Monday, February 28, 2022

That

 


was probably a redline we shouldn't have crossed if we intended to not be affected by this conflict. 

(I Wrote that at the very beginning of putting this piece together. Before I had read that in 2014 we were thinking of it (removing them from SWIFT) and the Russians thought of it then as a declaration of war. I asure you they still do.)


West unleashes SWIFT bans, more crushing penalties on Russia


'...going after the central bank reserves that underpin the Russian economy and severing some Russian banks from a vital global financial network."


"going after the central bank reserves that underpin the Russian economy"

They had already done the calculus on that prior to the invasion.


"severing some Russian banks from a vital global financial network."

That? I don't think they expected and in their oppion will warrant a response.


"U.S. officials said Saturday’s steps were framed to send the ruble into “free fall” and promote soaring inflation in the Russian economy.

(Well I wonder what his response will be?)


"Saturday’s move also includes cutting key Russian banks out of the SWIFT financial messaging system, which daily moves countless billions of dollars around more than 11,000 banks and other financial institutions around the world.'

(Like I said, I dont think they expected that and they will respond)


"Allies on both sides of the Atlantic also considered the SWIFT option in 2014, when Russia invaded and annexed Ukraine’s Crimea and backed separatist forces in eastern Ukraine. Russia declared then that kicking it out of SWIFT would be equivalent to a declaration of war.'

(You think their position has changed since 2014? I don't.)


"The U.S. has succeeded before in persuading the Belgium-based SWIFT system to kick out a country — Iran, over its nuclear program. But kicking Russia out of SWIFT could also hurt other economies, including those of the U.S. and key ally Germany."

Clay Lowery, executive vice president of the Institute of International Finance. “While details on how the new sanctions affect energy are still emerging, we do know that sanctions on its central bank will make it more difficult for Russia to export energy and other commodities.”

(Hello higher inflation)


Rachel Ziemba, an adjunct senior fellow at the Center for a New American Security

“Regardless, these sort of escalating sanctions, removing banks from SWIFT, restricting the Central Bank, this will all make it more difficult to get commodities from Russia and will increase the pressure on the financial market.”


They are in this for the long haul and are used to dealing with hardship. Their plan I believe is to wait us out. Just like they did the Nazi's at the siege of Leningrad. 


Siege of Leningrad


To bad people don't know their history.


"Don't forget your history

Know your destiny

In the abundance of water,

The fool is thirsty"







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