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Friday, March 25, 2022

Biden's sanctions hit USA hardest

Biden said the Russo-Ukraine War will send food prices soaring.

Andrew Malcolm tweeted, "How much of our food actually comes from Ukraine anyway?"

12% of the $1.3 billion in annual imports from Ukraine are agriculture products.

That's $156 million a year, or a penny's worth of food a week per person.

The war won't have much of an effect on the price of Wheaties, but economic sanctions on Russia will blow back on us hard. Biden's banking blockade already is diminishing the power of the dollar.

The International Monetary Fund just released a video on the sanctions and the blowback.

Zero Hedge reported, "the IMF's first deputy managing director, Gita Gopinath, warned that Western sanctions on Russia, and more specifically, the confiscation of dollar- and euro-denominated reserves held by the Russian Central Bank, could backfire by making other foreign central banks more reluctant to hold such a large amount of their own foreign reserves in dollars and euros.

"For decades now, the international dollar-based financial system has been underpinned by free market principles. Unfortunately, when western institutions effectively confiscate reserves belonging to an independent central bank, they cut against this notion, and prompt other nations to ponder the possibility -- however remote -- that they could be next.

"Ultimately, it's likely that some countries will reconsider the wisdom of so heavily relying on Washington."

Between his sudden surrender of Afghanistan without consulting our NATO allies and his insistence on unannounced and impulsive freezing of bank accounts and the seizure of yachts, Biden has undermined more than a century of trust in the USA. The man is in way over his head and bringing the nation down with him.

No one can trust the USA again.

Putin is no dummy. He prepared for economic sanctions years ago.

Zero Hedge said, "Since the annexation of Crimea in 2014, Russia's central bank had steadily divested its reserves of most U.S. dollar assets. But the dollar, euro and sterling still account for more than 50% of its holdings, located in France, Germany, Japan, Britain, the United States, Canada and Australia.

"Russia isn't alone in this: Increasingly, Latin American nations are diversifying their reserves away from the dollar, including larger percentages of alternatives like the Chinese yuan."

The American government is as trustworthy as the American media now.

Zero Hedge said, "Credit Suisse's Zoltan Poszar recently pointed out, western sanctions could help spark a larger move away from holding reserves in the form of inside (aka fiat) money, and instead see a movement toward a new system where crypto, or perhaps a hybrid of gold and other commodities like oil, serve as the new reserve asset of choice. Of course, the Fed -- which is pushing the adoption of a central bank digital currency to seize the last bit of financial autonomy Americans have left -- will likely push back with force. We're already seeing it today as the US and its G7 allies seek to halt purchases of gold by the Russian Central Bank."

America is no longer king of the world.

Its politicians sold that crown off to Red China long ago.

For our own sake, it is time to stop acting as if we are the king.

We should have treated this war like the one in Yemen -- and ignored it.

Instead, we attacked Russia financially, turning the ruble into rubble. Russians will now return the favor.

24 comments:

  1. All appears to be proceeding according to plan.

    ReplyDelete
  2. However-Capital is running away from China bigly
    yahoo news has a bit about that. Evergrande is coming up in a paymnet on the 31st. Insiders say they can't make it.
    China is paper asshoe.

    ReplyDelete
    Replies
    1. Yeah, Don is overly fascinated with China. They are screwed. About 30% of their stated GDP is tied directly to real estate, in almost ponzi-like arrangements. It's all starting to crumble.

      As for the brief rearrangement of the dollar holdings, that is concerning, and it will impact the dems holding our budget, as it will force interest rates to go up more than they already will do to inflation. This will destroy the dems in a fashion so hard I am interested in what rises from their ashes.

      Long term, if people want to get into the US with their goods, they need dollars. And since everyone wants to have their goods here, the global reserve currency will be - dollars.

      Delete
    2. No great thing is created suddenly.
      Epictetus

      Delete
  3. Fiat money's value is directly tied to the confidence in the government of the country of issue.

    Biden destroyed that confidence and thus the dollar.

    China and Russia are no more dependable so their currencies won't dominate unless tied directly to a claim on commodities of value: oil, gold. Of course taking possession of the equivalent amount of oil or gold is problematic for all but a few.

    This is the best argument for cybercurrencies like Bitcoin that I've seen. They at least let you trade without using 55 gallon drums.

    However, cutting off internet access is a specialty of China and increasingly of Western "democracies"

    ReplyDelete
    Replies
    1. eh, yes and no. The value of any currency is mostly tied to how productive the country's economy is. Obviously how a country is perceived plays into that somewhat. And yes, Biden is doing us no favors.

      Delete
  4. If Trump is re-elected, or DeSantis with MAGA candidates winning the House and Senate, it will be "morning in America" once again.

    ReplyDelete
  5. Saw a piece saying how the way the Russians are beating the sanctions means globalism is on its last legs.

    If the Democrat party is rejected as many say (and I don't think just this election), they may well be right.

    ReplyDelete
  6. If we are able to thwart the Democrat cheating operation, Biden's conduct here will then become to be viewed as an aberration once MAGA people take charge.

    ReplyDelete
  7. biden was never on the side of correct decisions before he was senile. Being wrong for 50 years on every issue doesn't change because he's demented.

    ReplyDelete
    Replies
    1. There was a chance his dementia would veer him or his handlers into an occasion correct decision. Hasn’t happened. Won’t happen.

      Delete
  8. or a penny's worth of food a week per person.
    ------------------------------
    Until the fertilizer crisis hits farmers the world over. There will be a bidding war for fertilizer or the farmers will plant less. Either results in less food and higher prices.

    ReplyDelete
  9. or a penny's worth of food a week per person.
    ------------------------------
    Until the fertilizer crisis hits farmers the world over. There will be a bidding war for fertilizer or the farmers will plant less. Either results in less food and higher prices.

    ReplyDelete
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  11. Don...I understand what a hot mess we are here...but never take sides against the Family. You will never get nowhere nohow betting on Putin.

    ReplyDelete
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  17. But of course it hits USA hardest as this is BHOs third term and the plan is to weaken and undermine USA as much as possible.

    When fools call these maniacs stupid they do not realize they are doing excactly what their plan is, to undermine, create division and as much chaos as possible. So when will Americans realize they are under attack 24/7 in a myriad of ways and stop thinking in terms of red Vs blue foolishness that is long dead. We did have a COUP/STEAL recenlty and they are still in power wrongly, WHY ? and where is the righteous anger and outrage to their mass murder and ongoing crimes against all of us ? Are Americans slow and weak or what ? GOtta gt off the couch and get strong and veyr healthy and clear minded becuaseu only we can stop these MOFOs !

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