- How will Russia respond to sanctions, stealing of their reserves held in foreign lands and cutting off SWIFT (Economic/Financial WW3)? I seriously doubt they will NUKE countries that do it. Cutting them off from SWIFT means they can no longer do international payments easily. Their international trade collapses. Their financial system, currency collapse. A proportional retaliation will be to Cyber-Attack nations and cripple their financial system, cripple the SWIFT system, such that these nations are also suffering like Russia. So Cyber-Attacks are clearly coming!!! Implied: Hyperinflation and the destruction of fiat currencies. Got physical Gold/Silver yet??
- Zoltan Pozsar Warns Russian Sanctions Threaten Dollar’s Reserve Status
by Tyler Durden, https://www.zerohedge.com/
Over the weekend, the world gasped in shock when Western powers announced that the nuclear option would be used against Russia in retaliation for its invasion of Ukraine – sanctions against the country’s central bank and targeted expulsions of key banks from SWIFT, a move which has effectively locked Russia out of the western financial system and left its vast oil export industry – a key lifeline for the Putin regime – in limbo. But the real reason for the shock is that this was the first time the global reserve currency was weaponized against a G20 economy, setting a clear precedent for how the west would and could respond to any other nation that followed in Russia’s footsteps (something which China is clearly contemplating vis-a-vis Taiwan, and is carefully studying just how the west responds to Moscow),
As a result, and following this week’s dramatic freeze of the Russian central bank overseas assets, has prompted some to question just why countries build foreign currency reserves at all and, more broadly, whether the unprecedented western response to Russia hasn’t jeopardized the dollar’s reserve status.
In what one Washington lawyer described to Reuters as the “biggest hammer in the toolshed”, the G7 and European Union governments blocked certain Russian banks’ access to the SWIFT international payment system and also went a step further than many expected by paralyzing about half the Russian central bank’s $630 billion worth of foreign currency and gold reserves. In doing so, the west has undermined Moscow’s ability to defend the ruble – which has lost up to a quarter of its value since Friday alone – and recapitalize sanctioned banks as they face nascent bank runs. In fact, as some admitted, it was the explicit intention of the west to spark bank runs and to crash the Russian financial system from within.