The threat of such additional sanctions, for Washington already had imposed a series of sanctions in 2014, was purportedly meant to deter the invasion. That having failed, it was then claimed the sanctions would force Russia to the negotiating table. Given the centrality of economic warfare to Washington’s foreign policy, it is worth exploring how the Kremlin has managed to keep the Russian economy afloat since invading Ukraine and the likely wider implications and possible future application vis-à-vis China. First, the immediate collapse of the ruble was reversed by the actions of the Russian central bank and the treasury.

While the former nearly doubled interest rates overnight, the latter began spending its accumulated reserves to offset the price inflation that began eating into Russian consumers’ purchasing power. Though locked out of nearly half of its foreign reserves by Washington and its vassal allies, the government in Moscow has used its record balance of payments surplus to make up for the temporary loss. While that balance of payments surplus, the result oil and gas sales continuing at lower volumes but higher prices while imports dropped precipitously, has mitigated the effects of domestic inflation, currently running at around 17 percent, it has not been able to prevent a sharp contraction in Russia’s economic growth . Given that governments from Washington to London, Warsaw, and Vilnius have made it clear that they do not even favor lifting these sanctions in the event of a cessation of hostilities, Russia’s future growth is likely to be far short of what it otherwise would have been.

Of course, the Russian people won’t be alone in their present impoverishment. Normal people the world over are also being made poorer and weaker by Washington’s policies. As a demonstration of its capacity to force others in line with its policies, and to get its own population to bear the consequences, Washington has doubtlessly succeeded in sending its intended message to Beijing over Taiwan. While Washington’s weaponization of the global financial system has no doubt alarmed Chinese Communist Party planners, the fact that their own population would be quite willing to suffer for the reunification of their country, as well as the fact that many countries in the developing world have eschewed following the West’s example, provide ample reason to doubt the efficacy of looming sanctions as a deterrent in the event of another, bigger Taiwan Strait crisis.

Because what does a history of failure and mass impoverishment prove if not that next time will be different?

The truth instead seems to be that we are doomed to suffer an unending parade of farces under Washington’s continued pursuit of a demonstrably failed and immoral policy.

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Source: JOSEPH SOLIS-MULLEN | MISES.ORG