tag:blogger.com,1999:blog-8304928500646903522.post7586249303555861423..comments2024-03-28T18:32:05.933-04:00Comments on bensozia: Matt Levine Explains the Sanctions Against Russia in Terms of What Money IsJohnhttp://www.blogger.com/profile/01037215533094998996noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-8304928500646903522.post-12556837295536409412022-03-01T05:43:00.722-05:002022-03-01T05:43:00.722-05:00What's equally interesting is watching all the...What's equally interesting is watching all the businesses terminating partnerships with Russian businesses. Shell and BP being two of the more significant and most recent, hitting Russia right where it hurts the most, given that Russia's economy isn't exactly diversified. Shadowhttps://www.blogger.com/profile/05353532874773316117noreply@blogger.comtag:blogger.com,1999:blog-8304928500646903522.post-14439037153883849532022-03-01T05:27:29.718-05:002022-03-01T05:27:29.718-05:00A lot of words to describe a shunning. This whole...A lot of words to describe a shunning. This whole thing has awoken Europe as a global power, and I think we will see attempts at creating a second global credit system as a result. China certainly sees the significance of what is happening.Shadowhttps://www.blogger.com/profile/05353532874773316117noreply@blogger.comtag:blogger.com,1999:blog-8304928500646903522.post-42067600938034565112022-02-28T23:56:19.647-05:002022-02-28T23:56:19.647-05:00All that matters are relationships, and if your re...<i>All that matters are relationships, and if your relationships get bad enough then the money is as good as gone.<br /><br />There is a lot to dislike, or at least to be uncomfortable with, in this situation.</i><br /><br />He gets so close to a key realization, but just can't get there.<br /><br />Relationships have <i>always</i> mattered in money. You could be sitting on a pile of gold and jewels, but if the people you wanted to give it to in exchange for needed resources refused to accept it, it's worthless. It doesn't matter if they accept gold and jewels from other people - if your particular relationship with them is so bad that they refuse to do business with you, your money is worthless.<br /><br />We habitually remark on this fact in both the positive and the negative. We insist on treating friends and loved ones by telling them "Your money is no good here"; and we display our disdain for enemies and rivals by refusing to deal with them via phrases like "I wouldn't let you have it for all the money in the world".<br /><br />It's absurd to suddenly be concerned about relationships mattering in money, when it has literally always been that way for as long as banking has existed - and arguably even for as long as currency has been in use.<br /><br />A nation like Russia relying on lines of foreign credit in foreign currencies to prop up its economy was just as risky a proposition hundreds of years ago as it is today. If the people extending you credit decide to no longer honor the agreement, your money vanishes in a puff of smoke - regardless of whether the account records are stored on a computer or on a piece of parchment.G. Verlorennoreply@blogger.com