China's High Speed Trains
The Danger of Underestimating Russia
A reshuffling of the Global Financial Order
In this respect,
although stealing an enemy’s wealth for its own sake is not uncommon in
war, this measure was intended to diminish Moscow’s ability to fund its
campaign in Ukraine, bring down the ruble’s value, undermine the
ability to implement monetary policy, trigger hyperinflation, provoke a
credit crunch, prompt the collapse of the Russian banking system, and
stimulate the evaporation of savings. Moreover, it was expected that ‒
along with other Western retaliatory actions ‒ this could lead to regime
change in Moscow. Although it is unclear if all the desired outcomes
will be achieved, the first effects of this heavy blow materialized in a
speedy way. When the Russian “special military operation” was launched
on February 24, the exchange rate was 81.31 rubles per dollar and, by
March 7, one dollar was worth 142.78 rubles (a 43 % depreciation in
under a couple of weeks). In the words of President Biden himself, the
ruble was being reduced to rubble
