“How did you go bankrupt?” Bill asked.
“Two ways,” Mike said. “Gradually and then suddenly.”
- from Ernest Hemingway’s 1926 novel, The Sun Also Rises.

If you do a Google search for "Russia Isolated" or if you watch any American news program, you will be assured that Russia is universally hated and our sanctions are crushing them.
And yet, this happened.

Exports of Russian crude oil to India have surged since the start of the month as sanctions bit in, forcing traders in Europe to avoid Russian cargos, the Financial Times reported, citing data from Kpler.

The average daily rate of Indian purchases of Russin crude has stood at 360,000 bpd, which was four times the rate of daily purchases last year, the report noted.

Remember all of that Russian oil that Europe will no longer buy? That oil is being rerouted to India, which is more than happy to buy it at a large discount. Doesn't India know that Russia has been isolated?
Thus India is directly undermining our Russia sanctions policy. So we're going to sanction India, right?

White House press secretary Jen Psaki has said Indian purchases of Russian oil would not run afoul of U.S. sanctions, but that Indian leaders should “think about where [they] want to stand when history books are written.”

So why would Washington simply let India do this without any repercussions?
In fact, India is reported to be very close to a rupee-rouble trade arrangement.
Meanwhile, the natural gas pipeline Pakistan Stream is under construction.
All of this is dwarfed by China.

Chinese purchases of oil from Russia in December surpassed its purchases from Saudi Arabia. Six days before the military campaign began, Russia announced a yearslong deal to sell 100 million tons of coal to China — a contract worth more than $20 billion. And hours before Russia began bombing Ukraine, China agreed to buy Russian wheat despite concerns about plant diseases.

All of this is a sign of weakness.

You can see the politicians and talking heads on the news gloating and mocking Russia because they've been unable to simply overrun Ukraine. They seem to forget that the American military just LOST a war in Afghanistan.
The U.S. Empire is tottering and is about to fall.

All of this boasting that you hear of how our Russia policies are winning, is just as phony as the two decades of reports from Afghanistan.
China alone can keep Russia's economy from collapsing.

As long as China continues to maintain normal economic and trade ties with Russia, and even expand them, Russia’s economy will not collapse.

The United States wants to close this “big loophole” with China, possibly by extending the economic war against Russia to China, thus forcing China to either submit to the rule of US. sanctions or to have its economy destroyed together. This idea is crazy.

China is one of our biggest trade partners, and one of our biggest creditors. An economic war with China would be a massive risk.
Thus we need every single participant in our sanctions regime. Sanctioning southern Asia might drive nearly 2 billion people further into Russia's orbit. Damned if we do, and damned if we don't.

Dollar Hegemony might be all over anyway, depending on what Saudi Arabia decides.

Not for the first time, China is attempting to buy oil in yuan rather than dollars, and now it may have found a willing seller. Saudi Arabia, which sells a quarter of its exports to China, is considering making these sales in yuan, the Wall Street Journal reported.

These negotiations, which have surged and ebbed over the last half-decade, are not likely to fructify soon. For one, Saudi Arabia pegs its riyal to the dollar, so any damage inadvertently dealt to the dollar will hurt its own currency. But the US’ geopolitical hegemony is based so significantly on the petrodollar—with 80% of global oil transactions denominated in dollars—that the question is ever-present. What would the world look like if the petroyuan became the oil industry’s currency of choice?

The U.S. is neither the largest producer of oil in the world, nor the largest consumer. The only reason that all oil being sold in dollars is because of politics, wealth, and the size of a nation's military. The U.S. was all of that in the early 1970's when the petrodollar standard was agreed upon.
A lot has happened in 50 years.
The U.S. still has the biggest military far and away. Although it has a terrible record against popular insurgencies.
But wealth and political credibility? Those things left Washington a long time ago.
It's all being propped up with an artificially-strong dollar. Without dollar hegemony we will quickly become a much poorer nation.

The US’ abilities to issue dollar debt and earn dollars for exports would decline, so its economy would shrink. In this situation, the dollar’s weakening may trigger a vicious cycle: capital flight away from the dollar and towards the yuan, debilitating the dollar further.

Central banks all over the world are going to diversify their currency reserves away from the dollar, after seeing what we did to Russia's central bank. This should show up in the bond markets first, where Treasury prices should begin to fall. As everyone knows, yields are exactly inverted by the price. Which means interest rates will rise.
Once the dollar begins to drop, and the economy begins to look shaky, international hot money will flee our shores. We've seen this happen to other nations, but never cared. Now it will finally happen in this nation, and we aren't prepared for it.

The economy is over-saturated with debt, so rising interest rates will cause defaults and bankruptcy, on both the small and large scales. Everything that gets imported will begin to rise in price. It'll look something like 1970's stagflation, but it'll last longer.
The value of the dollar will probably be the last thing to collapse. Right before we have to slash the budget for our military, and around the same time that they try to steal Social Security again.