Alex Christoforou
The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of this site. This site does not give financial, investment or medical advice.
The Duran’s Alex Christoforou and Editor-in-Chief Alexander Mercouris discuss a Bloomberg article on US sanctions against Russia, and their effect on the Russian economy.
Are the US sanctions working, and will the Bloomberg article convince the European Union to ramp up their sanctions against Russia as well?
Western policy makers proceed with an all out blitz to bring the Russian economy to its knees, and under neo-liberal hegemon control…but has their sanction policy actually worked, as Bloomberg claims, or is their something hiding behind the charts showing a dip in Russian GDP.
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Bloomberg argues U.S. sanctions against Russia are working…are they? by The Duran
The Duran – News in Review – Episode 154. The Duran’s Alex Christoforou and Editor-in-Chief Alexander Mercouris discuss a Bloomberg article on US sanctions against Russia, and their effect on the Russian economy. Are the US sanctions working, and will the Bloomberg article convince the European Union to ramp up their sanctions against Russia as well?
“U.S. Sanctions Cut 6% Off Russian GDP Since 2014, New Study Claims,” via Zerohedge…
A new study by Bloomberg Economics claims that US sanctions have knocked as much as 6% off Russia’s economy over the past four years. The findings highlight the general devastation that Washington and E.U. sanctions against Moscow wreaked in the aftermath of the Crimean crisis in 2014.
According to the authors the estimate is based on a growth forecast that would be reasonably expected according to indicators at the end of 2013 if the crisis had never happened. The study found that while some of the blame is due to the slump in oil prices, sanctions have been the bigger driver, and perhaps partly the introduction of inflation targeting and a sell-off in emerging markets could be other factors.
According to the report, “The underperformance has been much bigger than crude alone can explain.”
Scott Johnson, study author and analyst at Bloomberg Economics in London, concluded “Part of the gap is likely to reflect the enduring impact of sanctions both imposed and threatened over the last five years.”
Bloomberg reports of Moscow’s reactionary measures in the face of sanctions:
Policies aimed at protecting the nation from future sanctions by building up reserves have made it more resilient, but they have come at the expense of growth. Still, the Kremlin argues that the sanctions haven’t had an impact on its foreign policy.
Perhaps more notably the Russian economy will continue to slide, according to analyst predictions:
However, the fact that the gap in potential versus actual growth continues to widen implies that sanctions are having a prolonged impact, the analysts said. The lingering effect puts under question Russian government forecasts that policy changes and investment will push GDP growth above 3 percent by 2021.
“It’s possible, but that pace won’t be sustainable without a dramatic pick-up in productivity gains,” Johnson wrote. “If sanctions remain in place, as seems likely, that’s one more reason to expect the economy to come up short.”
Meanwhile the U.S. State Department announced this week it’s actually considering further rounds of draconian sanctions related to the Skripal case.
US Assistant Secretary of State for International Security and Nonproliferation Christopher Ford said on Wednesday: “Under statute… there is a menu of options if you will, things that need to be considered. As part of that, we do not have an inter-agency decision answer on what those pieces are yet. It is under active consideration.”
He threatened further: “The second round of sanctions under the statue is a more draconian menu than the first round.”
And later in the week on Friday Secretary of State Mike Pompeo promised efforts toward a further squeeze on Russian energy export efforts, saying on Friday, “We will keep working together to stop the Nord Stream 2 project that undermines Ukraine’s economic and strategic security.” Nord Stream 2 is expected to be put into operation by the end of 2019 and is seen as a vital European lifeline Russia needs to halt its economic slide, and an issue where Europe has shown itself unwilling to bow to US demands.
The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of this site. This site does not give financial, investment or medical advice.
In essence, Bloomberg’s estimates are of opportunity costs, but they fail to look at the positive impact of domestic substitution, e.g. in Russia’s agriculture sector or at Russia’s huge infrastructure investment during the same period, its de-dollarization and its strategic partnership with China and its allies in numerous bilateral and multilateral coalitions. Nor does Bloomberg give weight to the durability and endurance of the Russian people in the face of existential threats from abroad, or the fact that what they may have been giving up temporarily, pales next to their experience in the early 1990’s or in WWII. Russians are… Read more »
Bloomberg is just another fact-falsifying Zio-liar scheme that also isn’t being honest about Russia’s great gains because of these BS-based futile so-called sanctions and the power of Russian countersanctions.
Unbelievable… simply unbelievable that The Duran would give traction to what is arguably one of the core vehicles of the ZioMedia propaganda network. Bloomberg isn’t known for its objectivity. Why is The Duran trying to give Bloomberg traction..? This makes no sense. (And they left out consideration of Russia’s increasing Gold Reserves and massive infrastructure spending.)
In order to allow us all to learn that very fact and have it masterfully deconstructed.
Normal people are never too old to learn and Bloomberg, Israel and the CIA are their own worst enemies.
Of course their lies should be published and demolished.
If we were given the actual facts of unemployment in the US,real economic numbers instead of the made up info to keep the wheels of wall street well greased ,we would find that America is in very bad shape .The only thing keeping the wheels from falling off is the continuous lies about how great the US economy is .It is not based on reality.Eventually and I believe soon,the emperor will be seen as having no cloths on.
Russia has been taking the proper steps to cushion for that event.
It is not possible to distinguish between Bloomberg and the Jews in Palestine. They are the fuel that is responsible for the misery/killing in the Middle East.and the attack on Iran.
The last three presidents have been surrounded by a cabal that had the jews interest paramount. The majority of them travel with an “Israeli” passport.
lol ‘The BLUEmberg line.’ AKA as Hasbara/CIA rubbish.
Bloomberger would of course have to lie since its captive nation, The USA, has shot the EU in the head, and itself, for now, in both feet, in imposing its disastrous sanctions across the world.
As Lavrov has pointed out, an agreement and competition-incapable USA has only one tool in its box: Economic and industrial sabotage for the world community.