“No, don’t-do-it”, Mike Johnson

[Neodymium60]

https://dailyreckoning.com/no-dont-do-it

Right now, the U.S. holds about $300 billion of Russian assets that were frozen after the Ukraine war broke out in February 2022. Most of those assets came from the Central Bank of Russia and consist of U.S. Treasury securities.

Technically, those assets have not been converted to U.S. ownership; they have merely been frozen and still belong to Russia even though Russia cannot use them. Now Johnson wants to convert those assets to U.S. ownership and use the proceeds to pay for the war in Ukraine.

Johnson said, “It would be pure poetry to fund the Ukrainian war effort with Russian assets.” It would be pure stupidity is more like it.

This would technically be a default and would likely trigger a dollar panic.  Bad move , Mike.

 

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