The Ben Shapiro Show


The World-Changing Unintended Consequences of War | Ep. 1446


Summary

Russia shells a Ukrainian nuclear plant, Ukraine and Russia hash out a few areas of agreement while war continues, and the economic impacts of war start to go global. Meanwhile, Putin launched on Ukraine a week ago has run into fierce resistance, according to the Wall Street Journal. While Russian forces have advanced in the northeast and south of the country, the offensive has continued to stall around Kiev and Moscow, leaving more to indiscriminate civilian neighborhoods in cities like Kharkiv, Mariupol, and Sumyup. And listen, if you still want unlimited data, you can get it and save a fortune. Pure Talk is simply smarter wireless. They have a 30-day, risk-free guarantee, so you literally have nothing to lose. Go to Puretalk.com/SHAPIRO and enter promo code SHAPIRO to get 50% off your very first month of coverage. That's right, you'll save 50% on your first month, and you'll be set up for the rest of the month for free! You'll get unlimited talk, text, and 6GB of data for just $30 a month. Go check it out and save yourself a bundle right now. To get started, go to puretalk.me/Shapiro to get started and get a FREE month of Pure Talk to get a $30-a-month plan. Ben Shapiro Show is sponsored by ExpressVPN. - the show is all about saving money on everything you could possibly dream of in the world of travel, including a VPN, a fast, a 5G hotspot, and more. I talk about it all on The Ben Shapiro's show, the best way to get the most of it sipping on the best deal on the whole place you ve ever heard about it. You won t have to go to the best place to get it all, the ultimate travel and everything you ve got it anywhere else in the best of it. It s all got it, he s got it on the place you re gonna get it anywhere you go anywhere and more than that, you re not going to be there, you get it, right here, you listen to it, it s not even gotta go there, right on the show, right there, and there sie see it seeeeeeeeeeeedeeeeeedeedeeeedeee and more, right to it all that s not gonna be that s gonna be it, no more of it!


Transcript

00:00:00.000 Russia shells a Ukrainian nuclear plant.
00:00:02.000 Ukraine and Russia hash out a few areas of agreement while war continues and the economic impacts of war start to go global.
00:00:08.000 I'm Ben Shapiro.
00:00:08.000 This is the Ben Shapiro Show.
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00:00:25.000 We'll get to all the news in just one moment.
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00:01:28.000 Well, the world started to panic late last night when it appeared that there might be a nuclear meltdown in Ukraine over Russia shelling a nuclear power plant.
00:01:37.000 According to the Associated Press, however, no radiation was released from a Russian attack at Europe's biggest nuclear power plant in Ukraine.
00:01:43.000 Firefighters have extinguished a blaze at the facility, according to U.N.
00:01:46.000 and Ukrainian officials, on Friday.
00:01:48.000 Russian forces continued to press their campaign to cripple the country despite global condemnation.
00:01:52.000 The International Atomic Energy Agency's Director General, Rafael Mariano Grossi, said on Friday that the building hit by a Russian projectile at this particular plant was not part of the reactor.
00:02:01.000 Instead, it was a training center at the plant.
00:02:03.000 Nuclear officials from Sweden to China said there were no radiation spikes that had been reported.
00:02:07.000 Ukrainian officials said Russian troops took control of the overall site.
00:02:10.000 The plant's staff were continuing to ensure its operations, so electricity has not been cut across Ukraine thanks to the takeover of the nuclear power plant.
00:02:18.000 In the frenzied initial aftermath, When the risk of a radiation release was not clear, the attack caused worldwide concern and evoked memories of the world's worst nuclear disaster, which, of course, did happen in Ukraine at Chernobyl.
00:02:29.000 Facing worldwide indignation over the attack, Russia sought to deflect blame without producing any evidence.
00:02:33.000 Defense Ministry spokesperson Igor Konashenkov blamed arson rather than artillery fire, he claims, of the Ukrainian sabotage group.
00:02:40.000 had actually occupied the plant, fired on a Russian patrol and then set fire to the building as they left. All of this, of course, raised the alarm because when we look at the situation in Ukraine, there are a lot of unintended consequences that are possible, which we'll get to in just a moment. According to the Wall Street Journal, the Russian forces continued pushing up north from the They reached a place called Enerhodar on Wednesday.
00:03:04.000 After attempted surrender negotiation failed, a large column of Russian forces attacked the city on Thursday.
00:03:09.000 Webcam footage showed a huge fireball rising behind a church in the city, a short distance from the nuclear facilities, and then two munitions, possibly illumination rounds, landing on the compound itself.
00:03:18.000 The video is, in fact, pretty stunning.
00:03:21.000 Meanwhile, Russia continues to pound a bunch of Ukrainian cities.
00:03:27.000 The war that Putin launched on Ukraine more than a week ago has run into fierce Ukrainian resistance, according to the Wall Street Journal.
00:03:32.000 While Russian forces have advanced in the northeast and south of the country, the offensive has continued to stall around Kiev and Moscow, has now resorted more to indiscriminate shelling of civilian neighborhoods in cities like Kharkiv, Chernihiv, Mariupol, and Sumy.
00:03:45.000 Russian shelling in the power plant area paused after 3 a.m.
00:03:48.000 local time.
00:03:49.000 At the time of the Russian attack, two of the six reactors were operating.
00:03:52.000 The plant's management switched off reactor number three at 2.26 a.m., leaving only number four.
00:03:58.000 According to Jans Stoltenberg, the Secretary General of NATO, he said the shelling of the plant just demonstrates the recklessness of this war and the importance of ending it.
00:04:06.000 For his part, Vladimir Zelensky spoke with President Biden about the attack on the plant, and Biden urged Russia to cease its military activities in the area and allow firefighters and emergency responders access to the site.
00:04:16.000 U.S.
00:04:17.000 Energy Secretary Jennifer Granholm said on Twitter she'd spoken with the Ukrainian energy minister.
00:04:21.000 She said, we have seen no elevated radiation readings near the facility.
00:04:24.000 So there were a bunch of false reports at the very beginning that this was going to turn into a full-scale nuclear meltdown, which again underscores the fact that you can't predict what's going to happen in a war.
00:04:32.000 Meanwhile, Vladimir Zelensky keeps calling on the West for more intervention.
00:04:34.000 He says, we're fighting for our people.
00:04:36.000 We are fighting for our land.
00:04:38.000 We don't have nuclear arms.
00:04:40.000 We don't have oil and gas to fill the world with.
00:04:43.000 But we have our people.
00:04:44.000 We have our land.
00:04:46.000 And for us, that is our gold.
00:04:49.000 That's what we're fighting for.
00:04:51.000 We have nothing to lose other than our freedom, our dignity.
00:04:57.000 This is our greatest treasure.
00:05:00.000 There's also a propaganda war that's going on between Ukraine and Russia at the moment, which is why there's a humanitarian ceasefire that has been signed.
00:05:07.000 Temporary local humanitarian ceasefires allowing for humanitarian corridors so civilians can be evacuated and food and medicine can be delivered.
