Russia Can Easily Survive, Perhaps Even Thrive, Isolated From the West

Image courtesy of Eurointelligence.

Sanction History 

Sanctions did not topple regimes in Cuba, Iran, or Venezuela. Nor did Trump’s sanctions on China or his much ballyhooed trade deal accomplished anything. 

Why will sanctions do the trick here?

De-Westernizing Russia

Please consider De-Westernizing Russia by Eurointelligence founder Wolfgang Münchau.

Yesterday’s news was that MacDonalds, a totem of US culture, will temporarily close its restaurants in Russia. Visa and Mastercard already left, as did many western fashion brands Russians got so used to. Foreign correspondents left. Outside Russia, western companies will think twice before doing business with Russia today. Russians are encouraged to settle their debt with western creditors in much-depreciated roubles, a quid-pro-quo response to the central bank freeze of Russian reserves. What if the war in Ukraine, as painful and violent as it is, is only the catalyst for a much bigger operation: the de-westernisation of the Russian society?

The rouble payback encouragement is reminiscent of what Hjalmar Schacht, Adolf Hitler’s central banker did with reparations payments. There are eerie parallels with the pre-world war two era. We may ridicule this now, but the Nazi invocation has a psychological impact that could soon grow to have its own life. It taps into old resentments and memories, and fosters a war mentality. It prepares people for the sacrifices that are necessary to emerge victorious out of this.

Our sanctions may help Putin spin this narrative further. Russia can survive, and even thrive, isolated from the west. Economically, politically and socially, it has enough resources to do so in the long run. Our sanctions allows Putin to sever the links with our economies and seek new alliances. It allowed him to impose emergency laws at home, and to purge the opposition. He already controls most of the information flow and the narratives of the war. Most Russians are unaware that a war is already happening in Ukraine and that Russia is the aggressor. The media portrays the military operation as a response to Ukrainian and western aggression.

Increasing the sphere of influence internally and externally is what Putin is after. We may think that our sanctions and boycotts will hurt him as he stands isolated from the west. But it strengthens his power with all those who are on his side. Syria is already in his debt and supports him politically and physically, including with soldiers for urban warfare. Then there are historic allies such as Cuba and South Africa. There is Venezuela. And there is China, which is looking at how to play this new economic opportunity to its advantage. Then there is India calibrating a neutral position, while Israel and Turkey are both eager to mediate in this war. Autocrats in the Middle East are on stand by mode. Then there are tactical moves like the one in Saudi Arabia, which refused the US request to increase its oil production, securing higher oil prices that comes to benefit Russia. What unites those autocratic leaders in the Middle East/North Africa region is an anti-US sentiment and a desire to end or at least curtail US dominance.

Can Russia Thrive?

Iran, Venezuela, and Cuba survive but don’t thrive. But none of them have ample food supplies and none of them share a border with China. 

Russia has surplus grain, surplus energy, and surplus metals that every country wants, especially China. 

China will gladly take Russia’s natural gas, oil, and food. In return, Russia gets superior 5G technology and parts from the US, Japan, or EU via China. 

Thrive is an overstatement, but perhaps not by much. 

Numerous countries have dictators who outlived major sanctions for years despite those countries lacking the natural resources of Russia and also lacking a border with a country willing to ignore US sanctions. 

More Sanctions

The EU announced more sanctions yesterday, mainly on banks an oligarchs. 

So what? 

After the Fed effectively confiscated Russia’s foreign reserves, there are no more meaningful economic measures the US or EU can take that do not hurt the EU more than Russia.

The EU still has not followed the US in banning Russian oil. Germany and Hungary won’t cooperate. 

The US made a mockery of Poland but telling the country to get MIGs to Ukraine then backpedaling when Poland said OK. 

Increase Energy Supply? Where? 

Green asininity is such that Biden prefers other countries to produce more rather than the US. 

It’s a mystery how we are supposed to get LNG to Germany with the Greens wanting to shut down natural gas development immediately.

Elizabeth Warren’s solution is a windfall profits tax on oil. That will surely help supply, right? 

Dictators Don’t Worry About Elections

Unlike US politicians who have to keep everyone happy every two to six years, dictators have no such concerns.

Biden cannot even take a modest increase in gas prices without begging Venezuela and Saudi Arabi to pump more oil. 

What If?

It would have been better for everyone involved for the US to not have gotten tangled up in this mess in 2014. 

It would have been better for Ukrainian President Volodymyr Zelensky to rescind NATO a year ago than two days ago. 

“As far as NATO is concerned, I cooled down on this issue after we realized that NATO is not ready to accept Ukraine. The Alliance is afraid of contradictory things and confrontation with Russia,” Zelensky said in ABC interview.

Now What? 

Russia cannot hold all of Ukraine. But it can take and hold pro-Russia regions closest to Russia.

But it’s very difficult at this stage for the US, Putin, and Ukraine to all simultaneously back down now, especially given Putin’s recent attacks on civilians.

Yet short of someone in Putin’s inner circle taking Putin out, this sorry state of affairs can simmers for six months, six years, or even a decade.

Let’s backtrack. It’s important to understand the Real Background Story Behind Russia’s Invasion of Ukraine.

Please click on that link to better understand why what’s happening now is happening now.

That background no way justifies Putin’s actions. 

Regardless, Ukrainians are nothing but pawns in an East-West power struggle the US certainly helped simmer.

As usual, US misery is temporary, and there will be no lives lost on US soil.  For Ukrainians and Russians who needlessly lost their property and lives, the loss is permanent. 

Looking ahead, everyone needs to stop the delusion that more sanctions will solve anything. 

Please note US Sanction Policy Drives China Into Russia’s Loving Arms

Finally, blowback from misguided US foreign policy never ends. This time Ukraine is the unfortunate recipient.

This post originated on MishTalk.Com.

