Lessons in economic sanctions on financial sovereignty
A comparison of finance and banking in colonial and sovereign economies. The impact of economic sanctions on the economy of the Western bloc. The essence of the monetary sovereignty of the Russian economy through the use of the ruble for gas trade.
| Рубрика | Экономика и экономическая теория |
| Вид | статья |
| Язык | английский |
| Дата добавления | 04.09.2024 |
| Размер файла | 20,3 K |
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Administration Thaksin University, Thailand
Faculty of Economics and Business
Lessons in economic sanctions on financial sovereignty
Shinasak Su., Dr Econ., Ass. Professor
Summary
This article will show the impact of economic sanctions on the colonial economy of the Western bloc and the essence of the monetary sovereignty of the Russian economy by using the ruble to trade gas instead of the Dollar and the Euro giving rise to power. When the economy is on production, sales and pricing are more free.
Keywords: economic sanctions, financial sovereignty, colonial economy, sovereign economy, default
Economic sanctions are an instrument of foreign policy of a superpower or the western bloc of the global. The cessation of purchases of goods or raw materials from opposing countries is aimed at changing ongoing policies or changing the political system by new leaders [2]. Sanctions aimed at achieving political goals are based on coercion by being able to violate international law, which differs from a trade war, creating more favorable conditions for national producers to pursue their economic goals. So, the economic sanctions toolkit has a different nature, such as a comprehensive or partial embargo on the export and import of specified goods, a restriction on financial activities, confiscation of property and property. The embargo on agreements with individuals, companies and special countries creates restrictions that undermine investor confidence in the country. We can see the previous monetary sanctions against Russia were suspended by higher than $300 billion in Russian inventories. The Russian authority's boycott on obligations in greenbacks and euros so that the Russian recession cannot pay off its credits at present and creates disbelief among external investors [9]. However, sanctions on Russia's economy have seen abandoning the dollar even more quickly, as the West suspends Russia's gold reserves and restricts the Russian regime from paying its credits in dollars and euros. The dollar's duty is to be met. The payment of the debt was canceled by default [5].
It was formerly supposed that currencies must be based on production in order to do their functions in flow, industrial progress and security of civil industrial dominance by the great weight of global economic GDP and never really been verified. But after economic sanctions, when the central bank changed its position to a state-owned bank and carried out with the Ministry of Finance, it showed up with an effort to spend the ruble in its entire internal and external contracts instead of the dollar and the Ruble is based on gold [7, 8]. Russia turned to Ruble gas payments with its hostile nation, resulting in the first quarter of 2022 a trade surplus of $66.3 billion which is more than the first quarter of the year 2021 accounted for 2.6 as much as the federal budget gets. Demand for Ruble bonds rose after settlements were performed on time, although after most gold reserves were suspended. But still have enough money to pay off the credit all at once. The central bank suspended foreign exchange interventions that were part of its budgetary principle. finance banking western colonial russian sovereign economy
For this reason, Russia gets capital to reinforce its internal expansion. It was not the result that Europe and the United States had foreseen. The Western bloc becomes been in even more trouble, with raising prices for gasoline, diesel and grain in the EU shattering all records. All government agencies in Italy have restricted the installation of air conditioners below 25 degrees. In Ireland, drivers are instructed to travel slower to spend less fuel. Germany becomes the highest inflation in 40 years. With European sanctions themselves stepping into recession, Western Europe for centuries got along at the expense of external resources and played in incomplete green energy. Europe found itself on the brink of a crisis and could not expect any effort. The West's pressure on Russia will end for the United States and Europe itself.
Biden's administration explained that the source of inflation Putin. It declared it because of Putin activities that caused automobile fuel very high. Americans appear not to understand how Russia and the president with the Ruble can reduce the price of goods in the most forceful countries in the world. Europeans were also surprised when fuel and food prices rose. In Russia, food prices are also rising. But soon everything returned to normal, gasoline was already becoming cheaper. Europeans were also surprised when fuel and food prices rose. The EU and the United States demanded to destroy the Ruble but realized it was unavoidable to agree to Russian export goods in rubles. So far, Europe knows not endangered Russia with sanctions when it turns into time to achieve gas. Most European states agree with Russia's demands for obedience. This sets questions about the consequences of operating the ruble on the dollar-based economy, why there is a marked weakness of economic manipulation, which brings to the problem of whether the economy is denominated in the dollar. What is the difference between a production-based business-like Russia? If you contrast it, you can look at the getting.
The amount of money circulating depends on the volume of exports of goods traded in external markets, the trade of goods in order to earn dollars and convert them into national currency for spending. This is a logic built into the long- established belief of colonial economics and that many countries face to sell their products in the US market for dollars to cover their national budgets, along with has been assigned the divide of labor by multinational capital. We can therefore see that this prosperity and advance come from the production of large-scale money and the stock exchange of financial capital for the goods and sources of developing states.
