We've got Putin right where he wants us
Something is wrong with our sanctions policy against Russia..
On Wednesday, the Russian ruble closed 6.6% higher against the US dollar at 66.30 — its highest level since March 2020, according to Reuters' records.
Wasn't the idea that we would isolate Russia so that no one would want to deal with Russia in any way? How's that working?
(Reuters) - Russia ran a current account surplus of $95.8 billion in the first four months of 2022, up from $27.5 billion in the same period last year, central bank data showed on Monday.
Russia is on track to post a record high current account surplus this year after its import of goods and service fell due to western sanctions, while commodity export revenues are boosted by globally high prices.
That's the opposite of what we were supposed to do. If anything the Russian Ruble has a stronger financial base under it than ever before. Even the hundreds of billions of dollars that we illegally seized from Russian currency reserves won't make a bit of difference if their current account balance is in the extreme green.
But we've got Europe united against Russia, amirite?
Ten more European gas buyers have opened accounts in Gazprombank JSC, doubling the total number of clients preparing to pay in rubles for Russian gas as President Vladimir Putin demanded.
A total of twenty European companies have opened accounts, with another 14 clients asking for the paperwork needed to set them up, the person said, speaking on condition of anonymity to discuss confidential matters.
This is happening despite European Commission President Ursula von der Leyen warning companies against doing what they are in fact doing.
“Companies with such contracts should not accede to the Russian demands,” von der Leyen said. “This would be a breach of the sanctions so a high risk for the companies.”
So companies are rushing to defy the Russian sanctions, despite the potential of serious financial penalties. Why would they do that? It's called R-E-A-L-I-T-Y, and it's very unwelcome in politics.
“Russia is showing that it’s ready to get serious, that if one doesn’t comply with supply contracts or payments, they’re ready to put a stop to gas deliveries,” he said. “We have to take that seriously, and that also goes for other European countries. I take that seriously.”
You can't just replace 40% of your energy needs because your politics call for it. Even if the U.S. could substitute Russian gas with our natural gas from fracking, the infrastructure doesn't currently exist to get it to Europe. Plus, if the infrastructure did exist, it would be a far higher price than Russian gas.
And then there's the math.
Out of 195 countries, only 30 have honored the US sanctions on Russia. That means about 165 countries in the world have refused to join the sanctions. Those countries represent by far the majority of the world’s population. Most of Africa, Latin America (including Mexico and Brazil), East Asia (excepting Japan, South Korea, both occupied by US troops and hence not sovereign, Singapore and the renegade Chinese Province of Taiwan) have refused. (India and China alone represent 35% of humanity.)
Add to that fact that 40 different countries are now the targets of US sanctions and there is a powerful constituency to oppose the thuggish economic tactics of the US
Finally, at the recent G-20 Summit a walkout led by the US when the Russia delegate spoke was joined by the representatives of only 3 other G-20 countries, with 80% of these leading financial nations refusing to join! Similarly, a US attempt to bar a Russian delegate from a G-20 meeting later in the year in Bali was rebuffed by Indonesia which currently holds the G-20 Presidency.
Damn You, Reality! Don't you know that defying reality is the bipartisan consensus, and being bipartisan is holy and sacred, especially when it comes to supporting wars and causing pain on the working class in the search for profits while virtue signaling.