Did a piece for Foreign Policy on the global economic shockwave from Russia’s attack on Ukraine. We have had a lot of debate about the way in which the war might trigger a challenge to dollar-hegemony from a new, ruble-yuan nexus - see Chartbooks 94, 106 and 107. I’m unconvinced and impatient with that debate.
Apparently the rules-based work order is being undone by the West itself. All assets remotely connected to Russia are seized or nationalized “because we can”. What if a distressed developing-world government reneges on his debt “because he can” as well? Gunboats (nowadays US carrier groups) are dispatched? Might is right and that is it. Liberal journalists and columnists are trying to paint a veneer of legitimacy on that but everybody in the global South sees through it and governments representing the majority of the world population has refused to condemn Russia at the UN. I beg to differ with Adam: the world order led by the US is indeed going, but it is the Americans that are doing the job.
I think your excellent FP article helps explain the reluctance of a great many nations' to give full-throated support to the US-European position vis-a-vis Ukraine. It's not like the prevailing system has been arranged for their benefit -- if anything it is only becoming more explicitly exploitative.
Perhaps instead of patching up the current crisis its not too soon to look to a solution and new policies?
Perhaps instead of just creating trillions from the air again as part of the never ending cycle of revolving debt we stabilize money by grounding it in the essential commodity; Energy?
The Kilowatt dollar?
The BTU penny?
1/100th of a barrel of oil?
The main feature being tie money to energy and end the spiraling madness of fiat.
A feature of energy money that all others lack; inflating the supply does not raise prices - it bends the energy cost curve *down* instead of up. The energy cost curve being a main driver of wage stagnation over the decades.
This also has the effect of allowing the major power 🇺🇸and the other major powers to maintain or improve their positions and would probably not be blocked by the energy companies. Even Europe can certainly get more intrinsic energy, they are only blocked now by the Greens- many of whom express interest in energy money.
China quietly backed Sri Lanka in letting them destroy the LTTE and finally end the war, which the West would not allow. Ending decades of war is not a small matter.
Apparently the rules-based work order is being undone by the West itself. All assets remotely connected to Russia are seized or nationalized “because we can”. What if a distressed developing-world government reneges on his debt “because he can” as well? Gunboats (nowadays US carrier groups) are dispatched? Might is right and that is it. Liberal journalists and columnists are trying to paint a veneer of legitimacy on that but everybody in the global South sees through it and governments representing the majority of the world population has refused to condemn Russia at the UN. I beg to differ with Adam: the world order led by the US is indeed going, but it is the Americans that are doing the job.
I think your excellent FP article helps explain the reluctance of a great many nations' to give full-throated support to the US-European position vis-a-vis Ukraine. It's not like the prevailing system has been arranged for their benefit -- if anything it is only becoming more explicitly exploitative.
"Sri Lanka is ground zero for the entire narrative of Chinese bare knuckles debt diplomacy. "??
Meaning what, exactly?
Since we know that entire narrative of Chinese bare knuckles debt diplomacy is rubbish, why raise it, unless to slander our New Official Enemy?
China accounts for 13% of Sri Lanka’s $65 billion debts and has kept both the spirit and the letter of its promises to Sri Lanka.
"Remember, money is power. The previous charts I showed you reflect that Washington
has benefited to the detriment of the rest of the United States by virtue of the “money system”
some of these academic economists espoused over the past 20-30 years and continue to
vehemently defend...and that Trump appears to want to change that money system to help
“flyover country,” “Hillary’s deplorables,” whatever you want to call it.
That’s my read on it. I think Trump wants to change the money system from one that has
benefitted Washington DC to the detriment of flyover country, to one that will begin to do the
opposite (at least initially.) It appears I may not be the only one thinking in these terms."
L. Gromen, Mr. X
Perhaps instead of patching up the current crisis its not too soon to look to a solution and new policies?
Perhaps instead of just creating trillions from the air again as part of the never ending cycle of revolving debt we stabilize money by grounding it in the essential commodity; Energy?
The Kilowatt dollar?
The BTU penny?
1/100th of a barrel of oil?
The main feature being tie money to energy and end the spiraling madness of fiat.
A feature of energy money that all others lack; inflating the supply does not raise prices - it bends the energy cost curve *down* instead of up. The energy cost curve being a main driver of wage stagnation over the decades.
This also has the effect of allowing the major power 🇺🇸and the other major powers to maintain or improve their positions and would probably not be blocked by the energy companies. Even Europe can certainly get more intrinsic energy, they are only blocked now by the Greens- many of whom express interest in energy money.
China quietly backed Sri Lanka in letting them destroy the LTTE and finally end the war, which the West would not allow. Ending decades of war is not a small matter.