radon1 wrote:Sixstrings wrote: The Federal Reserve alone can just flood a place with all the money in the world.
They cannot, they'll destroy the currency.
Not going to argue with you over minutia, but you do realize the power of the us central bank right? It's actually THE most powerful domestic institution here. Unelected, undemocratic; few understand it or even know what the words "federal reserve" mean or what a central bank is.
In the global financial crisis, it was the us federal reserve that was sending money out all over the world -- outrageously, to places like Ghadaffi in Libya even, and money went to Russia. Global banking is a machine and the US central bank is just at the top of it, the largest and central piston of that global engine.
The Fed isn't doing moneization (buying its own bonds aka "moneyprinting") anymore, that was just for the financial crisis and then recession / depression. It's for monetary policy.
But it CAN. If the money is needed, the money will always be there. That's how we won the cold war -- Reagan ran up the debt, did that last arms race and USSR couldn't keep up. The military and arms race is funded by debt spending, the debt are US bonds the rest of the world buys, those bonds are essentially money transfer from the rest of the world to here, like a global tax -- and fair enough, someone's gotta pay for the global cop.
USA can only do this because its dollars and bonds are always in top demand. Over half of all dollars are held in foreign hands, offshore, the dollar is global currency. It would take A MASSIVE LOT of "money printing" to seriously devalue the dollar, because this dollar is the world dollar, that devaluation is really exported to the world and it's spread out all over the world. The Russian ruble is just Russia, the US dollar is the planet's dollar.
Anyhow -- little Ukraine isn't going to need any budget-busting massive help like that, really $15 billion is nothing if you split it up fairly between all the West. Germany will complain about it and be miserly about it, but that's just how they are, they have to deal with Portugal and Spain and Greece and all of those too.
Strategically, the best thing Ukraine can do for itself is position this as a cold war thing. If Russia is aggressive and belligerent, then that plays right into that. If Ukraine is on the verge of a bankruptcy and Russia is rattling sabres and all this cold war going on, then Ukraine can just come to the congress and say "we need money, you don't want to lose the Ukraine to the Russians do you?"
Whatever help Ukraine gets is completely linked to however confrontational and a "threat" that Russia is. The more Russia does, the more Ukraine will get.
Hopefully -- Ukraine will not be a total drain forever and ever, the plan really is to make it like Poland and not Greece.And we can turn around and give it to Ukraine! It's brilliant.
Definitely. Enjoy.
Do you see the irony? It's true. Russians are buying dollars and US bonds right now. The money Ukraine gets, just like most of the US budget is, is funded with Fed debt.
Russians buy US bonds in capital flight, US uses that money to give to Ukraine, Russians get more scared and buy more bonds. It's like a cycle or something.
As for "enjoy" -- well, I really do hope to see Ukraine become like Poland. Don't you?
Poland is a model for east europe, it's stable, it's on a modern track, it's got rule of law and normality and eu norms and civil liberties.
I will enjoy it, the cause for Ukraine sure beats Iraq and frickin' Afghansitan, here's some good we're doing for once, to help a whole nation out that really does want to join the west and really did turn its back on dictatorship and turned its back on the other side -- they chose us, not China and North Korea and Iran and the kremlin.
Of course I hope it has a happy ending, we don't get many of those you know, we did good for Japan and South Korea -- we screwed up others, Vietnam, Iraq. Maybe Ukraine will be one for the "we got it right" column. And if we DO get it right in Ukraine, then Ukraine will change Russia one day by its example, and then Russia will be a friend and Russia will stop the arms buildup directed at us and we can get rid of all the nukes and no more Russian bombers on our borders.
Winning in Ukraine, making Ukraine strong and a success, is directly connected to our national security -- winning in Ukraine will ultimately change Russia for the better, and eliminate that top natl sec threat.
Putin tells you it's making you a "stuffed bear" -- but do you really just WANT to be the "bad guy?" We don't want a stuffed bear, we just want someone that's not gonna nuke us, we want a friend like Canada is, like Poland is, like Ukraine is. Finland and Lithuania and all Russia's neighbors don't want a "stuffed bear" either, they just want a neighbor they can feel safe that they aren't gonna invade them and pick them apart with annexations and separatist states.
It's not about making Russia a "stuffed bear," it's about making Russia a friend, just as Lithuania is a friend with Finland and the two do not fear invasion from the other. So what's so bad about that. I assume you don't really want WWIII and wars all over Europe.
Russia cannot win this thing, if it's a cold war they want to win, that's insane -- Russia is not going to nuke us and we already figured that out about you so you've lost your trump card. And you don't want to be terrorists and evil bad guys anyway. Russia can't win it. The USSR couldn't win it, the West has more money, the West will always win any arms race and cold war, we won it the last time and we'll definitely win it again against a Russia that's a fraction of the old USSR.
The only way Russia can win is to just join the winning team. That team is not the likes of Iran, and North Korea -- those are the pariahs. Why choose that, that axis is a loser man, it's a total loser and Russia would do better with the West. Why join an alliance where everyone is sanctioned and starving, the people living under genuine oppression and dictatorship, why CHOOSE that. I don't honestly don't get it.
(actually, I do understand it: because of the 90s, Russians think that only Putin or another strong man dictator type can ever lead. They don't realize they can be Western, and successful. They don't realize that it isn't just a Hitler than can make trains run on time, but a Merkel can too -- you don't have to choose dictatorship, it's not the only way.
They've got no frame of reference for that, what a true democratic, stable Russia on equal terms and friendly with Europe just as Poland is, would be like.
So that's what Ukraine is about. The West will make Ukraine into what Russia could have been, and Russians will take note and will want it too.)