All articles tagged with #economic collapse
US and European officials are considering new sanctions and secondary tariffs on Russia, aiming to induce an economic collapse that could pressure Vladimir Putin into peace talks with Ukraine, amid ongoing conflict and international efforts to tighten economic pressure on Russia.
Researchers have identified the disruption of trade routes during the Roman-Persian War as a key factor in the Roman Empire's collapse, challenging previous theories that blamed climate change and the Justinianic plague. The study analyzed shipwrecks and pottery, revealing that the Roman economy was thriving until trade routes were cut off, leading to economic instability and migration. This new perspective suggests that military and economic factors, rather than environmental or health crises, were pivotal in the empire's decline.
Russia has admitted that it was on the verge of economic collapse last year due to Western sanctions imposed after its invasion of Ukraine. However, the Kremlin now claims that it has successfully recovered and is entering a new growth phase, with predictions of up to 3% growth this year. Despite these claims, experts have expressed doubts about Russia's economic future, citing signs of financial trouble, collapsing sectors like the auto industry, high inflation, and a plunging ruble. Some researchers even suggest that Russia's economy could be teetering on the edge of collapse as the war with Ukraine consumes all available resources.
Russia's car industry has experienced a total collapse, with car sales plummeting to a quarter of pre-war levels due to soaring prices, deteriorating consumer sentiment, and a lack of supply. The purchase of foreign-made cars has almost come to a standstill, with Western brands experiencing significant declines in sales. Chinese automaker Geely is the only foreign brand that saw an increase in sales. As a result, Russians have turned to the local brand Lada, despite its reputation for mechanical issues and suspect quality. This decline in the car industry reflects broader economic woes and a weakening consumer sentiment in Russia.
President Joe Biden has praised Republicans for their "good faith" in raising the US borrowing limit, which he said averted "economic collapse". The bill suspends the debt limit until 1 January 2025 and caps non-defence spending, while expanding work requirements for food and healthcare assistance, amongst other provisions. The legislation will result in $1.5tn in savings over a decade. The deal passed with bipartisan support in Congress, though some Republicans and Democrats had reservations about the package.
Google's AI system, Bard, has highlighted several factors that could contribute to a potential global economic collapse in 2023, including high inflation, the ongoing war in Ukraine, and the upward trajectory of interest rates. However, Bard also recognized the absence of a consensus among economists regarding the potential occurrence of an economic collapse in 2023. Observers have noted signs of an economic collapse starting to emerge, with Germany slipping into a recession and the United States grappling with the possibility of a default as the debt ceiling crisis unfolds. Bard stressed the significance of creating an emergency fund, effectively managing debts, enhancing one’s value in the workforce, and maintaining a positive mindset to navigate through an economic collapse.
The global use of the US dollar as a currency may decline further to 40-45% within the next 2-3 years, leading to an economic catastrophe for the US. De-dollarization, which is the replacement of the US dollar by other currencies, is one of the main reasons for the upcoming recession. The value of the US dollar is now dependent on its global demand and not on the assets held by the American government. The global trade of the US dollar has declined by over 20% in the last four years alone, and the Euro is now having an upper hand.