America's sanctions on Russia are hurting the US 'in a profound way,' US dollar's status at risk and taxpayers will bear the cost, says Citadel's CEO

[beijingwalker]

America's sanctions on Russia are hurting the US 'in a profound way,' US dollar's status at risk and taxpayers will bear the cost, says Citadel's CEO Ken Griffin​

Phil Rosen
Wed, March 2, 2022, 8:46 AM

• The US is weaponizing the dollar amid sanctions against Russia, Citadel CEO Ken Griffin told Bloomberg TV.
• Sanctions could put the US dollar's status as the global reserve currency at risk, he warned.
• "American taxpayers are going to pay for this in the form of higher interest rates on our debt," Griffin said.

While the West's retaliatory sanctions squeeze Russia's economy, they will have grave repercussions on the US that its citizens will pay for, warned Citadel CEO Ken Griffin.

The primary concern, according to the hedge fund billionaire, is that America is weaponizing the US dollar.

"When we put on the table the possibility that your dollars will become seized, or that you can't move dollars, we're telling the rest of the world to embrace other currencies in their portfolio, and we diminish the value of the dollar as the reserve currency," Griffin said in a Bloomberg TV interview.

Even though the sanctions feel good in the short-term, the long-term impact won't be as positive, he added.

And eventually, a shift away from dollar-denominated assets around the world could result in steeper costs for the federal government.

"American taxpayers are going to pay for this in the form of higher interest rates on our debt. It hurts our country in a profound way," Griffin said.

Additionally, he also said the sanctions are hindering the US's ability to be the leading technology developer in the world.

Since Russia's invasion of Ukraine last week, Western nations have banded together with a series of economic sanctions against Russia, including the banning of Russian banks from SWIFT, which is a messaging network that's considered the backbone of the global financial system.

Already, the sanctions have rocked Russia's economy. The ruble is now worth less than one cent, shares of Russia's biggest bank plunged 95%, and the Russian stock market has remained closed for three days.

America's sanctions on Russia are hurting the US 'in a profound way,' and taxpayers will bear the cost, says Citadel's Ken Griffin

"American taxpayers are going to pay for this in the form of higher interest rates on our debt," Griffin told Bloomberg TV.

finance.yahoo.com

 

[That Guy]

The same citadel that got destroyed by a bunch of troll investors on Reddit?

Lol

 

[Communism]

The same citadel that got destroyed by a bunch of troll investors on Reddit?

Lol

Citadel sells the "picks and shovels"

If you believe the narrative that they were "destroyed," then you have no idea how any of this works.

The policymakers went full retard when they blocked/froze/confiscated Russia's Central Bank Reserves.

They should have done it in a roundabout way, but directly blocking Central Bank Reserves essentially means forced de-dollarization.

Since this was done with USD, Euro, JPY, GBP etc, it means basically eroding trust in the western monetary system as a whole.

A very stupid idea.

 

[That Guy]

Citadel sells the "picks and shovels"

If you believe the narrative that they were "destroyed," then you have no idea how any of this works.

The policymakers went full retard when they blocked/froze/confiscated Russia's Central Bank Reserves.

They should have done it in a roundabout way, but directly blocking Central Bank Reserves essentially means forced de-dollarization.

Since this was done with USD, Euro, JPY, GBP etc, it means basically eroding trust in the western monetary system as a whole.

A very stupid idea.

Calm down, I was obviously exaggerating. If they got destroyed, they wouldn't still be around.

Speaking of exaggerations, the whole de-dollarization is nothing more than an exaggeration. The USD will continue to dominate the market for the foreseeable future. If it ever does get replaced, it won't happen for at least another few decades.

It's not easy to replace the dollar with the Yuan, considering just how deeply entrenched the global system is with the dollar.

People get hyped up for no reason on here.

 

[beijingwalker]

Calm down, I was obviously exaggerating. If they got destroyed, they wouldn't still be around.

Speaking of exaggerations, the whole de-dollarization is nothing more than an exaggeration. The USD will continue to dominate the market for the foreseeable future. If it ever does get replaced, it won't happen for at least another few decades.

It's not easy to replace the dollar with the Yuan, considering just how deeply entrenched the global system is with the dollar.

People get hyped up for no reason on here.

Actually China benefits more than US in this dollar system and this is why China is not in a hurry to replace it. this dollar system allows China to sell everything around the world and makes US highly dependent on the Chinese goods, losing the ability to produce, US now is actually on life supporting system, which is controlled by China. China can relatively easily move away from dollars but US can't survive without Chinese products. We have goods, US has dollar, which is basically a printed piece of paper, so who is in the postion of strength?

 

[American College Student]

This assessment is True only if one assumes the US would continue globalist political and economic policy/strategy. If the Nationalists ever truly come to power in America; China's current advantages would dry up rapidly.

 

[mmr]

Same bs again. If i get 1 cents for every time some one say dollar day is over will be millionaire by now. Wet dreams have no limit.

 

[Communism]

This assessment is True only if one assumes the US would continue globalist political and economic policy/strategy. If the Nationalists ever truly come to power in America; China's current advantages would dry up rapidly.

The U.S.'s power is directly tied to printing the global reserve currency currently.

If the U.S. significantly loses the ability to print the global reserve currency, then U.S. citizens can have fun having the same wage as Mexicans.

But sure, the U.S. would indeed be much more competitive if U.S. citizens had the same wage as Mexicans.

