Undoubtedly inflation will be the first blow to be faced because of this armed conflict between Russia and Ukraine in a utopian attempt by Russian President Vladimir Putin to return his country to its maximum splendor as the Union of Soviet Socialist Republics; the USSR.
As crazy as it sounds, Putin does not fit into that communist model being a consummate autocrat, with no support from the Russian population that detests him and is against the conflict.
Some media outlets such as CNN explain that the Russian soldiers who entered Ukraine were ordered to enter as part of a drill. They do not carry ammunition weapons as if they were real soldiers.
Still and with all the mistakes Putin is already at a point of no return. Everyone is his enemy, even China and its president do not support him in his invasion.
However, the economy in Russia is starting to take its toll on the population. The sanctions imposed by the West are beginning to wear down a ruler who believes he will remain in power forever.
The first blow is the collapse of the ruble, its local currency, which has already fallen by 30%. The Bank had to raise interest rates from 9.5% to 20% to contain the devaluation.
The collapse in the value of the ruble is eroding the currency’s purchasing power and the savings of more than 140 million Russians are at risk, BBC World reported. The lines of people at ATMs to get cash are starting to get very long. Russians are afraid that from one day to the next their banking system will start to fail and that limits on withdrawals will be imposed. Things are not looking good there and here on this side?
The war in Ukraine and its consequences for the West
The consequences of the conflict between Ukraine and Russia are beginning to show their tentacles. Inflation is starting to take off in countries such as Guatemala and the rest of Central America.
The increase in fuel prices is beginning to be felt. Hyperinflation will be the order of the day. Many economic analysts already saw a possible recession in the distance. While the West has started with a sanctions package, things will not look good when Russia approves its sanctions package against Europe and its friends.
Russians are already considering emigration. They face many disadvantages. One for example is repression for those who speak ill of the regime and the war. In addition, with the increase in interest rates, the prices of products will begin to rise until suddenly shortages begin.
The delirium of Russian dictation is starting to hit rock bottom. Perhaps Putin thought at some point that by invading Ukraine, the plundering of the national coffers of that country could be a strong injection of capital into the Bolshevik empire.
How well will sanctions on Russia by the West work? Russia, since its annexation of Crimea, has large foreign exchange reserves and has redirected trade to replace Western imports in order to evade sanctions.
Putin wants to prove that he will be able to survive the sanctions. In the event that they cut off the Swift system, a global messaging service overseen by major central and western banks.
In the West, the dagger in the stomach will be fuels. With the projection of Q45 per gallon for April, things are not looking good. As we know, as fuel rises, so do all the products in the basic food basket. We do not know how long this occupation will last but for the West, the shows of solidarity to the Ukrainian people and the repudiation of the Russian one, will leave us with empty pockets and more poverty.
