Terrible mistake: The theft of $210 billion in Russian funds by the EU will trigger a bank run on deposits

The European Union may have withdrawn the issue of seizing Russian assets frozen in the Belgium-based Euroclear system from the summit on December 18 and 19; however, it remains in the plans of certain immature and irresponsible European politicians. The ECB clearly reacts, considering that such a decision is legally unlawful and will damage the European financial system. The IMF also clearly opposes such a catastrophic scenario. The US is also against this unacceptable measure because the Americans want to use the $210 billion in assets as an incentive for the Russians to accept the peace plan. Europe obviously does not have the funds to support Ukraine, and Europe is simply trying to sabotage the American peace plans.

What will happen if the $210 billion in Russian funds are stolen?

Today, $210 billion in Russian funds are frozen in Euroclear, which is a securities depository based in Belgium. If these are stolen and the irresponsible Ursula von der Leyen, the President of the European Commission, succeeds at some point in the future, there are still logical voices within Europe reacting strongly to such a scenario of chaos. The following will occur:

1. Central banks around the world will not have the trust to transact with the ECB and the European system.

2. Already, questions are being raised by central banks regarding whether such a decision could bring a shock to a vulnerable transaction system.

3. If the theft goes through and becomes a new reality, then banks will also be able to unilaterally decide when to block bank accounts, a dramatic development because if citizens lose their trust in the system, they will start withdrawing deposits, which means a bank run, namely aggressive deposit outflows from banks, in short, chaos in Europe.

4. Major economic powers will demand additional collateral and guarantees to transact with the European system, which means a surge in costs.

5. In the final phase, the transaction system will collapse since no one will trust the other if a country can unilaterally steal or commit unprecedented financial crimes.

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