00:05:13.000 By the way, it's also in Russia's interest to destabilize the rest of Europe by effectively forcing out millions of Ukrainian refugees into the rest of Eastern and Central Europe, which is exactly what is happening.
00:05:23.000 Right now, according to the Washington Post, Russia has sent nearly all of its assembled combat power into Ukraine.
00:05:29.000 On Thursday, they unleashed some of the most intense fighting since the invasion began, with local officials pleading for help as ground troops seized or encircled strategically important southern cities.
00:05:37.000 Vladimir Putin, for his part, For his part, he said that the mission was, quote, going according to plan and in full compliance with the timetable.
00:05:43.000 Despite widespread agreement among Western military analysts, the invasion had been slowed by unexpectedly fierce Ukrainian resistance.
00:05:49.000 And of course, the images that are coming out of this war are stunning to a lot of people because this is what it looks like when it's not the United States running a war.
00:05:56.000 When it's Russia running a war.
00:05:57.000 The fact is that when first world nations run wars, they're very meticulous in how they go about fighting those wars.
00:06:03.000 They try and hit very specific military targets.
00:06:05.000 You don't see a lot of tape coming out of indiscriminate rocket fire against civilian targets.
00:06:10.000 When Israel fights a war, they actually drop knock bombs on the top of buildings to evacuate the building before they bomb the building.
00:06:15.000 When the United States fights a war, they're firing missiles through individual windows.
00:06:20.000 When Russia fights a war, they're fighting a war like 1945 style.
00:06:22.000 They're just firing munitions at anything that they think is going to achieve some sort of objective for them, strategic or otherwise, and that includes killing a lot of civilians.
00:06:31.000 They want to cover up for that fact by allowing humanitarian aid, but mostly what they want is more streams of refugees, because again, that encourages the West to try and make some concessions to him to make all of this stop.
00:06:41.000 He's ratcheting up the pressure not just on Ukraine, but on the West, the West to force Ukraine into some form of surrender.
00:06:47.000 And realistically speaking, that is probably the most likely scenario here is that the West negotiates some sort of separate peace with the Russians without a lot of Ukrainian input and just carves off part of the Donbass region and gives it to Russia in a final attempt to appease.
00:07:01.000 And then they say, if you ever come in here again, then we are going to establish an off-line zone.
00:07:07.000 You have to reestablish deterrence because deterrence obviously didn't work in Ukraine.
00:07:09.000 The problem is once the deterrence has not worked, as we discussed yesterday, you start to run out of options very, very quickly.
00:07:14.000 According to the Washington Post, Kherson, among the first Ukrainian cities to be encroached upon by Russian forces, was running out of medicine and is facing disaster within days if that humanitarian corridor was not established, according to the secretary of the city council, She said people are in a panic, people are tense, people are frightened to the core of their souls.
00:07:31.000 Reports from other cities in Ukraine's south told a story of increasing desperation as communications and transport routes were cut off and supplies dwindled.
00:07:38.000 The mayor of Mariupol said a Russian siege and hours of shelling that battered rail links and bridges had cut off all water, power, and food supplies.
00:07:44.000 The mayor of Odessa, which is a major port on the Black Sea, said the population was preparing to mount a defense.
00:07:49.000 Amid unverified reports, a large fleet of Russian warships was heading toward the waters off the coast.
00:07:53.000 When you look at the map, what you see is that Russia has taken over Literally the entire southern border of Ukraine outside of the area around Odessa because they now have control over the Sea of Azov.
00:08:03.000 They have control over large swaths of the Black Sea.
00:08:05.000 They've also taken control of pretty much the entire Ukrainian northern border up to the Ukrainian border with Belarus.
00:08:11.000 And Belarus has become effectively a Russian client state at this point.
00:08:15.000 There's been talk about whether the Russians go into Moldova when all this is over.
00:08:20.000 That if the pressure is ratcheted up Ratchet up further and further by the West.
00:08:23.000 Russia says, OK, we got nothing to lose.
00:08:24.000 We'll just attack every nation in the region that is not an overt NATO ally at this point.
00:08:31.000 Ukrainian officials said early Friday that Russian shelling had caused that fire to break out at the Zaporizhzhya nuclear power plant in southeastern Ukraine, which is Europe's largest power plant.
00:08:42.000 This week, Ukraine temporarily lifted visa requirements for foreign volunteers who wished to enter the country and join the fight against Russian forces.
00:08:48.000 In Washington, two men arrested with firearms near the Ukrainian embassy told police they had driven from Indiana to volunteer for the battle, according to law enforcement officials.
00:08:55.000 A senior U.S.
00:08:56.000 defense official, according to the Washington Post, told reporters that 90% of the combat power Russia had assembled outside Ukraine was now within the country, up from 80% on Tuesday.
00:09:05.000 So now it's just going to be a long, grinding war in which Russia tries to crush all opposition by cutting off supply lines, by creating a humanitarian crisis.
00:09:14.000 Again, they might try to band-aid that for public consumption by essentially allowing some humanitarian aid in.
00:09:20.000 But that is not going to make up for the fact that they continue to close off these cities in the main.
00:09:26.000 Pressure people to leave the country and create humanitarian crisis within by shelling civilian areas.
00:09:32.000 The situation on the ground for people who are still in Ukraine is really, really ugly, according to the Financial Times.
00:09:36.000 In the two-day battle for Kherson, Russian tanks shelled the school and troops shot dead residents seeking to repel the attack with molotov cocktails.
00:09:42.000 Once the city was captured, the yellow and blue Ukrainian flag kept flying above its main official building as part of life under Russian occupation.
00:09:49.000 The new mayor laid out the rules in a Facebook post.
00:09:52.000 His constituents could leave home in groups no bigger than two.
00:09:54.000 Cars were told to drive at low speed.
00:09:56.000 Arrangements were made to collect corpses of Ukrainians killed in the main square and other parts of town.
00:10:01.000 The city said that was at least 49 people, mainly civilians.
00:10:04.000 According to that mayor, Ihor Kolikayev, he said, we are experiencing colossal difficulties with collecting and burying the dead, delivering food and medicine, rubbish removal, accidents removal, etc.
00:10:13.000 He said, for now, the flag flying above us is Ukrainian.
00:10:16.000 In order for it to stay that way, these requirements must be met.
00:10:18.000 That is all that I can offer for now.
00:10:21.000 Ukrainians say that the Russian hold on these cities is incomplete and occupiers have shown little sign they are equipped to run them or any interest in doing so.
00:10:29.000 How they hold this long term is going to be a major question because obviously the Ukrainian people are not interested in living under Russian occupation.
00:10:35.000 So the most likely scenario here is if there is no separate peace signed, if there is no attempt to do some sort of final appeasement of Vladimir Putin, then the likely outcome here is going to be a 10 to 20 year civil war, which really is just an insurgency against an imperialist foe in Russia invading Ukraine.
00:10:53.000 Meanwhile, Joe Biden is calling out the In the State of the Union address, I announced that the Department of Justice is going after the crimes of Russian oligarchs.
