Details below. My understanding is that this is not as important, perhaps since any bank not on this short list can indirectly transact for the blocked ones with the rest of the world. More on Swift specifically -
Severing the connection to the U.S. financial system for Russia’s largest financial institution, Sberbank (http://SBER.RU), including 25 subsidiaries, by imposing correspondent and payable-through account sanctions. This action will restrict Sberbank’s access to transactions made in the dollar.
Full blocking sanctions on Russia’s second largest financial institution, VTB Bank (http://VTBR.RU), including 20 subsidiaries. This action will freeze any of VTB’s assets touching the U.S financial system and prohibit U.S. persons from dealing with them.
Full blocking sanctions on three other major Russian financial institutions: Bank Otkritie (StreetAccount), Sovcombank OJSC, and Novikombank- and 34 subsidiaries. These sanctions freeze any of these institutions’ assets touching the U.S financial system and prohibit U.S. persons from dealing with them.
The White House also announced new debt and equity restrictions on thirteen major Russian enterprises and entities. This includes restrictions on all transactions in, provision of financing for, and other dealings in new debt of greater than 14 days maturity and new equity issued by thirteen Russian state-owned enterprises and entities:
These entities will not be able to raise money through the U.S. market
Either way, the Russian stock market was up a lot on the Biden speech today, so they don’t think it’s bad news. This is today’s chart with midday for the speech.
I don’t think he can do anything about it unilaterally. SWIFT is overseen by the G-10 central banks. We’re only one of them. Maybe the UK would go along because they’re not tied to using much Russian oil/NG. But much of the EU pays for Russian gas via SWIFT payments. Without payments, they’d be cut off so they’re not gonna do it, yet. Maybe once Putin invades Poland, Moldova or the Baltic States though. Then they’ll get real tough. Right?
This is another reason why Russia is not gonna cut the EU off natural gas and oil deliveries. They know it’d mean overnight SWIFT ban since the EU would then not have much to lose by cutting them off.
A Key Inflation Gauge Is Still Rising, and War Could Make It Worse
Russia’s attack on Ukraine could cause dizzying spikes in prices for energy and food and could spook investors. The economic damage from supply disruptions and economic sanctions would be severe in some countries and industries and unnoticed in others.
Oil prices already are the highest since 2014, and they have risen as the conflict has escalated. Russia is the third-largest producer of oil, providing roughly one of every 10 barrels the global economy consumes.
Europe gets nearly 40 percent of its natural gas from Russia, and it is likely to be walloped with higher heating bills. Natural gas reserves are running low, and European leaders have accused Russia’s president, Vladimir V. Putin, of reducing supplies to gain a political edge.
Truth is, America has sufficient natural gas easily to be able to supply Europe. We have a 200 year supply here. I ought to know: I own some of that natural gas personally.
Trump wanted to exploit this North American strength in order to assist our European friends while screwing Putin at the same time. It was a good idea, but the Germans refused to go along, choosing Putin instead. So the needed pipeline and LNG terminals were never constructed here or in Europe.
Today the Germans remain reliant on Putin. I wonder how that is working out for them.
Not only this but they have also shied away from energy independence/diversification for decades by dismantling their nuclear power plants. They’re planning to replace this low-carbon footprint source of energy by the end of 2022 by more carbon-emitting NG dependence. Talk about shooting yourself in the foot repeatedly. I’m not holding my breath for them to walk decision that back. Watch this space for them using the slightest excuse to restart Nord Stream 2 push instead. Maybe once Russia asks to have back East Germany, they’ll wonder if there was not a better way all along.
Well we’re keeping our interest rate rock bottom so it seems to me that we’re trying pretty hard already to emulate Erdogan’s economic genius.
In January, with Turkey’s annual inflation at 47%, when asked about lowering interest rates further, he committed to it claiming that “Exchange rate will stabilize and inflation will fall, prices will fall too, all of these are temporary.”
Meanwhile, TRY lost 4% vs USD since then… so the plan is working completely as intended.
I was thinking about contemporary Germany . . . . Merkel, for example.
As for their engineers:
Decades ago I was assigned the job of speaking in front of a bunch of them, in Germany, in an effort to train them up and get them up to our (American) speed.
They were OK, but just a bit slow on the pickup.
I made that presentation during (what was for me) the middle of the night. It was an interesting challenge.
But that’s been true for the last 40 years. There’s a reason Walmart’s prices often hold steady for years, if not decrease over time. I dont think there’s anyone who would claim that when you buy “X” product today, you’re getting the same quality “X” as you bought back in 2002.
So true. For me, the best example is the quality of clothing items. Tommy and Timberland polos used to last at least a couple of years with minimal color or texture degradation. Today’s polos last me just a few washes and then they’re in poor condition.
Not only is X quality less than yesteryear. The package size is smaller. I buy ice cream regularly and the half gallon cartons are noticeably smaller. (label says less quantity but who’s aware)
Go grocery shopping, pay more $$’s, come home with less food. Now you need to fill that gasoline tank.
Uh, I personally know for the last 60. Do you remember “Made in Japan” in the early 60’s? It wasn’t as bad as “Made in China”, but only because the Japanese didn’t poison people and canines.
I don’t know about 2002, but I know for a fact that the truck we bought a decade ago is better than any non-sports car I’ve purchased, ever. It 's also better than any truck my father ever purchased, and that’s going back to the depression. A car that we purchased, also a decade ago, is better than any previous non-sports car that we’ve owned.
Also, I’m not some phony CR idiot who grades on backup cameras and lane/speed restrictors/governors. I’m talking about quality and longevity of components, despite the additional complexity of electrics and electronics.
You’re too smart. I was going to call this out, questioning if it was truly better quality or just refined design/added features that made the newer truck seem higher quality. Curse you!
Brandon’s solution to high shipping prices is to try to sue the foreign shipping companies and blame them for high prices.
Of course with super high demand and not enough capacity, shipping rates rise. If you somehow force them down, you would end up not getting as high value goods provided, or, more likely, they would just ship stuff to destinations other than the US that were willing to pay the market rates.
