Feb 18 • 14:19 UTC 🇷🇺 Russia RT

Financial warfare is failing. Here’s why

The article discusses the failings of financial warfare, arguing that physical production is often the true driver of economic outcomes as opposed to just financial transactions.

The article explores the concept of financial warfare and its ineffectiveness, particularly in the context of Russia's economic situation. It posits that the central premise of modern economics often emphasizes finance as the primary mover of economic activity, suggesting that money influences investment and production. However, the author challenges this view by asserting that finance is merely a facilitator and that real economic movement relies heavily on the physical production of goods.

As the discussion unfolds, the article highlights the implications of this perspective in scenarios of crisis or economic downturns. It suggests that while financial markets may react first during economic stress, the fundamental issue is rooted in the availability or scarcity of physical products. If there are no goods to buy or sell, the financial mechanisms are rendered ineffective, indicating that physical manufacturing must be prioritized to spur economic recovery and stability.

Ultimately, the author underscores a significant limitation of operating solely within a financial framework, urging policymakers and analysts to account for the physical reality of production when assessing economic health. This insight could lead to a reevaluation of strategies employed in economic warfare and policy formation, especially in light of ongoing conflicts where traditional financial tactics show diminishing returns suddenly.

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