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Jackula
Jackula
2 years ago
Russia is one of the few sound money countries out there, more likely for the West’s financial system to collapse. Biden and his team stupidly have not yet figured this out and the longer this goes on the higher the risk to the West’s financial system 
Jojo
Jojo
2 years ago
Reply to  Jackula
Quite amazing that Biden and all the brainpower he has at his disposal have not seen something that random internet poster Jackula thinks is clear as day. [lol]
prumbly
prumbly
2 years ago
“… given Putin’s recent attacks on civilians”
I would be very suspicious of this. Ukraine has already shown itself to be a huge creator of disinformation, with its video game war footage passed off as real, the “snake island defenders” fiction, and their “Russia is bombing our nuclear power plant. 10 times worse than Chernobyl!” nonsense (small fire in a minor administrative building that anyone could have started). And more recently the “Russia may be about to use biological weapons!” shriek, after the US accidentally admitted that Ukraine has a number of biological warfare labs – talk about deflection!
You have to ask yourself, who benefits if Russia attacks civilians? Certainly not Russia. Only Ukraine. Blow up an empty maternity hospital here, a school there, put anti-aircraft batteries on residential blocks where you know they will be targeted, hide your soldiers in apartments… not very difficult and Western media will just suck it up.
Jack
Jack
2 years ago
Reply to  prumbly

Just to let you know that inspection during the morning showed nuclear power plant attack was more than burning of the training Center building. The reactor structure and one of the support buildings (“dirty pipe corridor”) also received damage.

prumbly
prumbly
2 years ago
Reply to  Jack
Here are a few of the breathless headlines: “Europe’s Largest Nuclear Power Plant on Fire”, “Russia Bombs Europe’s Largest Nuclear Power Plant”, “Russia bombs nuclear plant”, “How Dangerous Was Russia’s Nuclear Plant Strike in Ukraine?”…
And the reality, according to the IAEA:
“the nuclear power plant continued to be operated by its regular staff… a projectile overnight had hit a training building in the vicinity of
one of the plant’s reactor units, causing a localized fire that was
later extinguished.

The safety systems of the plant’s six reactors had not been affected and there has been no release of radioactive material.

Two people were reported injured.”

Spot the difference between the propaganda and reality? I’m sure that if Russia had really “bombed Europe’s largest nuclear power plant” it wouldn’t be there any more and we’d all be glowing in the dark.
Jojo
Jojo
2 years ago
Reply to  prumbly
How much payment from Putin do you earn for posting all your BS?
FromBrussels
FromBrussels
2 years ago
Reply to  Jojo
it took you quite a while to come up with the same BS again ….
Roadrunner12
Roadrunner12
2 years ago
Reply to  prumbly
I have no doubts that the world pretty much sees this as a US war despite Russia fighting with Ukraine. Im sure the Europeans want an end to the war yesterday as they  bear the brunt of any sanctions more than elsewhere.  
For some worldly perspective.
“Russia-Ukraine war shows America’s capacity to force its will on other countries is inexorably in decline”
“But such an ignominious end to this entire episode over Ukraine’s NATO membership was entirely to be anticipated. Fundamentally, this is an existential issue for Russia, whereas Biden, Blinken and Nuland are dilettantes sitting 10,000 kilometers away indulging in old neocon pastimes of interfering in other countries’ internal affairs, threatening them, disciplining them or punishing them for defying America’s diktat.”

“Fundamentally, the problem is that the American elite is delusional. While the rest of the world knows that in a multipolar world, the United States’ capacity to force its will on other countries is inexorably in decline, the American elite shut their eyes to that reality. The present ridiculous situation was only due to this arrogance and self-deception.   

The strategic defeat that Washington has suffered will dent US prestige worldwide, weaken its trans-Atlantic leadership, unravel its Indo-Pacific strategy, and accelerate the drain of American influence in the 21st century. The Biden presidency will carry this heavy cross.” 

