suspect Russians don't have an enormous amount of trust in their own banks, but banks of foreign countries would likely rate even lower in the trust stakes.
Ask Venezuela about the gold it kept in the UK....
If they both impose sanction on EU europeans will feel it much more than russians when they imposed sanctions on Russia.
And what is funny is that Putin spent the first 14 years in office offering partnership and cooperation with the west and they rejected him and Russia and just made demands and lectured him on why Russia was not European enough.
US, Japan, Germany, UK, France, Italy and Canada, all have bigger economies than Russia.
All those countries are broken... wealth is shifting from the majority middle class to the super rich and the middle class which used to be the majority and happy enough, are sinking into poverty. Most of the economies of these countries are bullshit hedge fund managers and Lawyers and people shifting around money like they are contributing something. Most manufacturing has been outsourced to other countries where the labour is cheaper and expendable.
The US alone has an economy which is almost 15X bigger. New York state alone has a bigger economy than Russia. Really close to Russia, you have Australia, Spain, South Korea or the Netherlands.
Yeah, but Russia has largely unexploited resources and natural wealth and it balances its books, while those countries you say have bigger economies are in debt to their eyeballs with no obvious way to pay it. Inflation will push up interest rates and that includes interest on debt...
After that you will still have like 30's other countries with a developed economy index to add up. Hopping that they will suffer the same amount of pain by reciprocal sanctions, its just delusional.
The truth is the opposite really... you could beat the crap out of your kid 30 years ago and they usually got the message, these days you just change the wifi password... the west is soft.... and that is why western sanctions have not been working and wont work... they just make Russia more independent.
Sure Russia has the energy card, sure Asia is growing and will surprass the West in the next century. Sure Brasil and Africa will have a saying in the world affairs in the future. But either we like or not, right now, the west is the economic powerhouse of the world.
The west only cares about the west... the world can't get better with them in charge, they want slaves and staff, they don't want rivals, which is why they are treating Russia and China the way they treat them... fear.
It's true that Asia will grow to catch the west, but sure as hell, it will take time.
It will take time because the west will fight it tooth and nail with sanctions, but for them there is now Russia and China to trade with instead... it is becoming easier already... hense the fear in the west.
I might have to learn Mandarin or Russian...
Especially because of talent and capital attraction that the West has. The USD its not by itself a mean of domination. Its just a mirror of the economic powerhouse that the US is.
And when the dollar collapses, watch the rats leave the sinking ship...
US indexes have been on the rise for more than a century now. I tend to agree that some companies are way overvalued. A healty corretion is already due.
Western indexes didn't even change when their populations were in lockdowns for the pandemic, which shows you their economies are meaningless indicators of nothing at all... it is a balloon that keeps getting bigger... but they can't continue forever...
Russia doesn't have a GDP on par with Germany.
When the gas stops Germany wont have a GDP on par with Germany...Economic stuff will be moved shortly...