Pentagon Violates Its Own Sanctions; Buys Russian Oil

The USG can’t even follow its own rules. [The Rude Awakening] November 21, 2023 [WEBSITE]( | [UNSUBSCRIBE]( 📈📈📈📈📈📈📈📈 Publisher’s Note: Trading is back! With inflation cooling, Wall Street is feeling more confident — pushing the markets higher. It’s creating the perfect conditions to score some big, fast profits from surprising stock moves. And our resident Trading Expert, Greg Guenthner, is ready to guide you to the best opportunities. So we’re inviting you to watch LIVE as Greg shares his next top trade of the week. Mark your calendar for Tuesday, Nov. 21, at 11 a.m. ET to join his LIVE interactive broadcast. And put away your wallet, because this Zoom is completely free to attend. [Just click here to sign up for Greg’s Top Trades LIVE, Tuesday, Nov. 21, at 11 a.m. ET.]( Clicking the link above automatically registers you for the free e-letter Top Trades Live, but does not obligate you in any way to attend the live Zoom event. By reserving your spot, you will receive event updates along with the Top Trades Live e-letter. We will not share your email address with anyone. And you can opt out at any time. [Privacy Policy.]( 📈📈📈📈📈📈📈📈 Pentagon Violates Its Own Sanctions; Buys Russian Oil [Sean Ring] SEAN RING The friggin’ USG can’t even follow its own stupid rules. Imagine buying Russian oil, and then the USG sanctions you for dealing with them. Then, a few months later, it’s revealed that the Pentagon is buying Russian oil through a Greek supplier. How would you feel? You’d feel like you were dealing with a hypocrite! And that’s precisely what happened. But before I tell you about it, let my friend and colleague Jim Rickards show you a great way to avoid your greenbacks turning into Biden Bucks! Biden’s sinister plan is to create a government-controlled digital dollar we call “Biden Bucks.” And even though I’ve been warning you for months now, this new digital dollar could be the greatest threat to your freedom I’ve ever seen… [Click here to learn more]( I don’t want you to miss out. I have a limited number of these shiny things available, so I need to hear from you soon. [Just click this link and let me know.]( Now, let’s get back to the idiocy in Washington, D.C. Sanctions Against Countries With Means Are Dumb The Rude has always been against sanctions. Writing in June 2021, [The Rude]( stated: Like a White Castle-induced fart, [President Woodrow] Wilson described his sanctions as peaceful, silent, and deadly. Wilson packaged sanctions as a peaceful alternative to spilling blood over a grievance as with his sleight-of-hand with the war. Except sanctions are entirely civilian affairs. War didn't use to be like that. Civilians were largely left out of it. And trading with the enemy was not only standard; it was seen as a way to compensate civilians who were wrongly harmed. The late antiwar activist Justin Raimondo wrote in a post in 1998: The concept of economic sanctions as a weapon also assumes international economic regulations and enforcement agencies, setting up a cadre of bureaucrats who sit in judgment of "outlaw nations": in effect, the apparatus of world economic planners. And contrary to Wilson's predictions, real war has often followed the use of sanctions. Over 500,000 Iraqi children died as a result of sanctions after the First Gulf War. That was the price old Maddie Albright was happy to pay, despite another authentic and costly war following soon after. The price for what prize? After another nearly two decades in Iraq, that prize, whatever it was, clearly eluded us. In Strategic Intelligence, Jim Rickards wrote more succinctly [the three conditions that a country must satisfy for sanctions to work]( - The target country must have a small- or medium-sized economy with little robustness or resiliency to sanctions. - The target country must have limited access to alternative payment channels and few allies in any effort to obtain hard currency. - The target country must have limited hard currency reserves or gold with which to evade or wait out sanctions. Russia never came close to satisfying any of these conditions. It’s [a large economy]( with a ton of resources. It immediately adopted [UnionPay, China’s version of Visa](. And it owns [truckloads of reserves and gold](. The USG miscalculated. Or just prayed the plan would work. Because the benefits, allegedly, are juicy. [Biden Admin Furious Over This New “Alternative” Currency]( Take a close look at this photo: [What you see here is a new “alternative” currency that’s taking America by storm…]( One which could ruin Biden’s CBDC plans. It’s already popping across the nation… including Utah, New Hampshire and Nevada. [If you’re worried about Biden Bucks then you must watch this short 2-minute video that breaks down how this “alternative” currency works…]( [Click Here To Learn More]( What the Sanctions Were Meant to Do The sanctions against Russia were designed to exert economic pressure on the country in response to its actions in Ukraine. The main mechanisms and intended effects of these sanctions include: Financial Sanctions: Restrict access to international financial systems and freeze the assets of crucial Russian individuals and entities. This aimed to create immediate liquidity problems for the Russian economy and its elites, limiting their ability to engage in international trade and finance. Trade Restrictions: Banning or limiting the export of certain goods and technologies to Russia, particularly those with military or strategic significance. This was intended to hinder Russia's ability to modernize its military and maintain its technological capabilities. Energy Sector Sanctions: Targeting Russia's energy sector, a critical component of its