The Nuclear Bomb of Sanctions

Eurointelligence: “Not buying stuff from someone as an expression of a political protest is the sanctions we know. You cannot force anybody to transact with you. Freezing central bank reserve assets is a sanction of a different category. This is the financial equivalent of a nuclear bomb, which the west triggered immediately, without public discussion, even without the involvement of parliaments.”

“We have been in shock and awe about this decision because it constitutes a default. If the transactional function of money becomes subject to political interference by government decree, money loses the first and most important of its functions: to act as a guaranteed means of transaction. We don’t think that the foreign policy types who imposed those sanctions spent even a second considering this issue.”

“The Russians could argue that this strategic default is not just illegitimate, but that it constitutes an act of war. Think of it as one country stealing money from another country.”