The expert explained that the crisis will affect even American farmers.
Financial analyst, ex-CIA adviser James Rickards told the media that the tough restrictive measures that the United States imposed on Russia could boomerang the country’s economy.
In an article for The Daily Reckoning, he explained that despite the anti-Russian sanctions imposed by the West, they will hit not only Russia, but also the United States.
According to the expert, Russia can bypass many of the measures introduced, for example, disconnection from SWIFT. So, to replace the payment system, it can use payments through an older Telex PS.
The second way out is to conduct banking operations through countries that did not support the measures.
And it can replenish the foreign market of products that have left Russia through import substitution.
As for Russia’s retaliatory measures, the analyst appreciates their threats highly, they will affect both Europe and the United States.
“This will lead to defaults in the West and may even mark the beginning of a global liquidity crisis, which can only be contained with the help of currency swaps of the Federal Reserve System, as we saw in the early stages of the pandemic, when markets collapsed, ”, – the expert explained.
Rickards recalls that the Russian authorities, represented by President Vladimir Putin, have already banned the export of a number of Russian products, because the country has not only oil, but also rare metals needed by the West – aluminum, titanium, palladium, platinum, fertilizers, grain and a number of food products.
The ban on their export will seriously affect the economy of Western countries, the analyst believes.
He gave an example of what will happen to farmers who grow food and raise livestock, butchers and processors who produce meat, poultry, bread and dairy products. They are intermediaries, and the source of the supply chain is nitrogen and phosphate fertilizers, which were supplied from the Russian Federation. .
Rickards stressed that when the supply chain of a number of materials and goods from the Russian Federation is disrupted, prices in the United States and Europe will continue to rise upwards. Moreover, food products will also be affected.
In general, the ex-CIA adviser defined the restrictive measures introduced as a sanctions boomerang.
As Topnews reported earlier, the head of EU diplomacy, Josep Barrrel, said that Europe had almost reached the limit in anti-Russian sanctions, and subsequent measures could harm Europe itself.
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