The DOW Jones, the NASDAQ, and the S&P 500 - the main US stock indices - closed lower on Monday. The entire cryptocurrency market, the Russian rouble, and the Russian stock market dropped yesterday. Many markets have reacted to the decision of the Russian Security Council and Russian President Vladimir Putin to recognise the independence of the LPR and DPR. Generally speaking, this means that the conflict will only escalate. Already tonight, Russian military equipment and the regular army have officially entered the territories of the unrecognised republics. This means a full-fledged war can now break out between Ukraine and Russia, as the DPR and LPR are now allies of the Russian Federation. It turns out that almost every military action on either side could mean the start of a full-scale war. Harsh sanctions could already be imposed on Russia by the Western countries and the European Union. Arms planes from the UK, EU countries, the US and Canada continue to arrive in Ukraine. In general, there is no hope for a peaceful resolution of the conflict. This means that war is practically inevitable. Just a reason is needed.
Against this background, a meeting between US President Biden and Vladimir Putin is almost meaningless. The Russian leader is unlikely to change his mind after it. Thus, this meeting will be formal. However, the markets can continue to drop quickly. The same applies to the Russian Federation markets and the Russian rouble. It is absolutely obvious to everyone that the worse things get in Ukraine, the lower the ruble and the Russian stock market will fall. The most risky assets such as bitcoin, the entire cryptocurrency market and the US stock market are already falling along with them. The worst thing is that a military conflict could last for years. All this time it will have a negative impact on the economy. An even worse scenario is that not only Russia and Ukraine, but other countries will also be involved in the conflict. Notably, there are no reports of the outbreak of full-scale war. However, this is the scenario predicted by the Western media, which may end up being right. Anyway, unfortunately for us, whatever happened yesterday could have a very serious impact on security in Europe, as well as a very big impact on the world economy.