The economic turmoil of recent days was triggered by a budget announcement. But the root cause is high energy prices and now that the Nordstream pipelines have been sabotaged, there's no way out.
Sanctions are crushing Europe's economy. Either mainstream parties will roll them back, or they’ll get voted out and populist parties will tear them up. Whatever happens, sanctions could break the Western alliance.
Western countries are planning to impose a price cap on Russian oil. But this is deeply unserious idea. If such ‘magic beans’ tactics worked, they would have been used by oil consumers against OPEC long ago.
First Russia said they couldn't supply gas without a turbine from Canada. Now they're saying they can't do so because they need parts from the West. Russia is forcing Europe to undermine its own sanctions.
The US has said it will force Russia into 'default', but this is more like a confiscation of investors' assets than a true default and will backfire as investors in China and elsewhere will not be affected.