The Last Straw, by James Rickards

Russia is resilient enough to recover from U.S. sanctions. From James Rickards at dailyreckoning.com:

The U.S. and its allies in the EU and others around the world have imposed the harshest economic sanctions on Russia that have ever been used. In the past, even nations directly at war with each other would continue to pay the debts they owed each other.

Since this war is in Ukraine, let’s look at another war that took place in present Ukraine from 1854–56, during the Crimean War.

Britain (and France) was at war with Russia. Yet throughout the war, the Russian government kept paying interest to British holders of its debt. The British government also kept paying its debts to the Russian government.

One British minister said that civilized nations should pay their debts, even to an enemy during wartime.

But that was then and this is now. The U.S. and its European allies outside of Ukraine aren’t even directly at war with Russia (not yet anyway), but they’ve still imposed the most punitive economic sanctions in history.

To a great extent, the Russian economy has been cut out of the global economy.

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