Good afternoon, everyone! I’ve got a very timely topic to discuss today so let’s dive right in!
“U.S. and E.U. Agree to Cut Russian Banks Out of Vital Swift Financial System”
The international banking system, SWIFT, allows large amounts of money to be transferred between countries.
Booting Russia out of this system dropped the value of the Ruble (Russian currency) more than 20%!
This, along with other sanctions have crushed Russia’s economy.
If Russia is removed from SWIFT for too long, they might figure out their own system; they would probably produce something similar to Ripple or XRP.
For this reason, I think Russia will be added back on to SWIFT because we don’t want them to make their own system, America will do anything to protect their most valuable export: the USD.
Ripple has been suspended for almost four years now, making it clear that making revolutionary products are rarely successful. Like I said in my video…
“You want to make products that are evolutionary, not revolutionary.”Bridger
Russia & China
These sanctions not only affected SWIFT, but these effects caused Russia to hike up their interest rate 20%!
Russia might be in trouble with their bonds, just as China is in limbo with the Evergrande, the largest real estate holder in China ($300 billion in debt)!
Russia and China have been the biggest buyers of gold in the past two decades. Maybe they have been trying to stockpile for a time like this, where they can shift away from the US dollar.
That being said, half of the stockpile is not liquid and has been frozen due to the recent sanctions!
There’s also a theory that China is prepping an attack on Taiwan, similar to that of Russia.
However, China may now realize the economic crisis that could occur if they chose to invade Taiwan. The same serious sanctions could easily be put on China.
“Cripple a currency, cripple an economy.”
China and Russia have the advantage of having presidents that serve for more than 20 years. They’re able to map out these long-term plans while America is cycling through their presidents.
Elon Musk & Conclusion
All of Ukraine’s internet communications were shut down by Russia and the president of Ukraine tweets, “Elon Musk, instead of going to Mars, can you give us internet access?”
Within 48 hours, the equipment was set up and Ukraine had internet access, how cool!
Thanks, and see you soon!
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DISCLAIMER: This content is for educational and informational purposes only. It is not to be taken as tax, financial, or legal advice. You should always consult a legal professional before taking action. Furthermore, this is not a recommendation to buy or sell any security. The content is solely just the opinion of the authors.