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Putin Advisor Threatens With Dumping US Treasurys, Abandoning Dollar If US Proceeds With Sanctions
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.”
"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:
PUTIN, XI DISCUSSED UKRAINE BY PHONE, KREMLIN SAYS
RUSSIA, CHINA SHARE SIMILAR POSITIONS ON UKRAINE, KREMLIN SAYS
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The Putin is not playing the O, or didn't you get that yet. The O, as you call him, is not part of this equation....
US presidents are fronts, always have been always will be, precisely because they are elected.
And, more importantly, his blind spot is not the same blind spot that 95% of Americans have:
The single-variable mindset (Lone Hero, Magic Bullet) mentality, which is like being able to solve only linear equations -- in a very non-linear, dynamic and stochastic world. Putin can think in terms of several variables and several moves ahead.
Putin - is the man of his word. If Putin says something, he always does it. He never speaks without a reason or without a guaranteed opportunity to do.
If Putin said that he can would destroy the U.S. dollar, then he has this opportunity to 100%.
We can only think about the mechanisms that it will use to achieve the goal.
Fighting back......with laughter? Russia to dump dollars cares not about nose on face! Teapot tempest vortex? Idle threats to rise as dollar demise? Its a shiny bright can same ole shoe BORIS
While it may be true that Russian direct holdings of UST may be $200 billion, but who holds Brussels, Hong Kong and London UST's ?
Any nation whose manufacturing base is UST's and FRN's is vulnerable. An accomodation between Europe and Russian influence in the Ukraine should have been made long ago.
The U.S. wouldn't tolerate a belligerant government on it's doorstep and Russia isn't going to either.
And I doubt that 1 in 1000 U.S. politicians know that millions more Russians died at the hands of the Nazis than Jews in the Holocaust. Russia will not easily forget the Wermacht racing through Ukraine towards Mother Russia.
It had to happen sometime. Every year we have huge trade deficits the day of this happening gets closer.
Very Interesting....there was an article on a conspiracy website the other day that claimed the Ukraine situation was all a diversion, and it was actually purposefully being implemented to create a scenario that would allow the US to kill the dollar. It was an interesting article but considering the source, didnt give it much merit. However, this morning I read this and wow! Maybe there is some truth to this claim
"Maybe Obama is having a little bowel discomfort right about now?"
Nope. Obama doesn't understand economics.
Or psychology for that matter. At 52 years old, he still thinks people should just do what he wants so he can be happy. The mind of a child.
Here we go china will start dumping and EU will start buying
The only way the corruption can survive is if the players do not start fighting amongst themselves. We know the whole thing is bust. All it will take is a little nudge to CONfidence.
The EU can print euros to buy printed dollars, then Janet can print more dollars to buy those euros. What can go wrong with a strategy like that?
I totally concur. Rotating all this garbage paper around will accomplish nothing if the countries that actually make wealth (microwaves TVs etc.) refuse to accept it. The end result is western store shelves will go empty and stay that way until we can reidustrialize. We might as well start making Euros and greenbacks on our home printers for all the good it will do.
@NelsonMandela
Interesting to note the U.S. seems to be playing both sides of the fence between China and Japan..
China and Japan on the brink of Third World Warsnip
WHILE vast swathes of the Middle East are embroiled in conflict and Ukraine teeters on the brink, many believe the real flashpoint for war is between China and Japan.
Departing U.S. Envoy to China Praises Growing Economic TiesIt would be funny if it wasn't so tragic watching Kerry and Obama kissing Chinese asses, while trying to act tough in the Ukraine where the U.S. has no strategic interest.
When China makes its first move, and the time may be now, especially over some useless rocks in the Sea of Japan, it ought to be interesting to watch Kerry/Obama waltz between the tough guy show and dancing in circles.
Its all fun money, brussels will step as usual. Another Russian bluff *yawn* bring it on...
