According to a Goldman Sachs forecast, the rebound of the Ruble is an illusion, as Russia’s economy is heading for a deep recession due to Biden’s sanctions.
The Goldman Sachs financial conditions index for Russia:
Goldman’s financial conditions index for Russia is now tighter than immediately after sanctions were imposed. Financial conditions are super tight and will lead to deep recession, which drives our -30% y/y GDP fall by end-2022. Ruble recovery is an illusion. With @elinaribakova pic.twitter.com/rL2RYxMqBj
— Robin Brooks (@RobinBrooksIIF) May 21, 2022
Biden’s sanctions are working, but sanctions are a slow tightening of an economy. Sanctions don’t have their desired impact overnight. For the crowd on the right who love to look at the rebound of the Ruble as proof that sanctions have not worked, it must be kept in mind that the Russian government has been pumping up the Ruble, and Putin will not be able to continue this policy forever.
Russia is using the Ruble to create an illusion that sanctions aren’t working when the reality below the surface is that Russia is heading for a catastrophic economic contraction.
The sanctions are working, and each day that Putin continues his war of choice, the underlying economic conditions in Russia get a little worse.
President Biden’s global leadership put Russia in a position where they have already lost. Putin will never conquer and occupy Ukraine, and his foolish war is going to have a devastating impact on Russia for years to come.
Russia is going to be feeling the costs of the Ukraine invasion for a very long time.
Mr. Easley is the managing editor. He is also a White House Press Pool and a Congressional correspondent for PoliticusUSA. Jason has a Bachelor’s Degree in Political Science. His graduate work focused on public policy, with a specialization in social reform movements.
Awards and Professional Memberships
Member of the Society of Professional Journalists and The American Political Science Association