00:11:12.000 Attorney General spoke to that earlier and who lined their pockets with Russian people's money and while Ukraine and the people are hiding in Subways from missiles That are being fired indiscriminately in Russian cities. Of course that is true It is also true, as many people pointed out, that there is a propaganda war going on between Russia and Ukraine in which you can't fully trust the information coming from either side.
00:11:38.000 The one thing that we know, and you don't require any sort of belief in Ukrainian propaganda to believe this, is that Russia has invaded a sovereign foreign state and is seeking to impose its will on it.
00:11:48.000 However, it is certainly true that much of the stuff that's coming out of war zones, Fog of War and all of that, or active propaganda, may not be true.
00:11:55.000 According to the New York Times, just days into the Russian invasion of Ukraine, a pilot with a mysterious nickname was quickly becoming the conflict's first wartime hero.
00:12:02.000 Nicknamed the Ghost of Kiev, the ace fighter had apparently single-handedly shot down several Russian fighter jets.
00:12:06.000 The story was shared by the official Ukraine Twitter account on Sunday in a thrilling montage video set to thumping music showing the fighter swooping through the Ukrainian skies as enemy planes exploded around him.
00:12:16.000 The Security Service of Ukraine also relayed the tale on its official Telegram channel, which has 700,000 subscribers.
00:12:22.000 The story of a single pilot's beating the superior Russian Air Force found wide appeal online.
00:12:26.000 Videos of the so-called Ghost of Kiev had more than 9.3 million views on Twitter.
00:12:30.000 The flyer was mentioned in thousands of Facebook groups, reaching up to 717 million followers.
00:12:35.000 On YouTube, videos promoting the Ukrainian fighter collected 6.5 million views.
00:12:39.000 There is only one problem, which is that this might be a myth.
00:12:42.000 While there are reports of some Russian planes that were destroyed in combat, there's no information linking them to a single Ukrainian pilot.
00:12:47.000 One of the first videos that went viral, which was included in the montage shared by the official Ukraine Twitter account, was a computer rendering from a combat flight simulator originally uploaded by a YouTube user with just 3,000 subscribers.
00:12:57.000 A photo supposedly confirming the fighter's existence, shared by the former president of Ukraine, Petro Poroshenko, was from a 2019 Twitter post by the Ukrainian Defense Ministry.
00:13:07.000 In the information war over the invasion of Ukraine, says the New York Times, some of the country's official accounts have pushed stories with questionable veracity, spreading anecdotes, gripping on-the-ground accounts, and even some unverified information that was later proved false in a rapid jumble of fact and myth.
00:13:20.000 Now, Russia itself has been suggesting that false flag attacks are what caused them to rush into Ukraine in the first place.
00:13:27.000 That's propaganda as well.
00:13:31.000 Laura Edelson, a computer scientist studying misinformation at New York University, said Ukraine is involved in pretty classic propaganda here.
00:13:37.000 They're telling stories that support their narrative.
00:13:38.000 Sometimes false information makes its way in there too.
00:13:41.000 More of it is getting through because of the overall environment.
00:13:44.000 And so it's important to keep an eye on what exactly is happening.
00:13:47.000 However, none of this changes the basic logic on the ground, which is that the Russians are in fact involved in imperialist conquest of a foreign neighbor.
00:13:55.000 And for all the talk about how Russia is quote-unquote justified for having to protect itself from NATO expansion on its borders, the simple fact is that Russia is currently bordered by a wide variety of NATO nations, ranging from Norway in the very north of Russia, which joined NATO in 1949, to Poland, which joined in 1999, There's an area called Kaliningrad.
00:14:15.000 It's kind of a bizarre outlying area of Russia.
00:14:18.000 It's like a little kind of tip of land and it borders Poland.
00:14:22.000 And if they were to invade Ukraine, by the way, they would be, if they were to take over the entirety of Ukraine, they would now be bordering Poland on the other side.
00:14:28.000 They'd be bordering Hungary.
00:14:29.000 They'd be bordering Romania.
00:14:30.000 So this really is not about any sort of buffer zone against NATO.
00:14:34.000 Ukraine was the independent buffer zone against NATO.
00:14:37.000 And if Ukraine became more Western, and even if it had joined NATO, all that would have meant is that there was just more border that was bordering with NATO.
00:14:43.000 But NATO has never attempted to topple Vladimir Putin.
00:14:46.000 And that's why it's a mistake at this point for people in the West to start openly talking about the necessity of toppling Vladimir Putin if they are in a position of power.
00:14:54.000 Lindsey Graham came out yesterday and he tweeted out that it was time to topple Vladimir Putin.
00:14:58.000 Well, that seems like a really good way of getting Vladimir Putin to attack more countries.
00:15:04.000 Because if he feels like the West is actually going to attempt to throttle him from the inside and coo him out, then what exactly would prevent him from getting more and more aggressive in an attempt to stymie any sort of internal dissent?
00:15:16.000 And cracking down on all dissent inside of Russia, by the way.
00:15:19.000 This is why, again, John Brennan, who's the former Director of National Intelligence under Barack Obama, he said Putin's days are numbered.
00:15:25.000 Like, you shouldn't be saying this stuff publicly.
00:15:27.000 Listen, I'm more hawkish than Brennan is, by a long shot.
00:15:30.000 It is unwise in the extreme to talk about cooing out the dictator of a country that is armed with thousands of nuclear warheads, not a bright moon.
00:15:40.000 Putin and his henchmen that are around him.
00:15:42.000 I think they believe that the only option they have is to continue with this ferocious intensity and trying to devastate Ukraine.
00:15:50.000 But I think, as Ambassador Soderbergh said, this is only going to lead to, I think, Putin's unraveling in terms of his position in the Russian government.
00:15:59.000 Now, what's going to be the tripwire in terms of pressure on oligarchs and pressure on the Russian people and commodities and other types of things?
00:16:06.000 It's unclear.
00:16:07.000 But I do believe that Putin's days are numbered.
00:16:11.000 Maybe in the double digits.
00:16:13.000 Maybe in the double digits?
00:16:14.000 You think that Putin is going to get cooed out in the next two weeks?
00:16:16.000 Yeah, good luck to you there.
00:16:17.000 Now, that's not the real story.
00:16:19.000 The real story is that Putin is well ensconced and he ain't going anywhere.
00:16:22.000 It'd be a giant shock, a cataclysmic, earth-shaking shock if he were to be cooed out at this point.
00:16:29.000 So when Joe Biden says things like the sanctions are having a profound impact on Russia, they are having a profound impact on the everyday Russians living in Russia.
00:16:36.000 And they're having an impact on the oligarchs and depriving Russia of the resources it needs in order to project foreign power is a good thing generally.
00:16:44.000 But the reality is that it's having very little.
00:16:46.000 The severe economic sanctions on Putin and all those folks around him.
00:16:48.000 Ukraine, which seems to be, if anything, the sanctions are actually strengthening his grip on Ukraine. Again, when deterrence fails, bad things happen.
