derriz wrote: ↑Thu Jun 09, 2022 3:19 pm
The war in Ukraine isn't helping matters but it's a tiny factor in causing the current economic woes around the world. If the war stopped tomorrow, the global economy would still be in the shit.
Oil prices had been rising steeply long before the invasion of Ukraine started, for example. I has risen about 20% since the invasion but that's after rising about 100% over the year prior to that.
Rising interest rates were inevitable since monetary policy never tightened fully after the GCF, only to be loosened even further during covid. Fiscal policy the same - governments running massive deficits to keep things ticking over during the lockdowns - at some stage the government spending party has to stop.
Just because the world is back to pre-covid patterns of living, doesn't mean the economy experiences an immediate return to normal. The world economy is still see-sawing from the massive economic, trade and investment shock/contraction caused by covid. There was a "see" spurt of "catch-up" growth (which also fuels inflation) followed by the "saw" of where we are now.
Add to this, the slow collapse of the Chinese economy - which is property related and predates the invasion of Ukraine by a year if not more.
The cost to the west of sustaining the war - in term of financial and military support is minuscule. Even the cost of supporting the refugees is not that significant for western governments. I'm also skeptical that we're all going to starve - wheat prices are already 30% below their March peak as big producers - like the US where farmers has a lot of flexibility on what cereals they grow - are stepping up to increase production.
If if you can cold-heartedly ignore the horrors of what the Russians c*nts are inflicting on the Ukraine, being completely selfish bastards, the benefits to the west are huge - for a 30th the cost of the Iraq war for example, we effectively get to take out the military capability of one of the two of the biggest and most destabilising f*cking asshole countries that have spent the last 2 or 3 decades invading and threatening neighbours, promoting propaganda globally, conducting murders in broad daylight in the west, shooting down passenger aircraft, etc.