When you have a battle between tyrants, the one that will win is the one who likely cares the least about what their own people think of them. Obama has let go of some of his dependency on public support, but can he let it all go? An economic war will have costs for everyone and those leaders willing to burn down their own house to win have a definite advantage.
Or in other words, in a war between A-holes, the biggest A-hole always wins.
After listening to report on NPR which stated "there are at least 50 different countries of origin sending terrorist to Syria" I know this isn't a one on one. I would hope Obama understands PUTIN had to invade his own country and long term damage is being done internally accordingly? America is in perfect position to wait and expand its presence in Black sea. Europe will also be on backfoot until spring. The American President can wait for lemons to make lemonade by themselves come summer? Or its hard to dump credit and expect it to take dollar with it doing QE?
Yes! Thank you funny currency, Keep on stackin,
I think im going to get that ZH mug that has gold, bitches on it...
We dare you....make that a Double Dare!
I can picture Obummer with his tongue stuck to a frozen pole
200 billion? That's just 3 month's printing for old Yeller. Unless you get China to go along with your plan then that won't even be a blip. The western banks will simply work together and scoop them up.
Yay then we can own all our own bawnds, like it should be! Self bawndage, kinda like David Carradine.
The fed will own them all eventually.
If any of this really works, then the countries with the greatest debts should have the best economies. History says---NOT.
"The fed will own them all eventually."
Isn't that the plan ? The private owners of the Fed hold all U.S. government debt ? Then they can put the politicians in that they want without having to go through yucky elections.
That is not $200B after "Dumping US Treasurys, Abandoning Dollar."
Correct, one is STOCK, the other is FLOW.
Exactly.
And even if Yellen didn't print it, I'm sure Belgium has another spare $200 billion cash lying around to mop them up.
Sure, Belgium has mired in near-recession for more than half a decade, is plagued with record unemployment, is running out-of-control deficits and for all intents and purposes is basically flat broke, which kind of leaves you wondering where on earth all that cash comes from.
But hey, in today's world of smoke and mirrors and voodoo economics, such inconvenient questions need not be asked anymore.
Consider this a green arrow for your comment.
+5000 for your comment on belgium status econo.
Weird . I cant up vote you.
Tylers....? WTF mans and womanz.
RIPS
you can't up or down vote comments that start with a quote
One cannot vote a comment that starts with italicization (not the (double) quotes)
+10 for economisery's comment... find out these phrases are quite amusing :-)
"which kind of leaves you wondering where on earth all that cash comes from."
in some culture, there's so-called "Money Tree", i'm afraid that the Belgium is sharing the same value.. lol
"in today's world of smoke and mirrors and voodoo economics"
recalling voodoo is normally found in Haiti, but again as said, we all live under abnormality... or one may call it a tragedy-comedy
It is stupid to even threaten to use that card now. What you think the US did not know how much treasury paper russian owns?
Stupid russian showing his cards weakening their future use.
Of course if he took his shirt off, the team here would love it.... Just love outward bravado but not thought out games.
I can't imagine that these guys don't have a 'bit bucket' where they slide a few digital T bills here and there.
The western banks will simply work together and scoop them up?!
For what purpose? To exchange between themselves your fiat money? And who will be sell you oil, gas and goods for your funny fiat paper? All will be require only gold - like Russia. Bathe in its own colored paper, but pay for any purchase (oil, gas and goods) of gold only. LOL
Why in hell would anyone go along with flat earth ideas? China cuts own throat to help Russia? They don't like each other that much outside UNSC! China isn't going to switch sides let alone rock the boat on this one DREAMAZ. Russia takes its hydrocarbons offline and prices rise and specs bring them right back down? China needs demand from America and not another Moscow friend? It would be a lesson to all to really crush this idiot for invading himself!
IMF & BIS bylaws. The IMF is on the front-line in Ukraine, along the US, EU, and the local kleptocrats. Different strokes for different folks and different strategies for different opponents.
teh IMF just wants to be a good friendly neighbor and bail out the Ukraine and get them in on the austerity fun
"It would be a lesson to all to really crush this idiot for invading himself!"
