How Russia Could Bankrupt the U.S.Submitted by Smaulgld.com on Wed, 08/13/2014 - 16:33
The Impact of American Sanctions on Russia and Russian Sanctions on America
17:15 - 21:45 the U.S. is miscalculating the impact that sanctions on Russia and their retaliatory sanctions will have on the United States. They have the potential to cause price inflation in the U.S.
Obama Scoffs at Russia
Obama scoffs at Russia, claims they don't have much of an economy citing that no one is moving to Moscow to get a job. The U.S. view of Russia is that it is a gas station masquerading as a country. This view severely underestimates Russia.
The more non dollar deals Russia does with others and convinces others not to deal in the dollar impacts the demand for and value of the U.S. dollar, reducing its value and causing the price of all imports to the US to rise.
As prices rise in the US the government will have to recognize the rise in the CPI and increase the payouts on social programs. This would have the impact of further putting the US into debt. Where would the money come from to pay for the increased social spending? print more, which will cause even more price inflation.
It seems like the same tactic the U.S. used on Russia in the 80's -outspend Russia on the arms race until they collapse. Today is seems that Russia is trying to create an environment where the US over spends on social programs until it collapses.
Russia's Plan to Bankrupt the United States