 
vanderlyn
vanderlyn
2 years ago
SO RIGHT MISH.   hat tip to you.  keep on delivering your wisdom.  thanks. 
EGW
EGW
2 years ago
“That background no way justifies Putin’s actions. “
I fail to see an alternative to the set of actions Putin has taken. The US/NATO/EU has historically shunned diplomacy with Russia. Severing economic ties makes war more likely.
Scooot
Scooot
2 years ago
Reply to  EGW
Invading a neighbouring country actually started a war, not made it more likely! 
Jack
Jack
2 years ago
Reply to  Scooot
Many argue that the war with the west has already begun – just the guns have not started yet – and I am not just speaking about the twitter feed of a billionaire.
Scooot
Scooot
2 years ago
Reply to  Jack
Many argue it’s not a war at all, just a “Special Military Operation”. 
The point is, it’s the invasion that’s flattened cities, killed and prompted people to flee their homes. 
Jojo
Jojo
2 years ago
All the money these oligarchs have to buy expensive houses, cars, yachts, etc. were skimmed off from excess prices that the Russian people are forced to pay.  This is another reason that Putin and his oligarchs are going to wind up hanging from trees.
———-
A Guide To All The Outrageous Mansions And Estates Owned By Sanctioned Russian Billionaires
Updated Mar 19, 2022
Forbes uncovered at least 62 properties—worth a collective $2.5 billion—held by 13 targeted Russian oligarchs, ranging from a posh Manhattan townhouse to a grand Italian villa. All are at risk of seizure.
TLinFL
TLinFL
2 years ago
Reply to  Jojo
Shouldn’t this apply to all oligarchs, including ours?
Jojo
Jojo
2 years ago
Reply to  TLinFL
Of course.  The vast majority of wealthy people got rich skimming profits or charging more for the services they own than would be justified.
Jojo
Jojo
2 years ago
Wrong!
Russia was an 11th rated country back in 2017 (link to worldometers.info), when sanctions were minimal compared to now.  The people of Russia have gotten used to a better life made possible via trade with the West that brought in lots of new products, from McDonald’s to iPhones.  People will eventually rebel and someone will dispose of Putin, either through an election (doubtful) or a coup/assassination as their noose continues to tighten.
‘Lost touch!’ Putin alone as furious Russians turn on leader – 1.2 MILLION sign petition
VLADIMIR PUTIN has lost touch with his own people as Russians are left furious by the war in Ukraine, Western officials believe.
Thu, Mar 10, 2022
whirlaway
whirlaway
2 years ago
Reply to  Jojo
If you think iPhones are the only thing in the world of smart phones, then you haven’t been to China.  Or India. 
prumbly
prumbly
2 years ago
Reply to  Jojo
Yet another silly propaganda non sequitur – Russia’s attack on Ukraine increases the Ukrainians’ support for their leaders, but the West’s attacks on Russia decrease Russian support for Putin.
But the best propaganda silliness is how large numbers of Russian soldiers and Ukrainian civilians have been killed but apparently no Ukrainian soldiers have died. Google “How many Ukrainian soldiers have been killed” and see if you can find how many.
Or the US accidentally admitting that Ukraine has biological warfare labs and then denying it and suggesting Russia may be planning a chemical or biological attack as a “false flag”.
What a shjtshow.
Jojo
Jojo
2 years ago
Reply to  prumbly
You’re not listening to the right sources.  I have heard estimates of 2,000-4,000 Ukrainian soldiers dead.  But OTOH, I was watching some Ukrainian fighter interviews recently and they were saying that the Russian soldiers have no organization and no apparently leadership.  This might be why THREE Russian Generals have been killed in the last couple of weeks.  The high ranks have been ordered by Putin to get to the front and provide missing leadership.  
Also, the Ukrainians are getting the best equipment from the West, including night-vision goggles, which the Russian don’t have.
You’re a loser prumbly.
FromBrussels
FromBrussels
2 years ago
Reply to  Jojo
…’ the russians don  t have night vision goggles’ …..where did you get that ‘privileged’ information from, if I may ask…..
honestcreditguy
honestcreditguy
2 years ago
Reply to  FromBrussels
Biden, he had a memory flash from the 80’s
FromBrussels
FromBrussels
2 years ago
Reply to  Jojo
I think, or estimate rather, that Russia must have deployed 10 or 20% of its conventional military force so far…..so it don t look actually very well for your US nazi nest, even if the russians don t have night goggles like you said….   
yooj
yooj
2 years ago
Reply to  Jojo
Iranians enjoyed growing affluence before they found themselves ruled by a theocratical dictatorship.  I’m still waiting for them to successfully rebel. Not saying that pre-revolution Iran was a shining city on a hill, just that progress toward liberal governance can be reversed. And there’s Tiananmen Square.
I suspect that there is more nationalist support in the population than we can understand and credit.  If Putin can appeal to the  nationalist sentiment by conquering and holding territory, then many Russians, a great many, will accept economic setback, even privation. The course of the war will determine Russian’s attitudes about Putin.   Americans are not the only people who love a winner. 
I am not as optimistic as you that the Russian populace will want to rid itself of Putin, or that it could if it does. 
Jojo
Jojo
2 years ago
Reply to  yooj
Some truth there.  Sanctions can only do so much.  This is why we should also take the war to Putin and declare a no-fly zone over Ukraine with the proviso that if Putin shoots down any of our aircraft, we will then take out all his forces and equipment.
FromBrussels
FromBrussels
2 years ago
Reply to  Jojo
SURE warmonger !  This must be like football to you !
Jojo
Jojo
2 years ago
Reply to  FromBrussels
I’m a world away from Brussels, if that is where you actually live now.  So yes, I can view it like a football game.
This world is only big enough for two real superpowers – the USA + China.  Putin/Russia needs to be neutralized and divided up between Europe and China.
honestcreditguy
honestcreditguy
2 years ago
Reply to  Jojo
your flat out a sheep, sheep jojo….brains fried on the fields of grass and sun
the US forced this war down Putins back……its 150% crystal clear
StukiMoi
StukiMoi
2 years ago
“Unlike US politicians who have to keep everyone happy every two to six years, dictators have no such concerns.”
Yet their positions are simultaneously no less precarious, and no more dependent on pleasing the mob, than those who so far have been able to sucker their captives into blind faith into strange rituals involving women lying in ponds and dimpling chads. IOW, they are all just as “accountavble.” Or, more accurately, not.
Just as “My Dear Leader is bestester than your Dear Leader, because The Man on My TV says so” is trivially silly; exactly ditto “My contrived ritual for anointing some arbitrary, unlimited ruler is bestester than your such ritual, again because The Man on My TV says so.” Simply because both effectively say the exact same thing.
There’s a million ways of picking the exact hack who gets to preen around and refer to himself as “Leader.’ None are, in and of themselves, any “better” than the others. Instead, how good or bad any of them are, depends on how limited the powers of the one who , rather arbitrarily, is declared “winner” is. Back when America’s rulers intervened less in people’s lives than Chinese ones, Americans thrived compared to Chinese. Now that the Chinese rulers are the ones who intervene less, their captives are the ones who, relatively, thrive. The exact ritual by which Xi is granted another term, vs how BIden is, matters not at all.
yooj
yooj
2 years ago
Reply to  StukiMoi
Constraints on power are critical, yes. Put Biden in the Kremlin, however, and he’d have not invaded.  Same for Trump, even.  Liberal values are more durable than situational opportunity.  Power doesn’t transform a Carter (to choose an easy case) into a Stalin.  Control power, yes, as the primary protection of freedom, but don’t lose the ability to distinguish among the values held by human beings.  That degree of cynicism is incompatible with maintaining freedom even under the best power-limiting, and power-dividing laws and structures of government.  Laws and institutions constraining power are only as effective as the values of the individuals who interpret and enforce them.  
