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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 - 11:29 | 4506687 TalkToLind
TalkToLind's picture

Pressflow? Site not available again?  Server infrastructure, bitchez!

Tue, 03/04/2014 - 11:30 | 4506694 q99x2
q99x2's picture

So the FED sold out the US by selling bonds to Russia and China...arrest them for treason. End the FED

Tue, 03/04/2014 - 11:37 | 4506763 Sufiy
Sufiy's picture

China and Russia are ready long time ago...


Koos Jansen: Chinese Physical Gold Demand YTD 369t Up 51 % Y/Y 

 Koos Jansen continues his remarkable work reporting the real demand for Gold in China. According to his information this demand is on track for another record annualised so far and is up 51% on Y/Y basis. Geopolitical shift with the Ukraine situation will only add to this fire and ongoing Financial War will claim its victim US Dollar.

Tue, 03/04/2014 - 11:38 | 4506770 Addicted
Addicted's picture
Reports Ousted Ukrainian President Yanukovych Dead

Unconfirmed reports he died from heart attack. Any one knows / heared more?

Tue, 03/04/2014 - 11:40 | 4506789 Stuck on Zero
Stuck on Zero's picture

I'm beginning to think that Crimea is to Obama as the U.S. embassy takeover in Iran was to Carter. 


Tue, 03/04/2014 - 11:42 | 4506806 MeBizarro
MeBizarro's picture

This threat only matters on what the Chinese do.  Russians in terms of pure economic policy don't mean $hit globally.  Only their energy reserves and nukes matter on a global stage and on a regional stage (including adjoining neighbors) their sheer size of their land forces.    

Tue, 03/04/2014 - 12:55 | 4507309 Urban Redneck
Urban Redneck's picture

Let me translate what you just wrote into practical terms; The energy industry in terms of pure economic policy doesn't mean shit globally. See the problem?

Tue, 03/04/2014 - 11:42 | 4506807 blindman
blindman's picture

MONDAY, MARCH 3, 2014 FULL SHOW | HEADLINES | NEXT: XL Dissent: 398 Youth Arrested at Anti-Keystone XL Pipeline...
Who Is Provoking the Unrest in Ukraine? A Debate on Role of Russia, United States in Regional Crisis
"RAY McGOVERN: Well, I’m glad that Professor Snyder mentioned Canada and Mexico. Flip this over and consider Putin or Lavrov, the foreign minister, handing out chocolate chip cookies to violent demonstrators in Mexico City or in Ottawa or in Toronto. You know, our near frontier is sacred to us. We even used to have something called the Monroe Doctrine. And so, mirror-image that to how Russia looks at things and how they feel tricked, really tricked, when in a position of weakness in 1990, 1991, Gorbachev said, "All right, all right, East Germany, we’ll pull our troops out of East Germany. You can have a reunited Germany, if that’s what you really want. But, you know, let’s stop there. Let’s not get the Warsaw Pact countries into NATO." And, of course, that’s precisely what we did.

And so, you don’t have to be paranoid to be a Russian and say, "Now, wait a second. Here’s this conversation." I’d say it’s a very telling conversation. It goes on to say, this fellow, Yats, you know, Yatsenyuk, he knows about economics: He used to be head of the central bank, and he knows he’s got to do suicide politically because he’s got to—he’s got to cut back on things—no more food stamps, equivalent, that kind of thing—so that they can meet the conditions of the IMF and Western Europe. You know, it’s not so hazy. It’s a choice between the EC and Western Europe and the Western Ukraine and the Soviet Union(russia). And in this case, the Soviet Union(russia) has all the cards. And so, somebody [inaudible] should say to the president, "Look, Mr. President, you know, however much we would like to have regime change according to our own wishes, there are strategic realities that we have to remind you of, Mr. President. And one of them is that Putin and no Soviet(russian) leader is going to abide NATO infringing on the Ukraine.""

Tue, 03/04/2014 - 11:42 | 4506808 BeetleBailey
BeetleBailey's picture

All this nonsense because Putin wants a warm water port - so he can water-fucking-ski.

