BlackRock CEO Larry Fink shared some bad news for fellow globalists: Ukraine’s war will end globalization because governments have severed ties with Russia.
“Russia’s aggression in Ukraine has ended the globalization we have experienced over the past three decades,” Fink wrote in a letter to shareholders on Thursday. Epoch Times. He noted that Russia’s invasion of Ukraine had led countries to sever financial and trade ties with Russia.
“By uniting in their firm commitment to support the people of Ukraine, they have launched an ‘economic war’ against Russia,” Fink continued.
Fink noted that capital markets, financial institutions and companies have gone beyond the sanctions imposed by the government, and business and investment relations are about to end.
He predicted that the situation would encourage governments and agencies to even re-evaluate their production and assembly footprints and reconsider their dependence on other nations.
“This could lead companies to move their operations to the coast or nearby, resulting in faster return from some countries,” he wrote.
“This decoupling will inevitably create challenges for companies with high costs and margin pressures,” he continued. “While the balance sheets of companies and consumers are strong today, giving them another cushion to deal with these difficulties, a large-scale restructuring of the supply chain will inevitably lead to inflation.”
“Central banks must choose whether to live with high inflation or to slow down economic activity and create jobs to reduce inflation rapidly,” he urged.