What exactly idiot do you mean - Obama or Kerry?
China, like every other country, cares about exactly one thing.
Energy.
China needs the US only to the extent that the US controls energy flows. As that control rapidly weakens, China goes elsewhere, as evidenced by their increasing use of bilateral non-dollar trade agreements and rapid expansion in Africa. Even the Senkaku dispute with Japan is really about the oil/NG fields in that area (the MSM trivilizes the dispute as "a couple of empty rock islands of no significance"). It is a complete fallacy that China needs US consumers. They have 1.3 BILLION people in their own country, and there are 4.3 BILLION people in Asia. As the US dollar hedgemony ends, and the subsequent buying power of US citizens diminishes accordingly, we will increasingly become merely a secondary consideration in global trade.
Should be great fer stawks I rekin
Obama you can come out from under your bed, bad vlad is gone.
Russia could make a courier/transport service delivering Chinese products from China to Europe using Russia's air transport and railroad.
Best thing could happen to US security right now is a meteorite smashes into John Kerry's skull at a ~12 km/sec.
It would bounce of his hair
fuck!
There would be catsup in the streets for sure then.
Element,
Release the CONAN on that horse!
http://www.youtube.com/watch?v=Ud68cBVIqfc
Seriously...this is how you knock out a horse.
RIPS
Edit: I felt dirty posting arnie...the squids got a tentacle up his ass now. Sigh...the good ol days.
Indeed i prefer to see the meteorite smash into the each den of The Cabals, or at least flat hit a plenum gathering of the Tribe's apparatchiks... imo Kerry is less substantial aside from his pathetic long face
bwahaha...."Check, Mr. President. Your move."
Are we so stupid that we don't realize that foreign governments hold most of our debt and have us by the b$lls?
200 billion is a day on the US printing press.
An economic war is not one Putin wants to start, he will lose that war.
The countries holding our debt is linked at the hips with the US dollar.
at some point, the price of playing along and staying in the international fraud economy outweighs the pain of cutting ties. looks like we are just about there with Russia leading the way.
Bingo! I'm keeping an eye on this as well. You can be sure this is the thinking of all those countries that get bossed around by the US all the while buying buying our debt and giving us the power to push them around. It could end quickly.
Been a long time coming, but yeah, we're getting there.
Watch Oil, Gold and the 10 year. Recent Iran nuclear talks were a tell. Can't have Iran valuing their Oil in terms of something tangible like Gold now can we. Unintended consequence of sanctions; similar to the African Gold dinar. Iranian SWIFT/$ inclusion now back on the table. Now why would that be?
It's all about supporting the $ reserve system. The entire world knows the $ system is living on borrowed time. The cracks are clearly showing for all who have eyes to see. People in the West appear scared shitless of the consequences of any meltdown and are in denial. The BRICs take the longer view where they have less to lose and more to gain although in the short to medium term $ collapse will be disruptive to all.
I remember a time way back, like 5 years ago, when we were gonna be just fine as long as China continued to buy our bawnds. Certainly glad that no longer matters at all, now you and I are the sole purchasers of all this mountain of debt! Oh hooray. No american cares though, $70,000 new individual debt yearly, hey as long as stawks r up.
No mention of not paying back loans to western banks?
"No mention of not paying back loans to western banks?"
There big mention about this in the speech of Glazyev. He said that the total assets of Russia, who want to freeze in the West, is exactly equal to the amount of debts of Russia to the West.
Thus, the freezing of assets of Russia is Russia's refusal to pay all debts. And West biting itself in the ass.
Yeah, that's why I asked, I had seen it elsewhere and was surprised it wasn't in this coverage is all.
Not sure how much $$ it works out to be, but interesting anyway.
If they try to go the Ruble route they will not be able to pay of western loans and crash the ruble further.
Currency code dollar - USD.
Currency Code gold - XAU.
Are there any questions?
Profit always speaks truth in the end, Putin would lose this war.
