-- Published: Thursday, 28 June 2018 | Print | Disqus
HOW NATIONS CAN BYPASS AMERICA IMPOSED TRADE SANCTIONS
After the “Second World War” and the formation of World Trade Organization (WTO), the USA has used the phrase “Trade Sanctions” for nations to do everything which it wants. “Trade Sanctions” is basically a nation not able to buy or sell in the global market. Only the USA and Russia can survive by being a closed economy. The rest of the countries cannot live in a closed economy system.
Iraq, Iran, North Korea and a lot of other nations have suffered due to US imposition of “Trade Sanctions”. Crude oil currently is rising as the USA has asked the world to stop buying from Iran. Why is the USA asking the world not to buy crude oil from Iran? They say Iran has nuclear weapons. Iraq did not have nuclear weapons. The real reason is that Iran has massive natural gas reserves. USA shale gas wants to export American natural gas. USA wants to monopolize natural gas pricing and ensure that it keeps on rising multi fold over the next few decades.
The real issue is how we bypass USA imposed trade sanctions:
Nations with land borders like China-Russia or North Korea-China can move goods by land or air. USA cannot disrupt the sea route. Americans are the barbarians of free world trade movement. If a nation has a land border with a trade sanctioned nation, it will be easy by pass the same.
There will be trade imbalance whenever two countries exchange goods. Gold has been used as medium to counter the trade imbalance. The global banking system is controlled by USA. Nations dealing with “American/NATO trade sanctioned country” can exchange gold with each other for imbalance. India-Iran rupee trade, India-Russian Rouble trade are examples of by passing imposed trade sanctions. Currently Russia-China are dealing with US imposed trade sanctions by using Yuan backed gold for trade imbalance.
In order to reduce the imbalance both countries try to export and import to each other at competitive prices. Some nations even give export subsidies to reduce the trade imbalance.
The banking system is controlled by USA and its NATO allies. More and more countries are moving towards an independent banking system which USA cannot control. One such example is to develop a local credit card payment system away from Mastercard and Visa. Once nations have a fully independent and localized banking system, the threat of American imposed trade sanctions will be minimal. Use of new innovative financial products between countries will also mitigate this.
Now a day’s current USA president Donald Trump is using “technology sanctions” for nations to bow to American whims and fancies. ZTE corp and other measures against Chinese companies and China as a nation are best examples. I am sure over a period of time, India, China will start adopting locally developed technologies instead of using standard international equipment.
Disclaimer: Any opinions as to the commentary, market information, and future direction of prices of specific currencies, crypto currency, metals and commodities reflect the views of the individual analyst, In no event shall Insignia Consultants or its employees have any liability for any losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided in this material; or in any delays, inaccuracies, errors in, or omissions of Information. Nothing in this article is, or should be construed as, investment advice. Prepared by Chintan Karnani
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-- Published: Thursday, 28 June 2018 | E-Mail | Print | Source: GoldSeek.com