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Russia Warns "Will Have To Respond" For US Sanctions

Tyler Durden's picture




 

 It appears, given comments from Foreign Minister Lukashevich, that things are about to get ugly again...

"we will have to respond...if provoked by rash and irresponsible actions by Washington... and not necessarily symmetrically."

 

Via Reuters,

Russia said on Tuesday that it would retaliate if the United States imposed sanctions over Moscow's actions in Ukraine.

 

"We will have to respond," Foreign Ministry spokesman Alexander Lukashevich said in a statement. "As always in such situations, provoked by rash and irresponsible actions by Washington, we stress: This is not our choice."

And Interfax adds:

  • RUSSIA WILL HAVE TO RESPOND TO POSSIBLE U.S. SANCTIONS, "AND NOT NECESSARILY SYMMETRICALLY" - RUSSIAN FOREIGN MINISTRY

Given that Russian boots remain on the ground in Ukraine and that the US (and the west - ex-UK) are still pressing for crushing sanctions against Russia; one has to wonder whether Putin's carefully worded "annexation" comment did nothing but enable exits for oligarchs... What really changed?

 

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Tue, 03/04/2014 - 14:05 | 4507746 Clowns on Acid
Clowns on Acid's picture

Yup... the neo Bolsheviks.

Tue, 03/04/2014 - 14:02 | 4507720 replaceme
replaceme's picture

Asymmetrically, like they'll respond like grown ups?  I hope they don't show Kerry a torch, fire makes him crazy.

Tue, 03/04/2014 - 14:04 | 4507741 BadDog
BadDog's picture

LMAO

Tue, 03/04/2014 - 15:31 | 4508365 detached.amusement
detached.amusement's picture

not just lmao, but f*king lmao!

Tue, 03/04/2014 - 14:03 | 4507732 Impoverished Ps...
Impoverished Psychologist's picture

The blackhats have already started picking on Vlad... he will not be pleased.

Coincidence??  Nailgun anyone?

 

http://www.youtube.com/watch?v=R6F_xNii4uU

 

Tue, 03/04/2014 - 14:03 | 4507733 Eahudimac
Eahudimac's picture

Don't worry. If Russia drops the bomb, and by bomb I means all of it US treasuries, Belgium will be there to snap them up. With all of their own money, of course. 

Tue, 03/04/2014 - 14:04 | 4507736 Winston Churchill
Winston Churchill's picture

The mortality rate for Saudi royals looks to spike in the very near future.

Tue, 03/04/2014 - 15:22 | 4508308 Freddie
Freddie's picture

+1 million

Tue, 03/04/2014 - 14:04 | 4507739 surf0766
surf0766's picture

The world has the US by the dollar balls.

Tue, 03/04/2014 - 14:32 | 4507946 Flakmeister
Flakmeister's picture

Maybe one day, but not today...

Tue, 03/04/2014 - 15:32 | 4508376 detached.amusement
detached.amusement's picture

today, perhaps just the ball-hairs...they hurt but you can have some ripped out and still be standing

Tue, 03/04/2014 - 14:05 | 4507744 TrustWho
TrustWho's picture

The Fed will buy all Russian dumped USA treasuries. The all powerful wizard will protect us all.

Tue, 03/04/2014 - 14:09 | 4507775 Bastiat
Bastiat's picture

That's the bottom line -- either that or they will loan their member banks money for nothing to buy them.  But the big question is:  what happens to the dollars that the Russians, or whoevever gets when they sell the Treasuries?  It's out of the deep freeze => velocity => price inflation.  

Tue, 03/04/2014 - 14:24 | 4507882 cornflakesdisease
cornflakesdisease's picture

They will change the $100 bill again and refuse to take the old ones, as they have done before.

Tue, 03/04/2014 - 14:51 | 4508064 agent default
agent default's picture

They will buy a pile of gold futures and demand delivery.  I think the COMEX may be part of the asymmetric response.

Tue, 03/04/2014 - 14:09 | 4507776 camaro68ss
camaro68ss's picture

agreed^

Tue, 03/04/2014 - 18:02 | 4509175 Kirk2NCC1701
Kirk2NCC1701's picture

Fuck me, are people naive:  You don't just "dump", unless it is to cause an outright panic when a sell-off is already occurring.  A straight "dump" of Russia's share would have been a totally wasted one-shot deal, as Fed & Friends (EU, Japan, UK) would step in with more confetti to fool the markets.

They're better off selling energy only in Gold and non-USD currencies, which would start the USD sell-off.  You then get the Chinese to join the party and dump the USTs.  Full panic ensues.

