Here is where politicizing the financial system is getting us. The United States Treasury stepped in and stopped a $600 million payment by Russia to bondholders for its debt.
The Treasury blocked Russia from using USD that is has sitting in US banks.
In this video I discuss how politicizing the financial system is asinine. We are seeing American holders of this debt suffering as Russia is pushed towards default.
We see the motive is to get Russia to spend its other USD that it has. This is in an effort to pry that out of MOscow's hands. So much for Russia trying to get out of the USD>
▶️ 3Speak
Let them eat Rubles.
Politicizing financial things is an error. Both should not be mixed, since it is an error that the Russian people will suffer, but well, sometimes it is better not to say so much about the international policies of other countries.
They dicided to politicise financial system long before Russian invasion. Funny thing this FIAT money systems are tide to countries for some reason, aren't they?
It's a dumb move and won't this backfire on them? Countries will be skeptical about keeping USD if people can just block them from paying off their debts.
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Russia is a technological and an economic midget with sick and twisted delusions of imperial grandeur. It is jeopardizing security in the middle of Europe in a very serious manner. It's killing people on a mass scale right as we speak.
Russia must be crushed with all available means. Russia is currently incapable of manufacturing new tanks because of a shortage of components. The pressure must be kept on.
This is one example of why the freedom to transact is so important. I'm seriously worried that nobody even is looking at first order effects, let alone second or third order. So many nation-states trying to shoot themselves in the foot and "magic bullet" themselves in the head.
Summary:
In this video, the speaker discusses a recent controversial decision made by the U.S. Treasury to block Russia from making a $600 million bond payment using funds held in American banks. The speaker criticizes this decision as a move to politicize the financial system and emphasizes the potential negative impacts on bondholders, including pension funds. He expresses concerns about the consequences of the U.S. government's actions on trust in the financial system and capital flow.
Detailed Article:
The video begins with the speaker highlighting the current situation where the U.S. has blocked Russia from making a $600 million bond payment by freezing the funds held in American banks. The speaker criticizes this decision as a form of insanity and labels the leadership in the West as brain-dead for politicizing the financial system. He explains how the U.S. Treasury's action affects bondholders, potentially including entities like PIMCO, hedge funds, as well as pension funds such as teachers', firefighters', and police pension funds.
The speaker points out the ripple effect of this decision, noting that it not only impacts Russia but also raises concerns about the broader implications of politicizing the financial network. By forcing Russia to choose between draining its dollar reserves or facing default, the U.S. government is escalating tensions and risking damaging the trust in the financial system. The speaker highlights the hypocrisy in the U.S. government's actions, focusing on the potential default on bonds held by Americans, which could include pension funds, and criticizes the Biden administration for overlooking the consequences of its policy.
Furthermore, the speaker delves into the argument around the U.S. dollar's status, debunking claims of its impending demise due to actions from Russia or China. He emphasizes the significance of the dollar's strength being tied to the debt held worldwide and denominated in USD. By restricting countries like Russia from fulfilling their bond payments, the U.S. government undermines the trust in the dollar, potentially leading to a loss of faith in the financial system.
The speaker expresses his concerns about the destructive nature of these policies and predicts negative repercussions on the global economy. He attributes this escalation to the Biden administration's decisions and points out the alignment of Western allies in following similar practices. The video concludes with a grim outlook on the implications of these actions, suggesting that the trust in the financial system will be severely compromised, leading to a slowdown in capital flow and challenges regarding financial agreements and safety.
In essence, the speaker provides a critical analysis of the recent U.S. Treasury decision to block Russia's bond payment, highlighting the wider ramifications on the financial system, trust, and future capital flows. His insights shed light on the potential consequences of politicizing financial networks and the significant impact on various stakeholders, including pension funds and global economic stability.