China may rattle it's economic saber but they have too many single males who would wind up unemployed in an economic war of wills with the US, that amount of testosterone with nothing to do (and no wife or girlfriend) is dangerous and China does understand that.
The dollar sucks but the Ruble blows.
The USA is bankrupt
Like most of the rest of the world.
The difference is we are still creating actual wealth and 0bama is not forever - we can overcome this.
Communism - not so much.
Obama's goal is to create dependency, at home and around the world, for that is the base of ALL power. Obama's legacy of dependency will not end with his term, as we have seen dependency becomes generational, the only thing ending it is death or desperation. We ain't there yet, but lets not be in too big a hurry. The thieves will end up on top of the heap, no matter how small it becomes.
It depends on who follows after 0bama.
Someone with economic balls the size of Putin's military balls could flip the US upside down in 4 years.
LOL @ Creating Wealth.
The US isn't creating anything close to wealth.
We quit doing that some time ago. Now we export FREE-DOOM but like fiat funny money it comes at great cost to all but a few.
Try to think a bit harder. Tell us what are the liabilities behind each of the currencies?
Have you looked at the Liabilities for the ruble vs the dollar?
"Have you looked at the Liabilities for the ruble vs the dollar?"
Dollar - it is not a currency. Dollar - a form of hidden tax on all of us. The dollar is not secured by nothing. The dollar is a product of record high of U.S. debt, which can not be returned never.
Ruble - it is the currency, which secured energy - oil and gas.
The market is trembling, we are only making lifetime highs every other tick.
Its a simple communist incompetence. Ok so sell USTs and receive what in the account? oh is that USD cash in the account? and then they will have official malleability from USG which will make that account = 0
Right. Cause they couldn't possibly hold anything other than USD.
Got Gold? (and ammo..... lots of ammo....)
" because as far as trade relations with the United States go, we don’t depend on them in any way."
What a retard, http://www.census.gov/foreign-trade/balance/c4621.html (add to that US has more than of population than Russia and far higher gdp per population)
Compare the debt per country.
You think GDP is all that matters?
America’s exports to Russia amounted to
$10.7 billion or 0.7% of overall US exports.
1. Machines, engines, pumps: $2.4 billion
2. Aircraft, spacecraft: $1.7 billion
3. Vehicles: $1.5 billion
4. Meat: $858.7 million
5. Electronic equipment: $761 million
6. Medical, technical equipment: $637.5 million
7. Plastics: $397.6 million
8. Live animals: $267.4 million
9. Inorganic chemicals: $190.1 million
10. Pharmaceuticals: $182 million
(Worlds Richest Countries)
Please do it....we deserve it
The condition this article is describing is of course the beginning of the war.
Default by CUSIP. Pissing into the wind, Russia.
Thank you very much, mission accomplished.
A total bluff, as the Russians have already been bypassing the dollar.
http://www.marketwatch.com/story/china-russia-to-drop-dollar-in-bilatera...
The fact that the Russians have dumped the dollar in their bilateral commercial exchanges does not mean they didn't use the dollar as a tool to align with efforts by CB's in order to stabilise the currency markets. This is the kind of speak that throws the currency wars right into the open. AND possibly, with heavy geopolitical consequences.
that would be the perfect play. fed can print and take all sellers...then ruble has even less convertability a la ussr. putin mistakes obama/kerry lack of skill to us financial systems almost complete control of global forex
Stupid remark by a brown-noser trying to court the Putin's favor. Wasting a fairly valid threat for no gain.....
The Greenspan/Bernank/Yellen could just print enough to buy up whatever the Ruskies have dumped with no damage.
The Russians lose whatever leverage they have based on this morons bravado..
No sarc tag huh ?
If the Maseltov's you mention can just print and buy, why issue to begin with...just print. Dumm Fuck.
They don't need to print to absorb the paper, in fact there is already an EXCESS of US paper that has been exported, this is simply taking a chunk of it and marking it RETURN TO SENDER, which actually puts pressure on the FED to TIGHTEN, not print (over time).
