If the news that Russia has begun an invasion of Ukraine has been met with indifference or a blasé attitude, perhaps you should think again.
While most would agree that we live in a global society and that it’s a “small world,” not giving Russia’s attack some in-depth thought and scrutiny would be a mistake.
Despite the fact this aggression is taking place some 5,279 miles away, the ripple effects are being felt here and will only get worse.
Don’t think so?
You’re wrong. The Russians are basically stealing your money.
Russia’s incursion into Ukraine this week has already dented the stock market and threatens to worsen inflation as oil and gas prices start to soar.
Been to the gas pumps lately? Don’t think $3,50 per gallon is terrible, because there are experts claiming we may see prices approaching and surpassing $7 per gallon if Russia’s largest European invasion since World War II continue.
Think Putin cares?
Russia is one of the world’s largest producers of crude oil and natural gas, providing roughly 40% of the European Union’s gas. The invasion of Ukraine has caused global energy prices to spike, with crude oil rising Thursday above $105 a barrel for the first time since 2014.
Russia is also the largest exporter of palladium — a metal used in automotive exhaust systems, fuel cells, mobile phones and even jewelry and dental fillings. Rising prices of palladium and other essential metals — Russia is the second-largest producer of platinum, after South Africa — could lead to price increases for manufacturers and, ultimately, consumers.
As for the economy, the global stocks market took a hit: The Dow Jones Industrial Average tumbled 830 points Thursday morning, while the Nasdaq composite slipped about 1.5% and the S&P 500 tumbled 2.5% at the start of trading.
This week has represented the most volatile period in the market since Russia seized Crimea eight years ago, with every market around the world falling.
Another threat comes in the form of cyberattacks.
The Departments of Treasury and Homeland Security have both sounded the alarm over possible cyberattacks on US banks, hospitals, government offices and power grids in retaliation for any sanctions against Moscow.
On Thursday morning local time, websites for the Ukrainian cabinet and foreign affairs and education ministries were all experiencing disruptions.
Take a moment to think about putting food on the table. Inflation is already hitting American and European wallets, and the dent could get bigger with the Russian invasion.
Ukraine, considered the “breadbasket of Europe,” is one of the top five corn exporters in the world, trading some 35.9 million metric tons in 2019 alone. An extended open conflict would likely see prices go up in Europe, not just for corn itself but also for related goods, including cooking oil, corn syrup and livestock feed.
Soybean prices have also surged in the US in recent months, following an unusually poor crop in South America. If US farmers have to make up the difference in both corn and soybeans — which compete for land — prices for both crops will likely rise here, as will the cost of packaged goods made with them.
Prices of wheat, corn and soybeans could rise, with a ripple effect on packaged goods.
And finally, though there really will be no finality, our ability to travel — whether by car, plane or any other means — could become challenging and potentially even impossible both nationally and globally.
President Biden is wrapping his response in sanctions against Russia. Is that enough?
“Russia alone is responsible for the death and destruction this attack will bring, and the United States and its Allies and partners will respond in a united and decisive way. The world will hold Russia accountable,” Biden said in a statement this week.
Pay attention, folks. This is all just page one of chapter one.
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QUOTE OF THE DAY
“You can close your eyes and ears to the things you don’t want to see or hear, but it only builds another layer of ignorance within you.”