Home CryptoBitcoin President Putin Has Ended Globalization as We Knew It

#Putin #Russia #Ukraine #Germany #energy #EU #NWO #globalization #payments #SWIFT #FMTS #cryptocurrencies


“The Russia-Ukraine conflict has become a geopolitical war. So, direct, retaliatory attacks against western financial institutions should not be taken off the table”–Paul Ebeling

The war in Ukraine has shown the limitations of the decades-long German approach of seeking to change Russia through trade and spells the end of globalization as we knew it, the European Economic Commissioner Paolo Gentiloni said Thursday.

Speaking at the Peterson Institute in Washington, Mr. Gentiloni said the Russian invasion of Ukraine on 24 February will also reshape global alliances and put further strain on global supply chains, already fragile after 2yrs of the VirusCasedemic.

“The notion of ‘Wandel durch Handel’, of bringing about change through trade, has shown its limitations,” Mr. Gentiloni said, referring to Germany’s policy towards Eastern European states started in the early 1970s. “We need to rethink our relations with autocratic regimes and strengthen our ties with like-minded partners,” he said.

For decades Germany has pursued close economic ties with Moscow, making itself heavily dependent on Russian Nat Gas, Crude Oil and Coal in a policy that now makes it etremely difficult for Europe to stop buying Russian energy and therefore stop indirectly financing the Russian invasion of Ukraine.

This crisis will also spell the end of globalization as we have known it and reshape global alliances,” Mr. Gentiloni said.

“The war and its consequences – including the successive rounds of sanctions that the EU and the US have imposed on Russia – are exacerbating pressures on already strained global supply chains,” he said.

He said the invasion also forced the 27-nation European Union to sharply boost spending on defense and adapting the economy to the digital age.

This expenditure might need to be reflected in EU fiscal rules that are now under review, he said, and possibly in some new joint borrowing, possibly modeled on the EU’s post-virus recovery fund of EUR 800-B of joint debt.

“We are talking about mobilizing hundreds of billions of additional investments each year. While most of these investments will need to come from the private sector, financing them will require a more supportive framework of fiscal rules and potentially new tools at the European level,” he said.

Germany and other northern European countries are strongly opposed to such new joint borrowing.

Mr. Gentiloni said the cost of the Ukraine war for Europe depends on how long it lasts, but that economic and material support to Ukraine, assistance to refugees, as well as continued support to the EU economy to deal with high energy prices and disruptions in production will boost the aggregated EU budget deficit by at least 0.6% of GDP this yr.

In response to its expulsion, the Russian Central Bank has claimed its SWIFT alternative – the Financial Message Transfer System (FMTS), developed in the wake of the Y 2014 invasion of Crimea is primed.

Irrespective of FMTS’ short-term success, the bottom line is that the West’s use of the SWIFT “financial nuclear weapon” will splinter the global payments landscape, as crypto currencies are fast being adopted.

Have a prosperous weekend, Keep the Faith!

You may also like


Your Trusted Source for Capital Markets & Related News

© 2023 LiveTradingNews.com – For The Traders, By The Traders – All Right Reserved.

The information contained on this website shall not be construed as (i) an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities or services, (ii) investment, legal, business or tax advice or an offer to provide such advice, or (iii) a basis for making any investment decision. An offering may only be made upon a qualified investor’s receipt not via this website of formal materials from the Knightsbridge an offering memorandum and subscription documentation (“offering materials”). In the case of any inconsistency between the information on this website and any such offering materials, the offering materials shall control. Securities shall not be offered or sold in any jurisdiction in which such offer or sale would be unlawful unless the requirements of the applicable laws of such jurisdiction have been satisfied. Any decision to invest in securities must be based solely upon the information set forth in the applicable offering materials, which should be read carefully by qualified investors prior to investing. An investment with Knightsbridge is not suitable or desirable for all investors; investors may lose all or a portion of the capital invested. Investors may be required to bear the financial risks of an investment for an indefinite period of time. Qualified investors are urged to consult with their own legal, financial and tax advisors before making any investment. Knightsbridge is a private investment firm that offers investment services to Qualified Investors, Members and Institutions ONLY. Qualified Investors are defined as individuals who have met those Qualifications in the relevant jurisdictions. Members are defined as individuals who have been accepted into the Knightsbridge membership program. Institutions are defined as entities such as banks, pension funds, and hedge funds. If you are not a Qualified Investor, Member or Institution, you are not eligible to invest with Knightsbridge. All investments involve risk, and there is no guarantee of profit. You may lose some or all of your investment. Past performance is not indicative of future results. Knightsbridge is not a registered investment advisor, and this disclaimer should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions. By accessing this website, you agree to the terms of this disclaimer. Thank you for your interest in Knightsbridge.