Our colleague Jim Rickards took the podium to outline in great detail -- through the geopolitical lens -- why that is.

“It’s simple,” he says: “It has everything to do with the weaponization of the US dollar.”

Of course, he goes on, “Economic and financial sanctions are not new -- US has used asset seizures, freezes, embargoes, blockades, tariffs, and trade bans many times in the past.”

BUT…

Recent history reveals that US sanctions only work under three conditions:

1.] Target is a small to medium sized economy

2.] Target has no alternative payment channels

3.] Target has limited hard currency (or gold) reserves

“None of these conditions apply to Russia,” said Jim.

The U.S. sanctions on Russia are without precedent. Assets of Russia’s central bank and commercial banks were seized. Russian banks were ejected from SWIFT. Investment by U.S. entities in Russia is prohibited.

Russian exports of oil, gas, strategic metals, and other goods have been banned.

Imports of high-tech equipment, semiconductors, luxury goods, automobiles, and many more goods are also banned.

And yet…

“Russian sanctions have been a complete failure,” said Rickards. “Russian growth in 2023 is projected at 2.1%. USD/RUB was stable at around 70 from May 2022 to May 2023; down slightly now to 95. “

If you’re not worried about this…

You might be worried about the blowback.

Or the response to weaponization..”

Author: Jim Rickards

Profits from free accurate cryptos signals: https://www.predictmag.com/