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This is quite funny. The obvious effect will be to increase de-dollarization. For one thing, Russia won't be able to accept the USD in exchange for energy even if it cared to, so it will increase use of the euro, yuan, rupee, etc. in those markets. This reduces dollar hegemony, which is a key piece in US geopolitical hegemony. And the energy that would have gone to Europe will go to Asia instead. China will be happy to take as Russia obligations to Europe are extinguished. And it won't be coming back in the future short Russia being conquered. But trying that would wipe out Europe.The US will profit short-term by supplying Europe with LNG but in the longer term Europe will react to paying higher prices than necessary and European firms become less competitive internationally and Europeans
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This is quite funny. The obvious effect will be to increase de-dollarization. For one thing, Russia won't be able to accept the USD in exchange for energy even if it cared to, so it will increase use of the euro, yuan, rupee, etc. in those markets. This reduces dollar hegemony, which is a key piece in US geopolitical hegemony. And the energy that would have gone to Europe will go to Asia instead. China will be happy to take as Russia obligations to Europe are extinguished. And it won't be coming back in the future short Russia being conquered. But trying that would wipe out Europe.This is quite funny. The obvious effect will be to increase de-dollarization. For one thing, Russia won't be able to accept the USD in exchange for energy even if it cared to, so it will increase use of the euro, yuan, rupee, etc. in those markets. This reduces dollar hegemony, which is a key piece in US geopolitical hegemony. And the energy that would have gone to Europe will go to Asia instead. China will be happy to take as Russia obligations to Europe are extinguished. And it won't be coming back in the future short Russia being conquered. But trying that would wipe out Europe.The US will profit short-term by supplying Europe with LNG but in the longer term Europe will react to paying higher prices than necessary and European firms become less competitive internationally and Europeans
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Mike Norman considers the following as important:
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The US will profit short-term by supplying Europe with LNG but in the longer term Europe will react to paying higher prices than necessary and European firms become less competitive internationally and Europeans in general pay more for utilities in addition to higher prices for goods. Will this enhance or detract from US-European relations (rhetorical question).
Moreover, cutting Russia off from SWIFT is the "nuclear option." If it doesn't work, then the remaining options will be need to be other than economic sanctions. Potential costs rise and leverage is reduced.
Will it work? Russia doesn't seem to be concerned to the point of reducing its demand at the bargaining table. China is certainly laughing up its sleeve at US arrogant stupidity and practical ineffectiveness.
Well, maybe the US will (uncharacteristically) think this thing through before pulling the trigger.
Sputnik International
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