If global commerce is wrecked, does that help or hurt the U.S.? There is a right answer. From David Stockman at antiwar.com:
We did get that right. At an intense seven-hour session in Rome, Biden’s national security advisor, Jake Sullivan, told the Chinese in no uncertain terms they are next in line for the sanctions hit parade:
Jake Sullivan told CNN the US had been “communicating directly, privately to Beijing that there will absolutely be consequences for large-scale sanctions evasion efforts or support to Russia to back-fill them” amid the Ukraine war.
For want of doubt, the rest of the US government has not been loath to reinforce Sullivan’s edict:
Officials of the United States and other countries have sought to emphasize in recent weeks that siding with Russia could carry consequences for trade flows, development of new technologies and expose China to secondary sanctions.
Chinese companies defying U.S. restrictions on exports to Russia may be cut off from American equipment and software they need to make their products, US Commerce Secretary Gina Raimondo said last week.
Just brilliant, that. The US desperately needs a resurgence of economic growth and especially export sales in order to cope with the $86 trillion of debt that the Fed’s easy money policies have foisted upon the combined public and private sectors in recent decades, but in its self-appointed role as global gendarme Washington insists on throwing spanners in the gears of private capitalism whenever and wherever possible.