Economic Armageddon hits Russia ๐Ÿ“‰

Economic Armageddon hits Russia ๐Ÿ“‰

Total shitshow: as the global markets opened one by one on Monday, the crippling sanctions went into full effect, ensuing total chaos for Russian banks, the Oligarchs, and their money managers worldwide.

Russia further shocked the system by changing its fiscal policies, and by closing its stock markets. Adding more fuel to the fire, large global businesses, one after the other, started running away from arrangements they had going on with Russiaโ€™s business world!

Some major happenings worth calling out: โ˜๏ธ

  • Ruble goes kaput: after being cut off from the interbanking payment network, Russiaโ€™s Ruble, came crashing down more than 30% on the dollar.
  • To avoid hyperinflation, the central bank more than doubled interest rates overnight to 20%+ โ€” a total death spell on small business and average people.
  • Turns out much of the foreign reserves Putin had collected ($630 billion+) to massage the impact of sanctions is apparently held in banks in New York, Tokyo, Zurich โ€” which is becoming easy for Biden to play craps with ๐ŸŽฒ
  • The worst moral blow came when Switzerland, an otherwise vocally neutral nation, joined forces with the allies, freezing Russian money held in Swiss banks and scaring Russian money-pants for their life savings
  • BP exits Russian oil: British Petroleum says it will offload its 19.75% stake (worth $14 billion) in Russiaโ€™s largest oil company, Rosneft โ€” overnight ending a 3-decade old partnership. Shell and a bunch of other companies joined the roster too.
  • Norwayโ€™s oil fund, one of the largest sovereign wealth funds worldwide, is dumping all its Russia investments (worth about $3 billion).

Public pissed too: with cash drying up, people fled to ATMs causing a demonetization-like scenario across major Russian urban areas. Apple and Google Pay cut off payment networks in the region too, causing major delays affecting shopping to public transportation.

  • Meanwhile, with flights in and out of Europe closed, hundreds of thousands of Russians now find themselves stranded in foreign countries โ€” with no way back, and no cash to spend.
  • Lastly, after talks at the Belarus border with Russian envoys failed, Ukraine signed a document to apply to enter the European Union formally โ€” which could seriously escalate the conflict to a whole new dimension.
  • While this goes, public suffering continues unabated. Axios says 500K people have been displaced. Unofficial stats claim 200+ Ukrainian civilian casualties.
  • Bottomline โ€” there is no precedent for whatโ€™s happening here! If anything is certain, its that Russia will take years to financially recover from this.