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Putin Economic Adviser Warns Russia Will Sell U.S. Bonds And “Crash” Financial System
Today’s AM fix was USD 1,339.50, EUR 973.90 and GBP 802.87 per ounce.
Yesterday’s AM fix was USD 1,344.25, EUR 975.58 and GBP 803.50 per ounce.
Gold climbed $26.80 or 2.02% yesterday to $1,351.40/oz. Silver rose $0.26 or 1.23% at $21.43/oz.
U.S. Dollar Index, 1968-March 4, 2014 - (Bloomberg)
Gold dropped 0.8% today as equities bounced higher after reports that Russian President Vladimir
Putin had ordered troops engaged in exercises in an area which borders Ukraine to return to their base.
Gold rallied to a four-month high yesterday after investors sold risk assets following Russia's military intervention, which prompted the United States to look at a series of economic and diplomatic sanctions to isolate Moscow.
As ever, it is always difficult to be prescriptive and pinpoint price movements on specific events. It is arguable, that gold could have risen over 1.5% yesterday even if events in Ukraine were not leading to a deterioration in relations between Russia and the West.
This is because gold still has strong fundamentals which is leading to robust global demand - especially from China.
However, the situation in the Ukraine is potentially one of the greatest geopolitical risks since the end of the Cold War.
A senior adviser to Putin said this morning that if the United States were to impose sanctions on Russia over Ukraine, Moscow might be forced to drop the dollar as a reserve currency and refuse to pay off loans to U.S. banks.
As newswires reported the comments from Putin’s senior aide Glazyev, the USD Index fell marginally to session lows and broke below 80.00 before recovering.
Russia could reduce to zero its economic dependency on the United States if Washington agreed sanctions against Moscow over Ukraine, politician and economist Glazyev said, warning that the American financial system faced a "crash" if this happened.
Sergei Glazyev, a senior adviser to President Putin, added that if Washington froze the accounts of Russian businesses and individuals, Moscow will recommend to all holders of U.S. treasuries to sell their U.S. government debt.
Glazyev is often used by the authorities to stake out a hardline stance. He does not make policy but has the ear of Putin and would be aligned with the more hawkish elements in the Russian government and military.
"We would find a way not just to reduce our dependency on the United States to zero but to emerge from those sanctions with great benefits for ourselves," said Kremlin economic aide Sergei Glazyev.
He told the RIA Novosti news agency Russia could stop using dollars for international transactions and create its own payment system using its "wonderful trade and economic relations with our partners in the East and South."
Russian firms and banks would also not return loans from American financial institutions, he said.
"An attempt to announce sanctions would end in a crash for the financial system of the United States, which would cause the end of the domination of the United States in the global financial system,” he added.
Late Monday, U.S. President Barack Obama said the U.S. plans to impose penalties on Russia unless it withdraws its military forces, and on Tuesday, Russia reportedly called troops on military exercises back to their bases.
Glasyev’s comments were likely sanctioned by the Kremlin and by Putin himself. They would appear to be a warning to the U.S. regarding isolating Russia politically and imposing economic sanctions.
If diplomacy does not prevail, then trade wars and currency wars will ensue with attendant consequences for the already vulnerable financial system and global economy.
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All corrupt leaders & their minions of theft:
hang 'em high
It takes intricate understanding of the Constitution to be able to render it void.
Golf clap to Mr Obama.
Sometimes, when you are in an abusive family, you hope for somebody to come along and beat the living shit out of your parents.
Thus Americans will eventually be begging for China or Russia to beat the living crap out of America.
Hope and Change you can believe in.
This man is a halfwit.
Last night I watched silver slammed almost 2 percent in a matter of seconds. At the same time gold plummeted almost 3.
Silver was first capped at 22 dollars, and the gradually devalued during periods throughout the day of low volume trading.
Gold was capped at 1350, and the story has been the same... The difference in the two metals is that gold, almost purely a monetary metal, has proven to be more resilient than silver... Silver is invariably more volatile than gold, as it is a much smaller market.
Amazing to me that people actually get paid to analyze a completely manipulated market.
Amazing you think analysis of manipulation shouldn't happen. How did you even know it was manipulated without analysis?
Evidence? Proof? Math?
It's th e only way. As for moves like gold from 1330 to 1350 or back down, that's so tiny it could easily be ignored. Jumps that are smaller than $100 = fucking unimportant.
You are either OCD or betting 1000:1 leverage and pissing your pants.
OCD has no cure but there is medication. 1000:1 leverage has a cure: getting stomped until you're bankrupt, then we don't have to hear your crying once you can't afford a computer anymore.