The only Wild card in all this is the International Economic Emergency Powers Act (IEEPA)* that the POTUS has in his pocket, and which gives Obama (in essence) absolute power to nationalize any Assets he wants to (or his Advisers/Handlers tell him to).  Get educated... see:

* http://www.house.gov/legcoun/Comps/International%20Emergency%20Economic%...

http://www.treasury.gov/resource-center/sanctions/Documents/ieepa.pdf

https://en.wikipedia.org/wiki/International_Emergency_Economic_Powers_Act

What happens at this point is anyone's guess, but it ain't pretty for Avg. Americans (95%), when their pensions and bank accounts are seized.

Tue, 03/04/2014 - 14:05 | 4507750 Bastiat
Bastiat's picture

I heard MIchael Krasny on NPR talking with Cokie Roberts.  She was basically pitching her new book.  But off topic they were talking about Ukraine.  Krasny was talking about the perception of Obama being weak and said he mentioned people were saying Obama vs Putin was a community organizer vs head of the KGB.  Roberts said:  I never heard that but it sounds kind of daunting, doesn't it.

Yeah.  I never noticed that Obama was a community organizer with no real experience either.  Damn, how'd I miss that?

Tue, 03/04/2014 - 14:21 | 4507865 disabledvet
disabledvet's picture

if he starts "community organizing" in Kiev the the Russian "walk in the park" will turn into house to house/apartment to apartment.

This was the problem the USA ran into in Iraq...and until General Petreaus came along it was total chaos. So sure..."asymmetrical warfare" it is...but not in finance.

Such a thing doesn't exist in finance.
This is not Afghansitan where you have "cave dwellers."
Fighting here is like fighting in New York City or Baltimore.

"Very complex."
And right now the Russians appear to be dusting off a Cold War "playbook."
Not only that but "every house a pillbox" in Crimea.
If the primary invasion is coming from there to go to Kiev that is a potentially vulnerable "staging area" from which to pour in the men and material which could be attacked should the assault on Kiev get bogged down...or worse.

Tue, 03/04/2014 - 14:36 | 4507962 Urban Redneck
Urban Redneck's picture

Asymmetrical Warfare most certainly exists in Investment Banking- that's how large cross-border multinational deals involving governments get done.

(And if you believe the conspiracy theorists, it's also how excess baggage is shed from the Club's membership roster...)

Tue, 03/04/2014 - 14:36 | 4507973 negative rates
negative rates's picture

They also said he was a VERY SLOW learner.

Tue, 03/04/2014 - 18:10 | 4509273 Kirk2NCC1701
Kirk2NCC1701's picture

He used his Organizational skills to surround himself with a Community of expert Tribesmen, including from GS.  And we all know GS is "doing God's work", right?  And with God's middlemen on his side, how can he/we lose?

Sarcasm aside... it comes down to KGB vs Tribesmen.  Who's been around the Big Block more often?  Place your bets.

Tue, 03/04/2014 - 14:06 | 4507757 AnAnonymous
AnAnonymous's picture

Boots are only in Crimea.

In the other parts of Ukraine, where Russians are actually hunted down by nazis, there is no Russian boots.

The chessplayer is once again exposed by 'americans'.

The mention of non symetric answer is quite correct though: while 'americans' are snatching a valuable asset from the russian turf, it is very doubtful that Putin can achieve the same vis a vis 'american' nations.

A shy slap for a hammering. Non symetrical response.

Tue, 03/04/2014 - 14:53 | 4508081 TheFourthStooge-ing
TheFourthStooge-ing's picture

.

Boots are only in Crimea.

In the other parts of Ukraine, where Russians are actually hunted down by nazis, there is no Russian boots.

All true but who cares? Argumentation is no better than on many other sites. Each group manages their own lies in order to keep their beliefs system up.

Overdone pomposity focused on style rather than content. But hey, people relish the lies they wrap themselves in and don't appreciate it when the truth interrupts their masturbation.

Tue, 03/04/2014 - 14:07 | 4507759 CrashisOptimistic
CrashisOptimistic's picture

Were I Russia, the maneuvers I have are like so:

1) Arctic drilling partnerships only with non US oil companies.  BP, RDS, Petrochina.  US oil companies cut out.

2) Iran sanctions no longer recognized.  Iranian oil can conduit to Russian oil customers, a commission collected and the remaining money given to iran.

3) Support for China's sovereignty over the Senkaku Islands.

4) A tiny closure of the spigot, raising the price of oil, and deploy of snipers to Nigeria, Iraq and Libya to target oil production executives, to raise it further.  Back channel notice to the US that US policy adjustments will be necessary to lower the price.

