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According to Citadel’s Ken Griffin, America’s sanctions on Russia are affecting the US ‘in a profound way,’ and taxpayers will pay the price

Citadel CEO Ken Griffin told that the US is weaponizing the dollar in the face of Russian sanctions. Sanctions, he said, may jeopardize the dollar’s role as the world’s reserve currency. “This will be paid for by American taxpayers in the form of higher interest rates on our debt,” Griffin warned.

Citadel CEO Ken Griffin told that the US is weaponizing the dollar in the face of Russian sanctions.

Image Source: Business Insider India

While the West’s retaliatory sanctions are squeezing Russia’s economy, Citadel CEO Ken Griffin warned that they will have serious consequences for the US, which its citizens will pay for.

According to the hedge fund billionaire, the major issue is that America is weaponizing the US dollar. “By putting on the table the possibility that your dollars will be seized or that you won’t be able to move dollars,” Griffin said in a Bloomberg TV interview. “We’re telling the rest of the world to embrace other currencies in their portfolio, and we’re diminishing the value of the dollar as the reserve currency.”

The punishments may feel nice in the short term, but they will have a negative long-term impact, he noted.

And, in the long run, a global shift away from dollar-denominated assets could result in higher costs for the federal government. “This will be paid for by American taxpayers in the form of higher interest rates on our debt. It has a significant negative impact on our country “Griffin remarked.

He also said that the sanctions are impeding the US’s capacity to be the world’s leading technology developer. Since Russia’s invasion of Ukraine last week, Western nations have joined together to impose a series of economic measures on the country, including the exclusion of Russian banks from SWIFT, the global financial system’s messaging network.

The sanctions have already wreaked havoc on Russia’s economy. The currency is now worth less than a penny, Russia’s largest bank’s stock has dropped 95 percent, and the Russian stock exchange has been halted for three days.

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