Posted on 04/16/2024 7:39:29 AM PDT by delta7
KEY TAKEAWAYS The European Commission wants to hand Ukraine $300 billion seized from Russia. Doing so likely would sound the death knell for the dollar and eventually the euro.
The message from the EU and the Biden administration is crystal clear: Western financial markets are now a dangerous place to park your money.
The talk of seizing foreigners’ assets is exposing these dollar-denominated loans as less than safe. Indeed, they’re more of a liability.
Confidence in Western financial markets has already been shaken enough by the 20% devaluation of the dollar over the last few years. But now the European Commission wants to hand Ukraine $300 billion seized from Russia. Doing so likely would sound the death knell for the dollar and eventually the euro.
Treasury Secretary Janet Yellen, who has worked for literally decades to undermine the strength of the dollar, recently urged world leaders to take this disastrous step of outright theft.
But financial leaders worldwide, including those who adamantly support Ukraine, are sounding the alarm, citing the unprecedented fallout that would stem from further violating the sacrosanct nature of the dollar.
When Russia invaded Ukraine two years ago, the U.S. and its European allies seized $300 billion in Russian Central Bank assets. Relative to the size of the Russian economy, that’s the equivalent of $4 trillion in U.S. financial holdings.
>>> The Uniparty Is Only a Few Steps Away From Gutting the U.S. Dollar
The goal was to instigate panic in Russian markets, culminating in bank runs and general unrest, perhaps even leading to the ouster of President Vladimir Putin himself. It didn’t work.
Instead, American banks had a cliffhanging spring last year that included the collapse of Silicon Valley, Signature and Silvergate banks, while countless regional banks held on thanks to emergency loans from the Federal Reserve.
Apparently not content with sowing chaos in domestic financial markets, the federal government’s push to steal Russian financial assets would plant the seeds of pandemonium abroad.
The European Union is in lockstep with the Biden administration’s plan to transfer the frozen Russian assets to Ukraine to buy weapons—which, of course, would be sold by the EU and the U.S.
Some member states of the EU want to just hand over all $300 billion instantly to the corrupt oligarchs in Ukraine. Others want to start with just the interest payments accruing on these financial assets. (Of course, the frozen assets aren’t actually accruing interest now, so any payments to Ukraine would actually be more deficit spending by Western governments.)
Just sending the interest payments would be crossing a terrible threshold, further violating financial custodial agreements of dollar- and euro-denominated assets.
The message from the EU and the Biden administration is crystal clear: Western financial markets are now a dangerous place to park your money. This could fatally undermine global confidence in American and European financial management because the safety of your assets will have become dependent upon your standing in Washington and Brussels.
That’s a concern for corporations, but it could be an existential threat to countries that own a large share of international financial assets. The ever-present threat of theft, couched as financial sanctions, means nations effectively lose their autonomy, forced to kowtow to the whims of American and European bureaucrats.
The Biden administration has already threatened sanctions on Uganda over its LGBTQ policy, but that’s just the beginning. Similarly punitive financial ideas have been floated regarding abortion and environmental policies.
Now sanctions are becoming just the first step to seizing all of a country’s financial assets, and the rest of the world is waking up to the racket.
A few months ago, the Indonesian president gave a speech saying his country needed to diversify its dollar holdings and dollar-denominated assets, ominously citing, “Look what happened to Russia.” The Federal Reserve recently refused to disclose how much foreign exchange reserves and gold have been withdrawn from the United States since the Russian asset seizure.
>>> The Decline and Fall of the U.S. Dollar
The de-dollarization trend is decades old, a result of dysfunctional government crippling economic growth while inflation erodes the currency’s value. The dollar fell from 73% of currency reserves to 55% in 2021, but the seizure of Russian financial assets gave this trend a shove into overdrive.
The dollar’s share of currency reserve plummeted another 8 percentage points in just two years, falling to 47% in 2023.
It’s not just reserves, but international trade, too. Brazil has begun conducting some of its trade in Chinese yuan, and projections are for China’s share of trade to triple in the next decade. Other countries, including their central banks, are divesting their dollar holdings, preferring gold or other real assets.
The Fed’s interest rate increases have buoyed the dollar, but that is poised to reverse as the central bank readies a pivot to interest rate cuts in this election year.
Similarly, the turmoil around the globe has prompted a “flight to safety” where investors buy assets perceived to be safe, such as U.S. Treasuries. But the talk of seizing foreigners’ assets is exposing these dollar-denominated loans as less than safe. Indeed, they’re more of a liability.
If the people running our country were intentionally trying to destroy the dollar, it’s not clear what they would be doing differently.
Military severely degraded, illegal alien invasion, lawlessness, extreme division, unpayable debt, high inflation, US hegemony destroyed, etc…
The list is increasing in size and frequency….
The Biden Admin is trying to destroy both the dollar and the country
Quick answer - yes. Nothing else makes sense.
Republic died w/ the tyrant Lincoln. Dollar killed w/ A1S10 violating ‘Fed. Rsrv’ & Nixon’s illegal EO.
Suddenly, peeps are ‘surprised’
You are ascribing malice or incompetence to the process. It is neither IMHO.
What better way to overwhelm international and national finance and create absolute superiority over markets than by destroying the dollar’s usefulness and replacing it with a Central Bank digital currency.
It would not have to be a one for one replacement. It could be a revaluing of the massive trillions of debt. Think of it as currency debasement and devaluation hidden in a new form of money.