StukiMoi
StukiMoi
2 years ago
Reply to  yooj
“Put Biden in the Kremlin, however, and he’d have not invaded.  Same for Trump, even.  Liberal values are more durable than situational opportunity. “
Are you serious????????????
The clown brigade those guys have headed up for a few years, has invaded countries all over the darned place. Infinitely further away, geographically as well as wrt security, than Ukraine is from Russia.
You think they wouldn’t have intervened if Russia and China funded a successful campaign for the presidency of Mexico, for someone who then invited the two of them to put whatever military kit and troops they wanted along the Northern border? Do you really, onestly, deep down, believe that? Is do, I simply at loss for words…….
“Laws and institutions constraining power are only as effective as the values of the individuals who interpret and enforce them.  “
Which is why the last time somewhat intelligent people presided over the US, those guys wrote the 2nd Amendment.
StukiMoi
StukiMoi
2 years ago
Foreign policy is always misguided. Minding anybody’s business but your own, always is.
Casual_Observer2020
Casual_Observer2020
2 years ago
China doesn’t know what to do because of secondary sanctions.
thimk
thimk
2 years ago
Been watching Russian YouTube v loggers . some content seems to make its way out or did. For the  average russian  citizen this “special operations”  (Russian  doesn’t   like it if you call it an invasion)  , hasn’t  been a picnic , it’s citizens will probable suffer more than the western world.    
Dutoit
Dutoit
2 years ago
Reply to  thimk
You can also remember the Irak wars, with western journalists guided by american military men. And also surgical strikes on TV (to avoid cicilians).
Jojo
Jojo
2 years ago
Reply to  thimk
The shutdown of Western businesses and the inability to buy simple goods like American-made jeans or Swedish-made furniture may set off alarm bells for Russians, who are facing a walled-off digital state under President Vladimir V. Putin, according to Anna Nagurney, a professor in the Isenberg School of Management at the University of Massachusetts.
“It’s a way of telling people that something is very wrong,” she said. “You begin to wonder like, what’s happening, what’s going on? Can you imagine that, you go to one store or another and can’t transact. That’s going to create a great deal of anxiety and uncertainty.”
RonJ
RonJ
2 years ago
“What unites those autocratic leaders…”
The Covid Autocracy. It was world wide, in supposedly democratic countries.
KidHorn
KidHorn
2 years ago
Did anyone see Kamala when she was asked if the US would take in any Ukrainian refugees? She laughed uncontrollably. What a dumb question. Everyone knows the US only accepts brown skinned refugees. White skinned refugees tend to become republicans.
Casual_Observer2020
Casual_Observer2020
2 years ago
Reply to  KidHorn
There isn’t a question she doesn’t laugh at after smiling.
Captain Ahab
Captain Ahab
2 years ago
They would have us believe her laughing is a sign of  anxiety. In fact, she’s been taking lessons from the Great Cackler.
Captain Ahab
Captain Ahab
2 years ago
Reply to  KidHorn
We will see the unmitigated hypocrisy of Democrats when white refugees from South Africa apply for political asylum. The same is true of abortion: when/if there is a fetal test for homosexuality. A mother’s right will be swiftly curtailed.
honestcreditguy
honestcreditguy
2 years ago
Reply to  KidHorn
that pos is scum
Greenmountain
Greenmountain
2 years ago
Sadly you are 100% correct. Sanctions seldom take down a country.  Think Cuba and what is has endured from the US with no end in sight.  Putin or Putrid as a friend called him today has no reason to stop this war – Russian casualties are minor in the bigger picture, some equipment is being lost but again minor compared to what they have and no fighting on Russian soil.  So no Russians are really seeing what is happening.  And I am not sure Putin sees this as a failure.  He is destroying the Ukraine people and will have left his people.  Beware Poland, Baltic states.  I think he may be energized to continue the plan.
RonJ
RonJ
2 years ago
Reply to  Greenmountain
“So no Russians are really seeing what is happening.”
We are all being fed narratives, regardless what country we live in. Supposedly, there were no bio-labs in Ukraine, until Nuland oopsed in response to a question by Senator Rubio.
Captain Ahab
Captain Ahab
2 years ago
Reply to  RonJ
I wonder what Nuland will says about Hunter’s VC firm funding the biolabs?
Jojo
Jojo
2 years ago
Reply to  RonJ
Those biolabs were left over from when Russia and its puppet leaders were in contro.  Ukraine and the USA were working on decommissioning them.l
honestcreditguy
honestcreditguy
2 years ago
Reply to  Jojo
more lies of the left
Webej
Webej
2 years ago
The US/Nato had big plans (leaked in the public domain) about how to redevelop their new naval property in Sebastopol in the run up to 2014.
Now they are going cap in hand to Maduro, Iran, Saudi, and China … begging for help.
Nobody is bothering to pick up the phone.
As for the whole world united against Russia, well, except for Central & South America, Turkey, the Mid-East, Africa, India, China, and most of Asia. How many parties still feel comfortable keeping dollars and gold at the Fed (or in American stocks) long term? What would it mean to Americans to do without the current fiscal & trade deficits … leaving them mostly their credits and houses as wealth?
Jmurr
Jmurr
2 years ago
Reply to  Webej
You really have to wonder about the long-term consequences of the “plunder” as Bastiat would describe it. How long before the world abandons the dollar as reserve currency. 
Maximus_Minimus
Maximus_Minimus
2 years ago
Reply to  Webej
Maybe all those coutries still remember when an armada of ships and aircraft carriers assembled in the Mediterrainean for the purpose of regime changing Lybia. Bombing the country which was no security threat to any of them.
honestcreditguy
honestcreditguy
2 years ago
Reply to  Webej
none, china is now going to double down on gold purchase, sell off treasuries
we just used the dollar as war….the end is near
Tony Bennett
Tony Bennett
2 years ago
7yr and 10yr currently inverted.
3yr and 10yr currently less than 7 bps from parity.
Mish
Mish
2 years ago
Reply to  Tony Bennett
5-10 three BPS
Will report on this tonight if it sticks
ILHawk
ILHawk
2 years ago
Russian speaking Ukrainians aren’t likely to want to be Russia.  That’s a wrong assumption. Pensioners have been collecting 2 pensions.  Other than that a few extremists.  
Ukraine can’t survive if Russia blocks the Dnipro from grain shipments.
Jojo
Jojo
2 years ago
Reply to  ILHawk
Ukraine will be given plenty of “loans” from the west that will never need to be paid back.
honestcreditguy
honestcreditguy
2 years ago
Reply to  Jojo
From Hunter? Biden, the pale white horse…..get ready for hell little lady
Maximus_Minimus
Maximus_Minimus
2 years ago
Perhaps nobody has a better insight into Russia than british journalist living in Moscow, John Helmer. It is educational to read his blog going back for a decade.
StukiMoi
StukiMoi
2 years ago
John Helmer may well have great insight. But going by the ones cluttering up US cities, certainly. not on account of being a British journalist…
TexasTim65
TexasTim65
2 years ago
We can’t say yet whether US (that includes Canada + Europe) misery is temporary.
If gas prices and other resource prices continue to skyrocket and the West enters a major recession that won’t be temporary misery even if no lives are lost. Depending on how long prices stay high the misery index could get quite severe for a lot of people (loss of homes, livelihoods etc) and that’s without considering what happens if there is a nuclear accident at one of the many Ukrainian power plants or the release of a bio-weapon etc.
Columbo
Columbo
2 years ago

