TJ Roberts | United States
Sanctions are not only an act of economic warfare that invokes misery upon the people who hold no power in a country, it also causes instability in the market of the country imposing the sanctions. Economic warfare is the new isolationism. If the US continues its zealous pursuit of empire, we will see an acceleration of inflation. When the dollar loses even more value, the economy will tank.
Sanctions are Isolationist
When the US imposes sanctions on another country, it doesn’t hurt just the other country. If anything, it hurts the US far more than its targeted victim. Trade is what allows for a market economy to flourish. When one restricts trade, the victim of the restrictions will seek other trade partners. For example, as the US further restricts trade with Russia through sanctions, they seek other allies. Among these allies are Brazil, India, China, and South Africa.
The only loser, in this instance, is the United States. They alienated themselves. It gets even worse when the US attempts to force other countries to enforce sanctions for them. The US, of course, is guilty of this as they attempt to force European banks to comply with and enforce US sanctions on other countries. This makes foreign banks more hesitant to accept US customers.
Sanctions Destroy the Dollar
This act of war hits the American people where it hurts. When foreign banks become less willing to accept American customers, the dollar loses usefulness around the world. This leads to an inevitable decline in the value of the dollar. As the US attempts to cripple its “enemies’” economies in the short run, it ruins its own economy in the long run.
When US customers lose the ability to use foreign banks, the dollar loses international integrity (this problem would become irrelevant if we returned to the Gold Standard). While the IRS attempts to weaponize US law to extort money from foreign banks, these foreign nations actively seek new trade partners. This will lead to the US losing its economic prosperity and lead to a new era of poverty for American citizens, not its enemies. Sanctions are not only an act of war, they also violate the very foundation of sound economic policy, specifically the idea of voluntary exchange.
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