Table 1
Finance and banking comparisons of colonial and sovereign economies
|
Parameters |
colonial economy |
sovereign economy |
|
|
Currency |
Using the dollar to trade and transactions |
Using the ruble to trade and transactions |
|
|
Central bank functions |
Encourage expenditure spending by printing money on demand and purchasing private bad credit (for the Fed). |
Economic advancement and rise affordability by printing volume- based payment on worth substitution projects and improve of new productions to achieve non-monopoly fight. |
|
|
Scale and Territory |
States that transact through SWIFT and control dollars on commerce changes. |
Only within the country and the trade relations with the states that must be met use the ruble or other currency other than the dollar or euro. Only within the country and the trade relations with the states that must be met use the ruble or other currency other than the dollar or euro. |
|
|
Finance and banking comparisons of colonial and sovereign economies |
|||
|
Parameters |
colonial economy |
sovereign economy |
|
|
Interstate relations |
The central bank is a subsidiary of the Fed and the IMF inspects the (low) inflation target, and raising gold reserves requires an acceptable measure of gold and foreign stock exchange to print additional money. Therefore, without income from the dollar, money cannot be printed, which is monitored by the central bank [10]. The dollar comes from the export of goods in the world market. |
Central bank is not sovereign of the state but has dominance to plan sovereign of the surface. This functions as a financial demand (quantity), and the state functions as a supply in the proposed quantification of industrial effective projects. If it is important to develop the economy and increase acquisition capability. |
|
|
Base of national currency |
Dollar money, the amount of dollars printed by banks and financial capital. |
Ruble, production base, commodity and gold |
|
|
Domestic money supply |
From international trade exchange by dollar and convert to national currency for spending. |
From the manufacture of goods in substituting imports and domestic and foreign trades. |
|
|
Inflation |
Central bank money printing on demand for domestic spending [4] and the demand for dollar currency in the world market |
The reduction of production capacity and the lack of establishment of competitiveness development caused the monopoly of trade, unduly profit. |
|
|
Product price |
It depends on the amount of money printed by the Fed and on domestic wage compensation. The result of inflation, including the structural crises and the monopoly of major currencies in trade. |
Domestic prices are based on world market prices, with the government's lack of supervision and no intervention in planning to reduce production costs, thus reducing purchasing power. |
|
|
Money and foreign trade |
Determine commodity prices and division of labor between countries as guided by multinational corporations and geopolitical factors. |
Trade with states based on currency production zones. |
|
|
International Tools and Policies |
Bond credit, cheap resource [6] base and economic sanctions by the Western bloc. |
in proportion to the value of the commodity in the market that determines the purchasing capability of the state |
|
|
Money flow |
To be free |
Not liberal based on arrangements of value substitution and revenues is for internal financing. |
This means that the state's economy using the dollar cannot be aimed at securing the security and interests of the nation. Buyers can set their own prices, not giving them the autonomy to sell them even if it's a free market. Because the dollar monopoly depends on the influences of the United States and the Fed, which depends on the divide of labor imposed by financial capital. Export economies are forced to sell their products overseas then convert dollars to their own currency for domestic needs. Authorities, monopolies and bankers turn their national currency earnings into unsecured dollars. Product development by investing in technology and building competitiveness in the manufacturing sector. If the United States has a large trade deficit with its trading partners, it will find reasons to wage a trade war or use geopolitics to attack competitors, even if the goods are cheaper and improve people's livelihoods [11]. As all states adhere to this doctrine, the more money the United States or the EU prints, the higher the price, the higher inflation, and the higher cost of production and the product price. Solving the budget deficit and printing money without reducing consumption cannot solve inflation. The present global economy is linked to the dollar, giving the United States a unique opportunity to develop its economy by selling its obligation to the world. States are grateful to the United States around the world. This type of finance and banking is a feature of colonial economies, a relationship that exploits production-based countries, thus breaking the monopoly on the dollar. Its own cash has replaced it based on the manufacturing sector. Production cost Gold and the purchasing power of the people (see Table 1).
This type of economy is known as a sovereign economy or a new economy based on the present world section of the system in two: the Western industry system including the US, EU, Japan, Korea based on financial capital and dollars, and the East, Russia, China, India-based on its own national currency zone.
Conclusion
The economic sanctions against Russia have led the Russian economy to adjust its role by using the gas exchange ruble instead of the economic sanctions against Russia have led the Russian economy to improve its position by using the gas transaction Ruble instead of the dollar and euro, along with the shift from the central bank to the state bank and to cooperate with the ministry. Take on self-arrangement measures based on self-advantaged energy production and set up a cost of the ruble against gold has led to inflation and recession in the EU and US economy. It was a colonial economy based on financial capital and payment printing, while trade finance and banking of the manufacturing economy and central bank act as part of the state economy, it is an empowering approach to purchasing and trading fair trade of the economy. Between countries that depend on the manufacturing sector as well.
References
1. Dmitry O. (2022) What is the reason for the sharp strengthening of the ruble and why is it not as good as it seems.
2. Eremina A. (2019) Economic sanctions: concept, typology, features.
3. Historian S. (2022) Here the United States fell into a trap. Russia is moving forward.
4. Geek F. (2022) Import inflation and how to get rid of it.
5. Lublinsky A. Khazin spoke about the beginning of the destruction of the Bretton Woods model.
6. Nikiforova V. (2022) The West wants Russian resources for free.
7. Samofaloma O. (2022) Moscow has found an elegant solution for gas settlements with the West Moscow has found an elegant solution for gas settlements with the West.
8. Sedova A. (2022) The ruble was tied to gold: You can't follow the Dollar exchange rate until autumn.
9. Smirnova E. (2022) The default is cancelled. How Russia managed to avoid it and what it means for investors.
10. Starikov N.V. (2011) The nationalization of the ruble is the path to the freedom of Russia.
11. Volkonsky V. (2021) Gas blackmail of Europe: winners and losers.
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