 

[Genghis khan1]

Fuel is already $7/gal in some states and there is no uproar in the main stream media. Few years ago fuel was $3 and MSM was going crazy. Media is totally in sync with the deep states.

 

[American College Student]

The U.S.'s power is directly tied to printing the global reserve currency currently.

If the U.S. significantly loses the ability to print the global reserve currency, then U.S. citizens can have fun having the same wage as Mexicans.

But sure, the U.S. would indeed be much more competitive if U.S. citizens had the same wage as Mexicans.

The Dollars Currency reserve status Helps our Ruling elites. However it hurts the bulk of the the American Middle and working classes. Geopolitically the reserve status helps our hegemonic position but it's not necessarily fundamental to said status. The Building Blocks for a strong self-sufficient autarkic state in the both the technological/industrial and agricultural spheres exists for America. This is especially the case if we have an anschluss with Canada, Britain and Anzac. The current ruling elites simply do not have interest in this option and ops for a globalist style grand strategy instead.

 

[Communism]

The Dollars Currency reserve status Helps our Ruling elites. However it hurts the bulk of the the American Middle and working classes. Geopolitically the reserve status helps our hegemonic position but it's not necessarily fundamental to said status. The Building Blocks for a strong self-sufficient autarkic state in the both the technological/industrial and agricultural spheres exists for America. This is especially the case if we have an anschluss with Canada, Britain and Anzac. The current ruling elites simply do not have interest in this option and ops for a globalist style grand strategy instead.

Literally all the things you spoke of exist entirely through constant subsidies that are possible due to the printing of the global reserve currency.

U.S. agriculture would become uncompetitive in an instant without subsidies.

U.S. oil production would become uncompetitive in an instant without subsidies (though natural gas production should still be fine).

U.S. technological base would quickly become uncompetitive without the constant subsidies from numerous U.S. government funded university research centers.

U.S. tech companies would no longer be able to afford exorbitant salaries attracting massive amounts of talent from around the world.

The only (significant) difference between the United States and Mexico is the ability to print the world reserve currency.

Canada is a natural resources state with defense subsidized by the U.S.

The U.S. would slowly become Mexico in pretty much every way (excluding how fucked Mexico will be due to global warming).

 

[American College Student]

Literally all the things you spoke of exist entirely through constant subsidies that are possible due to the printing of the global reserve currency.

U.S. agriculture would become uncompetitive in an instant without subsidies.

U.S. oil production would become uncompetitive in an instant without subsidies (though natural gas production should still be fine).

U.S. technological base would quickly become uncompetitive without the constant subsidies from numerous U.S. government funded university research centers.

U.S. tech companies would no longer be able to afford exorbitant salaries attracting massive amounts of talent from around the world.

The only (significant) difference between the United States and Mexico is the ability to print the world reserve currency.

Canada is a natural resources state with defense subsidized by the U.S.

The U.S. would slowly become Mexico in pretty much every way (excluding how fucked Mexico will be due to global warming).

Not if America ever got a government that forced the above agriculture and industries to do business in only in the domestic and regional markets and to fundamentally exist on proceeds form the domestic and regional markets and would be forbidden to sell to the overseas market unless said corporation or economic combine obtains a government permit to do so. If forced to build solely on the domestic market and essentially being ordered to trade with only the Anglosphere and Latin-sphere.

Regarding Subsidies practically everything in the US is purchased at massively inflated values. Go to a grocery store, the products cost far more than their actual value compared to say the products in a grocery store in China or even Brazil. Buying a truck cost 25,000 dollars in Americas where in Brazil than same truck would cost less than 1000 dollars.

Forced Autarky would force our native industries to become competitive and efficient rather quickly.

 

[Communism]

Not if America ever got a government that forced the above agriculture and industries to do business in only in the domestic and regional markets and to fundamentally exist on proceeds form the domestic and regional markets and would be forbidden to sell to the overseas market unless said corporation or economic combine obtains a government permit to do so. If forced to build solely on the domestic market and essentially being ordered to trade with only the Anglosphere and Latin-sphere.

Regarding Subsidies practically everything in the US is purchased at massively inflated values. Go to a grocery store, the products cost far more than their actual value compared to say the products in a grocery store in China or even Brazil. Buying a truck cost 25,000 dollars in Americas where in Brazil than same truck would cost less than 1000 dollars.

Forced Autarky would force our native industries to become competitive and efficient rather quickly.

All I'm hearing is that you want to be a Mexican.

Those buzzwords "competitive" and "efficient" simply mean everyone in the U.S. taking Mexican wages.

If you want to be a Mexican, just move to Mexico, it's much easier than making the U.S. into a giant Mexico.

 

[K_Bin_W]

Amreekans are about to get poorer

 

[American College Student]

All I'm hearing is that you want to be a Mexican.

Those buzzwords "competitive" and "efficient" simply mean everyone in the U.S. taking Mexican wages.

If you want to be a Mexican, just move to Mexico, it's much easier than making the U.S. into a giant Mexico.

Which would still be a massive increase in real wages, if you got rid of the rapacious elites who are price gouging everything. The only real difference would be that it would be much harder to attract high-end overseas labor. Businesses would be forced to train and employ American workers. America would probably still have somewhat higher average wages than latin America in this scenario so there would still be immigration (however it would be a much more manageable stream rather than the current torrent).