The end of global ownership and trust

by Professor Dr Eberhard Hamer, Mittelstandsinstitut Niedersachsen e.V.

The USA and NATO have imposed total sanctions on Russia in order to destroy its economy and to end the economic traffic of NATO countries with Russia.
  These sanctions do not only affect German companies prohibited from doing further business in their branches in Russia. Many German corporations have had to close their branches in Russia – whether they will ever reopen depends on the duration of the sanctions, so it is likely to be doubtful.
  Like us Germans, however, the rest of Europe is also practically forbidden to do business with Russia. In this way, the whole of Europe is to be cut off from Russia in accordance with the founding principle of NATO, “To keep the Russians out”. Economically, an iron curtain has been drawn and we have started not only a cold war, but a hot economic war.
  This is shown above all by the financial boycotts and the gas and oil boycotts against Russia.
  The exclusion of Russia from the SWIFT settlement system and the prohibition of all banks from still having business relations with Russian banks is unique in economic history, but had to be expected for a long time, since Russia started a competing settlement system to SWIFT with China, namely CIPS. The Russians apparently saw the boycott coming and sold most of their dollars. The Chinese are now in the process of getting rid of their dollars as well, but they can only do so to a limited extent, because massive dollar ditching would lead to a collapse of the dollar exchange rate and thus devalue Chinese assets as well.
  Besides China and Russia, more than 20 countries have already joined the new CIPS settlement system, so what the US intended as a fiscal death blow to the rouble and to Russia could boomerang, if the world favours a second, gold-based settlement system and opts out of the fiat money dollar, which is no longer backed by value. This could lead to the end not only of dollar settlement, but also of the dollar imperium. The US has so far been able to pay for everything in the world with its freshly printed money that has no cover at all and to increase its prosperity in exchange for “fiat money”. If this were no longer possible, if the countries of the world no longer accepted worthless dollars, the USA would no longer be able to buy all the world’s goods with them, to pay for 900 billion dollars in military expenditure and to cover its financial deficits. In this respect, the financial boycott against Russia and a counter-reaction by the world could result in the collapse of the dollar empire.
  This in turn means for the German economy that investments in dollars lose their security, become unsafe. If the people of the world reckon with the crash of the dollar, which has been hollowed out because it has been increased without restraint, they will flee from the dollar. And if the dollar crashes, other currencies – yuan, euro, etc. – will be sought in its place, not only as units of account but also as new investment currencies.

Economic war
of the USA against Russia

The US gas and oil war against Russia had already begun before the Ukraine war. US President Trump did everything possible to stop the Nord Stream 2 gas pipeline because the USA wanted to get rid of its environmentally harmful and twice as expensive fracking gas in Europe. The USA therefore furiously fought the cheaper Russian competition. Together with the EU and the Greens they have now finally torpedoed Russian gas and oil supplies to Germany, even though Germany lately relied on Russian gas for more than half of its energy consumption. “Better be cold than buy Russian gas,” advised German Foreign Minister Baerbock (not applying to herself, but to us). Since Europe’s USA ordered gas freeze against Russia took effect, people have had to pay luxury prices for heat, and for companies, energy prices are also rising so sharply that energy costs alone are dragging more and more companies into the red, that hundreds of thousands of companies are having to give up and lay off their workers; they no longer pay taxes and social security contributions and the recession that has already begun is gaining additional downturn momentum.
  All this is now being justified with Russian war-mongering malice, although it started years before. People in Europe are now programmed by US propaganda with such hatred “against Putin” and against Russia that they accept their own economic damage wreaked by the Ukraine policy and its conductors – and will do so until they themselves feel the consequences first hand.

Expropriations detrimental to Russia

Hardly mentioned in the mainstream press is the fact that in their war against Russia, the USA and the EU are also confiscating the assets of Russian citizens and even tracing them all over the world wherever their secret services can track them down. This applies not only to tangible assets and companies, but also to financial assets. It also unfortunately effectuated not only by the USA, but even by its NATO satellites, which also have to participate in these worldwide expropriations under pressure from the USA.
  This global wave of expropriation against Russia and Russians, started by the USA, not only destroys confidence in worldwide investments and capital investments, but also torpedoes globalisation in general.
  The basis of business and investment abroad was namely the trust that assets invested abroad and company investments made there would remain with the investor in the long term. If companies and investors now have to reckon with the US example of arbitrary expropriation of “enemy assets” being followed by its satellites, this will be the end of all confidence in international investment.
  But if world trade collapses due to a loss of confidence, if export surpluses as well as exporting countries collapse – above all Germany –, we will lose not only our foreign investments, but also the returns on these foreign investments as well as our export surpluses. In a few years we could have export deficits instead, in any case the prosperity based on exports so far (about one third) will collapse when globalisation dissolves.

Risk of the
abolished property guarantee

The Mittelstandsinstitut has therefore warned export-heavy companies to stop relying on this strength in the long term and to factor in growing difficulties of globalisation. This applies, for example, to cheap imports from China and other countries, which we may no longer be able to pay for in the long term, it also applies to ownership of foreign investments, which, according to the American model, will in future be at the mercy of states, without protection; and above all it applies to investment income (profits) from subsidiary companies and fixed investments abroad.
  If the world divides into two blocs, the US-NATO on the one hand and Russia/China on the other, disputes over each other’s assets will also become more heated and ruthless and countries will carry out the same kind of expropriations that the USA and the EU have now introduced against Russia.

No more foreign investments

Then the world champion exporter will have to pay a heavy price for having allowed itself to be driven into a foreign economic war that harms Germany more than all the other countries in the world, over which we have practically no influence, in which both warring parties, the USA and Russia, are fighting against German interests and which, with its long-term consequences – as described above – harms Germany’s global standing in industry and our prosperity based on this more than other countries.
  It is not the Ukraine war itself, but the world trade war launched against it also in form of our own sanctions, that is destroying globalisation and the prosperity for all based on it, and will – like every war – spread blow against blow and with growing hatred, bringing only global harm instead of any benefit.  •

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