Just as the U.S. Congress goes out of its way to allow insider trading and non-Obamacare health insurance among its own members, so too do policies like economic sanctions only exist for non-U.S. corporations and governments. And as both the Eurozone and Wall Street continue to wallow in zero and negative interest rate environments, and extremely flat economies, the one country that the U.S. has targeted for economic warfare is the one country that is suddenly standing out in economic growth.
And because of this, businesses and investors are flocking to jump on board Russia’s economic revival despite sanctions that would normally keep them locked out.
“Russia has successfully placed 10-year Eurobonds worth $1.75 billion at the annual yield of 4.75 percent. The demand has reached some $7 billion. Over 70 percent of the issue have been bought by foreign investors, as we expected,” Siluanov told reporters in Moscow.
“Despite the attempts to stop the investors from buying Russian bonds, the volume and quality of bids we at a good level. – Sputnik News
A 4.75% annual return on investment (ROI) is almost like a dot com bubble return when you add in the fact that Wall Street can borrow at .25% interest and arbitrage the difference by purchasing Russian sovereign bonds. And the biggest irony of course is that by doing so it goes against U.S. foreign policy in attempting to economically strangle the Eurasian power.
But the bond markets are not the only sectors in Russia’s economy that are drawing U.S. and other Western interests. At the St. Petersburg International Economic Forum (SPIEF 2016) slated to start next month, businesses and investors from the U.S. and European Union are desperate to get involved in their growing economy, and are more than willing to give Uncle Same the middle finger when it comes to sanction restrictions.
As former President Calvin Coolidge once said, “The business of America is business”. And for the Washington government, foreign policy and economic warfare will always have a loophole for their corporate and banking masters, where restrictions like sanctions are only imposed on countries the U.S. doesn’t already hold authority over as a vassal state.
Kenneth Schortgen Jr is a writer for Secretsofthefed.com, Examiner.com,Roguemoney.net, and To the Death Media, and hosts the popular web blog, The Daily Economist. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.