00:16:55.000 Deterrence failed because the man sitting right here in the middle of your screen, Joe Biden. Here's Joe Biden saying that the sanctions are a big win.
00:17:02.000 The severe economic sanctions on Putin and all those folks around him, choking off access to technology as well as cutting off access to the global financial system. It's had a profound impact already. And the goal is to maximize the impact on Putin and Russia and minimize the harm on us and our allies and friends around the world. Our interest is in maintaining the strongest unified economic impact
00:17:29.000 campaign on Putin in all history.
00:17:32.000 And I think we're well on the way to doing that.
00:17:34.000 Well, not really.
00:17:36.000 According to the Wall Street Journal, sanctions are very unlikely to force Putin to back down in Russia.
00:17:41.000 According to David Lunel, Andrew Rastuchia and Shun Engel Rasmussen writing for the Wall Street Journal, Western nations have in the past week imposed the most sweeping economic sanctions against a major country in recent decades, moves that are likely to cripple the Russian economy and sharply raise the costs of the country's invasion of Ukraine.
00:17:56.000 Whether it will be enough to cause Putin to withdraw his troops from Ukraine or even weaken his hold on power is far less likely, according to experts on sanctions.
00:18:02.000 This is obviously the case.
00:18:04.000 Sanctions have historically done very little unless you have a complete blockade.
00:18:07.000 They do not have a complete blockade of Russia.
00:18:09.000 In fact, as we'll talk about in a moment, we are still importing Russian oil and natural gas right now.
00:18:13.000 Richard Haass, president of the Council on Foreign Relations, he said there's very little in the history of sanctions that show they can get the target country to change policy on something that is important to the country.
00:18:22.000 I see very little of Putin's temperament that sanctions will even be in the zip code of being decisive.
00:18:27.000 Sanctions have a mixed track record, often falling short of causing a dramatic change in behavior, particularly in authoritarian countries like Russia.
00:18:33.000 Sanctions on Iran were one of the factors analysts believe pushed it into a 2015 deal on its nuclear program and brought its leaders back to the negotiating table recently, but they didn't dislodge the government or stop what the U.S.
00:18:43.000 sees as its aggressive military behavior in the Middle East.
00:18:45.000 That's not even true.
00:18:46.000 It wasn't sanctions on Iran that brought Iran to the table.
00:18:48.000 It was the fact that Barack Obama wanted to give them an ass massage that brought them to the table.
00:18:52.000 They were getting free crap from Obama, and now they're getting free crap from Biden, and so they're at the table.
00:18:57.000 Sanctions by the U.S., the U.N., and others have failed to make North Korea give up its nuclear weapons.
00:19:01.000 So sanctions are useful in terms of limiting the reach of an opposition power by impoverishing that power.
00:19:07.000 But in terms of getting there to be a shift in power within the country, very, very unlikely.
00:19:13.000 According to the Wall Street Journal, the U.S.
00:19:14.000 and European sanctions against Libya from the 1980s for its activities sponsoring terror lasted 20 years before Libya disclosed and scrapped its weapons program.
00:19:22.000 And by the way, the reason that they scrapped their weapons program had nothing to do with the sanctions.
00:19:25.000 It had to do with the fact that the United States invaded Iraq.
00:19:27.000 Once the United States invaded Iraq, Qaddafi looked around and he said, maybe I should give up this nuke that I have here, this nuclear program that I'm working with.
00:19:34.000 And of course, that ended well for him when Hillary Clinton Had him killed.
00:19:38.000 So that turned out to be a bright move all the way around for Muammar Gaddafi, who certainly deserved it, but also bad strategy right there.
00:19:46.000 Iraq's Saddam Hussein resisted more than a decade of UN sanctions.
00:19:48.000 So all the talk about how sanctions are going to change the situation on the ground, that's obviously not true.
00:19:53.000 Dmitry Peskov, Putin's spokesperson, said they probably think by imposing sanctions, they can force us to change our position.
00:19:58.000 It's obvious here this is out of the question.
00:20:01.000 For all their limits, sanctions are widely viewed as better than doing nothing.
00:20:05.000 But, I mean, better than doing nothing is not much of a measure.
00:20:08.000 That's a pretty low bar to clear.
00:20:11.000 And again, the West sanctions that are being placed on Russia exempt a large part of its energy sector.
00:20:17.000 So Russia is still able to bring in the kind of money that Putin needs in order to keep the oligarchs happy enough not to coup him, even if that were a serious possibility.
00:20:26.000 So Gensaki says that we are willing to pay any price, undergo any burden for freedom, except for a higher gas price.
00:20:32.000 Prices.
00:20:33.000 We'll get to that in a moment.
00:20:34.000 First, let's talk about another podcast you should give a listen to.
00:20:37.000 This is a podcast I've recommended time and again, so if you haven't done it yet, you really need to.
00:20:40.000 I'm talking about the Jordan Harbinger Show, a top shelf podcast named Best of Apple in 2018.
00:20:45.000 Don't just ignore my suggestion to listen to this one like you probably do when your friends tell you to listen to a podcast.
00:20:49.000 We are fans here at The Daily Wire.
00:20:51.000 I know podcasts.
00:20:52.000 This is a good one.
00:20:53.000 They have episodes that you will be interested in.
00:20:55.000 He does interviews with really, really fascinating people.
00:20:57.000 Everybody from Dan Carlin to Kobe Bryant to Scott Adams.
00:21:00.000 Harbinger has a talent for getting his guests to share never-been-heard-before stories and thought-provoking insights.
00:21:05.000 Without fail, he pulls out tactical bits of wisdom in each episode, all with the noble cause to make you a more informed, critical thinker to better operate in today's world.
00:21:13.000 He's also got a strangely relatable weekly segment called Feedback Friday, where Jordan covers advice on everything from psycho family situations to relationships to networking.
00:21:20.000 I don't always agree with Jordan and what he says on the show, but hey, that's what makes it interesting.
00:21:24.000 You can't go wrong with adding The Jordan Harbinger Show to your rotation.
00:21:28.000 It's fascinating.
00:21:28.000 There is not a dull show in the bunch.
00:21:30.000 Search for The Jordan Harbinger Show.
00:21:31.000 That's H-A-R-B as in boy, I-N as in Nancy, G-E-R on Apple Podcasts, Spotify, or wherever you listen to podcasts today.
00:21:41.000 The fact is that Europe right now is significantly more serious about Russia than the United States is.
00:21:46.000 Europe is rethinking its whole relationship with green energy because they've recognized that their green energy utopianism has led them to reliance on Russia.
00:21:54.000 And they're trying to cut that off now.
00:21:55.000 The United States isn't doing that.
00:21:57.000 Joe Biden is afraid of the economic blowback were he to do that.
00:22:00.000 Which is why yesterday, Jen Psaki, for example, she said, we're going to do everything we can to lower gas prices.
00:22:05.000 When she says everything, she means everything except for Except for abandoning the progressive environmental left.
