It’s The End Of The abroad Exchange Reserves As We Know It... Don’t Feel Fine About It

Authorized by Tom Luongo via Gold, Goats, 'n Guns blog,

“Birthday party, cheesecake, jelly bean, Boom!”
— R.E.M.

The planet we’ve known is over. The US legislature yet pushed the large red button. erstwhile the West border around $300 billion of Russia’s abroad exchange reserves in March 2022 it was the first step in breaking down the strategy of abroad exchange reserves that makes up the global economy.

Freezing claims of countries they are mad at isn’t fresh behaviour from the locations that run the G-7 countries. We inactive gotta list to preserveards white about Obama giving Iran back “pallets of cash” for signing the JCPOA (Iran atomic Deal) in 2015, erstwhile all he did was unfreeze assets we’d frozen in 1979...

... 1979, folks. Get a grip on reality. Obama gave Iran back their money. I’m no Obama fan, far from it, but as payments go, it was truly nothing.

Freezing assembles, however, isn’t truly theft, it’s just the tip.

The money frozen in 2022 was supported to operate the same way. It was supported to force Russian president Vladimir Putin into ending the war in Ukraine. The explanation is that the oligarchs who money that represented would push Putin out of power to get that money back.

Theories, by the way, speaking as a scientist, mostly suck.

Putin utilized this to his advantage, rallying the planet around him and to the burgeoning BRICS Alliance. It worked a treat and here we are with $90 per barrel oil, raging inflation and a shared Ukraine.

Typically, the British call this, “money well spent.”

Overall, it was a message by the G-7 that no one’s money is safe. Look, no offense to Iran (or Venezuela or any another else who previously wound into this problem), but cutting them out of the global environment was an effective furnace of intuition of everyone else.

It had it’s limits, however. And the expanding common usage of sanctions while possible effective in engaging the Rules based order requested by the G-7, only defined the cost/benefit analysis of playing by these rules in the future. Evenly individual would turn what was expected to be a weakness into a strength.

No self-proclaimed ‘serious person’ in DC, London and/or Brussels thought that doing something so arrogant (and stupid) to 1 of the most crucial community-production countries in the planet would backfire on them. erstwhile you halt to think about it we’re talking about a country, Russia, that in 2023 exported more than the 3rd largest maker (the US) harveststed — approx. 60 million tonses exported (RUS) vs. 47 million tonses produced (US).

So, like the humanistic morons they are, our leadership thought this would work. It didn’t.

Or was they their plan even density?

Because the fresh actions by the US vis a vis Russia and China is so dumb it defies description. Congress has authorized president Joah Bii-DEN! to seize Russia’s abroad exchange reserves as they have threeed to for the past six months and hand the money to Ukraine.

This isn’t the tip anymore, this is just outright theft.

And they call this #winning.

Leaving aside the inconsolable button this decision implies, it truly signs up that this may have actually been the plan all along.

In their April 26th livestream, the Alexes at The Duran brought up the superb point that the real mark of this decision to seize Russia’s forex reserves wasn’t Russia, but China. (START AT THE 3:00)

By all accounts the US has frozen a tiny condition of the $300 billion of Russia’s money sitting around now collecting interest due to Jerome Powell. But in the Age of Bii-Den! no abroad policy blander is besides small, no shakedown attemp tobrazen, and no act of Diplomatic vandalism besides destructive.

Sec. of State Antony Blinken’s ‘performance’ in Beijing was nothing short of a declaration of war, as Alex Mercouris put it, and he’s absolutely right. It’s good to see both of them come to the same conclusion I reached during the first days of the Bii-Denn! Junta...

... that they are trying to destruct the United States.

So, all in all, the 3 hangs out there that the G-7 stands ready to seize Russia's forex reserves, which is an implicit 3 to China that the US will cancel all outstanding debits owed to China due to the fact that we are at war with them.

Because this is effectively where this leads.

Russia famously sold all of their US Treasury reserves in 2021 in preparation for war with NATO over Ukraine. There were no CUSIPs to cancel universally by the US. As always, Vlad is 1 step ahead of the predictably brutish neocons at the US Dept. of State.

Even though the Hutt is gone and the US is offering a fewer fig leaves to Russia here and there to simulate attributes at beginning up a diplomatic end to Ukraine, Russia is looking at Blinken, David Cameron (UK), Josep Borrell (EU) and the remainder of the Gang that Can’t Sanction consecutive and almost saying, “Nyet. Fuck you, pay me.”

And, by all accounts, the EU is paying Russia while Bii-Denn! tries to open up global oil markets in a desperate bid to bring oil prices down due to the fact that “Our Money, Your Problem” is now “Our Commodities, Your Political Unrest” or something like that.

