The US Is Not Switzerland: Weighs Sanctions Against South Sudan

Tyler Durden's picture

Despite telling us just yesterday that it would not take sides in the tensions in South Sudan...


the US government is on the verge of deciding to... take sides. As Reuters reports, the United States is weighing targeted sanctions against South Sudan due to its leaders' failure to take steps to end a crisis that has brought the world's youngest nation to the brink of civil war. Africa, as we have discussed at length, remains the only region on earth with incremental debt capacity (and therefore growth in a Keynesian world) and so it is no surprise the US wants to get involved in yet another conflict.


Via Reuters,

"It's a tool that has been discussed," a source told Reuters on condition of anonymity about the possibility of U.S. sanctions against those blocking peace efforts or fueling violence in South Sudan. Another source confirmed the remarks, though both declined to provide details on the precise measures under consideration.


No decisions have been made yet, the sources added. Targeted sanctions focus on specific individuals, entities or sectors of country.


The U.S. government was unlikely to consider steps intended to economically harm impoverished South Sudan but would likely focus on any measures on those individuals or groups it sees as blocking efforts at brokering peace or committing atrocities.


As we discussed previously, there is an African scramble so it is unsurprisng the US would choose to take sides and get involved:

While those in the power and money echelons of the "developed" world scramble day after day to hold the pieces of the collapsing tower of cards in place (and manipulating public perception that all is well), knowing full well what the final outcome eventually will be, those who still have the capacity to look, and invest, in the future, are looking neither toward the US, nor Asia, and certainly not Europe, for one simple reason: there is no more incremental debt capacity at any level: sovereign, household, financial or corporate. Because without the ability to create debt out of thin air, be it on a secured or unsecured basis, the ability to "create" growth, at least in the current Keynesian paradigm, goes away with it. Yet there is one place where there is untapped credit creation potential, if not on an unsecured (i.e., future cash flow discounting), then certainly on a secured (hard asset collateral) basis. The place is Africa, and according to some estimates the continent, Africa can create between $5 and $10 trillion in secured debt, using its extensive untapped resources as first-lien collateral.

Africa is precisely where the smart money (and those who quietly run the abovementioned "power echelons"), namely China and Goldman Sachs, have refocused all their attention in the past year precisely because they both realize that Africa is the last and only bastion of untapped credit growth and capacity. But you won't read about it in the mainstream papers: the last thing those who are currently splitting up Africa into its constituent parts want is for the general public to become aware what is in play. You will, however, read about it on these pages (see here and here and here). Also, if you are a Goldman client, you will certainly know all about it, as the firm ventures out with reverse inquiry indications of interest to its wealthy clients giving them the right of first equity refusal, and slowly but surely providing "financial services" to the last great hope for the developing world, which ironically is what most still consider the poorest continent...

Africa in geographical perspective...

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nope-1004's picture

Here we go - foreign policy (theft) in action.  Any gold mines in the Sudan (that China is in talks with)?  Any oil producing fields there?


Why else would a bankster-run nation give a rip?


Groundhog Day's picture

Perhaps bi lateral trade agreements with china and the sudanese?

max2205's picture

Who will place sanctions on the US?

Boris Alatovkrap's picture

Map is wrong, Great Lake is between USSA and Canadia.

q99x2's picture

Any super-cooled subteranean Asic Bitcoin clusters there?

Flakmeister's picture

As always, follow the oil..

China has first dibs on this one though, IIRC...

Colonel Klink's picture

Run Africa, run for your lives from the enslaving BANKSTERS!!!  Don't trust the ch33sep0pe bankers when they say they love black people, and they only have your interest in mind.  What they really mean is they love your interest you'll be paying them after they make the loans which they create from thin air.

trader1's picture

i take it that you are not at peace with your circumstances. 

you have a choice right now to live deeply in the present and be happy.  


Colonel Klink's picture

You're absolutely correct.  I'm not at peace with the enslavement of this nation at the hands of shyster bankers and their corrupt bought off politicians, both red and blue.

I'll live happily once I see those who have violated by the law, punished by the same law we're all supposed live under according to them.

Fair enough?  As for all the other Kumbaya crap, you can shove it.

trader1's picture

all that frustration which you project on the world comes from within.


