David Frum

David Frum @davidfrum

But as the ECB and the Federal Reserve are demonstrating: the authoritarian regime can "own" vast stockpiles of Euros or dollars. It does not *control* those stockpiles. They exist on the computers of the ECB and the Fed - who control any large-scale transactions. 8/x — PolitiTweet.org

David Frum @davidfrum

The bottom line problem: citizens of an authoritarian regime don't trust it. (If they did trust it, it wouldn't have to be authoritarian in the first place.) The regime seeks to gain trust for its untrustworthy money by showing ownership of piles of trustworthy money. 7/x — PolitiTweet.org

David Frum @davidfrum

But once the regime opens even a little, it needs to persuade its subjects that its money *can* buy things. And a money that can buy things is a money that must have some way to be converted into other currencies - and most especially the central currencies: dollar, Euro, pound. — PolitiTweet.org

David Frum @davidfrum

A totalitarian regime can compel its subjects to accept a "money" that does not buy things they want. Soviet joke: a shopper enters a shop to buy fish. "No, no," the clerk answers. "We are the store that doesn't have meat. The store that doesn't have fish is around the corner." — PolitiTweet.org

David Frum @davidfrum

The trouble for an authoritarian regime comes when it seeks the benefits of at least a partially market economy and at least some economic integration with the rest of the world. 4/x — PolitiTweet.org

David Frum @davidfrum

The answer: An authoritarian regime can for sure achieve financial independence if it's willing to seal itself off from the world. Stalin's USSR, Mao's China were more or less invulnerable to central bank sanctions. They were also desperately poor and horrifically repressive 3/x — PolitiTweet.org

David Frum @davidfrum

The Q: "is there not a danger that the west's willingness to weaponize the financial system may erode the confidence of other powers, esp autocracies (China, most obviously), in their currencies, that in the long run they may seek an alternative not dependent on the west?" 2/x — PolitiTweet.org

David Frum @davidfrum

A friend asked me a question about my article on central bank sanctions and SWIFT ... 1/x https://t.co/tQ4Uxv4EKS — PolitiTweet.org

David Frum @davidfrum

RT @jason_corcoran: 😱 Holy Moly : Tinkoff, a leading Russian bank, is offering to convert #rubles to $$ at 153 ! The rate was about 80 rub… — PolitiTweet.org

David Frum @davidfrum

RT @CynicalArmyWife: @davidfrum Explains Russia’s financial position so it’s crystal clear. Maybe Vlad should read it https://t.co/c4uj2c… — PolitiTweet.org

David Frum @davidfrum

RT @JeremyCliffe: tl;dr Germany’s foreign policy sacred cows are now a steaming pot of Rindergulasch — PolitiTweet.org

David Frum @davidfrum

RT @JeremyCliffe: Key policy points from Scholz: - over 2%/GDP for defence - €100bn special fund for defence - two new LNG terminals - su… — PolitiTweet.org

David Frum @davidfrum

RT @JeremyCliffe: For reference, last year it was about 1.4%. Given the size of German economy, this is a staggering increase. Something (v… — PolitiTweet.org

David Frum @davidfrum

RT @JeremyCliffe: Wow. Scholz has just announced that Germany will spend MORE than 2% of its GDP on defence every year from now on. Long o… — PolitiTweet.org

David Frum @davidfrum

RT @JeremyCliffe: Scholz praises the courageous Russians standing up to Putin. “We know you are many.” Receives cross-party standing ovatio… — PolitiTweet.org

David Frum @davidfrum

RT @JeremyCliffe: A key objective of Scholz’s speech is to impress this transformation on MPs & German voters - who have received little p… — PolitiTweet.org

David Frum @davidfrum

RT @JeremyCliffe: Olaf Scholz is addressing the Bundestag. He starts: “The 24th February marks a turning-point [literally: Zeitenwende or t… — PolitiTweet.org

David Frum @davidfrum

RT @humeyra_pamuk: BREAKING - Turkish foreign minister says the situation in Ukraine constitutes a war, Ankara will therefore implement the… — PolitiTweet.org

David Frum @davidfrum

RT @IuliiaHoban: The best explainer about the #SWIFT and central bank sanctions announced yesterday form @davidfrum #StandWithUkriane #Russ… — PolitiTweet.org

David Frum @davidfrum

RT @leylblack: This is a must-read explainer by @davidfrum: “The power Putin is about to feel is the power of producers against gangsters,… — PolitiTweet.org

David Frum @davidfrum

RT @JeremyLittau: This by ⁦@davidfrum⁩ is the best explainer I’ve read about the SWIFT and central bank sanctions announced yesterday. Abou… — PolitiTweet.org

David Frum @davidfrum

RT @anneapplebaum: The EU and the US have moved hard, fast and together, @davidfrum writes. Here's what it means: https://t.co/2bDDYK3KJL — PolitiTweet.org

David Frum @davidfrum

RT @arjafi: From @davidfrum's "Hitting Putin Where It Hurts" in @TheAtlantic. https://t.co/lehncOr6S8 — PolitiTweet.org

David Frum @davidfrum

RT @estabde: I didn’t understand how they would work or fully appreciate the possible impacts of central bank sanctions on Russia until I r… — PolitiTweet.org

David Frum @davidfrum

RT @mclomedia: Great article by @davidfrum which explains clearly how the sanctions are squeezing #putin and how they will asphyxiate the R… — PolitiTweet.org

David Frum @davidfrum

RT @charlessr1956: @davidfrum gives an easy to read guide here on the possible impact of central bank sanctions on Russia — PolitiTweet.org

David Frum @davidfrum

RT @FerdiGiugliano: Italy is closing its airspace to Russian flights — PolitiTweet.org

David Frum @davidfrum

You're going to have to slog through a lot of technical currency and banking details in this piece. Please believe me: it will be worth it. https://t.co/tQ4Uxv4EKS — PolitiTweet.org

David Frum @davidfrum

For four years, Americans were idiotically and falsely told that "America First" would make "America great again." In this Ukraine crisis, the world is seeing the amazing overwhelming power of democracies united in a common cause of collective security. https://t.co/tQ4Uxv4EKS — PolitiTweet.org

David Frum @davidfrum

This morning, the Russian state had $630 billion in foreign currency reserves. On Monday, Russia will be broke. https://t.co/tQ4Uxv4EKS — PolitiTweet.org