My friends, we are so deep into Clown World that the people wearing spinning bowties and giant red size-18 shoes are the ones looking at the rest of us like we’re the complete unhinged lunatics. We keep being told that the sanctions are working against Russia, and that the troubles that we see erupting all over the world are just temporary and transitory as we move toward the glorious rentier economy envisaged by Darth Schwab, in which we will own nothing, and be happy.
The problem with Oberfuhrer Schwab’s view, of course, is that the Russians and the Chinese didn’t quite get the memo.
Here is the Russian ruble, compared with the USD, as of today:
The ruble was trading as low as 62-64 to the dollar, just yesterday. The last time it was that low was when I was in Moscow, just before the Coof broke out there.
This is the only major currency to strengthen against the dollar. And it is doing so because the Russians have finally begun to unleash the true power of their commodities-based economy.
As I pointed out last week, the true size of the Russian economy is multiples of its current, nominal, size. When measured on a level footing with other economies, the Russian economy is roughly equivalent to Germany’s, and when you account for the sheer amount of wealth in and on and above Russia’s territory, you come up with numbers that are truly mind-blowing.
In fact, the economic centre of the world is rapidly shifting. If you add up the total economic power of the so-called “BRICs” – Brazil, Russia, India, and China – their amount of global wealth is well in excess of US$40T on a PPP basis.
This puts the “EurAsian World”, so to speak, more or less on parity (plus or minus a few trillion here and there) with the combined economic might of the West. The Russians, the Chinese, and increasingly the Indians understand this and are beginning to appreciate their true power. They assuredly will use it to bring wealth and prosperity to their peoples.
Meanwhile, all the Western world can do is sputter and shake their fists in what appears to be increasingly impotent rage. Consider that Russia is, as of now, the world’s most heavily sanctioned country, and by a considerable distance:
Yet the Russian economy continues to function. The ruble continues to strengthen. And we have received news just today that the Russians will be able to continue importing Western luxury goods through “parallel imports” – which essentially means bringing in the goods through third-party countries. This will jack up their prices, to be sure. (In fact, it is still possible to remit money to Russia through a similar mechanism, despite the near-total embargo by most Western payments processors on the Russian market. It’s expensive and slow, but it does work.)
In conclusion, I believe that the Western world is about to learn an extremely painful and prolonged lesson into the stupidity of sanctioning governments and regimes that it does not like or agree with. Israel would be well advised to take note, in fact – there is not one case that I can think of where a nation that has been subjected to brutal and harsh sanctions, has actually overthrown its government and bent to the will of the Western powers.
Whether we are talking about Cuba, North Korea, Iran, Venezuela, Myanmar, or now Russia, every single time sanctions have been imposed, the people have responded by finding alternatives and adopting an attitude of “mend and make do”. Sanctions force human ingenuity to flourish under deeply straitened circumstances. They strengthen the solidarity of the people, and they result in a population utterly hostile to the supposedly “benevolent” Western powers.
The true globalist evil of the West is being rapidly exposed for what it is. Not ONE of the countries on the list above is what most Westerners would consider a “nice” place to live – though, in the case of Russia alone, they are gravely mistaken. (I’ve lived in the West, and I’ve lived in Russia. Trust me, Russia is in many respects far better.)
But most sanctions regimes were put into place against countries that do not have the resource wealth and underlying economic strength of Russia. The West has now awakened a true commodities superpower with a strong, unified, deeply patriotic culture that weaves together over 190 different ethnicities into a true federated nation.
This “economic war of attrition”, as Alexander Mercouris often calls it, will end in precisely ONE way – the total defeat of the West and the crushing of its economies. Pray that the people of the West wake up and sentence them to the tender mercies of Madame Guillotine before we get to that point.