00:22:13.000 We would say directly to consumers, the president is going to do everything we can to reduce the impact, to make sure that we are working with our partners around the world to address the volatility in the global oil markets, to consider a range of options that he can continue to take to reduce the impact that they're feeling at the pump.
00:22:32.000 And this has been front and center on his mind since the beginning of this conflict.
00:22:36.000 Okay, so she was asked about banning Russian oil from American markets, and she went further.
00:22:41.000 She said there's no strategic interest in banning Russian oil from American markets, which is a weird thing to say, considering that your entire administration is now marking the... is now essentially suggesting that only economic sanctions are going to work here.
00:22:55.000 We don't have a strategic interest in reducing the global supply of energy, and that would raise prices at the gas pump for the American people.
00:23:05.000 Okay, so he doesn't want to raise prices.
00:23:07.000 So, well, Europe, by the way, you know the kind of prices that Europe is facing right now for gas and oil?
00:23:12.000 prices. And that is certainly a big factor for the president in this at this moment.
00:23:18.000 Okay, so he doesn't want to raise prices. So, well, Europe, by the way, you know, the kind of prices that Europe is facing right now for for gas and oil, like 100% higher than it was two weeks ago. In the United States, the change is incremental.
00:23:31.000 And that change could be made up for if they would just abandon their green utopian nonsense.
00:23:35.000 But they won't.
00:23:36.000 But they won't.
00:23:38.000 Jen Psaki was asked about this yesterday, about Keystone XL.
00:23:40.000 And she's like, nah, it'll take a long time to greenlight Keystone XL.
00:23:43.000 We should invest in clean energy instead.
00:23:44.000 Okay, first of all.
00:23:46.000 Investing in clean energy does not lower prices in the here and now either.
00:23:50.000 If the argument is that Keystone XL will only come online after a certain amount of time, and therefore it doesn't lower prices in the here and now, which is a dubious proposition, because if you know that more gas is going to be supplied in the future, it does actually, future supply, does have the capacity to drive down price marginally.
00:24:04.000 But, even if she were right about that, that would be exponentially more true of clean energy, which is not even close to coming online in the kind of numbers that you need it to come online in order to lower the gas prices right now.
00:24:13.000 I mean, that's absurd.
00:24:15.000 Here she was making the case anyway.
00:24:17.000 The Keystone Pipeline has never been operational.
00:24:19.000 It would take years for that to have any impact.
00:24:22.000 I know a number of members of Congress have suggested that, but that is a proposed solution that has no relationship or would have no impact on what the problem is.
00:24:30.000 We here all agree it's an issue.
00:24:32.000 During those years where it would take to bring down prices, as you're saying, we should just continue to buy Russian oil?
00:24:39.000 Well, again, Jackie, I think you're familiar with a number of steps we've taken, a historic release from the Strategic Petroleum Reserve.
00:24:46.000 Let me finish.
00:24:47.000 What we can do over time, and what this is all a reminder of in the President's view, is our need to reduce our reliance on oil.
00:24:54.000 The Europeans need to do that.
00:24:56.000 We need to do that.
00:24:57.000 If we do more to invest in clean energy, more to invest in other sources of energy, that's exactly what we can do to prevent this from happening in the future.
00:25:05.000 Oh, really?
00:25:05.000 Is that what we can do to prevent this from happening in the future?
00:25:07.000 Because, you know, Europe has invested exponentially more as a percentage of GDP in green energy than the United States has, and all it did was make them extraordinarily reliant on Russian oil.
00:25:15.000 Because unless you can change the basic science, which is that carbon-based fossil fuels are way more efficient and way more easily available than green energy, That ain't going to change anything.
00:25:25.000 So it's just delusion all the way down.
00:25:26.000 I mean, Nancy Pelosi is saying she's not even... Nancy Pelosi is out there saying, no drilling on public lands.
00:25:31.000 So yeah, we got to fight the Russians.
00:25:33.000 Here's my Ukrainian flag pin.
00:25:34.000 Look how wonderful.
00:25:35.000 Let's stand for Ukraine.
00:25:36.000 Also, no, we're not going to drill on public lands so that we're less dependent on Russian oil.
00:25:41.000 And I'm not for drilling on public lands.
00:25:46.000 Yeah, I noticed.
00:25:47.000 I noticed.
00:25:49.000 Okay, meanwhile, the pressure is in fact telling on the Russian natural gas and oil sector, but not because of the United States.
00:25:55.000 It's because of Europe, and it's also because you have a bunch of other oil companies that are attempting to divest from the Russian oil industry.
00:26:01.000 Lukoil, Russia's second largest oil company, appeared to distance itself from Vladimir Putin on Thursday, calling for a fast resolution to Russia's invasion of Ukraine.
00:26:10.000 The statement most likely reflects the company's desire to protect its extensive overseas operations, which include a network of more than 200 franchised gas stations in states like New York and New Jersey.
00:26:19.000 Luke oil is one of the most recognizable Russian brands in the United States.
00:26:21.000 They're afraid that in the United States there will be local acts to shut down Luke oil.
00:26:25.000 Many lawmakers in Washington are pressing the Biden administration to ban the purchase of Russian oil by U.S.
00:26:30.000 companies and to impose sanctions on Russian energy companies.
00:26:33.000 Shares of Luke oil have fallen more than 40%.
00:26:36.000 Since mid-February.
00:26:37.000 So they're afraid of us doing this, but apparently we're not going to do it.
00:26:40.000 So it's kind of a moot point.
00:26:44.000 So here's the question, where does all this go from here?
00:26:46.000 And this is where things start to get ugly because the unintended consequences of war, they really do change in enormous amounts across the planet.
00:26:53.000 So we've already seen a major realignment.
00:26:55.000 Europe is starting to rearm.
00:26:56.000 Japan, there's Shinzo Abe, he's the former president.
00:26:58.000 He's now calling for nuclear weapons in Japan.
00:27:01.000 If Taiwan isn't seeking a nuclear right now, I don't know what they're doing.
00:27:04.000 They should be seeking a nuke.
00:27:05.000 All independent minded nations have no trust in the West and no trust in Russia and China.
00:27:09.000 And so they're going to seek to go their own way and to develop their own militaries and nuclear weapons.
00:27:13.000 Which raises the prospect of future war pretty dramatically.
00:27:17.000 The overt alliance now between Russia and China, which has rejected economic sanctions against Russia, and their alliance with Iran is reshaping the world order.
00:27:25.000 The United States is now no longer seen as a reliable partner in pretty much any way.
00:27:29.000 We're not a reliable partner to the people of Hong Kong.
00:27:31.000 We're not a reliable partner to the people of Afghanistan.
00:27:34.000 We're not a reliable partner to the people of Ukraine.
00:27:36.000 We're trying to backfill that now.
00:27:38.000 But it's a little late for that, especially when the United States is using Russia to make overtures to Iran.
00:27:43.000 So if you're an erstwhile ally of the United States, why would you not hedge your bets?
00:27:48.000 Why wouldn't you?
00:27:49.000 Like, what would be the... Let's say you're Saudi Arabia.
