Sunday, June 29, 2014

Sanctions Starting To Hurt The Russian Economy

Russian President Vladimir Putin. © RIA Novosti. Aleksey Nikolskyi

Putin's Economic Model Showing Strain As Russia Is Cut Off From Global Finance -- Carol Matlack, Bloomberg Businessweek

Russia warned Ukraine today that it faces “grave” economic consequences, including potential new restrictions on trade, after President Petro Poroshenko signed a free-trade agreement with the European Union.

Such retaliation would certainly harm Ukraine, which sends about one-fourth of its exports to Russia. But the construction of new trade barriers only underscores the bunker mentality that underlies President Vladimir Putin’s management of Russia’s economy—and the increasing risk it poses to the country’s economic health.

In an eye-opening report today, Bloomberg News journalists in Moscow describe an economic system that’s increasingly run by the Kremlin, isolated from global markets, and starved for financing. Among the key points:

Read more ....

My Comment: I concur with this analysis .... mind you .... the U.S. economic model is also facing challenges .... Mainstream Media Admits "The US Dollar's Domination Is Coming To An End" -- Zero Hedge

1 comment:

James said...

There are now reports that the Jordanian Bedouin at Ma'an have raised the black flag. This is significant in many ways, but of great concern is that the bedouin have always been the monarchies staunches supporters.