Hey up a nice piece of French property, near Nice....and fuck off

Tue, 03/04/2014 - 11:47 | 4506845 fijisailor
fijisailor's picture

Yeah.  Let's go water skiing in March in 48 degree F water.

Tue, 03/04/2014 - 12:28 | 4506842 falak pema
falak pema's picture

This Guy must be a TD of ZH club. He sounds very familiar! 

But to get back to the chase of financial fun and games :

 Wall Street Has Found Its Latest Dangerous Financial Product, Activists Warn

And this should make the City n Cameron  very nervous : 

Ukraine : le document pro-russes qui enflamme Londres

Tue, 03/04/2014 - 11:48 | 4506853 mutty
mutty's picture

announcing a "forced sale" ahead of time is a really stupid thing to do.

We plan to dump all of our xyz holdings. We plan to lose a ton of money on this sale as the market flash crashes against our liquidation. We'll be angry when the price rebounces after we are finished. We will drink more vodka.

"When you gotta shot, shot. don't talk" - Tuco.

Tue, 03/04/2014 - 11:50 | 4506870 the not so migh...
the not so mighty maximiza's picture

announcing a "forced sale" ahead of time is a really stupid thing to do.

Unless they don't really care

Tue, 03/04/2014 - 11:57 | 4506920 magpie
magpie's picture

It isn't about selling or dumping anymore, at this stage it is about goading the USA into defaulting.

Tue, 03/04/2014 - 11:53 | 4506881 medium giraffe
medium giraffe's picture

It's spelled 'short', Tuco. :)

Tue, 03/04/2014 - 11:53 | 4506892 MeBizarro
MeBizarro's picture

Because it is nothing more than saber rattling and foolish saber rattling at that.  'Jethroes' ZH crowd on here doesn't get that. 

Tue, 03/04/2014 - 12:10 | 4507008 Pullmyfinger
Pullmyfinger's picture

Consider the wild possibility that may be wrong. A pre-announcement would actually tend to amplify the intended effect. Bear in mind that men and material come with a price too; so if one is contemplating some kind of attack, or even just threatening to do so, the bottom line may not be as conventionally self-evident as you think. Besides, I believe the BRICS have been preparing for just such an event for some time now. Time to shut down the US war machine. Stranding all our troops and bases overseas with no means of resupply or even a meaningful paycheck might just be best of strategies. No one likes a bully, and the world is literally sick to death of this one.

By the way, the word is "shoot," not "shot."

Tue, 03/04/2014 - 12:28 | 4507138 medium giraffe
medium giraffe's picture

It could be 'shit'...?

Tue, 03/04/2014 - 11:52 | 4506882 noless
noless's picture

It doesn't matter if they could pomo the debt Russia could drop on the market away, without the dollar being a viable methods of international trade its just hyperinflation in the homeland.

Tue, 03/04/2014 - 11:53 | 4506887 crash commando
crash commando's picture

200 billion?  Pocket change.  FED prints that every quarter.

Tue, 03/04/2014 - 12:10 | 4507007 Old_European
Old_European's picture

Wrong. Not all money (or rather "currency") is equal. Look at the position of sovereign debt in exter's inversed pyramid.

Tue, 03/04/2014 - 13:44 | 4507610 buzzsaw99
buzzsaw99's picture

how is that wrong? the fed damn sure does print moar than that every quarter. not only that but putin LOVES WESTERN CURRENCY. Otherwise why doesn't he take his $200B and buy as much Ruble as he can? I'll tell you why, because the man is a kleptocrat in bed with western central bankers.

Tue, 03/04/2014 - 14:19 | 4507844 Old_European
Old_European's picture

Again, watch exter's inversed pyramid: 200 billion of sovereign debt covers a multiple (up to 100 times) of that amount in other liabilities...

Tue, 03/04/2014 - 11:55 | 4506901 syntaxterror
syntaxterror's picture

Don't depend on the US in any way? B-b-b-but, what about Tweeeeter? And FagBook? Or the iPad?

