Assessment: If the Fed can do this to Russia, who else?
In light of recent Fed actions, I pinged Michael Pettis at China Financial Markets some questions on China’s reserves
The reason for this topic has to do with the Fed’s unprecedented decision co confiscate Russia’s foreign currency reserves.
Not only was the action unprecedented, it was illegal.
The Federal Reserve Act mandates that the Federal Reserve conduct monetary policy “so as to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates.”
Nowhere does the act give the Fed the right or power to confiscate the reserves of sovereign nations.
But that is exactly what the Fed did.
If the Fed can do this to Russia, who else?
By weaponizing the banking system against enemies outside and within, advanced economies are losing their ‘risk free’ status. This may not change the global currency order for now, but could lead to a wild scramble for gold and other tangible assets.
“ … Who is like the beast? Who is able to make war with him?” Rev. 13:4
Team Biden just sent unmistakable message to China, Saudi Arabia, Russia, well actually everyone
- We can make your fiat reserves worthless overnight
- Buy gold
- Buy base metals.
- Hoard things you have everyone needs.
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