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Desperation on Ukraine: Use Assets You Don’t Own, for Unauthorized Borrowing

April 12, 2024 (EIRNS)—U.S. Deputy National Security Advisor Daleep Singh said April 11 that the United States is going to push, at next week’s IMF/World Bank meetings in Washington, “G7” borrowing against future income from frozen Russian assets, to provide weapons for Ukraine that elected officials in Congress won’t authorize. This American proposal is simple: Use assets you don’t own as collateral, to issue “tens of billions of euros” in debt you don’t have any authority to issue, and thereby confiscate the assets while claiming you’re not doing so. It’s along the same lines as the United States claiming that it doesn’t know whether Iran’s consulate in Damascus is a consulate, or asserting that an adopted UN Security Council resolution is non-binding.

The head of Euroclear, Ms. Lieve Mostrey, has already spoken out against this idea, “borrowing against what you don’t own,” as confiscation by another name, that it is destabilizing to international debt and currency markets. But Singh indicated the United States aims at forcing European nations to agree by the June G7 meeting at the latest.

Not surprisingly, Singh, who has also served in 2020 as a qualitative easer at the New York Federal Reserve Bank, and as a leading proponent for unilateral sanctions at the Treasury, promoted this idea at an April 11 forum in Kyiv, where any bizarre idea of destroying Russia “makes sense.” Financial Times reported on his remarks today.

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