It’s the End of the Foreign Exchange Reserves as We Know It

“Birthday party, cheesecake, jelly bean, Boom!”
— R.E.M.

The world we’ve known is over. The US Congress finally pushed the big red button. When the West froze around $300 billion of Russia’s foreign exchange reserves in March 2022 it was the first step in breaking down the system of foreign exchange reserves that makes up the global economy.

Freezing assets of countries they are mad at isn’t new behavior from the locusts that run the G-7 countries. We still have to listen to conservatards whine ...