The downside of all the sanctions is the threat to the US dollar world reserve status. Will this event be the push to Russia, China and others to challenge this favored status?  Just last week fed chair Powell made an eye opening comment about the potential to have more than one reserve currency. Down the road are we inadvertently diminishing our status?

Mish
Mish
2 years ago
Reply to  Columbo
Not yet – Have an article on this
Clearbox
Clearbox
2 years ago
Reply to  Mish
Mish, can you cover this in the context of whether foreign reserve assets should ever be frozen or re-appropriated? I feel like this can be very much abused and if not is highly controversial to me. Biden handling of the Afghanistan FX reserves also highly alarming as he’s bankrupting their central bank to re-appropriate their national wealth as he sees fit. Am I the only one who thinks we shouldn’t be messing with these reserves?
Jojo
Jojo
2 years ago
Reply to  Clearbox
They have already been frozen, so what is the point you want to make?
RonJ
RonJ
2 years ago
Reply to  Columbo
 “Just last week fed chair Powell made an eye opening comment about the
potential to have more than one reserve currency. Down the road are we
inadvertently diminishing our status?”
Reality sets in at some point. Reserve currency status has a limited time span according to history. Powell may just be admitting to the writing already on the wall.
Captain Ahab
Captain Ahab
2 years ago
Reply to  Columbo
I’ve made similar comments here for some time, having to do with global economics, national jealousies, global positioning and partitioning, the abuse of power and control, etc. The US dollar is not in ascendancy. At best, the buck is marking time because there is no viable alternative at this time. Commonsense (to me) suggests a global stable currency might be useful for international trade (not one nation’s).
honestcreditguy
honestcreditguy
2 years ago
Reply to  Columbo
yep, expect china to slowly unwind treasuries and double down on commodities….
they just saw currency war begin….no way can you trust dollars in reserve now
Rbm
Rbm
2 years ago
Putin went to see china and the saudis right before the war started.  Humm. Its all international politics business as usual. Alliances  begin and fail each country is trying to play their best hand.  
Sanctions dont work and only hurt the population at large. But a us president has to do something or the voters spurred on by the opposite party will scream weakness.  So ineffective sanctions /nothing /or troops on ground.  Or nuclear option. 
My understanding is nato is a defensive pact only or something like that.  
Its funny all these us companies are taking actions on their own.  except oil producers who scream American energy independence waving the flag while prodding their lobbyist  to seek more permits which will do nothing for current prices.  Who also pay their lobbyist to derail green energy which would be an actual part of american energy security.  
Money money money.
Oh lets not forget the middle men jacking up the prices.   
Webej
Webej
2 years ago
Reply to  Rbm
nato is a defensive pact only or something like that
Except it keeps expanding its terrein, now helps patrol the South China Sea, O, and attacked Serbia (created a new country [Holy Borders!] with the largest US based in Europe), Libya, Syria, Iraq. Putin doesn’t care about anything Boris, Macron or Olof have to say … he knows from long experience that they are lapdogs with no agency … vassal states to the US Imperium.
EGW
EGW
2 years ago
Reply to  Rbm
NATO is a military and political alliance. The idea that it’s purely a defensive alliance is a joke. NATO has been involved in many non-defensive operations in places like Serbia, Kosovo, Bosnia, Yugoslavia, Herzegovina, Macedonia, Afghanistan, Libya, etc. Basically whenever the US gets militarily involved, NATO is right there with the US as part of the coalition. 
honestcreditguy
honestcreditguy
2 years ago
Reply to  EGW
its a military complex organization…that taxpayer sheep support, nothing more….
MPO45
MPO45
2 years ago
If Venezuela, Cuba, North Korea and Iran haven’t “thrived” isolated why would Russia suddenly thrive?    Or perhaps we need to understand what the definition of “thrive” is because if that refers to fulfilling Putins anti-LGBT agenda and returning Russia to Soviet Union times then perhaps you are right otherwise I doubt they will “thrive” in any traditional sense of the word but we’ll see.
Dutoit
Dutoit
2 years ago
Reply to  MPO45
Maybe they will lack tenth of thousands of deaths by opioids every year ?
Jojo
Jojo
2 years ago
Reply to  Dutoit
Who cares?  
TexasTim65
TexasTim65
2 years ago
Reply to  MPO45
To thrive in isolation you need to be self sufficient in resources. Venezuela, Cuba and North Korea are not self sufficient but Russia is.
Note, you need more than resources to thrive, but resources are the starting point. After that you need a co-operative government (dictator or king or democratically elected etc) that want’s it’s people to thrive.
MPO45
MPO45
2 years ago
Reply to  TexasTim65
Russia is rich in oil and some minerals and wheat.  Not sure what they produce beyond that but this list don’t bode for “thriving” just basic Amish style living.
Dutoit
Dutoit
2 years ago
Reply to  MPO45
One cannot understand how they produced hypersonic missiles that US army is unable to prevent. It must be discoveries by chance. Unable to understand also why Russian score on Fields medals in mathematics is much higher than US (yes I know why, in US mathematics are “racist”) .
Captain Ahab
Captain Ahab
2 years ago
Reply to  Dutoit
Anyone who knows anything about Russia is well aware of their intellectual strengths and generally superior education. 
Webej
Webej
2 years ago
Reply to  MPO45
More steel & aluminum than the US.
They manufacture across a huge breadth of products and technology, American satellites use their rocket engines to get to the space station.
When Siemens and Westinghouse were forced to back out after Crimea, they just built their own turbines.
Seems they have the engineers. With all the foreigners pulling out, they may just decide to ignore intellectual property rights and reverse enigneer anything they need. They are probably missing gender studies specialists and hordes of liberal arts majors.
Doug78
Doug78
2 years ago
Reply to  Webej
Here is a list of the Fields Medal winners since it started. There are a few Russians but not that many compared to others. Hypersonic is Russia’s Wunderwaffe. 
link to mathworld.wolfram.com…%20%2040%20more%20rows%20
Dutoit
Dutoit
2 years ago
Reply to  Doug78
For Fields medals, there is a huge fall of US after 1985. If you count from the beginning, yes US is great. But if you count from 1985 it is a very different story. The are two big countries in mathematics from 1985 to today: France and Russia. US are far behind.
Captain Ahab
Captain Ahab
2 years ago
Reply to  Dutoit
US IQ is in decline since 1985, so the problem is just not in the tail, but the entire distribution of intelligence.
Jojo
Jojo
2 years ago
Reply to  Webej
We keep the sanctions on and those brains will drain to other places, just as happened to Germany in the WWII years (pre/during/post).
Mish
Mish
2 years ago
Reply to  MPO45
I believe I explained.
Read again and tell us. 
Captain Ahab
Captain Ahab
2 years ago
Reply to  MPO45
Failure to thrive has a lot to do with economic systems under totalitarianism. As for Putin’s stance on LGBT, is it any worse that the USA in the last half of the 20th century? The history of the US is horrifying in this regard, as is that paragon of social values, England.  That said, should the now-righteous nations expect every country to jump on the transgender bandwagon?
StukiMoi
StukiMoi
2 years ago
Reply to  MPO45
Or perhaps we need to understand what the definition of “thrive” is
It sadly ain’t much, anymore. Not sure about Venezuela, Cuba, North Korea and Iran, but if US in the Fed Age is some sort of standard setter (as it’s legions of captive gullibles seem to still fall for), “thriving” by now don’t even include roofs over people’s heads. And increasingly not even the ability to afford food.
davidyjack
davidyjack
2 years ago
Russia cannot thrive in the next 3 years given tough sanctions from the West.
Are you advocating zero consequences for countries that invade other countries without justification?
Dutoit
Dutoit
2 years ago
Reply to  davidyjack
You mean the consequences for US of the invasion of Irak ?
Jojo
Jojo
2 years ago
Reply to  Dutoit
What about whatever doesn’t matter.  Here and now is all that ever matters.  
whirlaway
whirlaway
2 years ago
Reply to  Jojo
Well, it does matter.  Many commentators had said before the war on Iraq that it will set the trend for the conduct of other nations big and small.  
StukiMoi
StukiMoi
2 years ago
Reply to  davidyjack
Why is “No Entangling Alliances”, “Trade freely with All” and the US second so complicated to understand?
All the clowns, from Russia and NATO alike, who have been invading Afghanistan without justification (invasions always are without justification. No Dear Leader is more just than any other. Despite what they all like their captive indoctrinati to mindlessly and uncritically believe), haven’t exactly experienced zero consequences, no have they? Enough kit behind every blade of grass, and consequences of invasions are universally guaranteed. No entangling alliances, nor Dear Leaders sending other people’s children to die halfway around the world, required. Freedom always works. Simply because, as long as people don’t like being invaded: As long as they are free to do something about it, they will.
Doug78
Doug78
2 years ago
It would be nice if Putin left but no one really expects that to happen. People like him stay in power till they run their countries into the ground and Putin is no exception. The sanctions or more accurately the embargo is not made to remove Putin but to remove his ability to make war. Russia has oil, minerals and land but their high-tech industry is small and lacklustre as it is and their space industry is on its last legs and the embargo will cut Russia off from any means to turn those around. Russia will become even more a resource export economy with only a few buyers who will lever their position as the dominate buyer to screw Russia on price. They will survive but with very limited opportunities the brain drain will accelerate.  
mrchinup
mrchinup
2 years ago
We’d be fine to if we stop buying crap from communist China and bring our companies home and to Mexico. We should never be held hostage by a scumbag country like that one. Give the companies 3 years, build it here or don’t sell it here. Putin over played his hand this time. The oligarchs don’t want to sit their super yachts of the coast of China, they will off him sooner than later. We also have plenty of food and energy just need a real president like Trump to get it out of the ground. Only a moron would vote for a democrat or globalist again.   
ohno
ohno
2 years ago
Reply to  mrchinup
The morons are lined up. Dead or alive.
Jojo
Jojo
2 years ago
Reply to  mrchinup
Sure, except that products would cost 5X what they do now due to the high costs of USA labor.  So it ain’t going to happen.  You can see that everyone is up in arms over the gas price increases.  Do you honestly think the majority would tolerate huge price increases across the board?  and as soon as Republican’s get back in political power, they will turn right back to other countries to support their big business owners desires for more profits.  
Tony Bennett
Tony Bennett
2 years ago
NBER presented a working paper back in October on likely recession due to tanking Consumer Confidence and Consumer Sentiment.  Had recession start as early as late 2021 (still might come to fruition if revisions to economic numbers trend worse).  Preliminary March Consumer Sentiment just out.  I won’t give a spoiler.  But you can see for yourself.
MPO45
MPO45
2 years ago
Reply to  Tony Bennett
So does this finally put your on record for a recession in late 2021?
Tony Bennett
Tony Bennett
2 years ago
Reply to  MPO45
No.  But wouldn’t surprise me.  
One starts in 2022, for sure.
Dutoit
Dutoit
2 years ago
“Iran, Venezuela, and Cuba survive but don’t thrive”
Life expectancy is higher in Cuba is higher than in US .
Is US really thriving ?
KidHorn
KidHorn
2 years ago
Reply to  Dutoit
We have a plethora of donuts, soda, and big macs. We don’t live as long, but our food is more convenient and tastes better.
Tony Bennett
Tony Bennett
2 years ago
Reply to  KidHorn
U S of A … home of the Deep Fried Twinkie …
Rbm
Rbm
2 years ago
Reply to  KidHorn