economy, by restricting investments and technology transfers related to oil and gas production. This aimed to undercut a significant source of revenue and influence for the Russian government. With China and India buying excess Russian oil and gas, this didn’t go as planned. Diplomatic Isolation: Limiting Russia's interaction and cooperation with other nations to reduce its influence on the global stage. The Global South’s support for Russia contradicts this. Asset Freezes and Travel Bans: Imposed on Russian oligarchs and officials to directly impact the Russian elite who significantly influence the country’s political and economic spheres. I’ll go to my grave thinking this was a crushing blow to trust in the Western financial system, particularly the US’s and UK’s. Well, you know what they say about the best-laid plans. What Actually Happened Despite these measures, the sanctions have faced several insurmountable obstacles: Global Energy Market Dynamics: Russia is a major global supplier of oil and gas. Many countries, especially in Europe, have depended on Russian energy, making it difficult to cut off completely. The high energy demand worldwide has also meant that Russia can find other buyers, softening the impact of sanctions. Sanction Evasion and Loopholes: As seen with the Pentagon inadvertently buying Russian oil through Greece, complex global supply chains can be exploited to circumvent sanctions. Additionally, countries not participating in the sanctions may continue to trade with Russia, providing it with economic lifelines. Russian Economic Resilience and Adaptation: Russia has insulated its economy from sanctions such as building up foreign exchange reserves, promoting import substitution, and establishing new trade relations with non-Western countries. Impact on Global Economy: Sanctions can have unintended consequences on the global economy, including increased energy prices and disruption of supply chains, which can lead to reluctance to fully implement them. Internal Support within Russia: Nationalistic sentiment within Russia may increase support for the government, especially if the sanctions are perceived as unjust or overly aggressive by the Russian public. None of these consequences are of any surprise to you if you’ve been reading the Rude for a while. “Despite Sanctions…” No, this isn’t the Onion or the Babylon Bee. This is real news. The Pentagon is purchasing petroleum products sourced initially from Russia, despite the Biden administration's comprehensive ban on Russian oil in 2022. This ban was implemented to weaken Moscow's military capabilities in response to its actions in Ukraine. Investigations have revealed that Motor Oil Hellas, a Greek refinery and a U.S. Department of Defense supplier, has been exploiting a loophole to import Russian oil, thereby circumventing the U.S. embargo enacted in March 2022. This situation highlights a significant challenge in enforcing sanctions, mainly involving complex global supply chains. The Russian oil, banned under the sanctions, is being cleverly rerouted through the Greek refinery before entering the U.S. military supply system. This has raised questions about the sanctions' effectiveness in deterring Russian oil flow into the U.S. military. Additionally, the U.S. Department of Defense contracts oil products through suppliers in Greece and Turkey, some of which may inadvertently be of Russian origin despite Western sanctions. It’s pretty much what India was doing: buying Russian crude at a discount, refining it in India, slapping a “Made in India” sticker on the refined stuff, and selling it to the dopey Europeans at market prices. Except now, the Greeks used a loophole to import Russian directly. Those sneaky old smugglers! Wrap Up You can’t make this up. Look, I don’t blame the Pentagon itself. It’s impossible to keep an eye on all these moving parts. But it does throw into sharp relief the impossibility of enforcing sanctions on a country with a required resource when your European allies aren’t all pulling on the same rope. Have a great day. All the best, [Sean Ring] Sean Ring Editor, Rude Awakening X (formerly Twitter): [@seaniechaos]( In Case You Missed It… Milei Shocks The World; Wins Argentine Presidency [Sean Ring] SEAN RING I must first warn you: South America is my big blind spot. I’ve never been there; I’ve never really wanted to go other than to round out my travel credentials. Also, I’m not an expert on Argentine politics. The country has been a basket case economically for my entire lifetime. Argentina was the only country in the world's top ten largest economies in 1900 not included in the same list in 2000. But like the bold twenty-first century votes of Brexit and Trump, Javier Milei’s election is the strongest signal an electorate could send in a country crying out for change. There’s no good reason for Argentina to suffer from 142% inflation. It’s a rich and beautiful place with much to offer. Will Milei make good on his promises? Will the Argentines revert to voting for incompetent Peronists in the next election? Only time will answer those questions. But for now, here’s why I’m excited for Argentina. Things Going For Milei Economic Liberalization: Milei advocates free-market policies, including minimal government intervention in the economy. This includes reducing taxes, deregulation, and encouraging entrepreneurship. Straightaway, this should give the Argentine economy a shot in the arm. After all, if taxes and regulations are meant to reduce smoking, what do you think they do to entrepreneurship and income? Personal Freedoms: People value individual liberties and work better when their government doesn’t harass them. Milei's stance on personal freedoms, like freedom of speech