7/12/2024

Weaponizing the US$ was a colossal mistake for the USA

 Weaponizing the US$ was a colossal mistake for the USA. But it is too late to cry over spilt milk. The damage has been done and even if they want to, they cannot put the genie back into the bottle.

Seizing of the Russian assets was another layer of harm that the USA inflicted upon itself which led to the lighting of the de-dollarization fuse.

The USA had been too arrogant in thinking that no one in this world could touch them militarily or do anything to close down the US$ hegemony. And another mistake was taking too lightly the eventual rise of China, thinking that the Chinamen will forever at best be cooks and laundrymen. Now they realized that no one should bet against China. It is a hard lesson that the EU must also learn and not be too arrogant. China is going to teach the EU a lesson they are not going to forget. 

Anonymous

1 comment:

Anonymous said...

That warning by Saudi Arabia about dumping EU bonds should the EU go ahead and seized Russia's assets has not been talked about much on the Western MSM, but it is a very strategic move by Saudi Arabia. It may not collapse the EU bond market but is a very strong signal to other countries of the danger of investing in Western assets. The bonds may pay more, but the risk is getting more and more unpalatable looking at the Russian experience.

Seizing Russian assets is plain daylight robbery, despite what Janet Yellen wants to put it in her own words to justify it. Confiscating other people's money is nothing moral, whatever morality they want to spin it into. When the Saudis make this move, the EU better wake up, as it is a prelude to what is coming if the EU still insists on confiscating the Russian reserves. This warning has been issued on behalf of the rest of the Global South countries.

Common sense will tell us that if any bank can just confiscate your money, would you still want to do business with it or place your money in it? You would take out your money and run for your life, thanking God for his help in salvaging your savings.

The USA just have to make its first move to seize the Treasury holdings of any country and that will be the final nail in the US$ hegemony. That is why that threat about seizing China's treasury holdings during the outbreak of COVID19 never took shape, despite calls by some in the USA administration. Simple as that.