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 - 20:36 | 4509873 StychoKiller
Tue, 03/04/2014 - 12:31 | 4507161 yogibear
yogibear's picture

QEen Yellen loves to print.  She'll double or tripple QE That's music to Wall Street.  Monster bonuses.

Tue, 03/04/2014 - 11:00 | 4506473 Arius
Arius's picture


Tue, 03/04/2014 - 11:03 | 4506488 Pladizow
Pladizow's picture


Tue, 03/04/2014 - 12:39 | 4507209 ParkAveFlasher
ParkAveFlasher's picture



Tue, 03/04/2014 - 11:00 | 4506489 PR Guy
PR Guy's picture

You are kidding right?

Tue, 03/04/2014 - 11:20 | 4506618 elwind45
elwind45's picture

No I think its Liverpool football club over hear. I rather think it should be Suarez football club. In Europe next season so budget should improve and Rogers is a good manager. If it gets tight then lineup is worth its transfer fees anyhow winning the cup now that is the pot o gold

Tue, 03/04/2014 - 11:52 | 4506877 Reptil
Tue, 03/04/2014 - 10:55 | 4506444 DaddyO
DaddyO's picture

The Ruskies are playing for Realz...


Tue, 03/04/2014 - 10:57 | 4506463 Groundhog Day
Groundhog Day's picture

Bitch slapped Again

Tue, 03/04/2014 - 10:58 | 4506467 pods
pods's picture

The FED can eat em, but, with treasuries being concentrated, there is little use for the dolla.

And that is no good for Uncle Sam.



Which one are we?


Tue, 03/04/2014 - 11:04 | 4506509 johnQpublic
johnQpublic's picture

are you talking to me?



just walk away

Tue, 03/04/2014 - 11:21 | 4506617 DaddyO
DaddyO's picture

Much has been made of how manly Putin and his image are in this whole media play.

Even Mrs. Palin has made much of this, in fact she commented here

Are we all so starved for a leader with conviction and balls willing to stand up for their beliefs that we are willing to overlook what those convictions are?

Look, this whole affair is nothing more than some very wealthy, influential players moving pieces around on a chessboard to see what falls out.

Who will be the losers in this powerplay. The Ukrainians? The US .gov, The Europeons? The list is long!

In all reality, it's the pawns, you and me, the everyday joe, who gets the short stick. We Pay!!!

So think long and hard about what's at stake.

Freedom, Liberty, Sovereignty, just to name a few. This whole destabilization is contagious!

Egypt, Libya, Irag, Afghanistan, Ukraine, who's next?


Tue, 03/04/2014 - 11:50 | 4506864 pods
pods's picture

Yep, and I heard on the radio this morning that we (well, our kids) have agreed to give $1 billion to the Ukraine for energy.

I feel so much better knowing that.


Tue, 03/04/2014 - 12:25 | 4507119 ncdirtdigger
ncdirtdigger's picture

They have long since gone through your kids' money, they are well on their way to enslaving your grandkids.

Tue, 03/04/2014 - 12:35 | 4507188 11b40
11b40's picture

Agreed, Daddy-o, but where is the bad guy?

Is it the Macho Putin or the Whimpy Obama?  Where has Putin been sticking his beak around the world, other than to defend Russia's traditional interests?  How about the US?  What are we up to?  How can it be determined that our adventures are preserving freedom, liberty, or sovereignty for anyone, including ourselves?  From where I sit, whatever we touch, we seem to make worse.

Tue, 03/04/2014 - 14:00 | 4507709 DaddyO
DaddyO's picture

How 'bout the IMF, BIS and the other NWO enforcers?

Did the IMF not just agree to give Putin, through his call for tougher and higher payments for oil, his extra money?

This was all planned in advance.

Again, everyone has said Putin is playing chess, right?

I think this shows some discord amongst the NWO players.

NWO Factions anyone?


Wed, 03/05/2014 - 08:43 | 4511088 matrix2012
matrix2012's picture


just apply the Occam's Razor


one side has SO UGLY the attitude for SO LONG the time that we are needless to deem any further ....

the bad guys are living on the extended terms, a long overdue one!!!


'ugly' is so soft here, wicked or even diabolic fits much better!

Tue, 03/04/2014 - 12:00 | 4506937 imbrbing
imbrbing's picture

We have a printer that can put out more PPM than most other countries, does that count? :)

Never mind the printer was probably actually "made in china" and the paper comes from mexico or somewher



but once we get the first note printed off we can use those notes to buy more printers and make MOAR NOTES!


