Misguided Souls Still Do Not Understand This Simple Truth: Sanctions Don’t Work – Mish Talk
Here We Go Again
Sanctions Don’t Work! Period!
When have sanctions ever dislodged anyone?
Q: Venezuela?
A: No
Q: Iran?
A: No?
Q: Cuba?
A: No?
Q: Any Country?
A: No
Fantasy Idea and Rebuttal
Fantasy Idea: An embargo of Russian energy would see Russia’s GDP completely collapse.
Fantasy Rebuttal: No, it wouldn’t because China won’t go along, India won’t go along, etc.
Percentage Terms vs Actual Dollars
In percentage terms Russia suffers more than the EU. But what about in total dollar or euro terms.
It’s 100% clear the EU suffers more. And what if Russia stops all its key exports in response?
Checking in With Chancellor Olaf Scholz
German Chancellor Olaf Scholz has warned that Germany will face dire consequences if energy imports from Russia are completely stopped.
What About France?
French president Emmanuel Macron is worried about an energy shortage.
Clandestine Finance System Helped Iran Withstand Sanctions Crush, Documents Show
Please note Clandestine Finance System Helped Iran Withstand Sanctions Crush, Documents Show
Iran established a clandestine banking and finance system to handle tens of billions of dollars in annual trade banned under U.S.-led sanctions, enabling Tehran to endure the economic siege and giving it leverage in multilateral nuclear talks, according to Western diplomats, intelligence officials and documents.
According to the documents and Western officials, the clandestine banking system works like this: Iranian banks that serve companies barred by U.S. sanctions from exporting or importing engage affiliate firms in Iran to manage sanctioned trade on their behalf. Those firms establish companies outside of Iran’s borders to serve as proxies for the Iranian traders. The proxies trade with foreign purchasers of Iranian oil and other commodities, or sellers of goods for import into Iran, in dollars, euros or other foreign currencies, through accounts set up in foreign banks.
Trump’s “Historical Trade Deal” With China Final Results Are a Big Zero
The results of President Trump’s historical trade deal with China are in. Chad P. Bown has the results in a series of Tweets.
Trade wars are neither good nor easy to win.
For details, please see Trump’s “Historical Trade Deal” With China Final Results Are a Big Zero
SF is now boycotting most of the United States
Image courtesy of Mission Local
On the laughable side, Mission Local reports SF is now boycotting most of the United States
A March 4 memorandum from City Administrator Carmen Chu reveals that San Francisco will not enter into contracts with businesses headquartered in most of the United States — 28 states in all. Official travel to those states is also forbidden. And this list includes some surprises: Nevada, New Hampshire, North Carolina, Wisconsin.
As a result of this vast boycott, San Francisco is constraining the number of businesses it can ink deals with, which all but certainly inhibits quality and drives up costs. It also adds onerous time constraints to the contracting process, which leads to poor outcomes and also drives up costs.
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Let’s Check in With Chicago
Heading Back to the Reality
A quick reality check suggests that Germany will have to buy more Russian gas now to prepare for a shortage of Russian gas eight months from now.
What About the Ruble?
Ruble Update
Sanction Battle Cry!
The Ruble has regained 40% of its loss since invading Ukraine.
This leads to the inevitable battle cry.
Dear Venezuela Please Send Help!
How stupid is this?
U.S. Officials Meet With Regime in Venezuela, to Discuss Oil Exports to Replace Russia’s
Senator Rubio Chimes In
Senator Rubio says “I am working on legislation that would impose sanctions on #China if we catch trying to use their Cross-Border International Payments System (CIPS) to help #Russia get around SWIFT sanctions“
Great Idea Senator!
Let’s halt global trade altogether!
What can possibly go wrong? I am sure Biden can work out a deal with Venezuela that will save us all.
Let’s ban all of Russia and China too (on top of Venezuela and Iran).
Oil Irony
Please note the Oil Irony: US and UK to Ban Russian Oil, Russia Threatens the Same
A Global Food Crisis Looms as the US Sanctions the World
Also note A Global Food Crisis Looms as the US Sanctions the World
China the Big Winner
Finally, recall my March 8 post US Sanction Policy Drives China Into Russia’s Loving Arms.
Time for tougher sanctions?!
This post originated on MishTalk.Com.
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