Putin Advisor Threatens With Dumping US Treasurys, Abandoning Dollar If US Proceeds With Sanctions

Tyler Durden's picture


While the comments by Russian presidential advisor, Sergei Glazyev, came before Putin's detente press conference early this morning, they did flash a red light of warning as to what Russian response may be should the west indeed proceed with "crippling" sanctions as Kerry is demanding.  As RIA reports, his advice is that "authorities should dump US government bonds in the event of Russian companies and individuals being targeted by sanctions over events in Ukraine." Glazyev said the United States would be the first to suffer in the event of any sanctions regime. “The Americans are threatening Russia with sanctions and pulling the EU into a trade and economic war with Russia,” Glazyev said. “Most of the sanctions against Russia will bring harm to the United States itself, because as far as trade relations with the United States go, we don’t depend on them in any way.

From RIA:

"We hold a decent amount of treasury bonds – more than $200 billion – and if the United States dares to freeze accounts of Russian businesses and citizens, we can no longer view America as a reliable partner,” he said. “We will encourage everybody to dump US Treasury bonds, get rid of dollars as an unreliable currency and leave the US market.”



US Secretary of State John Kerry on Saturday warned that Russian military interventions in Ukraine, which have been justified by the Kremlin as protection for residents in heavily ethnic Russian-populated regions, could result in “serious repercussions” for Moscow.

"Unless immediate and concrete steps are taken by Russia to deescalate tensions, the effect on US-Russian relations and on Russia's international standing will be profound," Kerry said.


Kerry mentioned economic sanctions, visa bans and asset freezes as possible measures.


Former deputy energy minister and lively government critic Vladimir Milov slammed Glazyev’s remarks, saying they would put further downward pressure on the ruble, which was pushed down Monday to a record low of 36.5 against the dollar amid fears about the possible outbreak of war.


“That idiot Glazyev will keep talking until the dollar is worth 60 [rubles],” Milov wrote on his Twitter account.

To be sure, a high-ranking Kremlin source was quick to distance his office from Glazyev’s remarks, however, insisting to RIA Novosti that they represented only his personal position. Glazyev was just expressing his views as an academic, and not as a presidential adviser, the Kremlin insider said.

That said, putting Russia's threat in context, the Federation held $138.6 billion in US Treasurys as of December according to the latest TIC data, making it the 11th largest creditor of the US, which appears to conflict with what the Russian said, making one wonder where there is a disconnect in "data." This would mean the Fed would need just two months of POMO to gobble up whatever bonds Russia has to sell.

The bigger question is if indeed, as some have suggested, China were to ally with Russia, and proceed to follow Russia in its reciprocal isolation of the US, by expanding trade with Russia on non-USD based terms, and also continue selling bonds as it did in December, when as we reported previously it dumped the second largest amount of US paper in history.

... especially when one considers the latest news released by the Kremlin:


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Tue, 03/04/2014 - 10:54 | 4506435 Oldwood
Oldwood's picture

Them is fighting words!

Maybe Obama is having a little bowel discomfort right about now?

Tue, 03/04/2014 - 10:56 | 4506440 PR Guy
PR Guy's picture



Well if Putin's adviser doesn't shut up, the British will give them Liverpool football club!! They are losing 50 gazillion a year.



I think you call it 'soccer' in the USA.

Tue, 03/04/2014 - 10:58 | 4506465 slotmouth
slotmouth's picture

That just frees up more bonds for Yellen to buy.

Tue, 03/04/2014 - 10:59 | 4506476 Pladizow
Pladizow's picture

How do you say "Checkmate" in Russian?

Tue, 03/04/2014 - 11:00 | 4506490 Arius
Arius's picture


You suckers you pussies ... you think America is only about money and wont stand for any principles ... you are WRONG!  this country will stand for the truth and the rule of law!  respect the treaties you sign or else ... get it????

Tue, 03/04/2014 - 11:02 | 4506501 dow jones 20000
dow jones 20000's picture

you forgot the /sarc tag bro

Tue, 03/04/2014 - 11:05 | 4506514 Ar-Pharazôn
Ar-Pharazôn's picture

that's the first thing i thought...




he's new... probably a half asleep sheep

Tue, 03/04/2014 - 11:12 | 4506573 Boris Alatovkrap
Boris Alatovkrap's picture

Both is Russian, is Amerikan, act like spoiling child, threaten beat each other with play money.

Tue, 03/04/2014 - 11:15 | 4506590 Fukushima Sam
Fukushima Sam's picture

Man, it is amateur hour over in DC. Putin is pulling a huge psyops and the US can't seem to comprehend it.

Tue, 03/04/2014 - 11:20 | 4506612 BaBaBouy
BaBaBouy's picture

""That said, putting Russia's threat in context, the Federation held $138.6 billion in US Treasurys as of December according to the latest TIC data, making it the 11th largest creditor of the US, which appears to conflict with what the Russian said, making one wonder where there is a disconnect in "data." This would mean the Fed would need just two months of POMO to gobble up whatever bonds Russia has to sell.""


