Russian Sanctions hurt

Sanctions against Russia hurt

 

Don Hank

 

A reader tells me that the sanctions against Russia have been hurting them financially.

This is the perception throughout the West so far, unless you read reports from off the beaten trail. And then you see can easily through the lies.

You see, Western oligarchs are focused on keeping the world poor while robbing the little guy, and that is becoming an open secret. Eastern leaders can see this as a huge opportunity for doing business in ways that make everyone richer and better off. All they need to do is avoid the clumsy mistakes of the US oligarchs, and that is easy.

I have been forwarding articles showing that sanctions are not hurting Russia at all. They are gaining ground much faster than we are. Almost every one of our allies turned their backs on the World Bank (US based and led) and went over to the Chinese AIIB. This is a step toward dedollarization of world trade, which the Western press ignores pointedly (I pointed this out here http://www.renewamerica.com/columns/hank/141009)

In fact, the drop in the ruble is a huge boon for Russia, enabling them to sell more competitively to trade partners.

Then the Saudis struck deals with Russia for more powerful arms than we had ever sold them. That too is money in Russia’s bank.

Then about a week ago, almost every Middle Eastern leader met with Putin in Moscow, showing that they are pivoting away from the US and trusting Russia. For Putin that was like taking candy from a baby, because when a country’s government and oligarchs have cheated and lied repeatedly, eventually no lone trusts them. And that government is Washington.

In June Russia broke a record, selling more oil to China than the Saudis ever had sold them! The trade with China bypasses the dollar, using RMB only. Another major step toward dedollarization and loss of prestige for the dollar.

The Saudis are cooperating by charging more for their oil sold to Asia than is sold to the West. This helps Russia tremendously and is a clear signal that those closed door deals with the Saudis involved concessions to Russia in exchange for those weapons deals.

Now Russia is making deals with India for joint oil projects. These will almost certainly be denominated in currencies other than the dollar, another step in devaluing the USD.

Then there is the New Silk Route, a joint project with China to connect far flung regions for trade. Will the trade deals be in dollars? What do you think?

Rather than harming Russia, the sanctions drove them into the arms of our one-time allies. I don’t think they are coming back. My communications with Europeans shows they no longer trust the US, particularly since the bogus US subprime paper sold all over Europe, which set the stage for the current crisis there. Virtually every educated European knows this and, while their leaders remain discrete, they are waiting patiently for Washington to fall.

Russia’s new deals and sales of arms and oil are an indirect product of our sanctions and Russia is stronger now in trade and in world prestige than it ever was before.

Sanctions not only failed but they wound up greatly strengthening Russia!

The old Wolfowitz policy of encircling Russia has failed miserably as any fool knew it would. Russia is quickly emerging as the winner. Our policy makers are, to paraphrase Trump, STUPID!

It all reminds me of the Japanese emperor Hirohito in the last days of the war. He refused to believe that Japan could lose, even after the first nuke fell on one of his cities.

So the US dropped another.

Each of Putin’s actions is like one of those nukes, greatly curtailing US strength and prestige. Yet, Washington, caught in a paroxysm of normalcy bias, continues to forge ahead with its horrible policies, somehow convincing itself that it will win.

Let us hope and pray that whoever is elected our next president will start reversing these disastrous fraudulent foreign and financial policies that make America poor and garner the ridicule of nations.

And you know what? He may not have much choice.