Haha

Jojo
Jojo
2 years ago
Reply to  Dutoit
This is a good time for Biden to  reach out to Cuba again (as Obama did) and secure an American foothold by offering them some support and tourism.
——-
Russians vanish from Cuba beaches, casting doubt on tourism recovery
March 11, 2022
Jack
Jack
2 years ago
Reply to  Jojo
Cuba is now in bed with China, not Russia. Go there and it is obvious. Chinese billboards (in Chinese even) and products all over.
Tony Bennett
Tony Bennett
2 years ago
“Russia Can Easily Survive, Perhaps Even Thrive, Isolated From the West”
Sure.  If oil stays high.
“More Sanctions”
Were a folly from a get go.  Any serious sanctions would have threatened Western financial markets … therefore, verboten by our elites.
Jojo
Jojo
2 years ago
Reply to  Tony Bennett
As you can see, the sanctions keep being increased.  It’s good to see Biden and company finally putting stopping Putin ahead of the health of the markets.
Bhakta
Bhakta
2 years ago
Mish, have you seen Oliver Stone’s documentary on the Ukraine. “Ukraine on Fire”. Fascinating insights, interviews, video. Very educational. I totally agree with you that the sanctions are stupid and I feel in the long term they will weaken the US and Europe and make Russia and China stronger. But what else can we expect from an American government that seems to be owned by the bankers and the military-industrial-congressional complex? Always follow the money. How many billions in new weapons deals are happening? How many billions in new aid deals are being given out?  
Mish
Mish
2 years ago
Reply to  Bhakta
Have not seen it – will take a look
dbannist
dbannist
2 years ago
I view this as a gamble by Putin.  He’s older and likely won’t live another 15 years.