Tue, 03/04/2014 - 10:59 | 4506474 mrdenis
mrdenis's picture

throw one on the barbie'.......

Tue, 03/04/2014 - 10:56 | 4506451 superflex
superflex's picture

Janet is tightening her chinstrap.

Tue, 03/04/2014 - 10:59 | 4506455 LMAOLORI
LMAOLORI's picture
The red flags the West ignored about Putin’s Russia


1. Look at the Kremlin’s gold reserves

It is a little-known fact in the West, but Putin has been stocking up on gold bullion for years. In five years he has doubled Russia’s bullion reserves to just over a thousand tons, one of the largest holdings in the world, valued at $44 billion.

Why? What possible reason could the Russian government have for holding gold, an “unproductive” asset, instead of, say, U.S. Treasury bonds or other financial assets? It isn’t to make jewelry. Gold is the only currency in the world controlled by nobody else. It’s something you buy when you want to have complete freedom, if needed, to defy the rest of the world.

Tue, 03/04/2014 - 11:13 | 4506577 Ar-Pharazôn
Ar-Pharazôn's picture

"Gold is the only currency in the world controlled by nobody else"$


the gold market is deeply manipulated.

Tue, 03/04/2014 - 11:56 | 4506906 Kayman
Kayman's picture

The paper gold market -"trust me, it's in the vault"- is manipulated. If everyone wanted delivery, no one would get physical gold.

Tue, 03/04/2014 - 12:09 | 4506998 _ConanTheLibert...
_ConanTheLibertarian_'s picture

correction: The paper gold market is deeply manipulated which will only help the physical market.

Tue, 03/04/2014 - 12:33 | 4507173 silvermail
silvermail's picture

"the gold market is deeply manipulated."

But all the gold price manipulation will end, after Russia will announced prices for oil and gas, in physical Gold.

Wed, 03/05/2014 - 06:06 | 4510941 Ar-Pharazôn
Ar-Pharazôn's picture

that would be a really interesting moment in mankind's history

Tue, 03/04/2014 - 11:15 | 4506588 ThirdWorldDude
Wed, 03/05/2014 - 09:04 | 4511123 matrix2012
matrix2012's picture

The point #1 and THE COMMENTS there are what interesting from the article run by the Wall Street Journal's MarketWatch.... it draws 400++ comments there and many there have eyes and minds too

Tue, 03/04/2014 - 11:00 | 4506484 silvermail
silvermail's picture

Putin can isolate the United States from around the world faster than you can spit. To this end, Putin needed only to declare that Russia sells oil and gas only for gold.
After that, the U.S. is becoming a third world country immediately. Check and mate.

Tue, 03/04/2014 - 11:05 | 4506519 Life of Illusion
Life of Illusion's picture


Ha all Ukraines pipelines will blow up.

Tue, 03/04/2014 - 11:30 | 4506699 silvermail
silvermail's picture

Ha! Without oil and gas Europe will fall to the stone age.

Tue, 03/04/2014 - 11:59 | 4506927 Life of Illusion
Life of Illusion's picture


Exactly who will Europe support?

 Europe should have never allowed energy dependence from such source in the first place.  

China next door isn’t that stupid to source only Russia energy.

page 10


Tue, 03/04/2014 - 12:39 | 4507204 silvermail
silvermail's picture

The world can not survive without Russian oil and gas. In the world begin crises and wars for energy resources. Everything else - it's just blah blah blah about "to diversify supplies".

Tue, 03/04/2014 - 12:08 | 4506992 Kirk2NCC1701
Kirk2NCC1701's picture

If the EU falls, and the EUR breaks into national currencies, the US and UK laugh their asses off.

The USD and GBP win.  And London stays Europe's banking center, rather than taking heat from Frankfurt.

You guys need to think more than ONE chess move ahead. [sigh] Amateurs!

Tue, 03/04/2014 - 13:34 | 4507542 silvermail
silvermail's picture

You talk like a child. Your mind can not go beyond the paradigm of fiat currencies. For whom will be need your fiat currency of the United States or London? Do you really do not understand what's happening?
You really do not understand, that China has just refused to sell their goods for U.S. dollars?
You do not really understand what it means China's statement: "We stop accumulating assets denominated in U.S. dollars"?
Well , I'll translate for you as for a child: This means, that China has announced that they stop sale of their goods, in exchange for U.S. dollars .
Right now, China use dollars only as an intermediary for the purchase of gold.
If you know about the trade deficit between the U.S. and China, then maybe you can understand this phenomena, that occurring in the world right now.

