FREEZING ASSETS HAS CONSEQUENCES By demonstrating to world central banks that the US can freeze any country’s foreign exchange reserves held outside their country, the world financial system and central bankers have learnt a lesson that will permanently change the way they do business.
No sane country will ever hold their reserves in US dollars or other currencies at a bank that the US government can directly or indirectly control.
Nor will countries trust the Swift system which the US can unilaterally manipulate.
The flight from the US dollar will not happen overnight but it will be more rapid than anyone can imagine.
No judicious central bank chief will ever consider handing their forex reserves to the US, a bankrupt nation, with a collapsing currency which at a whim can confiscate other countries’ reserves.
But not only that, who would ever put their money into US treasuries. Investors would not only lose their total investment on the falling value of the dollar but also on the US as a dodgy debtor which could easily default by debasing the currency to ZERO or extinguish the debt.
Russia saw this coming already some years ago and thus liquidated all their US treasuries. Instead they wisely bought gold.
You do realize that Putin has seized assets Of foreign companies doing business in Russia and recently had the Duma pass a law to Nationalize those foreign assets?
You also do realize that it’s not just America seizing Russian assets?