2 Months Of PONZI ???

Tue, 03/04/2014 - 11:26 | 4506667 Hephaestus
Hephaestus's picture

Oh shit the Russians have a secret weapon. Introducing the new "Mach25 eknanreB annihilator"

Tue, 03/04/2014 - 11:35 | 4506729 Fish Gone Bad
Fish Gone Bad's picture

What did the hand say to the face? Slap! http://www.youtube.com/watch?v=dBNZxxoLv7w

Tue, 03/04/2014 - 12:24 | 4507111 SoberOne
SoberOne's picture

Yellen on stanby. The Fed can buy them up with no repercussions. /sarc

Tue, 03/04/2014 - 12:48 | 4507259 balolalo
balolalo's picture

It has been about a decade since we started our last war, we are right on time for another one to boost GDP for the 1%.     But we still have troops in Iraq, Afghanistan, and ....... now maybe the Ukraine?


"Only an idiot tries to fight a war on two fronts, and only a madman tries to fight one on three."  --David Eddings

Tue, 03/04/2014 - 12:49 | 4507262 Hephaestus
Hephaestus's picture

A whole lot of my elders warned me about "Trade deficits" and becomming a "service economy" well looks like they were right. Putin is taking advatage of it right now and for the first time I can imagine the day when other countries might asset strip the US just like we (and others) have been doing in Africa, ME and South America for tens of decades.

My big question is will the Chinese let Russia hang itself and THEN dump paper/strike Japan or do it now to guarantee US failure.

Tue, 03/04/2014 - 13:17 | 4507438 Rakshas
Rakshas's picture

@ the sheeple & Arius

an example of one shepherd that dedicated/spent his life trying to wake the flock to the danger of the wolves just one of so many.......

I don't have a problem with what you believe  but.......



Nugan-Hand bitchez

Wed, 03/05/2014 - 08:02 | 4511037 matrix2012
matrix2012's picture

Yes Rakshas, MICHAEL RUPPERT is a good reference.




And not to miss Dr. Carroll Quigley's "Tragedy And Hope: A History Of The World In Our Time" + W. Cleon Skousen's "The Naked Capitalist".




If they aren't paid trolls but only half sleep those authors will certainly open their eyes and minds!!

Tue, 03/04/2014 - 13:20 | 4507457 Independent
Independent's picture

The Russians do not make empty threats.  If anything happens China is going to do the same.  The end of the dollar supremacy may just become apparent to the world overnight and countries that do not have exchange agreements between them may all  of a sudden have to come up with gold to back their transactions.  It just takes one domino to fall positioned at the right distance to make all the other dominos fall.

Tue, 03/04/2014 - 11:26 | 4506669 Boris Alatovkrap
Boris Alatovkrap's picture

Technical term is "Quantitative Ponzi"

Tue, 03/04/2014 - 18:52 | 4509451 screw face
screw face's picture

Will Russia get a new naval base in the Red Sea?

Maybe around Assab?

Woooh Jah!



Tue, 03/04/2014 - 11:42 | 4506800 BandGap
BandGap's picture

If you don't understand/comprehend the psyops then they really aren't psyops.

Who would have th stupidity could be so useful?

Tue, 03/04/2014 - 12:12 | 4507026 livid levity
livid levity's picture

Speaking of psyops - rumor has it Yanukovych may have deceased yesterday evening from a "cardiac arrest"...Election time in Ukraine?

Tue, 03/04/2014 - 11:26 | 4506666 Bag Of Meat
Bag Of Meat's picture

So you work for the russian army! Explains you missing the past few days, and suddenly when the exercises are over, Boris is back...

Tue, 03/04/2014 - 11:53 | 4506886 Boris Alatovkrap
Boris Alatovkrap's picture

Nyet, nyet, Boris is not army. Boris is six toe on left foot and rejection for army when is young man. Now Boris is extra back nipple, so is very not suitable for army. Boris is very busy exploration of copper mine opportunity and distillation of fine potato spirit!

Tue, 03/04/2014 - 20:39 | 4509879 old naughty
old naughty's picture

Da, da, Boris...

+138.6 billion.

Tue, 03/04/2014 - 12:05 | 4506977 Greater Fool Theory
Greater Fool Theory's picture

Boris, you are my favorite ZH commentator.

Tue, 03/04/2014 - 12:12 | 4507028 kill switch
kill switch's picture

For humor possibly the best!!!

Tue, 03/04/2014 - 11:30 | 4506692 HardAssets
HardAssets's picture

Possibly . . . but the need for <sarc> tags here as of late is rather sad.

Tue, 03/04/2014 - 12:17 | 4507062 Aaaarghh
Aaaarghh's picture

prolly because ZH has inherited a few NSA Trolls to sow discord.