He decided to toss the dice and see what would happen.  If he failed, at least he tried.  If he succeeded, then Russia and his legacy lives on longer than he does.

It’s  unfortunate when dictators toss the dice with the lives of real people.

Jojo
Jojo
2 years ago
Reply to  dbannist
Putin and his sidekick Yuri Kovalchuk according to this article:
————
Putin Has Been Isolated for Two Years. Now He’s Taking Russia With Him.
March 10, 2022, 1:01 a.m. ET
By Mikhail Zygar – Mr. Zygar is a Russian journalist and the author of
“All the Kremlin’s Men: Inside the Court of Vladimir Putin.”
Thanks to Vladimir Putin’s decision to invade Ukraine, Russia is now
more isolated than it has ever been. The economy is under sanctions and
international businesses are withdrawing. The news media has been even
further restricted; what remains spouts paranoia, nationalism and
falsehoods. The people will have increasingly less communication with
others beyond their borders. And in all of this, I fear, Russia
increasingly resembles its president.

I have been talking to high-level businessmen and Kremlin insiders
for years. In 2016 I published a book, “All the Kremlin’s Men,” about
Mr. Putin’s inner circle. Since then I’ve been gathering reporting for a
potential sequel. While the ongoings around the president are opaque —
Mr. Putin, a former K.G.B. officer, has always been secretive and
conspiratorial — my sources, who speak to me on condition of anonymity,
have regularly been correct. What I have heard about the president’s
behavior over the past two years is alarming. His seclusion and
inaccessibility, his deep belief that Russian domination over Ukraine
must be restored and his decision to surround himself with ideologues
and sycophants have all helped to bring Europe to its most dangerous
moment since World War II.

Mr. Putin spent the spring and summer of 2020 quarantining at his
residence in Valdai, approximately halfway between Moscow and Saint
Petersburg. According to sources in the administration, he was
accompanied there by Yuri Kovalchuk. Mr. Kovalchuk, who is the largest
shareholder in Rossiya Bank and controls several state-approved media
outlets, has been Mr. Putin’s close friend and trusted adviser since the
1990s. But by 2020, according to my sources, he had established himself
as the de facto second man in Russia, the most influential among the
president’s entourage.

Mr. Kovalchuk has a doctorate in physics and was once employed by an
institute headed by the Nobel laureate Zhores Alferov. But he isn’t just
a man of science. He is also an ideologue, subscribing to a worldview
that combines Orthodox Christian mysticism, anti-American conspiracy
theories and hedonism. This appears to be Mr. Putin’s worldview, too.
Since the summer of 2020, Mr. Putin and Mr. Kovalchuk have been almost
inseparable, and the two of them have been making plans together to
restore Russia’s greatness.
….

