Have US Sanctions Failed? The Answer Will Shock You!

one-third of the world is currently being sanctioned by the US government with the United States imposing three times as many sanctions as any other country or International body just take a look at this chart which shows a breakdown of active sanctions across the world the United States leads by a large margin with more sanctions than Switzerland the EU and the United Kingdom combined us sanctions have become the de facto tool that every US president uses to discipline countries they don't like and unleash economic chaos and as Washington Post author Jeff Stein wrote sanctions can Crush

National Industries erase personal fortunes and upset the balance of political power in Troublesome regimes all without putting a single American Soldier In Harm's Way but it leads us to a bigger question how effective have these sanctions been and what is the long-term effect of us aggression across the world this graph is a fascinating look into how US presidents have used sanctions throughout their presidency it starts with Bill Clinton who incredibly removed more sanctions than he passed during his presidency a remarkable feat when you consider what followed next George Bush launched America's war in Iraq and

with it came aggressive sanctions in his fight against weapons of mass destruction Obama followed with remarkable consistency passing almost the same amount of sanctions each year in office which prompted then treasury secretary Jack Lou to publicly warn about sanctions overreach and the risk that their overuse could ultimately reduce our capability to use sanctions effectively however the advice fell on De years when Trump came into power as he became the first president to pass over 2,000 sanctions in a single year targeting China Russia and Venezuela the latter which would come back to completely backfire on Trump

more on that in a moment but then came along Joe Biden who will go down in history as the American president who passed the most sanctions during a presidency smashing Trump's records and issuing over 6,000 new sanctions within a 2-year span make no mistake US presidents have become increasingly addicted to using sanctions but what happens when they don't work no better example can be found than the case of Donald Trump's sanctions against Venezuela the goal of Trump's economic sanctions was simple destroy the Venezuelan economy create chaos and install a coup government that favors the United

States but the sanctions have failed to ous Maduro and only resulted in Venezuela's economy shrinking the most of any country not at war in modern recorded history from 2012 to 2020 just before Venezuela's election this year John Bolton Donald Trump's former National Security adviser admitted to the Washington Post that he knew Trump's crippling sanctions and coup attempt against Venezuela would destroy its economy and force Millions to flee there is no doubt the sanctions along with the general economic deterioration before we imposed them was driving a lot of people out of the country that to me

was a way to put pressure on the country did any Venezuelan vote for John Bolton Donald Trump or Joe Biden to destroy their economy what about Trump who has made undocumented immigrants the Cornerstone of his 2024 presidential run will he take responsibility for literally creating millions of them in fact US government officials aren't even hiding their intentions anymore check out this tweet from former US ambassador Michael McFall who states if there's a peaceful transition to democracy in Venezuela all sanctions will be lifted and the suffering of the Venezuelan people will end it's a bold state

from the former Ambassador because he just admitted that it's us sanctions and not the Venezuelan government responsible for the economic hardships in the country to make matters worse these moves from the US government are completely illegal under international law as this is textbook interference and other Count's Internal Affairs in fact if we look back through US History sanctions have often fallen short of their stated goals in Cuba sanctions imposed by the United States more than 60 years ago have failed to overturn the communist government but who has suffered the most of course the common citizens

of Cuba who struggle to acquire critical medical supplies in Iran us sanctions started over 50 years ago with the goal of once again pushing out the government and forcing change but fast forward to today and Iran's government hasn't change and only pushed Iran to Forge close alliances with Russia and China in Syria Assad remains in power despite 20 years of us sanctions but the country is struggling to rebuild from Civil War and more syrians than ever are expected to need critical humanitarian assistance this year if there is one stat I want you to remember from

today's video it's this more than 60% of all lowincome countries across the globe are now under some form of financial penalty from the US government it's a remarkable figure and shows exactly why we now live in a multi-polar world if low-income countries are being sanctioned and facing economic Warfare from the US government's addiction to imposing these sanctions low-income countries will naturally look for other options this is why we've seen China grow its influence throughout the globe signing up over 150 countries to its signature belt and Road initiative and these are not just lowincome countries earlier

this week it was reported that Italy who last year backed out of China's BR has now rejoined the alliance with Italian Prime Minister Maloney personally flying to Beijing to meet with Chinese officials and sign a three-year action plan to implement past agreements Italy is certainly not a low-income Country and this change represents a larger geopol iCal story that is currently unfolding because while the majority of us sanctions are imposed against lowincome and developing countries the US government is now starting to Target high income countries and even its own allies last month Bloomberg reported the Biden

Administration is considering using the most severe trade restrictions available if Japanese and Dutch companies continue to give China access to Advanced semiconductor technology this is quite a fascinating case study so let's break it down first I want you to listen listen to the words of Eric schmidtt he is the former CEO of Google and currently on an Advisory board for the Department of Defense listen to how he breaks down the current US China relationship the entanglement of China in the US is profound and in fact everyone complains about China but our trade with China is

going up and everything we do to try to prevent things China can nullify in other words if you think about uh the sanctions on Russia over Ukraine China just instead of having iPhones in Russia they have Chinese phones which are quite good the key is to find control points that the Chinese cannot replicate in the case of microchips the US found its control point with Dutch company asml which owns a monopoly in the microchip Market asml is the only company in the entire world that manufactures the machines needed to produce Advanced microchips as you can

imagine both the US and China want access to these machines but listen to Eric Schmidt admit how the US government is using this company against China The Genius of your strategy is that you found a monopoly that exists in one company in the world that we had control over which is asml and that decision allowed you to then put the regime in place Eric doesn't sugarcoat it at all asml has a monopoly in the microchip market and the US government very proudly controls it this is why the Biden regime threatened both economic sanctions against Japan

