How Europe got looted till now in this war and the Financial consequences of this war for Europe? Part-1.
Indian Forex reserves have fallen below USD500B due to the loss in value of Euro, Yen and Pound Sterling. But the fall in Pound is not as sharp as it is in The case of EuroZone. the story is same for every nation which had invested in Euros. The net result is that they are now moving their reserves to USD and that too at a lower value of their own currency and USA ensured it by raising Fed rates. USA+UK has already earned much more than what they have contributed to this war but the story for rest of the Eurozone is reverse of it as they have lost out majorly in terms of finances due to degradation of Euro. I had written in my earlier posts as to how USA+UK got scared when Euro was introduced and how they started Yugoslavia war to undermine Euro.
Now the situation is like this- USA has funded this war with nearly 50B so far plus another half of that amount has also been contributed by European NATO members in terms of direct military equipment transfer. This needs to be replaced by newer weapons and those NATO members who contributed Russian origin equipment will need to pay USD to replace that equipment with US weapon systems. What is the value of Euro today w.r.t USD and what will it be as this war prolongs? EU paid out billions to bail out distressed economies of Europe like Italy and Greece due to Euro being a reserve currency and just like USA they too could print billions and yet maintain their value. But what is the case now? Europe will suffer very high inflation in years to come and till they break away from Euro, they will not be able to stabilise their economies. That won't happen, as USA thru NATO will not let it happen. So Europe has a choice but its a catch-22 situation. You have options but every opetion leads to just one conclusion-Dismember NATO and Euro.
USA+UK have already made over USD200b from this war and it could rise to nearly a trillion USD by the time this war ends due to shifting of the money from Euro Reserves to that of USD+Pound reserves. This war is loot of Europe by thuggery started by USA+UK against Europe. Unfortunately our closest ally France, which had supported us even during our wars against British in India during the time of colonial rule have fallen victim to it and loving it.
@Hydra, now try and understand my statement about nuking Europe. We can educate a wiseman but not a fool. Europeans are acting like fools and so that sarcasm against them. What is going to happen to Europe will be worse than nuking it. There will be extremely high inflation, poverty, daily riots and civil wars because their society is not as resilient as ours.
153 contries have not joined the sanctions against Russia. This should have been an eye opener to the rest 57 countries but in their white supermacist and racisht thinking, they have thrown the opinion of rest of the world to dustbin and UNSC, controlled by such people has acted only to support it. There is a new hope now and that happens to be BRICS with India emerging as the most trusted and reliable figure in it. You all may have seen reports as to how our RBI has changed rules to allow trade in local currencies and how we have brought back our gold kept in safe keeping in UK. Do you know what flew out first from Ukraine even before a single refugee travelled acroos the borders of Ukraine-their gold to USA for so called safe keeping. We are now replacing repayment of our extremely libral credit lines to various African nations with repayment thru precious metals/rare earth elements and other such products without touching USD. India is today the highest lender to Africa. It was India, which sphear headed the DeDollarisation by entering into local currency deals with ME, Africa and SE Asia including Central Asia. Now even latin American countries have accepted our currency. Is Rupee going to be new gold standard?
I will cover it in the next part tomorrow including social and financial implications of this war for the world and Europe in particular. How it will change the world forever and sow the seeds of WW3 in next 7-10 years. Just read how end of WW1 resulted in WW2.
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