After 2 years of debate on how to handle the blockaded money from Russia, the latest at the G7 conference taking place in Italy:
The G7 group has agreed to use a large amount of sealed money from Russia to fund Ukraine
This amount of about 300 billion has been frozen since February 2022. Previously, the US wanted to use this confiscated money to finance Ukraine, but the European Union did not agree, doing so would be like openly robbing people of money. send.
Now, the G7 group officially finalizes the plan to use fixed interest on this 300 billion, from that fixed interest to borrow the first 50 billion, and use this amount to finance UK.
This strategy is quite profound, the principal is not lost, the interest is used to borrow 50 billion in advance
The UK is currently running a fiscal deficit of 20-30% of gross domestic product.
To see how dangerous this number is, we can compare it with Greece, when the debt crisis reached 13.5%, so if UK does not receive this huge amount of aid, it will soon be ruined. .
As soon as he received the G7 news, Biden strongly reaffirmed that the US will always support the UK
The German Prime Minister, who previously opposed the method of freezing assets from the West, now also agrees to support this decision, still preserving the original Russian money.
In addition, preserving the principal amount from Russia, it is more important than ever, because it shows credibility when countries around the world deposit money or gold into the Western banking system, it says "You did it wrong." , you will be temporarily blocked but your money will not be robbed."
Currently, India and African countries are also gradually withdrawing Gold, but all the world's assets to date are more than 70% in the Western banking system, because of its convenient payment and high level of reliability. most on the planet, so India's withdrawal of 100 tons of basic gold has no physical impact but only a reputational impact.
India's withdrawal of 100 tons of gold only increases the cost of protecting and managing that gold, but does not generate interest when depositing it in Western banks.
India does this because it is afraid that the upcoming BRICS moves will upset the West and their deposited assets will be punished.
Recently, a spokesperson representing Russia stated, "Russia considers the act of taking income from frozen Russian assets a crime, and Russia pledges to respond very painfully to Europe." "
It is predicted that in the two years of fortune, 2024 - 2025, there will be many storms and huge changes.