Apparently Obama isn't the only one playing checkers, but I'm quite sure his advisers at Treasury, FRB, and CEA are quite aware of the basic mechanics and dependencies of the "reserve currency game."
but Russia likes Canadian wheat to feed themselves
Finland kicked Russia's ass (even though Finland was badly outnumbered and had inferior weapons) by drawing out the battles and starving the Russian fuckers in 1939.
Russians can't feed themselves. That's the boot that needs to be placed on Russia's throat - and then gently push down on - hard!!!
Jawohl, mein Fuhrer
How exactly does one push a boot down on somebody's neck gently but hard?
You should not try to show your ignorance. Russia - a world leader in the export of wheat and other grains. Take my word that without spaghetti of durum wheat from Canada, Russia will be able to live and is guaranteed to destroy any aggressor. Or the entire globe, with 4x power reserve.
Ben threw around 17 trillion during the crisis. If China and Russia dump their paltry holdings relative to that, how will this matter? There will be a concerted effort by all western cbs to absorb them, which wouldn't be an issue at all. Shit man, yellen could take care of a trillion in the blink of an eye.
What matters is what you can buy with it. I doubt many exporters will accept USD exclusively as payment after such a move. Then you will see what all those trillions actually mean for the value and status of the Dollar.
you really want to make that bluff if you are Russia? I guess in a way they did. I'd call them on it today if I was Obummer.
I know that whoever tried to make this bluff in the past was either invaded or violently deposed. So there must be something in it.
Now that the threat has been made, regardless of what happens in Crimea, how long until the USD is dumped? Basically the Russians have come out in the open and said the USD is vulnerable, the US cannot really support it, or enforce it as global trade currency anymore and frankly if we walk out, it is the US that will suffer the most. So everyone with half a brain right now is beginning to realize that there is something deeply wrong with the Dollar.
After this statement, it is only a matter of time before the reserve status of the Dollar disappears.
What I've yet to see in these comments is the fact that dumping $200M in Treasurys occurs AT THE MARGIN. The idea that Old Yellen already prints that much does not take into considerations that it will take extra printing to keep up with the extra pressure on marginal sellers.
Especially OTHER marginal sellers, who due to leverage, will be forced to liquidate.
The size of Russian holdings isn't the entirety of the problem, but rather, represents the size of the activation energy they can direct at the margin.
Add in China, and I can see this whole mess unwinding in milliseconds, if that's what "someone" wants.
I miss the time when Kissinger was in charge. There used to be a time when back channel diplomacy meant something. Kerry is a f... clown and this circus is not good for anyone, unless Mrs. Merkel is wise enough to profit from these idiots. Unfortunately, Prussia Germany never understood the importance of the Black Sea, and here I am talking as far back as the 1850s. The West should realize that a compromise has to be reached, with spheres of influence: Crimea for Russia, without Russian troops and Kiev under a NATO protectorate, and democratic. Kiev has to be the new West Berlin, to show the Russian people that there is hope, a way out, so to speak. Problem is...hope with whom? With Obama? With Barroso/ Van Rompuy? Exactly! The west lost all credibility or moral standing. In this context therefore, the best we can hope for here is that Ukraine remains unoccupied by Russia and outside of NATO. Otherwise, we are set for a repeat of WWI mistakes.
Yes, JK is a notable star in the diadem of the current Clownacracy.
(BO to JK: "Spend some money dude; buy us some time here. And don't mention any movies- that hasn't worked since before that Lybia thing.)
Hold on, I want to make sure I'm understanding your argument...
So in your mind, Kissinger represented "credibility and moral standing"?
You're either a sicko, or an idiot...maybe both?
