In 1960, both the U.S.A. and Soviet Union were in a Cold War at its height that almost resulted into nuclear warfare. Experts say that the U.S. is heading into a new Cold War with Russia as its former foe. It won’t be like the old.

Jason Schenker of Prestige Economics, said that “I believe the second Cold War already began.”

Angela Stent, senior advisor for Georgetown University Center for Eurasian, Russian, East European Studies, indicated that “I think we are definitely heading into a 21st Century version of Cold War, but that it will be different from that which existed between 1949 and 1989.”

It is evident that Russia’s invasion of Ukraine resulted in unprecedented economic sanctions being imposed on Russia.

Alan Gin (associate professor of economics, University of San Diego) said: “It is hard to imagine an outbreak of shooting war between Russia et the U.S.” I believe that sanctions will be effective. [continue]Russia will then seek other partners in the world, possibly like China or some of the OPEC members. I believe a lot will then be waged on the economic front.

A market still recovering from the panic of the pandemic has seen the Ukraine crisis pose a new threat.

Gin stated that the market does not like uncertainty and it casts uncertainty on the global economy.

Long-term, market health will be affected by where Ukraine’s crisis ends up.

Schenker stated that if Ukraine or Kyiv were to fall, equity markets would take huge hits. The downside of tactical nukes is unimaginable,

You can watch the video to learn more about the impact of a Cold War on the U.S. Economy.