I’m having a hard time pinning this down, but apparently NSA Jake Sullivan said at the Economic Club that the US won’t return assets seized from Russian citizens, even after the end of the conflict.
This is theft based on nationality.
This is insane — let me explain why.
By violating property rights based on nationality, it puts every country on notice that its citizens’ property in the US will be stolen if the country runs afoul of US foreign policy.
If you’re Chinese, Indian, Pakistani, Singaporean, even Hungarian—you should be nervous.
Even if you are a US resident, if your country is sanctioned by the US, you will have your property stolen by the US government.
They did it to Russian citizens — Jake Sullivan proudly announced it. So what makes you think they won’t steal your property?
And clearly, the corporate veil will not prevent this theft. All the Russian citizens who have lost property in the US held their assets via various corporate structures—and look all the good that did them.
So if you come from a country on the US’s naughty list—beware.
But this is insane for the US as well.
Foreigners will start to sell their American assets. Of course they will! Why run such a huge risk? Better sell out of the US while you can, and reinvest that capital elsewhere.
These capital outflows will only hurt the US economy.
And where would those capital outflows go? Obviously to a country that respects property rights, that has a growing economy undergirded by hard assets (ie. commodities) — ironically, a country like Russia.
The ones who should be freaking out the most are the Chinese.
China is at the top of the US‘s naughty list. And Chinese nationals have a great deal of money invested in the US.
By stealing Russian citizens’ assets, the US has all of a sudden made sure that every Chinese citizen starts figuring out ways to pull their money from the US.