1960 was the 60th anniversary of the Cold War between the United States and Soviet Union. It almost led to nuclear war. Experts believe that today, the U.S., Russia and their old enemy, Russia are heading into another. It won’t be like the old.
Jason Schenker (president of Prestige Economics) stated that “I believe there is already a second Cold War.”
Angela Stent, senior advisor for Georgetown University’s Center for Eurasian, Russian, East European Studies, claimed, “I think we are definitely heading into a 21st Century version of Cold War, however it is going to be different than that which existed between 1949 and 1989.”
It is evident that Russia’s invasion of Ukraine resulted in unprecedented economic sanctions being imposed on Russia.
Alan Gin, an associate professor of economics from the University of San Diego said that it was hard to envision a war between Russia and America. “I believe these sanctions will succeed,” said Gin. [continue]Russia will then seek other partners in the world, possibly like China or some of the OPEC members. I believe a lot will then be won on the economic front.
A market still recovering from the panic of the pandemic has seen the Ukraine crisis pose a new threat.
Gin said that uncertainty is not what the market likes and creates uncertainty for the entire world economy.
Long-term, market health will be affected by where Ukraine’s crisis ends up.
Schenker said, “If Ukraine and Kyiv fell or were forced to collapse, we would see the equity markets suffer very large losses.” The downside of tactical nukes is unimaginable,
You can watch the video to learn more about the impact of a Cold War on the U.S. Economy.