Thanks for the in-my-face conclusion....Please, go back and read a bit of history. The case for west Berlin (credibility/moral standing) was pre-Kissinger. And in all events, it has always been a relative concept: Did you trust Eisenhower/Dulles/Kennedy? Or did you trust Stalin/Nikita Khrushchev? I thought so...Kissinger, on the other hand, was a master in opening gambits, which as far as I know, require credibility. If you do not believe me, all you have to do is read what he did with Mao. You have to thank Kissinger for being able to spend your worthless US dollars today buying chinese goods. Finally, Kissinger was a Realpolitiker. He never believed in moral standing, and if you are going to judge him on moral achievements, you don't understand anything about this world. Go back to kindergarden and watch Walt Disney's movies.
I've got some news for you: the only "Realpolitiker" that I see in this sordid game is.... Vladimir Putin even if he may not be winning this round (we'll see).
Credibilty only matters to those who can't be bought. Current governments are all trying to buy off everyone they can and printing and stealing the money to do it. The only credibility that matters now is if the check will clear.
What you're missing is merely the lack of a credible facade. Kissinger is obviously a skilled operative, but he was really just doing the same song and dance that they do today.
The only difference for him, is due to his skill. So they promoted him to bandleader. "Kerry" and Obummer, meanwhile, couldn't lie themselves out of ANY situation, as they are simply too narcissistic to understand how to feign empathy and compassion.
I think the US should immediately make available up to $ONE BILLION so the Ukraine can keep up the payments on its Russian loans........
old yeller spends moar than that on reptilian face paint
It's time that the BRIC's rolled out a gold backed trade note. Drive a stake through the heart of the central bank cartel so that we can all get some peace.
Yeah a gold-back BRIC note would bring global prosperity and peace. There seems to be a large and vocal contingent of idiots on here that believe that.
"Yeah a gold-back BRIC note would bring global prosperity and peace. There seems to be a large and vocal contingent of idiots on here that believe that. "
Here much more idiots, who continue to believe in the U.S. dollar. What lost for 100 years, 99% of its purchasing power.
BATHHOUSE BARRY HAS A PLAN!!!
It's called the destruction of America!
Pop! Goes the Weasel!!!
How can west support this Ukranian Gov...??? Do some google and see who those MP´s are..... here is a good start:
http://www.globalresearch.ca/ukraine-transition-government-neo-nazis-in-...
Freedom Party, earlier National-Socialist Party
"If any of the MPs of almost any of the Western countries – except Hungary, obviously - would allow him or herself to imitate a pale shadow of the speeches which were repeatedly heard from the podium of the Ukrainian parliament, the speeches produced by the Freedom party MPs, that Western parliamentarian would find him or herself in jail instantly."
It would be interesting to know what is going on behind all the smoke and mirrors? There is more to this story than being reported, were being played.
The USA will sanction Russian, then China and Russia dump their treasuries. Then the USA starts defaulting per CUSIP.
Yes, and don't forget that China and Russia just pulled closer together. While Russia might only have $200 billion to dump, China is another story altogether. Methinks that Russia dumping its $200 billion would be a big deal in and of itself.
Kerry is so pathetic. The bottom line is that the US doesn't have a lot of leverage.
We hear much that Obama and the CIA were in there trying to destabilize Ukraine. If this is the case Putin knows it, and Obama knows that Putin knows it. Why keep up the farce? I wonder if Mr. Snowden has/had the goods on this. If the US did it, then we have a whole lot of egg or our face.
This is the way of every great empire...get ahead and then sit on your laurels. Churchill went apes*&t when the Brits started to do that circa 1905.
The WHAT-IF's:
- We let Wall Street fail whenever necessary
- We never propped up failing banks
- CONgress did its job
- The Federal Reserve was neutered
- We closed a few borders and dealt with immigration based on law
- We ended the welfare state as we currently know it
- Our foreign policy came from anywhere other than the Military-Industrial Complex and a FAILED State Department
- Bonus: What if our State Department actually represented America?
Just a few in a long lines of "what if's" that would make all the difference in the world...
China's silence.......is scary !
AND YELLEN GOES, "wooof wooof"
Alsace and Lorraine, Sudetenland, the list goes on.
