On Sat, 23 Apr 2022 17:35:51 +0300, Oleg Smirnov wrote:

> <https://tinyurl.com/ydgczgq9> imf.org
> The conflict is a major blow to the global economy ..
>
> <https://tinyurl.com/y5p475tj> cnbc.com
> .. Fallout from the Russia-Ukraine war could be immense ..
>
> <https://tinyurl.com/ybhc2pqp> bbc.com
> The war in Ukraine is "a catastrophe" for the world .. the World Bank ..
>
> ...
>
> Things aren't good, and it's getting worse.
>
> They previously told you that the Russian economy is negligible on global
> scale (and the Ukraine's economy is even more negligible). So how it may
> be that a military conflict between two countries, which are economically
> highly insignificant, causes "a catastrophe", "a major blow" and "immense
> fallout" for the global economy? It sounds illogical and inconsistent.
>
> Or it may be the very method of economic measurements, on which they made
> judgements about what is significant, and what is insignificant, requires
> some corrections and improvements.

lets try this again... with a reduced newsgroupset...

After the Maidan Putch events in have gone progressively sideways for the
Weirld. Whadda they say about real-estate? Location, location, location.
Ukraine sits about dead centre of ALL the trade routes across Eurasia, so
think about a dumpster fire on the freeway to work. There's morons
congratulating themselves even now on raising the price of crude and
ditching the Dollar.

Dhu

--
Je suis Canadien. Ce n'est pas Francais ou Anglaise.
C'est une esp`ece de sauvage: ne obliviscaris, vix ea nostra voco;-)

<https://tinyurl.com/ydgczgq9> imf.org
The conflict is a major blow to the global economy ..

<https://tinyurl.com/y5p475tj> cnbc.com
... Fallout from the Russia-Ukraine war could be immense ..

<https://tinyurl.com/ybhc2pqp> bbc.com
The war in Ukraine is "a catastrophe" for the world .. the World Bank ..

....

Things aren't good, and it's getting worse.

They previously told you that the Russian economy is negligible on global
scale (and the Ukraine's economy is even more negligible). So how it may
be that a military conflict between two countries, which are economically
highly insignificant, causes "a catastrophe", "a major blow" and "immense
fallout" for the global economy? It sounds illogical and inconsistent.

Or it may be the very method of economic measurements, on which they made
judgements about what is significant, and what is insignificant, requires
some corrections and improvements.

Oleg Smirnov, <news:t4134e$f05$2@os.motzarella.org>

> <https://tinyurl.com/ydgczgq9> imf.org
> The conflict is a major blow to the global economy ..
> They previously told you that the Russian economy is negligible on global
> scale (and the Ukraine's economy is even more negligible). So how it may
> be that a military conflict between two countries, which are economically
> highly insignificant, causes "a catastrophe", "a major blow" and "immense
> fallout" for the global economy? It sounds illogical and inconsistent.
>
> Or it may be the very method of economic measurements, on which they made
> judgements about what is significant, and what is insignificant, requires
> some corrections and improvements.

One prominent economic analyst has tried to answer the relevant questions.

| <https://tinyurl.com/23w4qab8> tabletmag.com
|
| Remember the claims that Russia's economy was more or less irrelevant,
| merely the equivalent of a small, not very impressive European country?
| .. Seldom has the West so grossly misjudged an economy's global
| significance .. The war in Ukraine has "made us realize that the Russian
| economy is considerably more important than what we thought." ..
|
| If you compare Russia's .. GDP .. by simply converting it from rubles
| into U.S. dollars, you indeed get an economy the size of Spain's. But
| such a comparison makes no sense without adjusting for purchasing power
| parity (PPP), which accounts for productivity and standards of living ..
| And when you measure Russia's GDP based on PPP, it's clear that Russia's
| economy is actually more like the size of Germany's .. Not a negligible
| difference ..
|
| .. Also .. the service sector today is grossly overvalued compared with
| the industrial sector and commodities like oil, gas, copper, and
| agricultural products. If we reduce the proportional importance of
| services in the global economy, .. [then] "Russia's economy is vastly
| larger than that of Germany ..
|
| This makes intuitive sense. When push comes to shove, we know there is
| more value in providing people with the things they really need to
| survive like food and energy than there is in intangible things like
| entertainment or financial services. When a company like Netflix has a
| price-earnings ratio three times higher than that of Nestle, the world's
| largest food company, it's more likely than not a reflection of market
| froth than of physical reality ..
|
| The size and importance of Russia's economy is further distorted by
| ignoring global trade flows .. Oil .. wheat .. nickel .. semi-finished
| iron .. platinum .. frozen fishes .. Such commanding importance in the
| production of so many essential commodities means that Russia .. is in
| many respects a linchpin of the globalized production chain ..

Read also <https://tinyurl.com/26mbklb3>