Dutch's picture

"Goldman Sachs, meet Nigerian Prince. Nigerian Prince, meet Goldman Sachs. Now let's get down to business..."

q99x2's picture

"its leaders' failure to take steps to end a crisis that has brought the world's youngest nation to the brink of civil war."

Hey. Over here. What about the United States of America. Who's going to help us with our leaders' failure. Somebody do something. Help.

Rainman's picture

Great idea..all segments of the Earth must have easy credit available. This is the humane thing to do ! < Promise Zones for the savages >

Spungo's picture

"Hey. Over here. What about the United States of America."

Don't worry, the US government has been trying to economically destroy the US for several decades. The sanctions appear to be working.

Major Major Major's picture

We are only here to help.


If you don't believe us... just look at our track record.

Cannon Fodder's picture

I'm sick of this crap of us (the US) telling everyone what to do.... It's bad enough that everyone in the US is subject to more laws than can be counted, but we also want to try to rule everyone else's life in the world. For once, just leave me and everyone else alone!!!

Colonel Klink's picture

That's not the nature of power and government, it's their duty to tell you what and how to live your life at the end of the barrel of a gun.

Better listen to us prole!

trader1's picture

so, stare right back at that barrel and laugh.  

Colonel Klink's picture

Stare at the barrel and laugh.  Uh fuck you!  I don't take kindly being threatened by anyone, government or otherwise.

Feel free to live on your knees, I chose to stand on my feet.

Enjoy the red arrow too!

trader1's picture

stop being afraid of death.


Scarlett's picture

good thing is, the troops (and officers) are sick of it too.

Xibalba's picture

trying to form a United States of Africa will quickly get you cia'd

NoWayJose's picture

At some point you have to wonder what sanctions the US can apply to these small countries. What do we import or export to these countries? Worse, of course, is that China and Germany are happy to fill anything we stop exporting. Plus, what effect does this have on US imports and exports to other countries? If you had a chance to do business with the US or China or Germany - who would you pick, knowing that only one of them is a practicing interventionalist?

ebworthen's picture

"S.E.C. to fine Warlords $1 million for genocide; will accept barrels of oil and rare earth metals."

Colonel Klink's picture

And bitcoin!

Edit:  I'll add the /sarc tag.  Because they really don't want it.  The simply want tangible assets in place of fiat money.

Hongcha's picture

That's a remarkable map collage; but is India truly to scale?  If so, and I believe it is - Africa is larger than I thought.

suteibu's picture

Japan is gonna be pissed not being on this map what with all the Yen they print and send to the AU.


Edit:  Oh, wait...there it is...upside down and unlabeled.  Damn.

Musashi Miyamoto's picture

Always at war with eastasia...

are we there yet's picture

Think of central and southern Africa as a big Detroit with mineral rights that are owned by changing street gangs. Only they have more gangs.

Emergency Ward's picture

Meanwhile in Afghanistan, War-Chief Obama's military forces gun down a four-year-old boy identified as "the enemy".

I Drink Your Milkshake's picture

Africa should start a monetary union and let the printing presses roar.

Could you imagine the comedy?

Duude's picture

Who needs imagination when we have Zimbabwe?

Blue Horshoe Loves Annacott Steel's picture

Moamar Gadaffi wanted Africa to have its own currency & lots of gold, plus ignore the US/Euro bankers & trade oil without them.

Maybe that had something to do with the USA wanting him gone?

NZ Watcher's picture

Instead of arrogance - why not state your view or at the very least make correction to comment.

Blue Horshoe Loves Annacott Steel's picture

Yeah, can that person provide evidence against my comment?

Also, where'd Gaddaffi & Saddam's gold disappear to?

The US can't give Germany its gold back = what the hell is in Fort Knox then?

SmittyinLA's picture

The Chinese are playing with Africans like Gomez Adams plays with model trains.

We have Ospreys in bor So Sudan

The Osprey was originally an experimental project never intended to be deployed.

ebworthen's picture

The Osprey:  ill conceived, poorly designed and engineered, should not be in service - especially not as a troop transport.

NZ Watcher's picture

There would be no worries/problems if M Gaddafi was still alive - in fact - this would have never got anywhere near this stage