Tue, 03/04/2014 - 11:55 | 4506903 Seize Mars
Seize Mars's picture

G Edward Griffin called this in the early 60's.
America will be brought low while the soviets are seen as good and reasonable.
Remember: nobody, nowhere, moves real money around, or changes important policies, without the Great Eye calling the shots.
This is all scripted.

Tue, 03/04/2014 - 12:27 | 4507132 Pullmyfinger
Pullmyfinger's picture

This is what I'm thinking. Back then it was all wrapped up with "the communist conspiracy" and similar buzzwords. Too bad they didn't understand they were actually talking about the banking industry.

Tue, 03/04/2014 - 11:56 | 4506913 Cow
Cow's picture

Up Next?

Obama needs some pelts.  They won't be Russian.  He'll invade Somalia or find an aspirin factory somewhere

Meanwhile, watch China and Japan/Taiwan get after it while everyone is watching Ukraine.

Tue, 03/04/2014 - 11:59 | 4506926 BudFox2012
BudFox2012's picture

Thus the need for Myra accounts to be voluntary (you will be fined if you don't volunteer).  Who else is going to buy worthless Fed debt if old yellen keeps tapering and the Chinese and Russians dump theirs?

Tue, 03/04/2014 - 12:13 | 4506954 Reptil
Reptil's picture

NATO live feed

edit: that was short - they're going to meet tomorrow

Tue, 03/04/2014 - 12:02 | 4506959 medium giraffe
medium giraffe's picture

Now THAT'S a JPY move.  Ffs.

Tue, 03/04/2014 - 12:04 | 4506965 rsnoble
rsnoble's picture

Predicted: EOW, March 4th, 2014. the script so well written and followed it has dates that are reliable enough to follow:

This is much more exciting as I just discovered this a few weeks ago and now only have to wait "1 Day" to total destruction instead of decades for some 2012-like event.

This should be good for DOW 2k+ on March 5th. LMFAO.

Tue, 03/04/2014 - 12:12 | 4507023 rsnoble
rsnoble's picture

Oh is the 4th. LOL.

I admit this is a very interesting subject to come when this article predicts March 4th and Russia just happens to announce dumping.

Tue, 03/04/2014 - 12:05 | 4506975 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

I just came in from doing some work. Got online….Let's see…oh..another 14 year high on the NASDAQ. What crisis?

Tue, 03/04/2014 - 12:08 | 4506991 homiegot
homiegot's picture


Tue, 03/04/2014 - 12:09 | 4506999 Quinvarius
Quinvarius's picture

Of course the dipshits in the USA could not leave well enough alone and had to keep going with sanctions.  Guess what shiney metal is the US banking system's weak point? 

Tue, 03/04/2014 - 12:11 | 4507013 Toolshed
Toolshed's picture

This entire incident is the product of US amd EU idiocy. They are the instigators, not Russia. What has been demonstrated for all who care to see, is that our leaders in the US and EU primary concern is profit, as in money. Russia's leader, on the other hand, appears to have quaint notions of national pride and self-repect. In other words, the US and EU are now the "bad guys" and it is Putin wearing the white hat. This is our own fault as citizens, we have allowed the money grubbing whores to take over our nations. I think the end result is fairly obvious at this point.

Tue, 03/04/2014 - 12:16 | 4507048 rsnoble
rsnoble's picture

Maybe the US somehow felt that since it had a treaty to protect the Ukraine that Russia wouldn't dare do this?

I wonder where Russia could've possible got the idea that it's ok to break the rules?  Certainly not from Burger King lol.

Of course that's just human nature and much like the constitution--when everythings on the line it's just a piece of paper.

Tue, 03/04/2014 - 12:28 | 4507140 elwind45
elwind45's picture

Invading your own country while the Olympics are going on is the US or EU fault? Leaving that tidbit aside dont you think PUTIN already bent himself over issuing threats? Cutting off the gas in May wont be apart of the plan. However keeping his ass tied down while we build in Black Sea is going to cut that toe off? Even if he reaches the water what will he see? AMERICAN LHT's and European technocrates. Bonus play is media fear. Scaring the old folks OBVIOUSLY underway? Collecting 1960 era desks for fear training 10..9...8........

