Source – vtforeignpolicy.com
- “….Do you still think Mr. Jerome Powell that you made an intelligent choice by foreclosing 300 billion dollars of Russian foreign funds?. And, more importantly, do you think that today’s international monetary system based on the US dollar can now withstand a possible flight of Arab capitals of the order of trillions of dollars without a collapse?”
UKRAINE: The Tale of the Judge Banker and The Boomerang Effect of his Action
VT’s Claudio Resta digs into the Ukraine-Russia War and exposes its main characters
How about a guy who goes to the bank to get his money back and the clerk at the counter tells him…
“Listen! My boss is a friend of your neighbor who complained to him because you claim a property boundary dispute. So the boss has decided to seize your money to punish you and is willing to give it to your neighbor since my boss thinks he’s right in the dispute!”
The guy obviously protests and shouts that his banker is a thief and his word spreads around the world.
The guy is Putin, the neighbor is Zelensky, and the banker is Jerome Powell chairman of the Federal Reserve.
The money in the bank is in this case the pittance of 300 billion dollars!
But the thing does not end there.
In fact, the thing is known around and ends up worrying a lot of other guys even much distant and different from Putin in terms of social, political, and cultural system; guys who, however, need to necessarily have to invest their savings abroad, given that their nation is too small to absorb all that store of value. And also to reduce risk.
So a nation so different from every point of view, starting from the climate, from Putin’s Russia like Saudi Arabia could think today you, tomorrow me.
Tomorrow, who knows, maybe arguing about respect for human rights used as a pretext for the FED could seize my foreign funds.
I don’t want to run that risk. Not at all!
So the government of Saudi Arabia has officially agreed to join the Shanghai Cooperation Organization (SCO) as a dialogue partner.
This can be read as a preliminary step before the divestment of Saudi dollar sovereign wealth funds that will later be invested in Asia, the next pivot of future Riyadh’s economic policy.`
And presumably other creditor countries will follow Saudi Arabia in its choice for precautionary reasons (avoiding the risk of seizure).
Now considering the fact that the foreign investments of Saudi Arabia alone exceed 450 billion dollars and those of the other Persian Gulf Countries (which are in the same situation as Saudi Arabia of having to invest necessarily abroad) exceed a total of 2 trillion dollars and could leave, as a consequence of Russian fund seizure previously described, the US Dollar area to reach the Shanghai area and currencies!
It is well known that for a long time, the financial fortune of Switzerland and its banks was due to the certainty that it would always allow all incoming capital to leave at will.
Without even looking at the respectable, legal, illegal, and even criminal nature of who anybody was the owner. Guided in it by ancient wisdom and knowledge of the human soul, egoism, and greed.
Do you still think Mr. Jerome Powell that you made an intelligent choice by foreclosing 300 billion dollars of Russian foreign funds?
And, more importantly, do you think that today’s international monetary system based on the US dollar can now withstand a possible flight of Arab capitals of the order of trillions of dollars without a collapse?
As both a warning and a metaphor let me remember you that the architectonic style of the WTC twin Towers that fell on 9/11/2001 was Pan-Arab Modernism!
Claudio Resta was born in Genoa, Italy in 1958, he is a citizen of the world (Spinoza), a maverick philosopher, and an interdisciplinary expert, oh, and an artist, too.
Grew up in a family of scientists where many sciences were represented by philosophy to psychoanalysis, from economics to history, from mathematics to physics, and where these sciences were subject to public display by their subject experts family members, and all those who they were part of could participate in a public family dialogue/debate on these subjects if they so wished.