State of Western Economy
The reason for the high magnitude of economic disruption experienced by the western economy was among other factors largely exacerbated due to carelessness and fiscal indiscipline. During the Covid-19 pandemic period, while a large number of bigger economies of the global south exercised adequate fiscal prudence, the nations of the collective west resorted to imprudent fiscal measures like large and indiscriminate stimulus cash distribution among its people. They were reckless in opting for huge amounts of currency printing to achieve these objectives. This led to unsustainable quantitative easing, thus sowing seeds for a subsequent period of higher inflation. Perhaps, the situation could have been managed through corrective measures that they might have taken after the period of the pandemic… However, that was not destined to be so.
As the Covid-19 pandemic began to settle down, the Ukraine-Russia conflict that started on 24th February 2022 upset the applecart. Thereafter, the western nations made economic blunders one after another. In a knee-jerk reaction driven by the insane obsession to contain Russia by destroying its economy, the west began to shoot itself in the foot. Economically ill-advised and reckless choices were made by the west. They chose to mindlessly impose a plethora of economic sanctions on Russia. These sanctions were not carefully considered. The only aim was to hurt Russia as hard as possible. In the process, the west completely forgot the basic laws of economics. If they had applied a cool mind before applying the sanctions, they would have known that these sanctions would never work. The west seemed to completely forget that, unlike other countries they sanctioned over the decades, Russia is virtually sanctions-proof due to it being very generously endowed with natural resources and agricultural production. In their adamance, the west ended up effectively sanctioning themselves with their own sanctions. After all, the free flow and supply of Russian commodities were essential for their own sustenance and wellbeing.
Check out the state of the western economy in the following graphs and tables that are maintained up-to-date on a monthly basis. Various economic indicators for Russia, the USA, the UK, and Europe are depicted below… While Russia despite the heavy sanction levied on them is doing fairly well, the collective western economy appears to be struggling and seems to be in an unhappy state. Read the Article World Order for a background on reality.
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