and the Netherlands both of whom are chief us allies if they don't adhere to American interests what's Most Fascinating about this entire ordeal is the brutal honesty now coming out about these actions just listen to Ana Manuel executive director of the Aspen security forum who states the United States and our friends and allies have been the Undisputed technology leaders for decades and now we have someone who's running the race and running really fast and that's China so the goal here should be for the us and our friends and allies to run faster in this race

there's two ways to win a race one you hobble the other guy and Allan and team are working on that there's another way to do it which is to run faster ourselves to be honest it's pretty cringe to watch someone laugh and admit the US strategy is to officially use the Tanya Harding approach and quote hobble the other guy but just a couple weeks after this conference things have dramatically changed because earlier this week Bloomberg reported the US is preparing to exclude semiconductor equipment makers in the Netherlands and Japan from its latest round of restrictions

targeting China warning the plans are fluid and may change essentially the Japanese and Dutch governments told Gina Rando the US Secretary of Commerce to shove it in the case of the Netherlands they hold the ace card in this ordeal because every country in the world including both China and the United States need the technology that is only available from asml as you can imagine the news was pleasantly received by invest investors here is a screenshot of what happened to asml stock after hours this Wednesday Rising nearly 8% in after hours trading this goes to show

you how us sanctions can influence and change the stock market's Direction and I'll break down a unique opportunity I'm seeing in the market in just a second but first I want to show you another report on why this topic of us sanctions will continue to be a major issue in our world moving forward earlier this week the scmp reported this story that EU firms are resisting the plan to screen private investment into China once again this is a fascinating development that deals directly with us economic sanctions this report admits the eu's proposed plan against China

was coordinated with the United States of course this really means the US government told the European Union what to do and its ongoing economic battle with China the US is forcing its allies to turn down lucrative business opportunities in China which EU countries argue will strengthen the European economy secure new jobs and promote prosperity at least for now EU countries are speaking out and trying to forge their own pathway around us sanctions everyone there's a reason why we follow geop politics and study history because as I've shown you in today's video us sanctions have completely

altered how countries around the world function and influenced how entire Industries adapt and change as militaries around the world prepare for the next generation of warfare there is one technology that will play a primary role moving forward and I'm going to break down this trend and tell you more about an opportunity in the market with today's video sponsor unusual machines which trades under the symbol umac now I've been an active drone pilot for many years and I just returned from China where I spent a lot of time checking out DGI the top drone company in

the world incredibly Chinese companies command around 70% market share of the Drone industry with over 85% of drone components also manufactured in China China is the dominant player of the Drone industry but moving forward things are going to change the US and EU will diversify their supply chains and will help grow the domestic drone Market in the United States and this is exactly where unusual machines comes in they have a unique opportunity to achieve a leadership position in the firstperson view fpv drone Market segment fpv is the most advanced technology for drones and it's these

type of drones that are used by militaries around the world now here is where things get interesting because when a government Gets behind an industry certain bills and laws will be passed to help that industry Advance we've seen this play out firsthand in China as the Chinese government handed out subsidies to grow the domestic EV Market fast forward 20 years and China is the world's most dominant EV producer but now the US government has passed the American Securities drones act which will restrict any US government agency from purchasing drones made in China in addition the

countering CCP drones act will specifically Target DGI with the passing of these two bills and the added demand from the war in Ukraine there is a massive opportunity for domestic drone companies inside the United States now let's break down what makes unusual machine special and tell you another Trend that will also influence the potential of this company let's first start with the retail sales into the fpv Drone Market which generated $4.3 million of Revenue in fiscal year 2023 achieving a 37% year-on-year growth last fiscal year the company operates with 30% growth margins and makes most

of its Revenue as a supplier supplying the components consum cons need to final assemble fpv drones while doing my research about this company one point stood out to me as a major success and that was the fact that this company now manufactures the first usamade flight controller for fpv drones but what's most remarkable is they can final assemble the controller domestically in Orlando Florida at the same price point as Chinese manufacturers in China I was shocked to hear this as China usually holds a large price Advantage for almost all products and industries this is of

course why so many companies go to China to manufacture their products in the first place but unusual machines have mastered the manufacturing process and scal their business in a sustainable way to remain profitable while reducing costs this new flight controller has been certified for use by the US government and is scheduled to be added to the blue framework which is a list of suppliers the US government is allowed to purchase components from the other Advantage unusual machines has is their company structure since they are primarily a component supplier they have the ability to sell directly

to companies who manufacture drones for the government in addition sell directly to other drone companies drone pilots and drone consumers but as the war in Ukraine continues for most likely several more years this once again is another Catalyst that will spur growth for this industry it was reported that Ukraine is manufacturing an estimated 1 million drones in 2024 while Russia is producing 300,000 drones monthly simply put this industry shows no signs of slowing down and according to this survey by drone industry highlights the global drone Market is expected to grow to 54.8 billion by 2030

I'll leave you with one final macro Trend that once again will influence this industry and that is the fiscal budgets of the US government the US government's fiscal year ends on September 30th and all defense budgets must be submitted before this date if government agencies or departments fail to submit their budget before that date they typically lose out on that money so there will be many defense contracts and plans submitted within the next 8 weeks that will positively affect many companies operating in the Drone industry if you are interested in learning more about the American

drone industry and specifically unusual machines I want you to check out their dedicated YouTube channel rootar Riot that has over 276,000 subscribers and many videos about the Drone industry I'll make sure to link their channel in the video description below and if you're interested in learning more about the investment potential of this company I'll also include a link to the website and investor presentation for you and in the video description and once again this is a publicly traded company on the New York Stock Exchange trading under the symbol umac as always please do your own

research before making any Investments and I hope you enjoyed today's presentation and I look forward to seeing you all in our next video soon