Nobel Prize Winner Robert Shiller Warns Confiscating $300B in Russian Assets Might Cause a ‘Cataclysm’ for the Dollar System

Nobel Prize winning economist Robert Shiller has warned against the effects that the confiscation of Russian assets successful Western countries mightiness person connected the stableness of the dollar-dominated fiscal system. According to Shiller, a determination of this benignant mightiness origin a cataclysm, opening the doors for countries that usage the dollar arsenic a reserve currency to determination their treasuries to different currencies.

Robert Shiller Fears Cataclysmic Events

The confiscation of Russian assets frozen by Western countries owed to sanctions pursuing the Russia-Ukraine struggle mightiness trigger a concatenation of events that would impact the spot of the U.S. dollar-led fiscal system. This is the sentiment of Robert Shiller, victor of the 2013 Nobel Prize successful Economic Sciences, who is openly inviting the Biden medication to ponder much cautiously astir the results of specified a measure.

In a caller interview offered to the Italian paper La Repubblica, Shiller declared that different nations mightiness presume that if the U.S. does this with Russia, it tin bash it with immoderate different country, weakening its presumption successful the satellite economy.

Shiller explained:

This volition destruct the halo of information that surrounds the dollar and volition beryllium the archetypal measurement towards de-dollarization, which galore are progressively confidently leaning toward, from China to processing countries, not to notation Russia itself.

Shiller besides elaborate this determination would corroborate the Russian claims that this is so a proxy war, backfiring against the U.S. and turning it into a “cataclysm” for the existent dollar-dominated fiscal system.

Furthermore, portion helium claims this tin beryllium “morally right,” helium acknowledges galore unknowns regarding this move, and that it is amended to deliberation astir it “very carefully.”

According to NYT, the Biden Administration is pressing Britain, France, Germany, Italy, Canada, and Japan to travel up with a strategy to execute the confiscation of much than $300 cardinal successful Russian assets earlier February 24, a day that volition people the opening of the 3rd twelvemonth of the caller Russia-Ukraine conflict.

In April, Bank of Russia politician Elvira Nabiullina stated that portion Russia had moved to stockpile reserves successful non-U.S. seizable assets, it was inactive moving to retrieve $300 billion.

What bash you deliberation astir Robert Shiller’s sentiment connected a imaginable Russian plus confiscation? Tell america successful the comments conception below.