Tue, 03/04/2014 - 11:08 | 4506547 Greater Fool
Greater Fool's picture

Har, that would be funny. What, they won't even take their own currency in trade for their gas? Ludicrous.

Russia knows just how thin their FX war chest is: It's almost run out at several points in the past decade. Without dollars you cannot defend your currency.

This is an empty threat.

Tue, 03/04/2014 - 11:33 | 4506723 silvermail
silvermail's picture

This is not an empty threat, it is gold instead of the dollar and blank the U.S. budget = zerro+debt.

Tue, 03/04/2014 - 11:29 | 4506689 pacboot
pacboot's picture

At the end of the day, Russia is still a developing world kleptocracy with a nuclear arsenal.  Same with China. There is a lot that the US could do to crush the russian, or even the chinese currencies and economy if we had to.  The purchase power of the average American welfare clod is higher than most middle class citizens of either country.  It isn't until you you get to oligarch status that borders evaporate and people with the fuck-you-money become equals.

The question is, does our "ruling" class have the sack to do it?  I doubt it, but you turn off the American consumer class to certain imports and the chinese middle class evaporates.  Internal revolts blow up all over. Same goes with the Rus.  Start pumping $$$$ yel-bucks into europe (more than we have) and let our grand kids will come up with some kind of fucked-up derivatives scheme we can shlep off on the rest of the world. 

Remember world war II?  A bunch of ex-flapper housewives filled our factories and everyone dumped their metal for the war effort.  Did't make a difference but they did it anyway.  Same thing would probably happen again.  They would call it a "Peace Bond" or something and we would all buy some just to show we're on the Team America, Fuck Yeah!! sheet of music.  Maybe we'll wrap 'em around our girl scout cookies or something.

Tue, 03/04/2014 - 12:00 | 4506940 Kayman
Kayman's picture

"There is a lot that the US could do to crush the russian, or even the chinese currencies and economy if we had to."

Are you serious ?  What would Obama do when Walmart starts laying off their "associates" ?

Wed, 03/05/2014 - 11:45 | 4511808 matrix2012
matrix2012's picture

@ pacboot

just to remind you that back then the great USA has the best manufacturing plants intact; however, what's left today is just a service economy: the FIRE is the largest sector, second only to MICI (Military-industrialized Complex Intelligence) related industries.

When the veil is revealed and the mirage is made known, the world will see all the underlying lies and deceptions!!

Tue, 03/04/2014 - 12:07 | 4506986 Chief KnocAHoma
Chief KnocAHoma's picture

We still have a military. He isn't dumb enough to do that until our military is fully degraded. Good thing we have a Prez dedicated to keeping the US strong.

Wed, 03/05/2014 - 06:07 | 4510942 Ar-Pharazôn
Ar-Pharazôn's picture

Putin cant do this without expecting a disproportionate reaction from US

Tue, 03/04/2014 - 11:05 | 4506522 Sinnedi
Sinnedi's picture

I don't think Obama cares, I think the american people should care.

Tue, 03/04/2014 - 11:11 | 4506564 Jannn
Tue, 03/04/2014 - 11:13 | 4506579 TaperProof
TaperProof's picture

I called this yesterday, his Advisor must read ZeroHedge.  hah

Tue, 03/04/2014 - 11:17 | 4506605 Alpo for Granny
Alpo for Granny's picture

200 Billion? Is that all you got? Shiiiiiit...Ol' Yellen can print that with one toner tied behind her back.

Come at her comrade..


Tue, 03/04/2014 - 12:09 | 4507001 Urban Redneck
Urban Redneck's picture

$200 billion might be an important detail... If the number was intentional, and a consolidated figure for the CB and major commercial banks, as opposed to a simple overstatement of $138B (or whatever the official holdings actually are).

Tue, 03/04/2014 - 11:26 | 4506668 SteveNYC
SteveNYC's picture

The dynamic here is that Russia is pushing the agenda, the West is reacting. Classic "keep your opponent off balance/on the back foot" tactic.

This is going to get much more interesting before it is over. Anybody who thinks Putin did not anticipate the "sanction" threat and have this morning's subsequent response prepared, well, go to cnn.com for your news.


Tue, 03/04/2014 - 11:36 | 4506753 pacboot
pacboot's picture

Thats not Surprising.  Putin is a Student of Judo, Chess and Shirtless Tiger Wrestling. The "O" is a student of throwing like a girl and holding your bong pull until you see spots.  I bet Romney is sitting in a hot tub with a highball watching this and laughing his ass off.  Ok maybe a glass of Nesquick.  Don't you hate it when you are right?

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