Suggested Answers to the First Short Quiz

[johnkarls]

.

A worthwhile exercise before opening a book is to ask yourself what you expect it to address so that you think reading it is worthwhile.


***************

Question 1

Does “Chokepoints” address three malfeasors – Russia, China and Iran – which were posing significant threats at the time of publication?

Answer 1

Yes.

Question 2

Has Iran largely disappeared from the news during the 6 months since 2/25/2025 publication because of military (vs. economic) sanctions?

Answer 2

Yes.

Question 3

Has Russia been dominating the news because of its war on Ukraine?

Answer 3

Yes.

Question 4

Was our author, Edward Fishman, an economic-sanctions expert during the Obama Administration?

Answer 4

Yes.

Question 5

Despite fellow-Democrat President Bill Clinton’s solemn 1994 guarantee of Ukraine’s sovereignty and territorial integrity if it gave up its 1,900 multiple-warhead nuclear missiles when BTW Ukraine was the world’s THIRD-LARGEST nuclear power (behind the U.S. and Russia, but ahead of the UK, France, China, etc.) -- did Edward Fishman’s Obama Administration NOTORIOUSLY FAIL to honor Clinton’s guarantee during Russia’s first invasion of Ukraine in 2014 when Fishman/Obama provided only non-lethal aid in the form of blankets???

Answer 5

Despicably yes!!!

Question 6

Have we often marveled over the late Sen. John McCain’s constantly calling Russia “a gas station masquerading as a country”???

Answer 6

Yes.

Question 7

Is this because Russia’s economy is based on oil & gas production, with oil & gas (per the CIA’s World Factbook) comprising virtually all of Russia’s exports, with which it pays for its imports of cars, medicine, broadcasting equipment, garments, etc.???

Answer 7

Yes – please see https://www.cia.gov/the-world-factbook/ ... s/#economy

Question 8

And have we often marveled that Russia has handsomely profited from its war on Ukraine the last 3.5 years because the war has raised world oil prices???

Answer 8

Yes.

Question 9

And that the U.S. could have shut down Russia’s invasion overnight for the last 3.5 years by imposing prohibitively-high tariffs on any country buying Russian oil & gas (principally China and India)???

Answer 9

Yes.

Question 10

Why didn’t Fishman/Obama do that in 2014???

Answer 10

God only knows!!!

Question 11

And why does Pres. Trump refuse to do so despite our 4/16/2025 letter to him entitled “MAKING AMERICA HONORABLE AGAIN by sending 1,900 multiple-warhead nuclear missiles to Ukraine with our apology” ???!!!

Answer 11

What do you think??? Let’s discuss!!!

Question 12

Could Pres. Trump’s reason for insisting Ukraine continue to suffer be that he doesn’t want to suffer the impact on world oil & gas prices if he takes Russian oil & gas off the market???

Answer 12

What do you think??? Let’s discuss!!!

Question 13

And the impact that higher world oil & gas prices would have on American gasoline prices at the pump which he desperately wants to reduce???

Answer 13

What do you think??? Let’s discuss!!!


**********
But back to Edward Fishman’s touted economic sanctions --

Question 14

Aren’t they just a proverbial “fig leaf” behind which pols can hide???

Answer 14

What do you think??? Let’s discuss!!!

Question 15

After all, doesn’t Economics 101 teach that the “money supply” has many different measurements, for example –

(A) the monetary base (money in circulation plus bank reserves),
(B) so-called “M-1” (currency, travelers checks, checking accounts),
(C) so-called “M-2” (“M-1” plus savings deposits & money-market funds),
(D) so-called “M-3” (“M-2” plus large time-deposits and other less-liquid assets),
(E) etc., etc.

Answer 15

(A) Yes.
(B) Yes.
(C) Yes.
(D) Yes.
(E) Yes.

Question 16

So why does Edward Fishman think it’s a “big deal” whether a particular British bank et al. are permitted to handle transfers of U.S. dollars for, say, Russian interests???

Answer 16

What do you think??? Let’s discuss!!!

Question 17

After all, can’t Russia, China, etc., establish banks (if they haven’t already) to handle accounts denominated in US dollars???

Answer 17

What do you think??? Let’s discuss!!!

Question 18

Indeed, doesn’t the U.S. Treasury Dept report by month the foreign countries which are the largest holders of U.S. Treasury Securities???

Answer 18

Yes – please see https://ticdata.treasury.gov/resource-c ... able5.html

Question 19

And couldn’t those countries establish a market for those securities without a “by your leave” from the US???

Answer 19

Of course!!!

Indeed, the second sentence of the “Notes” to the monthly U.S. Treasury Dept report referenced in Q&A-8 says –-

“Since U.S. securities held in overseas custody accounts may not be attributed to the actual owners, the data may not provide a precise accounting of individual country ownership of Treasury securities (see TIC FAQ #7 at: http://www.treasury.gov/resource-center ... cfaq1.aspx).”

Question 20

Isn’t the truth that the reason why most countries count their foreign exchange in terms of US dollars is that the US dollar has, historically, been fairly stable with minimal inflation (at least in contrast to the currencies of other countries)???

Answer 20

What do you think??? Let’s discuss!!!

Question 21

And that Pres. Biden almost destroyed the US dollar as the world’s currency with his inflation???

Answer 21

What do you think??? Let’s discuss!!!

Question 22

BTW, in terms of economic theory, couldn’t a currency be based on anything that holders are willing to accept as credible??? Such as the number of craters on the moon??? Which BTW is guaranteed to have zero inflation since the number of moon craters has already been established???

Answer 22

What do you think??? Let’s discuss!!!

Question 23

After all, haven’t these principles been demonstrated by actual crypto-currencies such as Bitcoin???

Answer 23

What do you think??? Let’s discuss!!!

Question 24

And what is the basis for Bitcoin’s credibility since it is not issued by a government or known entity???

Answer 24

Please read on.

Question 25

Isn’t Bitcoin’s credibility based on the “greater fool theory” that you can sell it to someone else (a “greater fool”) before it crashes – and this has been borne out, AT LEAST SO FAR???

Answer 25

What do you think??? Let’s discuss!!!

Question 26

Is it easier for 83 year olds who majored in economics before law school such as Yours Truly to appreciate such concepts – since they lived through 1971 when the US dollar could no longer be redeemed for $20.67 per troy ounce of gold because our supply of gold at Fort Knox was being depleted so rapidly as it was theretofore being shipped, literally, to foreign countries???

Answer 26

IMHO absolutely!!!

Question 27

And all Americans held their breath whether “going off the gold standard” would doom the dollar???

Answer 27

Yes, you could hear all of them sucking it in!!!

Question 28

But no need to worry – because weren‘t Americans inept at bartering and “the greater fool theory” kept the dollar afloat???

Answer 28

Of course!!!


****************
SO BACK TO Q-14 – AREN’T ECONOMIC SANCTIONS JUST A PROVERBIAL “FIG LEAF” BEHIND WHICH POLS CAN HIDE???

Answer

What do you think??? Let’s discuss!!!