Strategic Culture Foundation By Tom LUONGO .. shared with thanks
There’s a lot of news flying around about the changes happening in global currency trading.
From “Gas for Rubles” to “What the Hell is Going on With the Yen?” there are a lot of questions and very few answers as to what it all means and whose on which side of the divide.
The Fed just hiked 50 basis points for the first time since 2000 and will be running off its balance sheet forcing the Treasury to stop issuing new debt at stupid rates. The European Union unveiled a sixth sanctions package against Russia which calls for a complete embargo of all Russian oil.
Further to this the EU is now aping what the Trump Administration tried to do to Iran in 2018, sanctioning all services, including insurance, to all shippers of oil from doing any business with Russia and sanctioned Russian banks.
The bloc is proposing to ban European vessels and companies from providing services — including insurance — linked to the transportation of Russian oil and products globally as part of its new sanctions package, according to officials and a draft document seen by Bloomberg.
While member states are still wrangling over the terms, it’s a potentially powerful tool because 95% of the world’s tanker liability cover is arranged through a London-based insurance organization called the International Group of P&I Clubs that has to heed European law.
These sanctions, effectively politicizing every aspect of international business and trade, are ultimately nothing more than short-term annoyances for Russia or anyone else.
It betrays a mindset that cares nothing for the downstream effects of these actions and, if anything, betray the desperation felt in Brussels today about its position in the global market.
I’ve spilled hundreds of column inches trying to explain to the world that it is the EU’s totalitarian mindset based on their psychological imbalance and ideological need to be seen as the champions of humanity, that drives all of their decisions.
The US is not so driven. We’re far easier to understand. We like power but only so long as it nets us a profit.
This sanctions package is prima facie evidence of their insanity and what happens when, like a cornered animal, they are faced with an existential choice. The EU is built on a foundation of insulating its leadership from the vicissitudes of public opinion.
Populism is a four-letter word in the Eurocrat’s vocabulary.
The consequences of this policy which was conceived of by the fart-sniffing buffoons at the World Economic Forum, The Davos Crowd, are irrelevant to them in the short-term. Yes, Europeans will suffer tremendously high inflation because, if successful at taking a majority of Russian oil off the global markets, will only ensure that prices go ballistic.
Do you think the same people who have a stated depopulation agenda who mandated a 12% effective Pfizer vaccine and wasn’t tested at all on pregnant women lest they be barred from partaking of European society care one whit about the people they govern?
Of course not.
I guess this is what they mean when they invoke “European values.”
So, keep that firmly in mind when you play through the following scenarios and what is really at stake for them and for us going forward. These are people who are only in power because they control the political process handed to them via a corrupt monetary system which institutionalizes the Cantillion effect of money printing to grant them unearned advantages in the market place.
As I’ve pointed out in previous articles, one of the strongest weapons Russia has in their arsenal is the world’s need for the commodities they produce and their ability now, with the global financial system teetering on the brink of collapse, to set the terms of payment for them.
Ronan Manly at Bullion Star recently wrote a great article which is, I believe, the foundational one for what’s going on in Russia. In it Manly goes over the steps being taken by the Russians to move away from a purely debt-based currency regime to a commodity-based one. This idea is promulgated by Sergei Glazyev, who is heading up the creation of a kind-of SDR for the Eurasian Economic Union (EAEU).
Continue reading “The Great Currency Reset: Europe Trapped by own Prejudice”
The Free 