00:27:52.000 And let's say that the United States has had a warm relationship with Saudi Arabia for a long time because of Saudi Arabia's access to oil.
00:28:00.000 And now the United States is making overtures to Iran.
00:28:02.000 Would you start triangulating?
00:28:04.000 Would you start making overtures to maybe Russia, and China, and Israel, and a wide variety of countries that might have an impact on you, rather than staying in the American camp?
00:28:12.000 The answer is, of course you would, because you'd be a fool not to do otherwise.
00:28:15.000 So the entire New World Order is reshaping, but not in the way that the left once suggested, which was going to be a sort of grand global liberal democracy get-together, or a grand kind of Francis Fukuyama barbecue.
00:28:27.000 That's not how it's turning out.
00:28:28.000 It turns out that we are seeing again a re-emergence of the spheres of influence that dominated international politics all the way up through basically the end of the Second World War.
00:28:36.000 That's not a good thing.
00:28:37.000 War was much more common in the spheres of interest area.
00:28:40.000 Once the spheres of interest area basically broke down into two and it was just the USSR versus the United States, the world got a lot more peaceful post-World War II than it was pre-World War II.
00:28:49.000 And as it turns out, post-Cold War, the world got very peaceful in the era of American hegemony.
00:28:54.000 The biggest wars in the post- Cold War era where wars were maybe three, four thousand people died.
00:29:01.000 I'm talking about wars involving major powers.
00:29:03.000 That is likely not to be the case in the next few decades because of the global realignment that we are seeing right now.
00:29:08.000 And all of that could have been prevented.
00:29:09.000 All of that could have been deterred by a muscular America who knew her world, who knew her role on the world stage.
00:29:17.000 Right now we're in sort of an odd position with Ukraine because on the one hand, if you get too hawkish, you're actually encouraging Vladimir Putin to invade more surrounding countries.
00:29:26.000 You're encouraging him to use tactical nuclear weapons if he thinks that he's going to go down.
00:29:30.000 On the other hand, if you are not more hawkish when it comes to NATO, If you're not rebuilding the American military, if you're not guaranteeing the security of Taiwan, if you're not guaranteeing the security of Middle Eastern countries against Iran, if you're not doing those things, what you're likely to see is a world that gets fragmentary, chaotic, new alliances being formed that we can't completely control.
00:29:48.000 And for all those people who think that has no impact on America, just get ready for higher prices for literally everything.
00:29:53.000 And the possibility of more involvement in war.
00:29:55.000 Because once war starts, it's difficult to see where it goes.
00:29:59.000 Most wars, most major wars, start off as rather contained conflicts.
00:30:03.000 And then they spiral out of control.
00:30:06.000 According to the New York Times, that is the worry with Putin right now.
00:30:08.000 Senior White House officials designing the strategy to confront Russia have quietly begun debating a new concern, that the avalanche of sanctions directed at Moscow, which have gained speed faster than they imagined, is cornering Putin and may prompt him to lash out, perhaps expanding the conflict beyond Ukraine.
00:30:22.000 In Situation Room meetings in recent days, the issue has come up repeatedly, according to three officials.
00:30:26.000 Putin's tendency, American intelligence officials have told the White House and Congress, is to double down when he feels trapped by his own overreach.
00:30:32.000 They've described a series of possible reactions, ranging from the indiscriminate shelling of Ukrainian cities to compensate for the early mistakes made by his invading force, to cyberattacks directed at the American financial system, to more nuclear threats and perhaps moves to take the war beyond Ukraine's borders.
00:30:47.000 And again, herein lies the problem.
00:30:48.000 I'm going to go back to it one more time.
00:30:50.000 If the United States had engaged in actual deterrence of Russia over the course of the past 20 years, but particularly within the last year, this would not have happened.
00:30:57.000 Once you have the invasion of Ukraine, it is now in Vladimir Putin's interest to make it as ugly as humanly possible.
00:31:02.000 Because that leaves the rest of the world with a couple of choices.
00:31:05.000 One is to get an overt conflict with Russia, which no one wants.
00:31:09.000 And the second is to make some sort of concessions to Vladimir Putin to end this thing.
00:31:13.000 So Putin is now fully invested in making things hideous and ugly.
00:31:17.000 Especially because the world has not seen hideous and ugly, at least not in the center of Europe, for a very, very, very long time.
00:31:23.000 Like long before any of us listening were probably born.
00:31:27.000 You have to be, at this point, well into your 80s to remember the last time Europe saw significant damage this way.
00:31:36.000 The debate over Putin's next moves is linked to an urgent re-examination by intelligence agencies of the Russian leader's mental state and whether his ambitions and appetite for risk have been altered by two years of COVID isolation.
00:31:45.000 Those concerns accelerated, according to the New York Times, after Putin's order on Sunday to place the country's strategic nuclear weapons on a combat-ready alert to respond to the West's quote-unquote aggressive comments.
00:31:55.000 It was a sign of the depth of American concern that Defense Secretary Lloyd Austin announced on Wednesday he was canceling a previously scheduled Minuteman nuclear missile test to avoid escalating direct challenges to Moscow or giving Putin an excuse to once again invoke the power of the country's nuclear arsenal.
00:32:10.000 John Kirby said, We didn't take this decision lightly, but we are trying to demonstrate we're a responsible nuclear power.
00:32:15.000 We recognize at this moment of tension that it's critical that both the United States and Russia bear in mind the risk of miscalculation and take steps to reduce those risks.
00:32:23.000 Beyond canceling the missile test, there is no evidence the United States is considering steps to reduce tensions.
00:32:28.000 A senior official said there is no interest in backing off of sanctions at this point.
00:32:32.000 Quite the contrary, said the official, who, like other American officials, asked for anonymity to discuss the internal debates.
00:32:37.000 In fact, Biden announced expanded sanctions on Thursday.
00:32:41.000 A few hours after he spoke, S&P dropped Russia's credit rating to CCC-.
00:32:45.000 The credit rating agency said in a statement that is far below junk bond levels Russia was ranked at a few days after the invasion.
00:32:51.000 It is two notches above a warning that the country was going to completely default at this point.
00:32:57.000 But as we box Putin in, is he actually boxed in or is he just going to get more and more erratic?
00:33:02.000 In just a moment, we'll get to further unexamined consequences of this war that, again, could have been fully prevented by a West that actually had the balls to stand up to Greta Thunberg on energy and the spine to stand up to Vladimir Putin on territorial invasions over the course of the last several decades, but instead decided to neuter itself.
00:33:19.000 And now these are the natural consequences.
00:33:21.000 We'll get to that in just a moment.
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00:34:23.000 We're gonna get to more in just one second.
00:34:24.000 First, extremely exciting news coming your way.
00:34:26.000 The Daily Wire, we have even more content coming to your queue.
00:34:29.000 And we're just adding tons of stuff.
00:34:30.000 Like you're bored on a Wednesday night, we're gonna give you something to watch.
00:34:32.000 Mark your calendars for March 10th.
