Why the world is waging an economic war against Russia

Russia's financial system was hit this morning by something far beyond the normal set of sanctions and is better seen as a form of economic war.

This is the deployment of heavy weapons in the financial scene of the war. And it is designed to push the whole of Russia into the deepest recession possible, with more unrest in the bank runes.

It could come from Russia, the driving force in terms of its financial and social stability, for the invasion and bombing of Ukraine, and take it home to the Russian people and all the elite. in Russia, they hide doubts about the actions of their president.

Managing a central bank in the G20 is incredible. According to the European Commission, it is supposed to "paralyze the ability of the Russian central bank" to protect the Russian financial system from sanctions. As the White House made clear: "We intend to put in place measures to ensure that Russia does not use its central bank to support its currency and harm the impact of our sanctions." According to Foreign Minister Liz Truss, the Allies "are doing everything in our power to damage the Russian economy."

Central banks often have sovereign resistance. Russia's central bank's goal was to disarm $ 630 billion from Russia's state defense. On the day of the attack, interventions with these reserves helped save the ruble after falling to a record low against the dollar.

Former Russian Prime Minister Mikhail Kasyanov wrote on Twitter that the West was "freezing Russia's international reserves" by targeting the central bank.

"No one else can support the ruble. Turn on the printing press. Hyperinflation and economic disaster are just around the corner," he added.

These measures have made the ruble a way to reduce investment in today's money markets. At the same time, the participation of Russia's leading domestic retail banks in the Swift messaging system has created some domestic uncertainty. Russia's central bank must reassure the public and markets that it has an unlimited amount of rubles to ensure the stability of the system. There is a risk that the market crash will spread beyond Russia.

But it is a unique weapon, designed for a unique situation. Countries that account for half of the world's multi-supplier financial force versus one that accounts for 2% of the world's economy are continuing to export energy and nuclear weapons in bunkers.