I think everyone should dump everything and buy Mazacoin. That would teach the status quo a lesson. The Indians would be the boss.
http://rt.com/usa/native-american-nation-bitcoin-632/
Its all pretty sad to think that the world sees American treasuries and stocks as a flight to safety. We really are fucked. I mean the whole world.
Yes indeed, the world needs a new plan desperately.
"Yes indeed, the world needs a new plan desperately."
Yes, Putin's plan.
that would be rather deliciously ironic, especially considering all this tough talk about "honoring treaties".
Wake up America, you are just a Debt Slave. The greatest debtor the world has ever seen does not tell others how to behave.
Sure they do. They say you have much more power over the bank if you owe millions than if you owe hundreds. Everyone knows that America is the shitty glue holding this failed experiment together and none of the monied folk want to see it end, regardless of how fucked it is. We all know we are going to die and the closer that time comes the more unavoidable the idea becomes, but that doesn't stop most people from undertaking the most desperate and extreme measures for just one more day. Look what its done for the medical industry. Yet we still have a 100% mortality rate. The more dire the prognosis is, the more determined we become to survive. The whole fucking thing is simply Too Big To Fail. The alternative is death as those in power see it. The trick is to keep us alive, just hanging on, so we too will go along with this debacle, desperate. How do you think Obama got elected anyway?
Sell your soul? Then you shouldn't be surprised when the devil owns it.
Our government has sold our souls and they have been packaged in a securitized bond by Goldman. Does anyone know the maturity on this one?
Currency Wars: The Yuan's Silent Scream - Portrait Of A Derivatives Bomb Being Detonated
David Kranzler published a very interesting article confirming our discussion about the ongoing Financial War involving USA, Russia and China now. Bo Polny on the chart above presents his view about the implications of US Dollar crash below 80.00 level for the Gold market and you can find our thoughts on the links below. http://sufiy.blogspot.co.uk/2014/03/currency-wars-yuans-silent-scream.ht... Ukraine and Peter Schiff: Recovery Fantasy, Dollar Crash Below 80.00 And Gold "Wall of Worry". TNR.v MUX GDX
"Obama can have his own war finally after the few unsuccessful attempts with YouTube evidence in Syria. We do hope that it will be only Financial War and we can see the first rounds of it this week. Initially US Dollar went up on the escalation of the situation in Ukraine - as any potential military action in the world is supposed to be positive for the U.S. Military Complex, but on Friday with major headlines from Moscow about Ukraine Dollar has dived decisively below 80.00 to the 79.78 close. After these U.S. actions in Ukraine considered as an insult by the Kremlin the least you can expect is selling of the US Treasuries by Russia and, maybe, already accelerating of selling by China as well. They have been already smelling the rat about the USTs Game Of Musical Chairs for a long time. It is just too personal. None of these two countries - or it will be better say leaders - would like to be liberated next in any circumstances. Dr. Paul Craig Roberts - former US Treasury official - has made the best comments on the situation in Ukraine."
Sergei has obviously been reading zerohedge.
Now THAT'S how you start a war!
US can't do anything militarily to stop a massive Russian ground assault if Putin went that far because the rest of NATO would do nothing. French and Italians have already said they won't militarily intervene, Germany has been very quiet, ditto Turkey, and even the UK hasn't favored military actions. The only ones who have said anything are the Poles and Czhechs and they are yelling into the wind. EU isn't even going to issue any meaningful economic sanctions.
Russian threat about dumping Treasuries is a completely idle threat. Russian central bank had to just raise interest raises dramtically from 5.5 to 7 yesterday (highest since Russian default in '98). Already facing a nasty issue on capital flight withdrawals and if this keeps up a forex reserves issue.