If we didn't have x-spurts (x: unknown quantity, spurt: drip under pressure) to analyze gold, people might start making up conspiracy theories.
Russia is in the best position to dispose of their T bills because the don't have a lot. About 4 months of QE worth.
China is next, as they have only 1.3 trillion.
Next is the Fed, and they will not be allowed to reduce their balance sheet until China says so.
Last is the public, who will be force fed all of it!
who will move all those dollars bitchez
Just surreal. Watching all of the things discussed here for so long playing out the way everybody knew they would. I really thought we had a year or so before emplosion, starting to look like wishful thinking.
first there are currency wars, then there are trade wars, then there are world wars.
Gerald Celente
Wham! Pow! Splat! Kaplooy!....Kaput!!!
I peeked at the play book and nothing extreme happens until the third week of March, buy the dip 'til then!
"And we will have Bart Simpson sleep with your wife!"
Good Cop - Bad Cop
Putin is playing us like a fiddle, because his ability to take economic pain far outweighs our ability to withstand economic pain. We already have a treaty with UK and the Ukraine that we are completely ignoring.
>>>We already have a treaty with UK and the Ukraine that we are completely ignoring.
The USA has a "memorandum of understanding" with Ukraine and other parties which we are largely, and wisely, ignoring. A US treaty ranks with the Constitution as "supreme law of the land", while "memoranda" do not. Words do have meanings.
"A US treaty ranks with the Constitution as "supreme law of the land""
"Words do have meanings."
LOL? Was that your meaning? Seriously, blind to recent events nullifying all laws but what are dictated by decree of the OPuppet & friends?
And just think, when the next puppet is in office, no matter who, the same power will be used then now you're all accustomed to it.
Russia already has a treaty with Ukraine that allows for 25,000 Russian troops in Ukraine. Putin moves in 100,000 (or whatever the real number is) and leaves with 25,000 in place. Who won that round? Less than a week ago the US was drawing more red lines about 3,000.
Your move.
Can I, a typical American, feel so unrepresented, tossed aside, disposessed, abandoned, marginalized, and disrespected, that my heart leaps with hope when I see Putin kick our supposed leaders in the balls?
Can I feel excited anticipation at the spector of utter collapse of the current unfair, twisted economy regardless of the personal cost and hardship?
How could it get to this?
Is this what I'm supposed to feel?
According to who?
that's "according to whom"-- dative case of advantage-- and they definitely have the advantage.
This is a childish threat. Why did they get invested in US bonds in the first place?
I agree. Yellen would soak up those loses in two seconds. Now, if done in concert with China doing the same.. that's trouble. I know everyone LOVES russia and putin here, but this is shallow rhetoric. Especially because, as I've said before, both Russian and Chinese leaders have MUCH wealth tied up / hidden in the west, and if they provoked isolationalism, that wealth goes poof. Just sayin.
Leverage for just such a scenario.
Who will buy them and in what currency?
Yellen via the FOMC using fiat cells.
Let the default by CUSIP begin.
This is why Putin and the Chinese think they have the upper hand. They have the guts to take such actions- in a game of chicken, Putin will not blink. But the US is ready also -we have FEMA camps set up, Homeland Security has billions of bullets, armored tanks, AR-15s -the drone program is moving along great and we can bring in the heavy firepower drones from overseas to tame the angry mobs if necessary. Putin can threaten all he wants -we're ready Goddamit! There is no threat of rebellion from the American people that our Government cannot control. We'll come out stronger -leaner and meaner from having killed a few hundred thousand (or more) agitators who simply cannot accept their lot in life. God bless AmeriKa. Putin's threats -if carried out - will only make the AmeriKan government stronger -he's plyayng right into our hands - according to script.
They also have the gold....
The US is like a drunk on a pogo stick.
Clearly the solution is to add rockets to the pogo.
Drunken Rocket-pogo! Americka, FUCK YEAH!
The US is like a drunk on a pogo stick.
When did you notice a difference??????
Just crash the whole frickin' ponzi system already will you !
This is how empires end.
nostrrovia!! bitchez
This is how Presidents become Kings....God help us all.
Good thing you already have Lloyd Blankfein doing god's work for ya.
King Obama & archbishop Blankfein ... I wonder how they will carve up the US territory for their new fiefdoms.
You forgot the L in Gold.
Or Dictators.
Dickhead to Dictator.......seems fair!
Dicksucker is more like it. Not that there's anything wrong with that.
Boris is not agree disrespectfully, everything is wrong with that.