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Biden’s Sanctions Delivered, Europe is Russia’s Bargaining Chip

Biden’s Sanctions Delivered, Europe is Russia’s Bargaining Chip

President Joe Biden delivered a speech in response to the brutal invasion of Ukraine by Russian forces, outlining the sanctions that he was imposing on Russia.

They include:

–  Limiting Russia’s ability to do business in dollars or euros. He said the Ruble is the weakest it has ever been. The Russian Stock Market has plunged by about 50%.

–  Trillions in Russian assets cut off

 – Blocking four major banks from conducting business between Russia and the rest of the world.

 – Russian assets frozen

 – Russian elites are individually sanctioned, cut off from banking and western goods

 – Cut Russia off from at least half of its high tech imports

Biden has fallen short of cutting them off from SWIFT, the financial network that allows financial transactions to flow between banks. Apparently, this was not agreed to by all of the NATO partners. Perhaps this is a harbinger of disagreements to come.

I can’t say I am expert enough to know how badly Russia will be hurt by the sanctions. Given that the GNP of Russia is about $4 Trillion and some of the measures affect trillion-dollar assets, it should be substantial. With a world united against Russia, they could quickly be cast back 50 years in economic terms.

But the world is not united. In fact, China appears to be (at least pretending to be) on the side of Russia. So money can flow through China, circumventing a great portion of the sanctions. Russia can get the same quality of high tech goods from China as the U.S. does. The Russian elites who have been targeted probably already have their problem solved.

In my view, Biden has dramatically underestimated Putin and is in no way prepared for what is next.

Europe as a Bargaining Chip

Sources say that Italy imports 90% of its oil and gas from Russia. Many European countries are in the same boat, albeit not quite as exposed. Unfortunately, oil and gas can rise in price rapidly from even a minor shortage, much less the massive one that would occur if Russia decides to cut them off.

And this is what Putin is counting on. Once he achieves what he feels is a stable position, he can throw the switch, cut off oil and gas to Europe, and then negotiate his way out of the rest of the sanctions. Europe is scared out of its wits, other supplies will take time to develop. In the meantime, Europe will be a cold and frightened place.

It is a safe bet. Putin is not subject to elections, protests or the cries of suffering or starving people. He can hold out a long time.

Europe. Just. Can’t.

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14 Comments

  1. Big daddy

    Biden would surrender quickly if we were invaded

  2. Harold blankenship

    Biden should take Putin behind the gym and kick his ass

    • Theodore Sueck

      Hahaha!!! LOL! Did you say kick or kiss?

      • Harold blankenship

        Meant kiss

  3. Harry Kuhn

    Like most republicans, I was all for the Russian invasion and supported Putin until he said that he was de-nazifying Ukraine! What I’m the actual fuck? There are good people on both sides. Why attack nazis?
    I can no longer support this dictator.

    • Ben

      But there are no good communist demoncrats who must be exorcised from our country and sent to Mexico to make Fords for redneck Tennessee fascists. . . .

      • Bob swartz

        Hell yes!!!!

  4. Navy Vet

    It’s a shame to see the white etho state of Russia attacking another white country. I supported Putin, but now it’s iffy. I still admire his masculine authoritarian streak, I just don’t understand why he would attack white people?

    • Ben

      Aren’t sll navy vets gay? What’s with those little white suits? I mean that Putin stuff you said, wowser, sounds like you in man love.

  5. Floyd

    Putin’s attack on Ukraine is an effort to save the world from the evil cabal. Grab the popcorn and buckle up. This is the first step in eradicating the evil child trafficking elites that rule over us.
    Trust the plan!
    WWG1WGA!

  6. Ben

    In times of war, it’s always good to see conservatives rallying around the president. Very constructive.

    • Jesse

      Right. He should be praised for another token chosen. The scotus nominee says that the court will look like America. She looks more like Cuba.

      • Ben

        Can you say Ben Carson? Of course, Herman Cain paid the ultimate price for supporting Trump.

        • Tommie

          TRUE!!!!!