Russian oil production costs have dramtically increased too and the current Russian budget which has dramatically increased is heavily dependent upon oil and natural gas to fund it. Putin has had to dole out more to keep Russian rank-and-file happy and that has become increasingly expensive too. If oil prices to collaspe and go below $80, the Russian budget would be trouble. At $60 or below, real trouble. Still goes back to the fact that Russia exports almost nothing of value to the rest of the world besides physical commodities and military hardware/weapons. Almost nothing in terms of services and very little in terms of higher-value manufactured goods.
I didn't junk you but i don't see oil ever going under $80 a barrel barring some new oil gusher find that doesn't require one barrel of energy to extract 3 maybe 4 barrels...
No it won't especially as China (and to a lesser degree India) adopt more and more autos. Almost all online oil production that has come on line since '10 has been in the US and Canada and in the US it is due to the regional and small firms who are fracking like mad which can't turn a profit at below $75-85/barrel depending upon the formation.
Your hypothesis is brittle and overlooks a catch22. If Russia and/or China were to dump Treasuries, your assumption that oil would remain priced in dollars at those levels --or at all-- would immediately be rendered largely meaningless. Tens, and perhaps ultimately even hundreds of $trillions in interest-rate derivatives alone would instantly be called home to roost. We're talking here of a house of cards made of thin sheets of glass stacked all the way into the hard vacuum of Space.
Russians don't matter economically on a global stage and you seem to miss that simple fact. What they do with there energy reserves does but there entire budget is dependent upon the revenue it brings it.
It only matters what the Chinese do at this point. You have an overly simplistic view of forex reserves/trading and what Russia dumping Treasuries would do if they undertake that on their own. They would be standing out with their dick in the wind.
You did not read, that said Russians. Or you do not understand what they said. The question is not that Russia reset Treasuries. Question is that Russia will start selling oil and gas in exchange for gold. And buy goods in exchange for gold too. Checkmate.
It doesn't matter whether the threat was realistic or not. Russia is the de facto child that cried out that the emperor is naked. The cat is out of the bag. Now that they made the threat, any state or entity can threaten to dump US treasuries. So it might not be in this"Crimean" round, but what about the china/Japan/Taiwan/Philippines thing?
This should make western bankers shit in their diapers.
Can we PLEASE put the children in time out and put some adults in Washington?
Is this too much to ask?
The US has had it's own Neo-Nazi coup without the armbands.
No kidding. the most collectively inept administration in the history of the country...
The only thing getting a time out is Obamacare, to keep it limping along you understand.
The dumping of Treasuries has been an obvious option all along. It's puzzling therefore that Kerry & co. seem not to have gotten the memo. I can only conclude that the core power structure of the West is fragmenting faster than I previously believed; either that, or the world is an even greater kabuki puppet theater than my wildest thoughts on a global elite conspiracy previously conceived. How deep is the rabbit hole? Occams Razor suggests ... what??
I think it suggests a priviledged class in the West that is so out of touch that it expects the chess pieces to just move themselves around the board always to the priviledge class's success. That's why Kerry doesn't know how anything works, he's simply supposed to come out on top after he makes some gestures and says some words.
I believe many political orders find their termination in this way, Ceausescu, the French Aristocracy, etcetera. The list is as long as history.
True story, and your point is well taken, yet the number of unanswered questions make it difficult to accept that nothing more diabolical than sheer, mindless arrogance alone is at the heart of it all.
Hubris works like that.
God is English ,and plays cricket didn't work too well in WWI.
God is American, and plays baseball will fare no better.
1. $200 billion is a relatively small amount. They'd have to get China to go along
2. Russia ruble is sinking fast.
3. Russia's economy is not diversified. Mostly oil and gas. They are more vulnerable than USA
4. Putin is a blowhard when it comes to world economics and somebody in Russia is going to tell this tard to shut up fast.
"Russia ruble is sinking fast."
Against what exactly do you see the sinking Ruble? Against the U.S. dollar, which becomes garbage, after Russia will start of oil and gas trade in exchange for gold?
Well, Ruble will be pegged to gold, oil and gas.
And garbage-dollar will be pegged to the U.S. debt only. LOL