Psaki Admits Sanctions Were “Never 100% Effective,” Has No Gas Price Prediction; Thieves Drilling Into Gas Tanks as Prices Surge

On 3/14/2022, Psaki admitted the administration “never thought” sanctions would be “100 percent effective” at deterring Putin — a major shift from months of messaging that sanctions were the centerpiece of the deterrence strategy. She had no prediction for how high gas prices would go and could not describe what “severe consequences” remained beyond those already ruled out. Biden called the “Putin price hike” “not a joke.” Meanwhile, crime at gas stations surged as thieves used power tools to drill into gas tanks and stole thousands of dollars worth of fuel.

”Never Thought It Would Be 100% Effective”

A reporter confronted Psaki with the administration’s own language. “Prior to February 24, the president, our NATO allies, and the EU were embarked on a deterrence project. That’s exactly the word you and other senior officials used at the time. We can say as a factual matter that that deterrence project failed,” the reporter said.

“When we put in place the threat of sanctions and the threat of consequences, we never thought that that would be fail-proof or that would be 100 percent effective,” Psaki admitted.

The admission undercut months of briefings in which the administration had presented sanctions as the primary tool to prevent Russia’s invasion. VP Harris had said just weeks earlier that sanctions would “absolutely” deter Putin.

No Prediction on Gas Prices

A reporter asked directly: “How high is the administration expecting gas prices to go? Is there a limit at what you think the U.S. public can bear?”

“I don’t have a prediction from here in terms of what it could look like,” Psaki said. “We still believe it will continue to go up, but we’re trying to take steps to mitigate that and reduce it.”

Biden himself framed the crisis in personal terms. “We grew up in a family where the price of gas went up at the pump, gas station — we talked about it at the kitchen table,” Biden said. He called the “Putin price hike” “not a joke” — his second major reason for inflation after pandemic-era spending.

”What Severe Consequences Are Left?”

A reporter pressed on what tools the administration had left after ruling out military intervention, energy sanctions, and other measures. “Other than the things you’ve already done, could you give us some examples of what more you can do since you’ve ruled out all these things?” the reporter asked.

“I’m just not going to outline that from here. Those are conversations that will happen with our national security team and with our partners,” Psaki said.

“You’re asking us to believe that there are severe consequences that you haven’t used yet, but that are not on the ‘no’ list?” the reporter pressed.

“Correct,” Psaki said.

“But you won’t tell us what kinds of things those might be?”

“We’re going to have those conversations privately.”

“What about the argument that there just aren’t any more severe consequences because most of the severe ones you’ve ruled out?”

“That’s inaccurate,” Psaki said — without elaboration.

”Strategic Ambiguity” Removed

A reporter raised a fundamental critique of Biden’s approach. “The key decision made by the President early on was to remove strategic ambiguity from this equation. Never really was Mr. Putin forced to wonder what consequences he would face,” the reporter said. “He was told at the outset he would never face military intervention by the United States and NATO — that the full range of punishments would amount to diplomatic and economic sanctions.”

“I think a lot of people wonder why a greater effort wasn’t made to leave Mr. Putin in doubt about the consequences he might face,” the reporter said.

Psaki defended Biden. “The President is the President of the United States of America, and he felt it was important to be clear with the American people about what his intentions were and what they were not,” she said.

Gas Theft Surges

The video highlighted a disturbing consequence of surging prices. “While it may look like nothing is happening here, the manager at a gas station in Houston says thieves are taking thousands of dollars worth of gas,” a report said. “The van drives on top of the fuel tank. They have a trap door inside their vehicle.”

“We are seeing modern thieves use power tools to drill a hole in the gas tank and steal fuel,” another report said. “The frequency of people drilling into gas tanks has increased. Part of it has to do with the increase of gasoline.”

Fed and Raskin Nomination

Senator Manchin announced he would not support Sarah Bloom Raskin’s confirmation to the Fed. Psaki said the White House was still pushing her forward. “She is one of the most qualified individuals ever to be nominated to this position,” Psaki said.

Senator Toomey noted the Fed was “fully capable of determining monetary policy” with its current members and offered to confirm four of five nominees — an offer the White House again rejected.

Key Takeaways

• Psaki admitted sanctions were “never thought to be fail-proof or 100 percent effective” — contradicting months of deterrence messaging, including Harris’s claim they would “absolutely” work.
• She had no prediction for how high gas prices would go and could not describe what “severe consequences” remained after ruling out military, energy, and other measures.
• A reporter noted Biden had “removed strategic ambiguity” by telling Putin upfront that military intervention was off the table.
• Gas theft surged as prices hit record levels, with thieves drilling into tanks and using trap-door vehicles to steal fuel.
• Manchin opposed Raskin’s Fed nomination; the White House rejected confirming the four uncontested nominees separately.

Transcript Highlights

The following is transcribed from the video audio (unverified — AI-generated from audio).

• We never thought that would be fail-proof or 100 percent effective.
• How high is the administration expecting gas prices to go? I don’t have a prediction.
• You’re asking us to believe there are severe consequences you haven’t used yet but aren’t on the no list? Correct. But you won’t tell us what they are.
• Never really was Mr. Putin forced to wonder what consequences he would face. He was told at the outset he’d never face military intervention.
• Thieves are using power tools to drill a hole in the gas tank and steal fuel. The frequency has increased.
• The second big reason for inflation is Vladimir Putin and gas prices — not a joke.

Full transcript: 1190 words transcribed via Whisper AI.