Although the idea that Vladimir Putin’s invading of Ukraine pitted Russia against the rest of the world is popular, it is not true. The revival of wars for conquest is causing great concern among the global population. However, the unification of west governments and western businesses has helped to calm the fears of those who are not sympathetic to the international predators. The West demonstrated the capability to transform supposedly neutral institutions into powerful elites and prompted people around the globe to search for alternative routes, even if it was only to protect their own interests. This could lead to the death of relative free global trade and the return of rival economic blocs.
“The suggestion that Putin is isolated may still be something of a Western bias — an assumption based on a definition of the ‘world’ as places of privilege, largely the United States, Europe, Canada, Australia and Japan,” Anthony Faiola and Lesley Wroughton Notified earlier in the monthFor The Washington Post. They added that even among people who aren’t sympathetic to Putin’s aggression there is a tendency for them to view it as a “Machiavellian tug-of war” between Washington and Moscow.
What is the reason for people’s lack of interest in what many consider a classic fight of good vs. bad, the invasion by an authoritarian neighbor of Ukraine of relatively liberated and democratic Ukraine?
While Western liberals cheer the imposition sanctions against Russia, leaders from many countries are horrified by the willingness of Western powers to militarize the global economy system. They believe the West already has too much power. BewareWalter Russell Mead, Bard College The Wall Street Journal.
Putin witnessed the Russian shock at such severe sanctions. seethedIn a March 16 speech, he stated that “Now everyone knows that any assets can be basically stolen” in response to foreign reserve seizures. However, it is easy to imagine how others countries, entire industries and even individual businesses could become future targets, if the west’s political and business elites work together and use their influence to make compliance. It’s not helpful to hear financial titans brag about their impact on compliance.
Larry Fink (CEO of BlackRock), exalted in an open letter to shareholders that the invasion “has catalyzed countries and governments to join together to severe financial and business ties avec Russia”. Published yesterday. “United in their unwavering commitment to Ukrainians, they started an ‘economic warfare’ against Russia. Nearly all governments around the globe imposed sanctions. This included the unusual step of preventing the Russian central bank’s hard currency reserve deployment.
He continued, “Capital markets and financial institutions have gone further than government-imposed sanctions.” As I stated in my earlier letter to CEOs, the right to access capital markets is a privilege and not a right. After Russia’s invasion we witnessed how quickly the private sector ended longstanding investments and business relationships.
BlackRock has been called a “punching bag” in some circles. We blend trendy issues in corporate governance, ESG, and the environmentThe company has integrated diversity, equity and inclusion into its business strategy. This company does not encourage investment in weapons and fossil fuels. It promotes equity, diversity and inclusion. Fink’s victory dance on the effectiveness of economic war can only raise fears around the globe that people will stumble across ideologic tripwires, and end up in financial purgatory.
Walter Russell Mead stated that Trump’s unilateral imposition and enforcement of harsh sanctions against Iran increased international awareness of the U.S. economic power. But woke Democrats who use economic sanctions to force their opinions on climate, gender, and other topics are less welcomed in many countries that Trumpian populists.
It is therefore surprising but not unexpected that South Africa’s representatives from Brazil, Russia India, China, China and India (the BRICS) countries are represented. This week, we met in MoscowIt was as though nothing unusual were taking place in the world. These are just a few of the countries. Brazil, along with Argentina South AfricaLean on Russia’s favour over economic ties, and the resentment at U.S. power. India wants to make new arrangements that would permit Indian exporters to trade with Russia despite Western sanctions. AccordingYou can find more information here Asia-Pacific News. China Sees an opportunityTo cultivate an authoritarian counterpart regime Safe HavenIf you decide to believe Beijing GuaranteesFor developing countries worried about weaponsized financial institutions, a reprint of this article is available.
Saudi Arabia, which is not part of the BRICS consortium may be willing to accept China’s yuan in exchange for its oil. The Saudi move may threaten the dominance of the U.S. Dollar in international financial systems. Washington relies on it for decades to print Treasury bills to fund its deficit budget. Notifications The Wall Street Journal.
“It now seems likely that the world economy really will split into blocs—one oriented around China and one around the United States, with the European Union mostly but not wholly in the latter camp—each attempting to insulate itself from and then diminish the influence of the other,” CommentAdam Posen, economist supports economic sanctions and sees long-term effects.
A world without economic connectivity means less trend growth and innovation. Special protections will be more easily demanded by domestic incumbent industries and companies. He said that together, real returns for investments by corporations and households will decline.”
BlackRock’s Fink agrees that the Russian invasion of Ukraine “has put an end the globalization we have seen over the past three decades,” despite his passion for using finance to promote fragmentation. According to Fink, a “large-scale reorientation in supply chains” will be an inflationary event.
Interestingly, both men see cryptocurrenciesThere is potential to break the global economic and financial walls unless countries take control.
While the majority of people in “unified” opposition to Russia’s invasion Ukraine share their horror at the actions of armies from one nation, many others are concerned about the consequences for the economy. Businesses and governments will create new alliances and barriers to protect themselves against future financial and trade weaponization. We’ll be more isolated and less wealthy in the future fragmented world.