Germany threatens retaliation against the U.S. if Congress pushes through bill for more Russian sanctions
If having¬†U.S. businesses ready to lobby Congress to stop their fake indignation¬†over Russia’s protecting their own people and allies in Ukraine and Syria, it appears that Europe, and in particular Germany, have had enough of sanctions against Putin.
In fact in light of Congress’s new scheme to try to inflict a new round of Russian sanctions, and to hamstring President Trump from ever willingly removing them, Germany came out on July 23 and stated they are ready to retaliate against Washington if they follow through with this path of economic warfare.
Late on Friday, Congressional negotiators reached a deal to advance a bill that would punish Russia for its interference in the 2016 election and restrict the president‚Äôs power to remove sanctions on Moscow, according to the¬†WSJ. The measure, if signed into law, will also give Congress veto powers to block any easing of Russian sanctions by the president. And while it remained unclear if President Donald Trump would sign the bill if it reaches his desk, which is now likely, the loudest complaint about the bill so far has emerged from the EU, which has once again urged US lawmakers to coordinate their anti-Russia actions with European partners.
As¬†Reuters reports, the European Union “sounded an alarm on Saturday” about moves in the U.S. Congress to step up U.S. sanctions on Russia, urging Washington to keep coordinating with its G7 partners.¬† In a statement by a spokeswoman after Republicans and Democrats in the U.S. Congress reached a deal that could see new legislation pass, the European Commission warned of possibly¬†“wide and indiscriminate” “unintended consequences”,¬†especially on the EU’s efforts to diversify energy sources away from Russia, adding that “unilateral measures” by the US could undermine transatlantic unity.
Furthermore,¬†Germany has already warned of¬†“possible retaliation”¬†if the United States moves to sanction German firms involved with building a new Baltic pipeline for Russian gas. EU diplomats are concerned that a German-U.S. row over the Nord Stream 2 pipeline being built by Russia’s state-owned Gazprom could complicate efforts in Brussels to forge an EU consensus on negotiating with Russia over the project. –¬†Zerohedge
Most economists and geo-political analysts with a smidgen of brain cells knows that Washington’s policy of aggression against Russia and much of the Middle East is tied to protecting dollar hegemony, and to try to keep these countries from ditching the petrodollar completely. ¬†However what the U.S. failed to take into account was China’s willingness to intervene and backstop the world’s oil nations, and as such the more Washington imposes economic restrictions, the more nations move into Russia and China’s camp.
Congress could care less what their economic war against Russia has done to Europe, and for the most part they expect the continental ‘vassal state’ to walk in lockstep with their policies to protect the reserve currency. ¬†But as we are seeing now in Qatar, Iran, and especially Turkey, the U.S. is no longer a feared superpower, and their actions now are rebounding against them with hurtful consequences.
Kenneth Schortgen Jr¬†is¬†a writer for¬†The Daily Economist,¬†Secretsofthefed.com,¬†Roguemoney.net, and¬†Viral Liberty, and hosts¬†the popular¬†youtube podcast¬†on Mondays, Wednesdays and Fridays.¬†Ken can also¬†be heard Wednesday afternoons giving an weekly economic report on the¬†Angel Clark radio show.