Isn’t that the mission of Soros his boss?
The ruling class goal is to kill off most of the population and enslave just enough to keep themselves fed and comfortable.
The dollar is pretty bad and the Federal Government appears on its way to bankruptcy, but other currencies, and their governments, are even worse.
BTW, gold is at record highs in every world currency.
Didn’t soros destroy the British pound?
Seems to be his goal to destroy western currencies.
Obama, Valerie Jarrett, Susan Rice
Biden just stumbles, mumbles, grumbles and takes bribes.
“How long will it take for the war cheerleaders”
Nonsense and irrelevant. As much as Biden is incompetent when it comes to everything related to national security, our military spending is not the problem.
The budget busters and massive additional spending and borrowing - puting pressure on the interest rates needed to be offered to sell U.S. debt, adding to inflation, requiring the virtual printing of money to spend that borrowing - is 100% due the explosion of trillions in DOMESTIC spending, not military spending.
When you run the world’s reserve currency, THE highest priority is to make sure that you are an honest broker from a commercial point of view. You don’t steal peoples money, otherwise you absolutely undermine confidence in that system, or else destroy it altogether. If you are going to take money from a sovereign country as a punishment for initiating a war, then you need a legal process for doing so. That usually involves a treaty at the end of that war. It does not involve taking money from a nation with which we are not officially at war, and never have been. In my opinion, the people at the top in the Federal Reserve, the Treasury Department, and elsewhere in the government with the exception of the senile, corrupt, hair-sniffer) know this very well - heck, I am a mirror finance and economics major from 40 years ago, with an interest in history, and I know this. Yes, of course they are incredibly arrogant. But they KNOW this, yet they continue doing what they are doing. This is not an accident.
My personal course of action is to do what people did during the inflation of the 1970s, which is to put our increasingly worthless fiat currency into hard goods of one type or another. This might mean Buying a larger home, fixing up or expanding your existing home, purchasing a new car, a new refrigerator, stocking multiple freezers with meat, or buying gold and silver as hedges. At this juncture, Bitcoin might also be an option, Especially as it is easier to carry from place to place than Gold and Silver are.
Apologies for the minor typos, and the unexplainable use of the word “mirror“ in my post. Apparently, Siri must be an illegal immigrant who does not understand English very well.
“How long will it take for the war cheerleaders”
Nonsense and irrelevant. As much as Biden is incompetent when it comes to everything related to national security, our military spending is not the problem with respect to the dollar, nor will any financial matters related to Russian holdings in western banks affect what most of the world think about their assests in western banks, because they are not behaving like Russia - creating a war.
So many of the premises of the author are nonsense; aiming to help whom???
The budget busters and massive additional spending and borrowing - puting pressure on the interest rates needed to be offered to sell U.S. debt, adding to inflation, requiring the virtual printing of money to spend that borrowing - is 100% due the explosion of trillions in DOMESTIC spending, not military spending.
P
What is a “Dollar” ???
...
Ohhhhhh............ You mean those “Federal Reserve Notes” that you carry around?
What is A1S10?
“Is the Biden Administration Trying To Destroy the Dollar”
The Biden Administration Trying To Destroy the US Republic
There, fixed it
They are trying to destroy the debt - by paying it off with greatly inflated, cheaper dollars. They have no other way out.
destroying the dollar’s usefulness and replacing it with a Central Bank digital currency.
——
Exactly my thoughts. Years ago I read an MIT study ( funded by Obama ) on how to instate a digital currency ( cashless system)- that piece has been scrubbed from internet years ago but Cornell and MIT established “ think tanks” how to instate it.
…enter the much talked about “ Great Reset”. Armstrong, Sinclair, Holter, Schiffand many legendary greats have commented on how it will be done- it has to.
Western governments are mired in unpayable debt, they are bankrupt, and the clock is ticking. The common “ thought” among the financial greats is an “ event” will occur, a collapse in debt ( we are already witnessing this in US bond markets) instruments and the derivatives markets ) creates historic Panic.
We will be told a cashless system ( CBDC’s) will save your SS, Pensions, 401k’s, Retirements, Savings, etc…)…..like the Covid scam, everyone will rush to support it. Note this is in line with Biblical prophecy.
Many don’t realize Trump once discussed reorganizing our debt with the Federal Reserve- commonly done in business- called bankruptcy and “ reorganization “.
So the fact our government knows we are bankrupt with unpayable debt, and have already planned for a CBDC raises many questions…..all I know is it will be instated, and the US population will support it without question. Watch, the scam was proof.
That said, the MIT and Cornwall think tanks have worked out many details. For example, one paragraph stated CBDC kiosks will be installed in every US Post Office, “ Fair Banking for All” BS….the most frightening idea presented was the dissolving of the IRS( huge cost savings and huge public support)as the government will know everything about every single transaction and taxes will be automatically deducted from the digital accounts…..
All that said, this evil must be fought with every ounce of strength, even if threatened with losing your SS, Pensions, 401K’s……standfast….and start redirecting your cash dollar holdings into “ things”, property, PM’s, high end collectibles, etc….always the rule when entering high inflationary times.
Do not believe the government’s narrative. People were fooled with Biden’s Covid hoax and shutdowns , Biden’s Ukie war, and many other false narratives.
Unless extreme resistance is shown, it’s coming.
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