By Steve Hank How will Iran, Russia, and Turkey react to the plethora of financial sanctions being placed on them by the United States? Well, they will do what anyone being beaten with a stick would do: they will try to escape. An escape is always available. That is one reason why sanctions are weapons used only by losers. Indeed, the escape has been dubbed, by my good friend, mentor, and Nobelist Robert “Bob” Mundell, as the “Afghan Effect.” Following the Soviet Invasion of Afghanistan, the United States imposed a grain embargo on the Soviets in January 1980. With that, American farmers were prohibited from selling grain to the Soviets who had a huge grain deficit. President Jimmy Carter, on the ill-conceived advice of his National Security Advisor Zbigniew Brzezinski, weaponized grain. In response, the Soviets looked for an escape. They found one in Argentina. Indeed, the Argentines were delighted to cut a deal with the Soviets. The Argentine farmers sold large q...
from GoldBroker.com https://www.goldbroker.com/news/gold-bloc-for-iran-russia-and-turkey-financial-sanctions-1383
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