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Wednesday, September 17, 2014
Pepe Escobar — The US-EU-Russia sanctions puzzle
The sanctions are mean. The sanctions are nasty. And there’s no euphemism to describe them; they amount to a declaration of economic war.
That's what I said as well. Sanctions designed with the wilful intent to destroy the Russian economy. If that were done to the U.S. the bombs would be flying. It's a declaration of war.
"Anyone following superimposed moves towards a multipolar world knows Russia does not need more US dollars and euro."
They may not need balances of these currencies but they may think they need the real goods and services that these currencies can purchase...
and if their accounts are frozen, then they dont have any balances of these currencies at this time...
Escobar is not thinking this through and thinks "money is money".... if the accounts are frozen, then they dont have any USDs or Euros...
anything they need (pharma, foods, key infrastructure components, booze, etc...) which has to be purchased with these currencies is no longer available to them...
Matt, Russia is a large holder of US Treasuries and I have seen nothing on that account being frozen and I doubt it would fly in the financial world if a country refused to honor its debt obligations due to sanctions. The US is already walking a fine line freezing funds, which just drives banking elsewhere. Before the sanctions took effect, the Russians moved their funds in Western banks to Hong Kong for example. If the world will just shift from Wall Street and London to Hong Kong and Shanghai. The Chinese banks can't be any more crooked that the US and UK banks and the funds will be perceived safer there from Anglo-American geopolitics.
That's what I said as well. Sanctions designed with the wilful intent to destroy the Russian economy. If that were done to the U.S. the bombs would be flying. It's a declaration of war.
ReplyDeleteParticularly appalling, because it was done AFTER the ceasefire. The economic equivalent of dropping a bomb.
ReplyDeleteI am far from an expert on the great game, however, it seems to me that Russia has shrugged it's shoulders.
ReplyDeleteIt has reasoned that the West,regardless of the rhetoric, is not interested in a peaceful and reasoned rapprochement.
Russia is now simply going to look the East, knowing that the rise of BRICS is unstoppable.
Of course, Russia will still be diplomatic and politically courteous to the Wes, but that is just good form.
As I've been saying, this is about regime change in Russia rather than the Ukraine. The Russians fully understand this, too.
ReplyDeleteJudo-expert Vlad is getting set to upend the US using its own force. Should be interesting to watch and see whether he can pull it off.
"Anyone following superimposed moves towards a multipolar world knows Russia does not need more US dollars and euro."
ReplyDeleteThey may not need balances of these currencies but they may think they need the real goods and services that these currencies can purchase...
and if their accounts are frozen, then they dont have any balances of these currencies at this time...
Escobar is not thinking this through and thinks "money is money".... if the accounts are frozen, then they dont have any USDs or Euros...
anything they need (pharma, foods, key infrastructure components, booze, etc...) which has to be purchased with these currencies is no longer available to them...
Matt, Russia is a large holder of US Treasuries and I have seen nothing on that account being frozen and I doubt it would fly in the financial world if a country refused to honor its debt obligations due to sanctions. The US is already walking a fine line freezing funds, which just drives banking elsewhere. Before the sanctions took effect, the Russians moved their funds in Western banks to Hong Kong for example. If the world will just shift from Wall Street and London to Hong Kong and Shanghai. The Chinese banks can't be any more crooked that the US and UK banks and the funds will be perceived safer there from Anglo-American geopolitics.
ReplyDelete