Source: Cobden Centre
by Tim Price
“The world changed profoundly just four years ago. In February 2022, in response to Russia’s invasion of Ukraine, the West immobilised roughly $300 billion of Russia’s foreign reserves. At the end of the month, both the EU and the US froze Russian central bank assets in Europe and the US. This may go down in history as one of the biggest unforced geopolitical errors of the 21st Century. So far. When, like the US, you have official national debts of $40 trillion that will never be paid except in devalued money, it looks almost churlish to remind generous foreign strangers that their holdings of your ‘assets’ can be voided on a whim. But that’s what they did. The decision triggered an understandable exodus of foreign sovereign capital out of the US Treasury bond market and into a stateless asset that is nobody’s liability: gold. That exodus is continuing, and the increasingly farcical Iran conflict isn’t helping.” (08/18/26)