Posted on 03/23/2022 6:25:36 AM PDT by marshmallow
Last week, Russian finance minister Anton Siluanov confirmed that about $300 billion of Russia's gold and foreign exchange reserve cushion had been frozen as a result of Western sanctions. On Wednesday, Foreign Minister Sergei Lavrov called the move "theft."
The collective West's decision to freeze Russian reserves abroad constitutes the bankruptcy of their obligations before Russia, and undermines faith in their currencies, President Vladimir Putin has said.
"In the past weeks, a number of Western countries have taken illegitimate measures on the so-called 'freezing' of Russian assets. The collective West has factually drawn a line under the reliability of its currencies, crossed out confidence in these currencies. Both the United States and the European Union have essentially declared a default on their obligations to Russia," Putin said, speaking at a government meeting on Wednesday.
"In this connection, it's clear that supplying our goods to the European Union and the United States and receiving payment in dollars, euros and a number of other currencies does not make any sense to us," Putin added. "Today, everyone knows what they previously suspected - that obligations held in dollars and euros may not be fulfilled," the Russian president said.
About $300 billion out from the Russian Central Bank's $640 billion national reserve cushion, which was carefully amassed over the years for a rainy day, including by forgoing spending on various government and social programmes, were frozen in an instant after the US and its allies introduced sanctions on Russia over its military operation in Ukraine.
In a speech in Moscow earlier Wednesday, Russian Foreign Minister Sergei Lavrov characterized the freeze as blatant "theft." Earlier, the Kremlin suggested that the West's actions constitute an "economic war" against Russia.
(Excerpt) Read more at sputniknews.com ...
Let Russia know that their gold and reserves will first go to the Ukraine as restitution for damages caused by Russia.
The same should happen as tariffs on all Russian exports.
Guess what Arabs and Chinese are thinking right now? Are they next for the five minutes of hate? After all the Prince has cut the head of the Al-Qaeda guy and the Chinese are tough on Muslims.
Did you convert your 401k into hard assets yet?
I agree 100%. That would make a down payment on restitution.
I can’t disagree but we should be prepared for the eventual pushback that will happen, instead of acting out of emotion, I hope logic prevails.
Whatever debts Russia has that are held by US or EU Banks and Financial Institutions will be defaulted on, Russia would say, you keep our money, we don’t pay you back for your money.
Russia along with the other BRICS countries could and probably will setup an alternative to the current SWIFT system of international payments.
Saudi Arabia has already indicated it might be willing to accept Chinese Yuan instead of USDs as payment for oil.
Any move to replace the US Dollar as the World’s Reserve Currency will have real impact on the US Economy.
My point is, I’m all for punishing Russia, but we should not be naive that the USA won’t experience real problems by implementing these extreme sanctions on Russia.
Owe the bank $10,000 you are in a heap of trouble. Owe the bank $10B and you should buy their stock because the Fed will make them whole.
When we print the world's reserve currency to pay US$ debts the whole world pays.
When Argentina inflates the peso the currency collapses. That is the world we face in the future.
True, if other countries realize at some point they don’t need to hold US Dollar Reserves, it’s game over for awhile for our economy.
“ Let Russia know that their gold and reserves will first go to the Ukraine as restitution for damages caused by Russia.”
The bill is about in that ballpark already.
Pres. Biden has sent billions of dollars to Ukraine. We don’t know yet how our taxpayer money will be spent.
Please recall that Pres. Biden and Pres. Zelensky started this war by signing a document that Ukraine would apply to membership in NATO, contrary to agreements that Ukraine would be a neutral nation. Russia responded to protect their interest.
World War 111 is on and Biden and Zelensky’s parliament members have stated they desire a “New World Order”.
That would be the EU not NATO...
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