by Jorge Vilches for the Saker Blog
What ? Payment in Rubles ?? Unthinkable, don´t even mention the word say EU officials and authorities.
Instead, Europe has formally demanded to pay for Russian imports with Schrödinger euros as explained below.
So it´s high time for psychiatrists to step in as the livelihood of 800 million Europeans depends on whatever this incredible set of un-elected delusional EU leaders decide. Let´s get this straight folks: the EU does not want to pay in Rubles – or gold — because it is playing cutie by pretending to “pay” for Russian imports for free. Be it natural gas, or oil, or coal or whatever Russian, instead of really “paying” the EU pretends to pull a “print & deposit + freeze & hide” wise-up gimmick. To make it clear for any audience, the above would be the equivalent of you pretending to “pay” at the check-out counter of any store with a photo of a fully sealed box that you say contains “money” that you will keep hidden at your home – unopened — as long as you want. Please allow me to explain the EU trickery in layman´s terms
the “print & deposit + freeze & hide” seizure trick
In the past, Russian imports were paid through run-of-the-mill bank transfers made to accounts of Russian exporters at EU banks. Now the EU leadership has mandated for such transfers to be instantly frozen as soon as received so that Russia – or anybody else for that matter – can´t use those euros.
So, the European Central Bank would now “print” euros with a keyboard 100% for free and then transfer such euros over to the Russian exporters bank accounts in the EU albeit now under “frozen” status. So Russia never gets to use such euros – which actually never see the light of day – and accordingly are not inflationary in any and every sense of the term as nobody else can use them either. Thus, by not entering into any economy at all in no way, shape, or form the EU outsmarts Heaven and Earth and gets to import Russian produce for free. Easy see ?
It´d be a “print & deposit + freeze & hide” seizure and expect-the-Russians-to-fall-for-it trick…as if they were K6 kids.
Now of course I can hear the maniacs in charge arguing that this would only be “temporary” – of course — and that as soon as Russia gets out of Ukraine under “acceptable” terms – of course, yet again — everything will get back to yankee doodle normal. Enter then the “Schrödinger´s euros” whereby the hypothetical ´money´ should be considered to be simultaneously existent and non-existent… a-la-EU.
the Schrödinger euros
In today´s commercial environment only a fool would accept a Schrödinger payment for anything — not even bubble gum – and should be considered the most childish proposal ever made in the history of trade. It´s both naïve and yet a visible insult from immature wishful thinkers attempting to defy the Law of Financial Gravity by sinking ever deeper into their self-made mud pit. Please very briefly do visit Ref #1 https://en.wikipedia.org/wiki/Schr%C3%B6dinger%27s_cat
In the first place, Schrödinger euros should have never been created by the EU and only to be really defined as “theft”.
Actually, with these S-euros the EU would be “buying” itself serious future problems for which there is no solution. For example, if the EU´s proposal were taken seriously and adopted, exactly WHO and HOW would define what are “acceptable terms” for Russia´s withdrawal from Ukraine so as to make the Schrödinger euros usable. From the get-go even millennials can realize that the Russian Federation will never leave certain areas and/or the newly recognized Donetsk People’s Republic and Luhansk People’s Republic plus Crimea. Accordingly, would the S-euros exist or not ?
Schrödinger euros also should not have been suggested for other reasons, including counterintuitive superposition states and disambiguation paradox problems which for lack of space cannot be explained nor fully foreseen into a very uncertain future. Still, you get the picture. The idea being that such “hypothetical” money may be considered simultaneously both existent and/or non-existent and/or in the process of becoming existent or non-existent at a particular point in time or window as a result of events that may or may not occur but which in view of the enormity of the situation could be the basis for “casus belli” which Europe should not be exposed to, let alone actively promote.
In a nutshell: Schrödinger euros are a no-no-no, period. And the EU should have never proposed such nonsense.
Now, as the EU refuses to pay in Rubles – or gold bullion — and insists on paying with their new “funny Schrödinger money”, the Polish Prime Minister Mateusz Morawiecki has admitted the obvious, namely that sanctions imposed by the EU + US and their allies so far have had the opposite effect on Russia. “Look at the ruble exchange rate; what is happening with the Russian economy. Nothing special is happening there. Crushing sanctions are now needed”.
So unbelievably European Commission President Ursula von der Leyen, while accusing Russia of “blackmail” just added that “We are mapping out our coordinated EU response, so Europeans can trust that we stand united and in solidarity…” both of which are simply not true. Liar liar pants on fire my grandson would scream with irritating pitch.
The EU today has no coordination and no solidarity. It´s everyone for himself now, including ´neutral´ Sweden wanting to join NATO while claiming payment for weapons sent to Ukraine. But Auntie Ursula playing the female version of Elmer Fudd still announced that the EU was working “intensively” on a new plan to hit Moscow. “The sixth package of sanctions will come in due time. We’re working intensively on it” said Ursula von der Leyen as Russia halts gas supplies to Bulgaria and Poland while Finland will not agree to ruble payments.
The fact of the matter is that Europeans at large and most especially the EU leadership are now most fragmented and erratic. As France´s recently re-elected President would put it, “brain dead” NATO resembles a bunch of beheaded chickens running around without the slightest idea of what´s really going on. Meanwhile, back on planet Earth, four EU buyers made gas payments in Rubles and at least 10 countries have set up Russian bank accounts in Rubles.
So while the EU is supplying all sorts of weapons to Ukraine every single day, now the EU´s top diplomat wants to make friends with Russia. But only yesterday Josep Borrell said “This matter has to be resolved in the battlefield” . A day later he says: “The EU and Russia should rebuild relations”. Which is it ?
“Rebuilding the relationship between the EU and Russia will be a very difficult and lengthy process, but it must be done”.
Sure, yes, let´s start by implementing the Minsk Accords that Europeans brokered and endorsed very recently, remember?
So Ursula von der Leyen´s process of “ mapping out our coordinated EU response “ does not seem to be running very smoothly
And in view of proposed additional gimmicks the Russians, clearly never lagging and always ahead of events, warn :
” … the unauthorised withdrawal of gas volumes transiting through Poland and Bulgaria to other European countries such as Germany would result in a reduction of transit supplies….” Clearly meaning guys don´t play games with us or you all will freeze and starve to death hand in hand sorta like right now, understand?
German Economy Minister Robert Habeck was very concerned in that cutting off Russian imports would cause “mass unemployment, poverty, people who can’t heat their homes, etc.” Austria openly admitted that it simply cannot afford to ban imports of Russian gas while others want to shut down Russian gas pipes altogether. Again, which is it? And last we checked, something for nothing is impossible. So Russian imports have to be paid for either in Rubles or gold bullion, with no charity available. Schrödinger euros are a joke, and a bad one at that. As John Connally would say, “It´s Russian commodities, but it´s your problem.”