In the war between the US and China, Russia will be defeated

22 June 2018, 09:49 | Economy
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The trade war, declared by Donald Trump to China, and together with him and the rest of the world, does not think to end. Its first victims - candidates for the destruction of their own economies - have already been scheduled. The threat of Donald Trump to impose duties on imports of Chinese goods worth another $ 200 billion is putting additional pressure on developing economies. While this is a number of countries in the status of fuel and raw power countries, tightly working to meet the needs of China. First of all, Brazil, Thailand, South Africa and some others. They have already received as a reward for their position the devaluation of national currencies. The next point, apparently, will be the recession of these economies. The most sad thing is that with the probability of almost 100% this list can be replenished and Russia. Trigger hook of this process was the US trade war, which the president of this country is waging against China. Throughout the past few years, the growing economy of the Celestial Empire has been an endless, as it seemed at that time, energizer, requiring an unlimited amount of commodities. Rigidly attacking the PRC, America is close to destroying this status quo. The trade war against China is badly hitting the raw countries with a high share of exports to the PRC, Bloomberg reported on the eve. The first victims of this situation were Thailand and South Africa, supplying in the Middle Kingdom about 20% of its products. And although the Russian share in raw materials supplies to China is slightly less than the shares of these countries, Russia, according to Bloomberg estimates, albeit indirectly, but inevitably, will fall into the millstone of the current trade war. The fact that the fate does not go away, and shows the dynamics of the Russian ruble, declining over the past few days. Obviously, the "wave" has reached the Russian shores, and what needs to be done in this case is unknown. How dangerous is this situation for the country and how does Russia risk, to which the wave that is sweeping the developing countries is about to reach? "If the escalation continues, Russian suppliers of raw materials will suffer," analyst of FC Kalita-Finance Dmitry Golubovsky explained to UTRU. - There is a very clear correlation between the dynamics of commodity prices and the dynamics of China's economic growth. When the growth rate in China is falling, raw materials are falling in price. If we assume that China will go into recession due to the trade war, there will be a collapse in the commodity market in general. Is it just this that threatens us today? Risks are palpable and growing. Although, of course, I hope for a compromise ". Most of all it will get in this situation a ruble. "The rub in the event of an escalation of the trade war and the fall of oil will obviously be very bad," the expert said.. - It will go to historic lows. We will see a dollar in the range of 70 - 80 exactly. Can we avoid this? Hardly, since nothing depends on us here. Absolutely. We can only try to mitigate the blow if it is. To this end, the Ministry of Finance is currently hitting the currency ".



The fact that today's world is literally overflowing with oil, testifies that there are no special reasons for the increase in prices for black gold. Reduction of the need for energy imports from China, caused by the war, risks becoming a verdict for the entire economic model that has developed in recent years against the backdrop of the relationship between producers and consumers of oil. As for Russia, for her it means that soon the ruble will lose its most important support, with all the ensuing consequences.




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