Wed, 03/05/2014 - 04:39 | 4510877 matrix2012
matrix2012's picture

Do not discount out the SOROS MONEY to afford the many trolls everywhere either...


Organizations Funded by George Soros and His Open Society Institute - Discover the Networks



The upper portion of this page is devoted to organizations that are funded directly by George Soros and his Open Society Institute (OSI). The lower portion of the page focuses on organizations which do not receive direct funding from Soros and OSI, but which receive money from one or more groups that do get direct OSI funding.

Read on how many organizations are funded with Soros money here.

Tue, 03/04/2014 - 11:05 | 4506529 BaBaBouy
BaBaBouy's picture

GOLD Will Prevail......... Bitchezzzzz

Tue, 03/04/2014 - 13:54 | 4507667 angel_of_joy
angel_of_joy's picture

you forgot the /sarc tag bro

Hence, the little "hint" of -145 red arrows... and counting.

Tue, 03/04/2014 - 11:02 | 4506503 Pladizow
Pladizow's picture

Hahahahaha- good one!

Tue, 03/04/2014 - 11:02 | 4506504 john39
john39's picture

think you forgot your /sarc tag.   anyway, one wonders if this wouldn't be nice way for the banker cartel and puppet U.S. government to blame someone else for the inevitable economic collapse of the ponzi economy.

Tue, 03/04/2014 - 11:04 | 4506515 fonzannoon
fonzannoon's picture

So if they get really pissed they will dump 2.5 months of QE? and then the Ruble will be completely severed from the reserve currency....and when no one else follows yesterday will look like a great day for them.

Tue, 03/04/2014 - 11:06 | 4506532 Ar-Pharazôn
Ar-Pharazôn's picture

do you realize that China could step in in any moment? especially given the fact that they have territorial disputes with Japan?

Tue, 03/04/2014 - 11:24 | 4506645 Boris Alatovkrap
Boris Alatovkrap's picture

Step in what?

Tue, 03/04/2014 - 11:31 | 4506708 prains
prains's picture

a roadside turd

Tue, 03/04/2014 - 11:35 | 4506739 Boris Alatovkrap
Boris Alatovkrap's picture

You are making racist comment of Amerikan president?

Tue, 03/04/2014 - 11:43 | 4506791 prains
prains's picture

speaking of flatulence Boris, my kids can no longer download a game called Flappy Birds and I was thinking of developing a similar game called Crappy Turds and copy the same idea as the old game. Would you be willing to front some of your copper exploration cash to develop my game? I think it'lll go over huge in China.......

Tue, 03/04/2014 - 12:25 | 4507118 Boris Alatovkrap
Boris Alatovkrap's picture

LOL! You are very smart funny! But, why is fascination with excrement!? Is in closing proximity of high velocity rotational air pressure gradient actuator?

Tue, 03/04/2014 - 20:33 | 4509863 prains
prains's picture

i must be part chinese

Wed, 03/05/2014 - 00:33 | 4510551 jerry_theking_lawler
jerry_theking_lawler's picture

Boris. You must be scientist with all of your fancy technical terms. I'm an engineer so I can 'dumb' it down for some folks. In America we just say THE SHIT HITS THE FAN!

Tue, 03/04/2014 - 12:11 | 4507018 KickIce
KickIce's picture

A co-ordinated treasury dump would certainly make life interesting.  I'm sure Yellen would purchase them but I think it would definitely shake the faith of investors in the Fed/ponzi.

Tue, 03/04/2014 - 11:07 | 4506542 greatbeard
greatbeard's picture

Is that all they're holding, 2.5 months?  I thought they had some serious paper.

Tue, 03/04/2014 - 11:16 | 4506598 Boris Alatovkrap
Boris Alatovkrap's picture

Maybe someone is remind Putin how Rothschild (major shareholder of Federal Reserve fiat currency regime and banksta cartel) is punish Czar Nicholas for impertinent threat and misbehavior. You are think power is in state, but when agent like Schiff is pack train car of gold and send to Petrograd to stir up people, bloody regime change is happen. Don't mess with banksta!

Tue, 03/04/2014 - 11:24 | 4506646 Clowns on Acid
Clowns on Acid's picture

Oh you mean like the 4 5 billion that Victoria Nuland said the State dept spent in Ukraine to oust Yanu K Vitch?

Tue, 03/04/2014 - 11:29 | 4506690 Boris Alatovkrap
Boris Alatovkrap's picture

To quote Rothschild, "I care for not of who is making law, if I am making control of issuance of money"

Tue, 03/04/2014 - 13:16 | 4507429 Catch-22
Catch-22's picture

… paraphrasing… ?

Tue, 03/04/2014 - 20:29 | 4509851 StychoKiller
StychoKiller's picture

Rusglish is controlling in difficult!

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