Tell me again: Who are the sanctions hurting? cont.

The headline for an?article in WSJ?(https://www.wsj.com/politics/national-security/u-s-takes-aim-at-chinese-banks-aiding-russia-war-effort-fcf76dcc ) reads:

U.S. Takes Aim at Chinese Banks Aiding Russia War Effort

What the headline should read:

Biden Sanctions Russia by Cutting US Off Entirely from Global Financial System

The article states:

In the past, ... the mere threat to target banks have [sic] had short-lived results. In December, President Biden signed an executive order that gave the Treasury Department?authority to sanction banks?that aid Russia’s military-industrial complex. That created bottlenecks in China-Russia trade transactions as major Chinese banks backed out of any roles in facilitating the deals, said Alexandra Prokopenko, a fellow at the Carnegie Russia Eurasia Center think tank and a former employee of Russia’s central bank.?But, she said, those banks have gradually been replaced by more obscure regional Chinese banks with little work in the dollar-denominated economy, and hence less to fear from U.S. sanctions. “Payment chains are slowly being rebuilt,” Prokopenko said. “Both Russians and Chinese are constantly adapting to the new conditions.”

In other words, all US sanctions do is force Russia, China, and the rest of the world to construct payment chains/systems that bypass the US dollar.?

Andrew Barkett

Founder, Miriel.ai, Former FB+GOOG+NVDA. Investor/advisor to startups

10 个月

That's good. That raises the cost for them. Your anecdote here basically proves the opposite of what you think it does.

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