Tue, 03/04/2014 - 14:01 | 4507715 AnAnonymous
AnAnonymous's picture

Another 'american' who snapped.

All these brutal facts about the reality of Putin's brilliant efforts into defeating the negro in Washington DC cant be heard by in control 'americans' They cant emotionnally take it.

Waiting five or six years to say the same will lead to collect tons of green arrows instead of raging red arrows.

The speech should be saved for later times.

Tue, 03/04/2014 - 12:15 | 4507041 elwind45
elwind45's picture

Dumping dollars everytime a yank opens his pie hole is that the plan? Like the last idiot proclaimed "bring it on"! Dumping dollars means you will need more later and good luck with that one PAL! The Federal Reserve Bank Of New York will be available when you start "dumping" and will assist you in your task in everyway. One thing don't expect it to be as easy getting them back! Our system retires this creditt from circulation and this amount today will be much less now and in the future! This credit will be match with production whenever it occurs in the future however American Corp. Will gain top priority to this credit going forward!

Tue, 03/04/2014 - 12:17 | 4507064 kenezen
kenezen's picture

It's amazing that with the latest Socialistic Budget just presented by this President and, with the actions of Putin wisely protecting Crimea an autonomous region with it's own Parliament against a reckless new Government beginning in the other parts of the Ukraine, we are seeing one Socialistic Nation (America) protest a Capitalistic area Russia and Ukraine in their growing pains.

Tue, 03/04/2014 - 12:18 | 4507078 magpie
magpie's picture

Thursday - USA and Canada, together with several East European EU members announce sanctions against RF

Middle next week - Ukraine defaults on obligations to RF

End of next week - Reports emerge of the USA terminating bonds per CUSIP

Tue, 03/04/2014 - 12:24 | 4507112 Gavrikon
Gavrikon's picture

As a gold owner, I say, "DUMP THAT SHIT!!!!  DUMP THAT SHIT!!!!"

Tue, 03/04/2014 - 12:28 | 4507137 firstdivision
firstdivision's picture

China would not side with Russia as the Chinese are very dependent on us to buy their shitty made goods more than they depend on Russia.  Also China hasn't forgotten about the Sino-Soviet spat.  The Chinese love to hold their grudges for generations.

Tue, 03/04/2014 - 12:34 | 4507179 magpie
magpie's picture

The Chinese are kind and forgiving people, especially kind and forgiving to CIA-sponsored axe murderers...

Tue, 03/04/2014 - 12:29 | 4507147 CEE
CEE's picture

Wonder what would they do about the 200 billion dollars received? Yuan or Euro?

Tue, 03/04/2014 - 12:53 | 4507296 TSTM
TSTM's picture

Physical gold? London and NY would be slamming it to suppress the natural rise that would occur on such a move by Russia. Why not buy while your enemy is helping you to get a favorable price?

Tue, 03/04/2014 - 20:45 | 4509900 813kml
813kml's picture

That's a Bingo!

Tue, 03/04/2014 - 12:30 | 4507150 Droid Fuel
Droid Fuel's picture

<sarc> <sarc>

I sarc tagged my sarc tag.

Tue, 03/04/2014 - 12:37 | 4507197 Trickman
Trickman's picture

Now, just Russia dumping Treasuries would hurt, but wouldn't kill us and it would significantly hurt their currency; however, if China joined them...

Wouldn't the resulting damage to our currency likely offset majority of the damage done to the Russian currency (as far as rubles-to-dollars value), therefore making the proposal possibly break-even for them? There's no way that Europe would get in the way if Russia threatens their energy supply with their current problems.

Even if we "quantitatively ease" it away, there's no way that the rest of the world lets us get away with that level of monetization... right?

Tue, 03/04/2014 - 12:47 | 4507254 Debt Slave
Debt Slave's picture

Kerry is such a fucktard.