and expression, aligns with this principle. Opposition to Authoritarianism: Milei has criticized authoritarian tendencies in government and advocates limiting the state's power. This is a danger when dealing with China, as I’ll elaborate on below. Monetary Policy: His focus on sound monetary policy, including criticism of inflationary practices, aligns with the goal of a stable, non-inflationary currency. Interestingly, [Vivek Ramaswamy tweeted]( “Just a century ago, Argentina was one of the ten wealthiest countries in the world. Today’s Argentina suffers 124% [sic: it’s 142%] inflation & loses economic migrants to other countries. Congratulations to Javier Milei. Now, the hard part begins. May the spirits of Mises & Hayek be with you.” Milei wants to dollarize Argentina’s economy. I’m not a big fan of the idea. But before you laugh or gag, as a first move in recovery, this may make sense. If he removes the volatility of the Argentine peso from the buying decision, Argentina’s exports will increase, which is a must to get Argentina’s economy back on its feet. The enormous drawback is that he nor his country no longer controls its currency. Reduction of Government Size: Milei's proposals to reduce the size and scope of government, including cutting public spending, are core goals to get back to small government. And here’s [one fantastic reason to love Milei]( Keynes said that when you have an earthquake, you should jump for joy because you will generate such a huge boost in demand that you will be much richer, which is obviously nonsense … The stupid Krugman says similar things, and he has a Nobel Prize in Economics. He says that he doesn’t believe in aliens, but that if there is going to be a great depression, he is going to beg them to come and invade us so that we can spend. [Nvidia’s CEO Leaves Crowd Speechless…]( Behind closed doors… He took center stage… And left the crowd utterly speechless. What happened? This tech billionaire revealed a breakthrough technology [that will change everything you know about making money](. (Experts are predicting a $150 trillion megatrend!) [See for yourself right here]( Could this be “The Steve Jobs iPhone Moment” for Nvidia’s CEO? [See the full story for yourself here](. [Click Here To Learn More]( Things Going Against Milei It’s not all roses for Javier Milei. There’s talking. And then there’s doing. And then there’s getting subordinates to do the stuff you need to get done. Donald Trump utterly failed in this regard (not firing enough of the Deep State who should be on trial for treason). Here’s where Milei will have trouble. Practical Implementation: The practical implementation of Milei's policies will face significant challenges in the Argentine context, potentially leading to short-term economic hardships or social unrest. In short, there will be a lot of former government officials who are now unemployed, and he will have to deal with that. Social Issues: If Milei's policies lean too heavily on economic freedoms while neglecting social liberties, he’ll infuriate the Woke Left. While that makes me smile, Milei must deal with the inevitable fallout. International Relations: His approach might strain Argentina's international relations, especially with countries or organizations that favor more regulatory or interventionist policies. Milei has already come out on the side of the United States (and Israel) and wants to dollarize his economy. But calling China an “assassin,” further alienating your most significant friend, rival, and trading partner, Brazil, and then saying you’re pulling out of BRICS seems a bit silly to me. Milei’s ability to conduct sensible foreign policy will be critical to his program to reform the Argentine economy. Market Fluctuations: Chalk this one up to “events.” Events are uncontrollable, and all politicians fear them. Extreme free-market policies sometimes lead to increased volatility and inequality, which, although consistent with laissez-faire principles, might create social issues. If he tames his central bank’s printing capacity, this will help. Again, he’ll have to deal with this. Public Services: Drastic government size and spending reductions might lead to underinvestment in essential public services. The conversion from publicly provided assistance to privately provided goods and services will take time… and a good salesman. Wrap Up In summary, Javier Milei's election and policies align with principles I wholeheartedly support, particularly around economic freedoms and reducing government intervention. However, the practical challenges of implementing these policies in Argentina's complex socio-economic environment present notable obstacles. Milei’s rhetoric got him into the presidency. His management skills will keep him there… or not. In any event, I wish the Argentine people the best of luck! Have a lovely week ahead. All the best, [Sean Ring] Sean Ring Editor, Rude Awakening Twitter: [@seaniechaos]( [Paradigm]( ☰ ⊗ [ARCHIVE]( [ABOUT]( [Contact Us]( © 2023 Paradigm Press, LLC. 808 Saint Paul Street, Baltimore MD 21202. By submitting your email address, you consent to Paradigm Press, LLC. delivering daily email issues and advertisements. To end your Rude Awakening e-mail subscription and associated external offers sent from Rude Awakening, feel free to [click here.]( Please note: the mailbox associated with this email address is not monitored, so do not reply to this message. We welcome comments or suggestions at feedback@rudeawakening.info. This address is for feedback only. For questions about your account or to speak with customer service, [contact us here]( or call (844)-731-0984. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. 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