As a companion post to my recent article (Some Economic Consequences of Ukraine War), listen to my February 25, Alternative Visions Radio Show
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SHOW ANNOUNCEMENT
What might be the economic impact of the war in Ukraine—On Russia, Europe, and the US as well? Dr. Rasmus discusses the immediate short term economic effects of the past two days of the War. Further consideration and discussion follows on the more intermediate and long term likely impacts in inflation, output, stagflation, financial asset markets, currency exchange rates, and global goods and money flows (exports-imports). An analysis and prediction of the possible minimal effects of US and EU sanctions on Russia, including the suspension of the Russian-German Nordstream 2 natural gas pipeline. Why Biden’s sanctions are full of holes. Why the US has exempted the SWIFT international payments system from the sanctions and why the economic fallout of the war and sanctions will hit Europe harder. What are the implications for global real economic recovery from Covid now underway: will the War thwart and dampen that recovery? The show concludes with comments on some of the fundamental changes in the global economy that the Ukraine war may generate.
Dr. Jack Rasmus @drjackrasmus
Jack Rasmus 
Jack,
Re the British & US Imperial Models you spoke to – very informative.
Can you say please what approach the Soviet Union took?
Regards … Les from Melbourne, Australia.
If you’re referring to the expansion west of the USSR from 1940 to 1945, I would say it shows elements of both the older British colonial form and the then emerging American imperial regime. It of course expanded as a result of the second world war, into the vacuum of east europe as the Nazis retreated. It then expropriate a good deal of the german and east europe industrial base that could be moved, in order to replace what was destroyed in the USSR by the war. It set up supporting political institutions in the east europe. Not quite like British colonialism but to ensure the area was integrated economically with the Soviet economy. Same financial systems, trade in goods flows, etc. It’s difficult to say if and how much wealth was extracted from these east europe countries and economies. In some cases the exchange of goods and services benefited some of them on net, ie. the three baltics. I don’t think the Soviet empire was as exploitive in terms of wealth extraction as the British was, say in India and Africa. (Wealth extraction by Soviets was of course more intense in the central asia countries and economies (Azerbaijan, Kazakhstan, etc.) due to the oil production). The Soviet empire (re. east europe) was more like the American as well, in its relations with indigenous economic elites in those countries who participated willingly in the exchange of goods with the USSR and directly benefited from that. The Ruble was the dominant trading currency and the finance system reflected Soviet central planning support. So I’d say it was mixed, part like British with some form of weak colonial-like political institutions, but less exploitative (in the sense of extraction of surplus wealth) than the British–and more like the then emerging American imperial system which relied more on an integration and sharing of wealth with local elites and an integration of finance, trade relations, currency and other financial elements.
Jack,
Thank you very much.
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“Things” are looking dangerous. Am referring to the constructed media narratives – the manipulation of public opinion that makes it impossible, as one notable American expressed it (Lawrence Wilkerson) “to walk it back”. That is, without consequences to those who normally avoid consequences.
Dean Rusk remarked on making a nation too angry.
If the prevailing, extreme narratives become detached from on the ground realities and it’s realized that everyone’s been “Led up the primrose path”, the outlook for those in charge becomes difficult. Doubling down promotes a wider war.
The narrative of removing European dependency on Russian energy looks self-destructive. They have to depend on someone.
Les Down South . . .