Tue, 03/04/2014 - 12:55 | 4507307 Nostradumbass
Nostradumbass's picture

Does anybody really think that Putin is not under sway of the globalists and that dumping US treasuries will do anything other than hasten the globaist plans for a new world currency?

Nothing happening now that has not been planned...

Tue, 03/04/2014 - 13:15 | 4507413 Chuck Knoblauch
Chuck Knoblauch's picture

Bears are overwhelmingly solitary and are considered to be the most asocial of all the Carnivora. There is your difference.

Tue, 03/04/2014 - 12:57 | 4507315 Chuck Knoblauch
Chuck Knoblauch's picture

The EU will buy your worthless US Treasuries.


Russia should be buying Chinese bonds!


China should be buying Russian bonds!

Tue, 03/04/2014 - 13:05 | 4507377 freakscene
freakscene's picture

Obama and Kerry walked into that


Check from the Russians

Your move Obama

Tue, 03/04/2014 - 13:09 | 4507402 Deer Hunter
Deer Hunter's picture

The Americans are threatening Russia with sanctions and pulling the EU into a trade and economic war with Russia.

The banks LOVE WAR, as long as they don't let get away from them, then its over in a FLASH.

Tue, 03/04/2014 - 13:15 | 4507424 Deer Hunter
Deer Hunter's picture

The Americans are threatening Russia with sanctions and pulling the EU into a trade and economic war with Russia.

The banks LOVE WAR, as long as they don't let get away from them, then its over in a FLASH.

Tue, 03/04/2014 - 13:43 | 4507603 Quantum Nucleonics
Quantum Nucleonics's picture

A hollow threat if I ever heard one.  Ok, go ahead and sell your treasuries.  The Fed will print a bunch of money to buy them on the cheap.  Now you've got a bunch of dollars.  Do you convert to rubles and mess up your currency?  Do you convert to yuan? (Good luck with that).

Tue, 03/04/2014 - 20:43 | 4509890 813kml
813kml's picture

You convert to gold, and mess up the US dollar.

Tue, 03/04/2014 - 13:44 | 4507609 XitSam
XitSam's picture

Consider an alternate universe where this is the second term of the McCain presidency.  This would be the 4th new war of McCain, and the first nuclear one. 

Tue, 03/04/2014 - 13:56 | 4507683 AnAnonymous
AnAnonymous's picture

Putin let this quack be his personal advisor shows how much Putin needs to be sustained in his failed dreams of glory.

Russia has no opportunity to drop the USD. Russia relinquished that opportunity a long time ago.

'Americans' have established a pyramidal looting scheme on the global scale. The entry ticket is the USD.
In a pyramidal scheme, the guy sitting at the top sees all the wealth converging to himself, the second to the top see all the wealth but the top converging to him etc

The guys who can quit the pyramidal scheme without losing anything are guys located at the bottom of the pyramid.
That is why people at the top use all kind of tricks to trap those at the bottom because a pyramid always collapses from its base.

Russia is not located at the top of the pyramid (the US is) but it is also far from being located at the bottom of the pyramid.

The Russians have taken a higher seat in the world 'american' scheme of extorting the weak, farming the poor.

It is over. They cant leave or they lose it all.

That is the way it is.

Tue, 03/04/2014 - 14:18 | 4507814 Drifter
Drifter's picture

Real threat or not, first time I've heard any govt "official" talk publicly about dumping Treasuries and walking away from USD.

This wasn't just some off-the-cuff remark.   It was intentional, planned, authorized by russian govt, even though they poo-pooed it later.  It's a definite shot across the bow.

Tue, 03/04/2014 - 14:30 | 4507932 Banjo
Banjo's picture

Nah I wouldn't dump bonds. I'd head to N Korea and say hey fellas help us make those super notes share what you have. I would then print up billions in USD mostly $20 and $50 pay poor mexicans to smuggle this into the US and seed it into M1. This might get that stubborn velocity going? Hmmm.

Shit did the Norks want S-300 or S-400's for that *shrug* ok

Actually might look at using the bonds to buy a bunch of gold and silver contracts on the comex and stand for delivery too? Hmmm.

Decisions decisions.

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