We’ve been saying that the United States has threatened economic sanctions against all the countries and banks in the world. The Press now officially agrees.
The new law means that Russian banks that buy U.S. securities after July 1 will forfeit 30 percent of the interest and dividend payments. The withholding applies to stocks and bonds, including U.S. Treasuries. Some previously owned securities would be exempt from the withholding, but in general, previously owned stocks would not.
There is of course a simple solution: Don’t invest in the United States. I’ve been saying this for three years now.