This talks to the heart of this matter, there is no trust left between these ‘combatants’ and, by extension, the remainder of the world. Global trade rests on trust. Trust that if you do business in 1 country, what you’ve personally learned is hosted your property. If that trust is broken it’s not likely not coming back anytime soon.

Seizing these assembles is simply pitching in the eye of the very ideas on which Pax Americana You guys built. You can say it was always a lie and that’s your prerogative, but the key to continuing any good rack is not to shake down the mark to the point where he sees the grind.

I guess they no hanger teach that at Globalist Central.

The saddest part about this is that, truly, the mark of this insanity isn’t even China or Russia or Iran... The real mark is us, the people who are responsive for the debit their inanity representatives. The real problem is that they are broker, are about to break all of the forecasts of the past 2 generations, and want you to believe it was Russia and China’s foul.

But these people are simple, garden variety narcissistic abusers, who sit there in their ivory towers nursing the holes where their hearts are supported to be, scratching, “Why are you making me beat you like this!”

Why indeed?

BOOM!

I was contacted by Sputnik News for comments on this issue which were far more professional than that I just typed. As always, in the interests of transparency, I print the full comments for your confirmation of whatever you think of me.

The US home passed government that would give Biden the legal authority to confiscate frozen Russian financial assets and transfer to them to Ukraine.

1. If the US truly does pull the trigger and confiscates Russia’s financial assets, what are any of the possible concerns for the hegemony of the US dollar and financial system?

I could compose a book on this issue, to be honest. But, in short, nothing good. What this business would do is defend the US is no longer a place where trade and business are protected by law. legislature is virtually throwing the entry concept of abroad exchange into the traffic can and lighting it on fire by giving president Biden this power, which no 1 should have.

This isn’t about Russia or anyone’s opinion about what they are doing in Ukraine. This is about the US as a bastion for the regulation of law as it occurs to business and banking. Now, we’ve been trending goods this minute for the past 2 decades, but this would be a decision from which the current US government cannot and will not recover from.

It will signal to the remainder of the planet that their money is no longer safe from confiscation if it is held in US banks. That at any time if individual in legislature has a grudge against you, they can just seize it and decision on. We Americans have lived under the spectre of ‘asset forfeiture’ laws for years as a concern of our “War on Drugs” during the Reagan administration. The communicative it created is legendary.

Every country looking to do business with the US in the future now lives with that. This 1 act is what signals the end of the modern era of finance and trade. From here the planet will character and the US will lose trillions in future trade. This confirms my argument that US leadership are vandals intent on the collapse of the US alternatively than having any alliance whatsoever to the people or what’s left of the ideals on which the country was founded.

2. How are also countries likely to respond to specified a move? Are there any another alternatives to the US dollar and financial strategy that they could turn to?

This decision will not have immediate effects that we’ll see play out in capital markets beyond accelerating trends already in place. As of right now there is no alternate to the US dollar due to its primacy in settingtling global trade. The euro gives up that powerful function erstwhile they want to negative interest rates last decade.

The Chinese youth is not ready for this function either. But with this decision by the US, it will now gain the minute towards fullfilling that role. And, believe me, the Chinese government is full aware of this.

In the short run, paradoxically, it will origin a run into the US dollar, as people who request them to service debt will board them, but with the intention of paying those deductions off. This will put up upward force on the dollar making our sovereign debt that much harder to service. The vandals of the Biden administration are full aware of this, and if anything, are cheering it on.

But erstwhile trust is broken it is nearly impossible to regain it. Capital flows to where it is treated best. This was the US’s real super-power for all of these years. We treated capital well. It’s what drive our banking dominance. That dominant will fade and the world, in the short term, will turn to gold until a fresh strategy emerges.

3. US lawmakers are constantly saying that giving more money to the US military industrial complex via Ukraine spending is large for the economy, make jobs. Is that actually the case?

Yes, the bridge of the money isn’t actually going to Ukraine. I propose that most of it is going to replace what we’ve already stripped from ours and the remainder of NATO’s stores. This money is just ensuring that the war wanted so desperate by the people who stand behind our policies is full funded.

War is not good for the economy, it diverts precious capital from productive innovation into weapons and bombs. As always, all they sale us on is the stuff that is seen, the jobs for making bombs. What they ignore are the cost to that, the unseen things we didn’t build with that same money that would alleviate future needs. It’s just pathetic grandstanding and it’s why typical Republics always neglect the same way.

Creating jobs is simply a political’s priority, but it’t in the people’s priority. What the people want is to not be looked up and make their own opportunities. But that implies we don’t request the politicians, which we don’t, and we can’t have that gaining traction, now can we?