It’s the End of the Foreign Exchange Reserves as We Know It – Don’t Feel Fine About it. By Tom Luongo

Tom Luongo nails this one. Destroying the world’s trust in the dollar will have globally negative consequences that will extend far beyond this country. From Luongo at tomluongo.me:

“Birthday party, cheesecake, jelly bean, Boom!”
— R.E.M.

The world we’ve known is over. The US Congress finally pushed the big red button. When the West froze around $300 billion of Russia’s foreign exchange reserves in March 2022 it was the first step in breaking down the system of foreign exchange reserves that makes up the global economy.

Freezing assets of countries they are mad at isn’t new behavior from the locusts that run the G-7 countries. We still have to listen to conservatards whine about Obama giving Iran back “pallets of cash” for signing the JCPOA (Iran Nuclear Deal) in 2015, when all he did was unfreeze assets we’d frozen in 1979…

… 1979, folks. Seriously. Get a grip on reality. Obama gave Iran back their money. I’m no Obama fan, far from it, but as payments go, it was really nothing.

Freezing assets, however, isn’t really theft, it’s just the tip.

The money frozen in 2022 was supposed to operate the same way. It was supposed to pressure Russian President Vladimir Putin into ending the war in Ukraine. The theory being that the oligarchs whose money that represented would push Putin out of power to get that money back.

Theories, by the way, speaking as a scientist, mostly suck.

Putin used this to his advantage, rallying the world around him and to the burgeoning BRICS Alliance. It worked a treat and here we are with $90 per barrel oil, raging inflation and a shattered Ukraine.

Typically, the British call this, “money well spent.”

Overall, it was a statement by the G-7 that no one’s money is safe. Look, no offense to Iran (or Venezuela or anyone else who previously ran into this problem), but cutting them out of the global economy was an effective piece of intimidation of everyone else.

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