Renowned economist Jim Rickards highlights the potential repercussions of U.S. congressional efforts to confiscate Russian assets for aiding Ukraine. The push for new currencies could intensify if this legislation passes.
Renowned economist and author Jim Rickards has raised concerns about a recent U.S. congressional proposal aiming to confiscate Russian assets for supporting Ukraine. This legislation, known as the “Make Putin Pay” Act, could significantly impact the international financial landscape. While it seeks to allocate $100 billion from the $330 billion in Russian assets frozen in the U.S. for Ukraine’s aid, it could have unintended consequences.
Rickards distinguishes between freezing and confiscating assets, emphasizing that the latter could trigger a surge in efforts to create new currencies. He argues that the drive to develop alternative currencies would accelerate if the U.S. decides to seize Russian assets.
Notably, proponents of the bill argue that it’s essential for safeguarding Western civilization and supporting Ukraine effectively. This move, however, aligns with a growing concern among economists like Jeffrey Sachs, who predict the eventual decline of dollar hegemony due to the U.S. using its financial system for geopolitical purposes. Central bank digital currencies (CBDCs) are expected to play a pivotal role in reshaping the global financial landscape in the future.