KidHorn
KidHorn
2 years ago
Are there any countries outside of the anglosphere that support these sanctions? Seems those on our side are the ones who are automatically always on our side. Many of them are probably afraid not to be. Else they get sanctioned. Like we threatened to do with India. Germany is standing up because the sanctions would cripple them.
Imagine if the scenario were reversed. Russia organized an overthrow of the Mexican government and put comminists in charge. Mexico was then developing bioweapons and threatening to put Russian missiles near the US border. Then we invaded Mexico. That would be fine and justified by the anglosphere.
Zardoz
Zardoz
2 years ago
Reply to  KidHorn
“Seems those on our side are the ones who are automatically always on our side.“
You’ve graduated from kookery to tautology, and I can’t decide whether that’s an improvement.
Captain Ahab
Captain Ahab
2 years ago
Reply to  Zardoz
We should always remember that history is written by the winners. At present, we have biased opinions and media saturation to control the minds of the masses. Let us never forget the farce of Russia-Gate–only now just being exposed. Sadly, even smart people were taken in.
Webej
Webej
2 years ago
Reply to  Captain Ahab
history is written by the winners
When Putin mentioned genocide, being a lawyer, what he means is that they have documentation and evidence and intend to get people in front of a war crimes tribunal. Nuremberg was a Russian idea in 1943. There are a lot more piling up, the territorials are hiding out in hospitals and schools (as terrorists tend to do), they are shelling humanitarian corridors and summarily executing families trying to escape. And now we have contraventions of the conventions about biological weapons, which the US and Western countries refuse to furnish with on the spot verification protocols. The whole idea of sending weapons and false intentions of support to prolong this hopeless resistance is kind of a war crime unto itself: the Ukrainians should have said yes to the ceasefire offered 22 Feb before the offensive got started.
Doug78
Doug78
2 years ago
Reply to  KidHorn
The 27 countries of the European Union do. They represent a good chunk of the world’s GDP and liberal democracies.
KidHorn
KidHorn
2 years ago
Reply to  Doug78
I loosely defined the anglosphere to include Europe. Every country under US control. The same groups that sides with us on everything.
Doug78
Doug78
2 years ago
Reply to  KidHorn
Then you shouldn’t say anglospere but countries that side with us. I prefer liberal democracies because it encompasses countries with a certain mindset that promotes peaceful cooperation among them. 
SAKMAN1
SAKMAN1
2 years ago
Reply to  KidHorn
So you justify one country attacking another, in a world that actually has nuclear weapons. . . With a fictional scenario?
I get it, a lot of people have brains that work like yours. I think the earth deserves a break from you. Putin may have given that to us. Too bad the few people with brains get to go too.
davidyjack
davidyjack
2 years ago
Reply to  KidHorn
Bioweapons?  You believe the Russian propaganda?  
Pathetic.
Network Admin
Network Admin
2 years ago
Reply to  davidyjack
Victoria Nuland on Bio Labs in Ukrainelink to youtube.com
Captain Ahab
Captain Ahab
2 years ago
Reply to  davidyjack
Evidence is mounting that Hunter Biden’s firm provided/secured funding for one biolab. Go figure.
Doug78
Doug78
2 years ago
Reply to  KidHorn
Imagine a scenario where Russia instead of invading their neighbors attempts to have normal friendly relations with them. That’s what just about every other country in the world tries to do. The Russian habit of justifying every aggressive move as a result of having been invaded really doesn’t hold water. Everybody has been invaded and have invaded in the past so Russia isn’t special. Most countries have gotten over that and Russia will have to also.
Captain Ahab
Captain Ahab
2 years ago
Reply to  Doug78
Did we give Russia a chance anytime in the last 20 years to have ‘friendly relations’? Note, I am NOT a fan of Putin/Russia. At the same time, I’ve witnessed endless lies propagated about Russia–Russia-Gate being the prime example. In fact, I am partially of the mind that the Ukraine crisis was engineered to take the pressure off Russia-Gate revelations. They go to the TOP of the Democrat party.
Doubling down is a reasonable expectation given the singular lack of critical thinking in the White House.
Doug78
Doug78
2 years ago
Reply to  Captain Ahab
Please spare me the tears. Russia did this to itself. They had plenty of good opportunities but they kept blowing them one after the other. 
Captain Ahab
Captain Ahab
2 years ago
Reply to  Doug78
Given what the US (Obama et al) did to Ukraine in 2014, this is once again about the US exerting control over another country for its own benefit. Indeed, Russia providing energy to Europe would seem to be an opportunity for better relations in the region. But no! NATO can’t tolerate that.
It would not surprise me that there is a Democrat agenda as Russia-Gate continues to bubble to the top.
Dominic69
Dominic69
2 years ago
Reply to  Doug78
Doug, study a bit of geopolitics before commenting on issues you have no clue about.
A good place to start:
“The Grand Chessboard: American Primacy and Its Geostrategic Imperatives” by Zbigniew Brzezinski National Security advisor under Jimmy Carter.
Doug78
Doug78
2 years ago
Reply to  Dominic69
Read it long ago. Have you read anything by Aleksandr Dugin? I have. Don’t like him but he is very popular with Putin’s circle and ex-KGBs as Putin is.
Dominic69
Dominic69
2 years ago
Reply to  Doug78
Dugin is marginal in Russia…at best.
Doug78
Doug78
2 years ago
Reply to  Dominic69
Not marginal with your leaders
Carl_R
Carl_R
2 years ago
Reply to  Captain Ahab
Russia hasn’t been considered “the Evil Empire” for at least 20 years. They have had largely normal relations, and have had flexible control over those relations. They could easily have expanded them, and made them even more friendly, had that been what they wanted. China, for example, has remained a communist dictatorship, but has dramatically expanded trade and other relationships with the rest of the world in the same time period. There is no reason Russia could not have done the same.
Dominic69
Dominic69
2 years ago
Reply to  Doug78
Yes sure, this is what the West always do…..
Doug, please elevate this conversation beyond third grade rhetoric.
I’m not fan of Putin and I abhor war but this is almost entirely west fault with Ukraine being a willing pawn.
If Mexico wanted to join a military alliance with China we would bomb them to the stone age…please…
Webej
Webej
2 years ago
Reply to  Doug78
An easy scenario.
Russia spent 8 years waiting for the parties to the Minsk accords (Ukraine, France, Germany) to effect a ceasefire.
Russia offered a peace treaty in December.
Ukraine was offered a ceasefire after the LDNR were recognized but answered with increased shelling, including targeting Russian peace-keepers.
Russia had tried everything, but there is nobody to talk to, meanwhile the West simply continues advancing.
For Russians, it is a sacred obligation to make sure the next war is not fought on Russian soil, again.
The last few iterations of the West on their soil cost them millions of lives each time.
Webej
Webej
2 years ago
Reply to  Doug78
 normal friendly relations with them
Serbia, Panama (2×), Haiti, Nicaragua, Honduras, Grenada, Iraq, Syria, Somalia, Libya, Korea, Vietnam … there are documents listing the scores of countries the US has invaded and the hundreds of regime change attempts.
What do you mean by normal || friendly?
Doug78
Doug78
2 years ago
Reply to  Webej
Serbia was to stop a real genocide. Haiti is always a mess. Nicaragua, Honduras, Grenada were part of the Cold War. Iraq was just plain mean and not merited. Somalia was failed attempt at nation-building. Libya was the Europeans screwup. When did we invade Korea? Vietnam was during the Cold War. Afghanistan was because they harbored Bin Laden so we went in. It was justified retribution and even the most primitive hill people understood it. Now tell us how how Russia and the Soviet Union were so nice to people outside it and more importantly the bloody repressions Russia has done to the people within the Russian Federation.
Roadrunner12
Roadrunner12
2 years ago
Reply to  KidHorn
I would guess most of the world outside of the US and Canada this strictly  as a US, Russian war. Ukraine pays the price. Europe Im sure is hoping for a quick end to the war as they are the ones hurting most from the sanctions. The longer this goes on the worse it gets for them. Their economies will be devastated. The question is how do the European countries respond the longer this goes on. The Italian trucker situation is just a start of whats to come for Europeans. 
Roadrunner12
Roadrunner12
2 years ago
Reply to  Roadrunner12

link to reuters.com

“BUDAPEST, March 11 (Reuters) – The European Union will not impose sanctions on Russian gas or oil, Hungarian Prime Minister Viktor Orban said in a video posted on his Facebook page on Friday, amid a summit of EU leaders in France.”
Roadrunner12
Roadrunner12
2 years ago
Reply to  Roadrunner12
When all is said and done, a good bet right now is that the only countries sanctioning Russian energy will be the US, Canada and Britain. And Canada never imported any Russian energy. Somehow, Im sure with Trudeau and Kamala in Europe didnt help the cause to boycott Russian energy but instead had the opposite effect.

“The West’s united response to Russia’s invasion of Ukraine is splintering over whether European countries are willing to take a severe economic hit and stop buying the oil that fuels the Kremlin’s war effort.

While the U.S. is set to link to politico.com, it looks increasingly unlikely that its European allies will agree to sanction President Vladimir Putin’s energy exports because of fears about runaway inflation and retaliation from the Russians.”

Jojo
Jojo
2 years ago
Reply to  KidHorn
Your imagination and $3 will buy a cup of coffee.

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