Economic Sanctions as a Weapon

Discussion in 'Economics' started by smallfil, Mar 5, 2022.

  1. smallfil

    smallfil

    I think the obvious, example would be North Korea? US sanctions are still even now on North Korea, although, they have not attacked any civilians, although, they sunk a South Korean warship by ramming it if I recall correctly. The sanctions were imposed to dissuade Kim Jong Il then, now Kim Jong Un (his son) from developing nuclear missiles? Kim Jon Un threatened to launch a nuclear missiles at the US too. Last I checked, they are still developing their nuclear missiles and just fired a hypersonic missile, which is even more deadly, just recently. What about Iran? The same case, they are developing nuclear missiles, with a view to attacking Israel? They are now discussing continuing the Iran nuclear deal. Iran very close now too, of developing their nuclear missiles and arsenal.
     
    #11     Mar 5, 2022
  2. smallfil

    smallfil

    What Putin messed up on is trusting the US financial system to give him access to Russia's huge reserves of $630 billion which the US, of course froze entirely. Had he had most of those monies in gold or maybe, some of it in rare earth minerals (stockpiled), the US and Europe would have had a hard time hurting Russia financially. Still, this painful lesson is learned by Putin. Never trust the US. Even future leaders of Russia not named Putin will remember this lesson.
     
    #12     Mar 5, 2022
  3. Nobert

    Nobert

    North Korea is killing their own. Good luck for Iran to develop anything, anything, until Isreal eliminates it in a second.

    Any decent, democratic country, where citizens are not oppressed, by the regime, would be the most welcome example.

    One problem. There is no such country.
    All that suffers such sanctions, are the regimes of tyrons. No more. No less.
     
    #13     Mar 5, 2022
  4. terr

    terr

    Has a significant portion of it (last I heard, high $100Bs) in gold. Physical gold. He is going to have serious problems converting that to hard currency.
     
    #14     Mar 5, 2022
  5. smallfil

    smallfil

    Physical gold can be bartered for other goods you need from other friendly, countries. Russia is not going to be trading with US and European countries for a while. US and European companies with Russia as customer will also, lose that business resulting in mass layoffs. European countries have tens of billions of dollars in exports to Russia, also lost thru sanctions. These sanctions is a two way street. Higher oil and commodities for Europe and the US is already happening. Higher inflation too coming soon on pretty much everything.
     
    #15     Mar 5, 2022
  6. tiddlywinks

    tiddlywinks

    #16     Mar 5, 2022
  7. terr

    terr

    Russia exports $400B annually. That's to the whole world. $188B to EU. $5.8B to US. Compare that to the size of EU economy. (GDP: $15T). Russian economy: GDP: $1.48T. That's before the sanctions. No guesses what it will be in 2022.

    And BP just wrote off $25B (that's billion) in order to walk away from Russia. Western companies will weather Russia nationalizations if those occur. Russia won't.

    Yesterday I saw some idiotic high-placed Russian talking head on Russian TV talking about nationalizing IKEA and automobile factories in Russia. It was the height of idiocy (other talking heads were nodding and agreeing). The inventory in IKEA would run out in a couple of weeks and the plants are already shut down because they don't have the parts to run.
     
    Last edited: Mar 5, 2022
    #17     Mar 5, 2022
    piezoe likes this.
  8. tiddlywinks

    tiddlywinks

    #18     Mar 5, 2022
    Nobert likes this.
  9. jason84

    jason84

    Unless the trend changes, China could have military and economic superiority in 10 to 20 years. Maybe even less.
    This should never have happened. The west has enabled China and it will regret it one day.
     
    #19     Mar 5, 2022
    StockChartist and smallfil like this.
  10. tiddlywinks

    tiddlywinks

    << Western companies will weather Russia nationalizations if those occur. Russia won't. >>

    I have not factchecked your numbers. It would serve no purpose anyway.

    Meanwhile, Russia is a nuclear power. It also has tactical nuclear weapons, as well as highly capable, some would argue the finest, cyber-attackers in the world. Oh yea... For now, it supplies energy to the EU. And used to supply upwards of 30% of the worlds fertilizer and measurable percentage of certain grains. Fertilizer and grains have since been halted for export (to the west). And the USA continues to pay upwards of 70 to 100 million a day to Russia for oil, despite US imposed sanctions.

    To think China, Iran, North Korea, and others would not line-up on the side of Russia to secure it's survival is wishful, and ostrich-like.
     
    #20     Mar 5, 2022