00:34:34.000 That is the premiere of our brand new film, The Hyperions.
00:34:38.000 It's not woke, doesn't have some underlying political message.
00:34:40.000 It's just fun.
00:34:41.000 Because when it comes to entertainment, that's what matters.
00:34:43.000 Check out the trailer.
00:34:44.000 Good day, Hyperion Club members.
00:34:50.000 We've come for one thing.
00:34:53.000 Our titan badges.
00:34:54.000 This titan badge can grant an individual superhuman power.
00:34:58.000 Perhaps it's time for someone else to take on the responsibility.
00:35:02.000 On my way.
00:35:02.000 She's trying to destroy me.
00:35:10.000 You you you It's unique.
00:35:18.000 It's a blast.
00:35:18.000 It's super fun.
00:35:19.000 And yeah, it's appropriate for, I would say, kids above the age of 12.
00:35:22.000 Hyperion is a dysfunctional family film with throwback vibes.
00:35:25.000 It's 100% worth the stream.
00:35:27.000 We'll be streaming the film once on March 10th for all of YouTube to see.
00:35:30.000 That is the last time we'll be doing that on YouTube.
00:35:32.000 So be sure to head on over to the Daily Wire YouTube channel.
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00:35:45.000 Also, to state the obvious, every social media platform is overrun with insane leftist drivel, glittered with blue-haired TikTok social justice warriors, word-vomiting, nonsensical garbage all over your feed.
00:35:55.000 They don't even understand what they're doing.
00:35:57.000 There's just not that much content that caters to the sane youths of America, the young up-and-coming conservatives who will be literally running things one day.
00:36:04.000 Our new show, the comments section, aims to change all of that.
00:36:07.000 Featuring our newest addition to the Daily Wire lineup of hosts, Brett Cooper, The comments section is an irreverent viral content and news review show that offers an against-the-grain, laid-back perspective on all the insanity of the day, and will even take you into one of the scariest places the online world has to offer.
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00:36:34.000 And when everyone else is kneeling, some men have the courage to stand alone.
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00:37:10.000 Among the other unintended consequences of what is going on in Ukraine is of course this massive wave of refugees, which has destabilized governments in the past.
00:37:22.000 We saw an entire populist uprising in Europe thanks to their taking in of hundreds of thousands, millions of Muslim refugees from the Middle East, from Syria, from places like Libya.
00:37:30.000 What's it going to be like where, in the course of one week, you have a million refugees Hundreds of thousands of whom are crossing over the borders into places like Hungary and Poland.
00:37:40.000 According to the Wall Street Journal, within days of Russia's invasion of Ukraine last week, the line of cars carrying people fleeing to the country's border with Poland was already 55 miles long.
00:37:48.000 55 miles long, that's crazy.
00:37:49.000 In wet snow and cold rain, Mothers began abandoning their cars to walk for hours, prodding exhausted children as they dragged their strollers and suitcases along the road.
00:37:56.000 Near them, jam-packed sedans running low on gas inched to a modest checkpoint that ordinarily serves a half-dozen people at a time, often day-trippers crossing into the duty-free zones to buy cigarettes.
00:38:06.000 Inside the checkpoint, two Ukrainian immigration officers have been frantically trying to keep up with one of the fastest exoduses from any country in modern history.
00:38:13.000 In just a week since the war with Russia began, according to the Journal, more than 1 million refugees have left Ukraine.
00:38:19.000 Most headed west into Poland, Hungary, Slovakia, Romania, and Moldova.
00:38:22.000 At the current pace?
00:38:23.000 By the weekend, more asylum seekers will have entered the EU in a matter of days than in all of 2015, when 1.3 million people crossed from the Middle East and Africa into the bloc.
00:38:32.000 That would make the rush from Ukraine, the continent's biggest refugee crisis, since World War II.
00:38:37.000 Most of the people are fleeing to Poland.
00:38:39.000 The sudden arrival of hundreds of thousands of people has jolted many European governments, which didn't consider a Russian invasion imminent, as the United States did and had not foreseen the massive exodus.
00:38:47.000 So how do you even take care of these people?
00:38:49.000 Two days into the war, which began last Thursday, no EU member state had requested tents, blankets, or other basic necessities from the bloc's emergency reserves.
00:38:57.000 On the eve of the conflict, Poland's local governments were still scouting potential locations, like town halls, stadiums, and schools, for an inflow it estimated would reach no more than one million people in all.
00:39:06.000 A week later, Poland is half full.
00:39:09.000 It took a procession of volunteers on both sides of the border to manage the mass displacement of Ukrainians in roadside villages in Ukraine, lined with wheat and lavender fields, elderly residents set up stands, stacked with free food from their own pantries, as shelves at local gas stations ran bare.
00:39:21.000 Others walked along the traffic, ordering soup and porridge to passengers stuck in cars and to families trekking beside them.
00:39:26.000 It's just a complete mess over there.
00:39:30.000 Whatever the duration and outcome of the war, it is likely the conflict will deposit an enormous diaspora of Ukrainians in the EU, reshaping politics, society, and the refugee population on the continent.
00:39:41.000 At this point, 550,000 people have already arrived on the border to Poland, another 80,000 have arrived on the border to Slovakia, 133,000 on the border to Hungary, 51,000 on the border to Romania, 100,000 on the border to Moldova.
00:39:54.000 In total, the UN Refugee Agency now expects 4 million Ukrainians to seek shelter outside the country.
00:40:00.000 And this will have long-term implications for Europe, especially Poland.
00:40:05.000 The country's had very few ethnic minorities since World War II, when basically all the Jews of Poland were murdered.
00:40:10.000 And then all the other minorities either fled or ended up in the Soviet Union.
00:40:14.000 Poland has spent a long time trying to restrict the flow of asylum seekers, but it's welcoming Ukrainians because, of course, Ukrainians speak similar language, they've found jobs in a wide variety of areas, but the diaspora is likely to expand.
00:40:28.000 So that giant overtaxed welfare state, the overburdened welfare state in all of Europe, that's likely to get significantly worse.
00:40:34.000 These are impoverished people who don't have jobs, who have no assets, and who are now arriving inside the borders of a country where, in many cases, they do not speak the language.
00:40:42.000 That will have some pretty dire and severe consequences with regard to world politics, including, by the way, pressure on the EU.
00:40:49.000 The EU is trying to solidify in the face of Russian aggression.
00:40:54.000 And at the same time, you're going to start to see member countries of the EU saying, we really need to solidify our borders here because we just don't have the wherewithal to take in 100,000 Ukrainian refugees at a time.
00:41:04.000 Meanwhile, I've got money problems as well.
00:41:07.000 Okay, so Lindsey Graham yesterday, he said, we're crushing the ruble.
00:41:10.000 Well, that's true.
00:41:11.000 That has some spillover effects.
00:41:13.000 Here's Lindsey Graham, the senator from South Carolina.
00:41:16.000 For 20 years, Putin has murdered his own people, imprisoned dissidents, opposition leaders in his country, committed war crimes in Syria and Chechnya, nothing happened.
