Globalism Goes Down the Tubes

ZH: China Holds Secret Bank Meetings To Plan For Protecting Assets From US Sanctions
China is taking serious steps to prepare itself for potential future US sanctions such as have been imposed against Russia's banking sector, with regulators recently convening an emergency meeting of domestic and foreign banks to examine how to best protect the country's overseas assets.

Over the weekend the FT identified that the internal conference was held on April 22 and included top officials from China's central bank and finance ministry. It's also said that representatives were sent from every domestic and Chinese overseas bank, and additionally some China-tied international institutions, notably among them HSBC. The somewhat secretive conference was held as Russia is charging Washington with stealing $300 billion of its assets held overseas.

The end of globalism was signaled clearly a decade ago when China escalated a political dispute to an economic one and restricted rare earth exports to Japan. China had a monopoly on rare earth exports and this told the world that would need to diversify their supply. Continueed attacks on Japan caused that nation to diversify its supply chain: Japanese firms accelerating exit from China

Back in 2014 I posted The Logic of Strategy: Yuan Devaluation and the Road to Trade War. I thought yuan depreciation and possible devaluation would trigger this fracture. Instead, it was driven by politics.

Now USG has exploited its monopoly over the reserve currency and financial markets, signaling to China (and all nations) that they cannot rely on the U.S. currency or its financial markets and financial assets.

The Hill: The plan to seize Russian oligarchs’ assets sets an appalling precedent

The Bible’s Eighth Commandment prohibits thievery or stealing. It is understandable, nevertheless, that on Wednesday, the House of Representatives, infuriated by Russian aggression against Ukraine, would vote 417-8 to authorize President Joe Biden to steal the assets of Russian oligarchs allegedly linked to President Vladimir Putin to benefit the people of Ukraine. The vote for H.R. 6930, the “Asset Seizure For Ukraine Reconstruction Act,” may be politically astute, but it is not law and is an appalling precedent.
The American ruling class is doing as it has done for two generations now: systematically destroying the institutions and foundation that built America and American wealth. For now, the American people are still going along for the ride.

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