VA A HABER UN NUEVO DESORDEN MUNDIAL ((I), EGON VON GREYERZ)

Very few, if any, of today’s world leaders understand the consequences of their actions and clearly not Biden
So the world is now entering the final battle, a battle with totally incompetent heads of state which will lead to everyone losinghttps://t.co/POISKMDVKT#egonvongreyerz

— Guillermo Ruiz Zapatero (@ruiz_zapatero) April 7, 2022

SANCTIONS HAVE CONSEQUENCES The Roman Empire prospered for centuries due to free trade within and outside. But to sanction a country like Russia which has the world’s greatest natural resources to the extent of $75 trillion is total madness. Even worse when this sanctioned country supplies the energy of almost half of Europe, this is not just shooting yourself in the foot but in the head. See my article “A Global Monetary Inferno of Nuclear proportions”. This will not just lead to energy and food shortages in the West but also a massive decline in world trade as well as GDP. The CEO of BASF, the world’s largest chemical producer, said recently: “Cutting off energy from Russia will spiral Germany into its most “catastrophic economic crisis going back to the end of WWII!” But this should not come as a surprise for students of history. At the end of major economic cycles, countries get the abysmal leaders they deserve and these leaders will show a total lack of both intelligence and statesmanship. So sadly there is not even one leader who is capable of negotiating with Putin. As a matter of fact, the US doesn’t seem to have a leader at all. And Germany’s new leader Scholz had hardly got his feet under the table before he was landed with the small problem that his country gets 55% of its natural gas from its enemy Russia. How inconvenient. Germany clearly never learnt the expression “Don’t bite off the hand that feeds you”. Both Britain’s Boris “Partygate” Johnson and France’s “Manu” Macron can count themselves lucky that the war took the attention away from their domestic problems. FREEZING ASSETS HAS CONSEQUENCES By demonstrating to world central banks that the US can freeze any country’s foreign exchange reserves held outside their country, the world financial system and central bankers have learnt a lesson that will permanently change the way they do business. No sane country will ever hold their reserves in US dollars or other currencies at a bank that the US government can directly or indirectly control. Nor will countries trust the Swift system which the US can unilaterally manipulate. The flight from the US dollar will not happen overnight but it will be more rapid than anyone can imagine. No judicious central bank chief will ever consider handing their forex reserves to the US, a bankrupt nation, with a collapsing currency which at a whim can confiscate other countries’ reserves. But not only that, who would ever put their money into US treasuries. Investors would not only lose their total investment on the falling value of the dollar but also on the US as a dodgy debtor which could easily default by debasing the currency to ZERO or extinguish the debt. Russia saw this coming already some years ago and thus liquidated all their US treasuries. Instead they wisely bought gold. US debt is now entering the Pass The Parcel Game with NO investor wanting to be left holding the parcel. Consequences our US friends, Consequences! Do you now see that your government has not just shot yourself in the foot but has inflicted your country with a lethal head wound. The collateral damage will clearly lead to a distrust not only in the US but in all governments and all currencies. Globalism is now turning into isolationism. AND THE OBVIOUS CONSEQUENCE OF THAT WILL BE A FLIGHT TO COMMODITIES AND ESPECIALLY PHYSICAL GOLD AND SILVER HELD IN A VERY SAFE PLACE.