Russia – Economic and Financial Collapse

March 23, 2022

Russia – Economic and Financial Collapse

Padmini Arhant 

President Vladimir Putin’s war against Ukraine and Ukrainian citizens in reality transformed into the Russian President’s war against own nation – Russia, Russian economy and Russian financial system. This statement repeated on this site numerous times earlier and until now to alert the Russian leadership on the grave mistakes of launching the illegal invasion.

No wars can continue endlessly and the aggressor inevitably deal with self-inflicted economic damage in the domestic front. The situation is evident in the Russian economy due to state divestments from domestic economic activities to financing the bombing and shelling of civilian areas in the target nation.

The economic and financial sanctions are also contributing to economic squeeze and freeze as a result of the unnecessary and preventable invasion of foreign land.

The locals in the nation i.e. Russian citizens are subject to long lasting economic pain and suffering worse than the intended prolonged misery against the people of Ukraine.

President Vladimir Putin’s personal goals through military intervention in Ukraine is backfiring at home.

Meanwhile, Russians are forced to accept the crises as Kremlin’s noble cause to liberate Russian speaking citizens in Donbas region despite the relentless military attacks in Ukraine economically and financially punishing native Russians in Russia.

Notwithstanding the heavy losses of Russian lives in the conscripted service to kill innocent civilians in neighboring Ukraine.

The world is collectively engaged in extending support to civilians in Ukraine. The demoralized Russian forces deployed against their will in the President Vladimir Putin’s war are victims as well without recourse in the Russian political system.

The Russian President Vladimir Putin’s military infiltration in Ukraine has invited economic war against Russia. The senseless battle raising buildings, infrastructure and civilian homes to rubbles might be considered some achievement in the military assessment. However, the deeper effects are actually felt in Russian economic and financial affairs.

The Russian rubles devalued further lowering the economic and financial affordability among Russians pushed into dire straits.

Under these circumstances, no military action or besieged cities and port in invaded country could be declared a victory at the vast and substantial expense of the domestic economy.

The pressure and frustration is palpable even among Russia’s elites and wealthiest oligarchs having suffered enormous financial losses in the economic fallout with the rest of the world.

The worldwide consumption of Russian Vodka could also take a serious hit in the global awakening to Russia’s ongoing war in Ukraine with images clarifying the aerial assaults caused deaths and destruction of innocent lives in the Russian President Vladimir Putin’s so-called special operations.

The liquor industry replacing Russian Vodka in the marketing and distribution would strongly impact the cash flow expended at military violence against Ukraine.

The global response in this particular line of action would demonstrate solidarity in the universal call to Moscow to end the conflict effective immediately with ceasefire and termination of Russian aerial bombing, air raids and military incursions in and around Ukraine.

A minor sacrifice at individual level from across the globe related to Russian key economic product – Russian Vodka and other popular items in the liquor industry and consumer goods would save lives in the unreasonable and ill-conceived war on the people of Ukraine and Russia.

Padmini Arhant

Author & Presenter

PadminiArhant.com

Prakrithi.PadminiArhant.com 

Written by Padmini Arhant · Filed Under Eastern Europe, Featured | Leave a Comment 

United States – Federal Reserve Banking Deregulation

June 1, 2018

Federal Reserve Banking Deregulation 

Padmini Arhant

The Federal Reserve vote on banking deregulation two days ago renamed as Volcker 2.0 from the earlier one Volcker rule named after the ex-Federal Reserve Chairman Paul Volcker merits attention. 

The deregulation favoring major banks apparently with bipartisan support that includes a Democrat Lael Brainard among three sitting Fed Governors is claimed as simplification of the previous version. 

As such, Congress having blocked the rule that allowed consumers recourse against banks in addition to repealing fair lending practice in auto industry stated to have discriminated minority borrowers from white peers do not bode well in the economy comprising diverse consumer base.

The  Federal Reserve move towards new rule Volcker 2.0 cheered among  finance sector lobbyists in Wall Street and big banks having been responsible for financial crisis drowning significant number of homeowners and ordinary citizens in deep financial situations forcing bankruptcy and foreclosures on many beyond salvation requires public debate and approval rather than decision among core members representing vested interests.

The taxpayer insured banks and public deposits in financial institutions and importantly mortgage securities deserve scrutiny and regulatory compliance considering the banking industry earlier ventures and unrelenting activities that led to taxpayers bailout of the banks and finance institutions.

The ordinary taxpayers were abandoned in the mortgage fiasco while the big banks and hedge fund companies were rescued using the same taxpayers hard earned tax dollars in the do or die call following financial sector debacle. 

What has been recognized by common citizenry from past experience and established now is there will be no such thing as Bank or Insurance Industry Bailouts using taxpayer funds regardless of any dire scenarios sketched in the SOS – Too Big to Fail moment.

Though the new rule reported to retain the earlier version’s restrictions on speculative trading also known as proprietary trading, however providing classifications on trading activities for possible risk laden investments at banks discretion are to be weighed carefully given the finance industry’s notable impulsive characteristics for undesirable options. 

The article will resume highlighting other concerns related to Wall Street and Federal Reserve measures to ease regulations that are meant to protect ordinary citizens and common taxpayers being the overwhelming majority in the economy against the top 1% targeted goals to continue business as usual at the former expense.

Thank you.

Padmini Arhant

Author & Presenter PadmjniArhant.com

Prakrithi.PadminiArhant.com 

Written by Padmini Arhant · Filed Under Business, Featured | Leave a Comment