00:41:27.000 The game has changed.
00:41:29.000 The off-ramp for Putin would be built by the Russian people, not by the West.
00:41:32.000 And how do you get that off-ramp built?
00:41:34.000 We're going to crush the ruble.
00:41:37.000 Okay, so again, the desire to crush the ruble, I get it.
00:41:41.000 It's going to have some pretty severe consequences globally because there are a lot of people who have rubles.
00:41:45.000 There are a lot of people who have invested their rubles in Western products.
00:41:50.000 So if you're willing to take that sacrifice, do it.
00:41:52.000 But you have to make clear to the American public what that sacrifice is on behalf of.
00:41:56.000 What is it intended to do?
00:41:58.000 The Wall Street Journal points out another unintended consequence of all of this.
00:42:01.000 They say, if Russian currency reserves aren't really money, the world is in for a shock.
00:42:06.000 What is money is a question that economists have pondered for centuries, but the blocking of Russia's central bank reserves has revived its relevance for the world's biggest nations, particularly China.
00:42:14.000 In a world in which accumulating foreign assets is seen as risky, military and economic blocs are set to drift farther apart.
00:42:21.000 After Moscow attacked Ukraine last week, the United States and its allies shut off Russia's central bank access to most of its $630 billion of foreign reserves.
00:42:29.000 Weaponizing the monetary system against a group of 20 countries will have lasting repercussions.
00:42:34.000 Why?
00:42:34.000 Well, the idea is that Russia doesn't just hold banknotes in rubles.
00:42:37.000 They have dollars.
00:42:39.000 They have yen.
00:42:39.000 They have a bunch of different currencies.
00:42:41.000 If the world financial system can basically say your money is no longer fungible, you can't use U.S.
00:42:46.000 dollars anymore based on who you are, that's going to have some pretty dire ramifications.
00:42:51.000 Why would anybody invest in U.S.
00:42:52.000 dollars if you can't use the dollars anymore?
00:42:54.000 It becomes absolutely worthless to you.
00:42:57.000 According to the Wall Street Journal, the 1997 Asian financial crisis scared developing countries into accumulating more funds to shield their currencies from crashes, pushing official reserves from less than $2 trillion to a record $14.9 trillion in 2021, according to the IMF.
00:43:10.000 While central banks have lately sought to buy and repatriate gold, it only makes up 13% of their assets.
00:43:15.000 Foreign currencies are 78%.
00:43:18.000 Many economists have equated this money to savings in a piggy bank.
00:43:21.000 Recent events, however, highlight this error in thinking.
00:43:24.000 Barring gold, these assets are someone else's liability, someone who can decide they're worth nothing.
00:43:28.000 Last year, the IMF suspended Taliban-controlled Afghanistan's access to funds and SDR.
00:43:33.000 Sanctions on Iran have confirmed that holding official reserves doesn't stop the U.S.
00:43:37.000 Treasury from taking action.
00:43:39.000 To be sure, the West has frozen Russia's stock of foreign exchange.
00:43:42.000 It hasn't blocked the inflow of new dollars and euros.
00:43:44.000 The country's current account surplus is estimated at $20 billion a month, thanks to exports of oil and gas.
00:43:49.000 The US and EU want to keep buying that.
00:43:52.000 These balances go to the private sector, but officials have mobilized them.
00:43:55.000 But the entire artifice of money as a universal store of value risks being eroded by the banning of key exports to Russia and boycotts of the kind corporations like Apple and Nike announced this week.
00:44:04.000 Why hold dollars if you literally can't use the dollars?
00:44:07.000 If currency balances were to become worthless, computer entries, and didn't guarantee buying essential stuff, Moscow would be rational to stop accumulating them and stockpile physical wealth in oil barrels rather than sell them to the West.
00:44:17.000 At the very least, they're going to shift into gold.
00:44:20.000 Indeed, the case levied against China's attempts to internationalize the renminbi has been that, unlike the dollar, access to it is always at risk of being revoked by political considerations.
00:44:30.000 So, this is a real problem because the United States is funded by debt.
00:44:33.000 If the United States sells its bonds, for example, and let's say that you have a bunch of countries that are holding American bonds, and let's say to punish those countries, we decide that we're going to cut them off from their bond holdings.
00:44:43.000 We're just going to renege on our debt because we don't like them.
00:44:45.000 Who's going to buy our bonds in the future?
00:44:46.000 If people translate their money into dollars, In order to hold those dollars so they can use them for later.
00:44:53.000 Because the dollar is a good store of value.
00:44:55.000 And then we say, actually your dollar is a store of zero value because we're just going to freeze it.
00:44:59.000 That's going to undermine the value of the dollar.
00:45:01.000 China itself owns $3.3 trillion in currency reserves.
00:45:04.000 Unlike Russia, it cannot usefully hold them in renminbi, a currency it prints.
00:45:09.000 Stockpiling commodities might be the alternative, so that creates more inflation.
00:45:13.000 So what can investors do?
00:45:14.000 The answer is, buy gold.
00:45:17.000 Many of the world's central banks are going to be buying gold as it becomes clear that currency is actually no guarantee of access to value.
00:45:24.000 So all of this is really risky stuff that we are playing with here.
00:45:28.000 When deterrence fails, things get really risky really fast.
00:45:30.000 Plus, none of this is mentioning, by the way, the simple fact that the interest rates in the United States are about to rise in the middle of a massive inflationary cycle, which has now been exacerbated by foreign chaos.
00:45:39.000 Here is Jerome Powell yesterday saying, it's too early to know if the Russian invasion will impact the interest rates in the United States.
00:45:45.000 Does Russia's war in Ukraine change the Fed's thinking about interest rates?
00:45:51.000 Too early to say.
00:45:52.000 I think right now, in this very sensitive time where uncertainty is highly elevated and we really don't know which way things are going to go, I think we need to move carefully.
00:46:04.000 We need to move carefully, is what he's saying, because we don't know which way things are going to go.
00:46:07.000 Well, that's a lot of reassurance to markets.
00:46:12.000 Again, war is a dangerous thing.
00:46:13.000 That doesn't mean pacifism or isolationism is the answer.
00:46:16.000 Both of those make war more common, make it more likely.
00:46:18.000 What it does mean is, this should be a reminder, when deterrence fails, things get bad.
00:46:22.000 So, spend more time on deterrence, and less time on appeasement, and less time on worrying about the worries of Greta Thunberg, and less time worrying about the international liberal order, and ignoring actual threats as they grow on your own borders, including Russia and China.
00:46:36.000 All right, we'll be back here later today with an additional hour of content.
00:46:38.000 First, you can't forget to end your week by tuning into The Andrew Klavan Show.
00:46:41.000 Drew shows every Friday.
00:46:42.000 He's got an exciting evening planned for you.
00:46:44.000 So head on over to dailywire.com.
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00:46:47.000 I'm Ben Shapiro.
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00:47:17.000 Hey everybody, this is Andrew Klavan, host of The Andrew Klavan Show.
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