Tue, 03/04/2014 - 14:23 | 4507874 cornflakesdisease
cornflakesdisease's picture

I work in the oil business.  No one will work for Russia because they steal technology and don't honor their contracts.  Their oilfields are all in decline and most were discovered in the 1940's.

 

China and the US are brothers and have been since 1971.  They are not enemies despite the front.  They own 16% of the Federal Reserve System via proxy.

 

Now, caculate that china and the West are not enemies, and caculate that into geo-political caculations marching forward.

 

That is all.

Tue, 03/04/2014 - 14:43 | 4508021 Flakmeister
Flakmeister's picture

And it has been since 1971 due to the mutual benefit of containing Russia...

That is RealPolitik....

And yes, Romashkino and Samotlor are in worse shape than Ghawar...

Tue, 03/04/2014 - 18:20 | 4509303 Kirk2NCC1701
Kirk2NCC1701's picture

IF your info is "correct" and of better grade than what they have available, they need to see you, o wise one.

If their info is better than yours -- and I'm 100% certain it is -- then maybe their complex moves are a just tad beyond our and your sage scrutiny.

Tue, 03/04/2014 - 14:27 | 4507899 cro_maat
cro_maat's picture

5) Allow US / IMF to give $1 Billion to Neo Nazies in Ukraine and then confiscate the fiat for back payment of Gazprom Nat Gas bills

6) Buy $1 Billion of gold on the Comex and take delivery

7) Deploy snipers in Kiev to take out all horses and IMF officials

Tue, 03/04/2014 - 18:22 | 4509342 Kirk2NCC1701
Kirk2NCC1701's picture

$1B (23 tons) is nice for most people, but fuck all for Russia's CB.

Tue, 03/04/2014 - 14:35 | 4507966 Flakmeister
Flakmeister's picture

CIO, short of Iran loading Russian flagged tankers how do you realize that? 

Tue, 03/04/2014 - 15:20 | 4508282 CrashisOptimistic
CrashisOptimistic's picture

My scenario has always been the Caspian.  Iran doesn't have to ship south thru the gulf.  They can ship north thru the Caspian to the pipelines not anywhere near full from perpetually late Kashagan.

And there's always the truck parade like we see here:

http://www.youtube.com/watch?v=Tfnb7oof2Rw

 

Tue, 03/04/2014 - 15:40 | 4508433 Flakmeister
Flakmeister's picture

And how much capacity do you think that really represents?

Tue, 03/04/2014 - 16:22 | 4508642 CrashisOptimistic
CrashisOptimistic's picture

750K bpd +/- 350K

 

Note I doubt Iran has that much spare capacity not already dodging sanctions, but the point is transit total is not a limit.  10,000 ton tankers are not unusual in the caspian.  This IS a maneuver the Russians have available.

 

Tue, 03/04/2014 - 16:36 | 4508741 Flakmeister
Flakmeister's picture

And that oil is then captive to the Russian pipeline network which is pointed west...

I remain very skeptical of your premise especially when conventional Iranian exports are up 100-200 kbpd since relaxation of the sanctions...

-----

As despised as the US is, the Russians are seen in even a worse light. Iran will use Russia only so far as it immediately benefits them. Recall, that the Iranians know who was supplying the lions share of Saddam equipment in the Iran-Iraq War. And some geopolitical realities are there even after regime change...

Tue, 03/04/2014 - 18:49 | 4509447 CrashisOptimistic
CrashisOptimistic's picture

The sanction relaxation was not to affect oil at all, so if there has been an uptick that is already a move around the sanctions.

As for pointed west:

http://www.cnn.com/2011/WORLD/asiapcf/01/03/china.russia.pipeline/index....

 

That's in operation but despite text in the article saying Europe is de-emphasized by the existance of that pipeline, I think the source was mostly Siberia.

Regardless, they do have options.  Even if they flow the oil west, it's Russian oil as far as the customer is concerned.

Tue, 03/04/2014 - 19:26 | 4509562 Flakmeister
Flakmeister's picture

The uptick dates from last November....

http://www.washingtonpost.com/blogs/post-partisan/wp/2014/02/24/iranian-...

many others....

And what is the capacity? 250 Kpbd IIRC... small potatoes...

Tue, 03/04/2014 - 14:07 | 4507760 katchum
katchum's picture

Russia with its 138 billion U.S. treasuries can do absolutely nothing to crash the dollar. Russia is nothing.

Tue, 03/04/2014 - 14:20 | 4507850 cornflakesdisease
cornflakesdisease's picture

Down vote all you want, but it's true.  The US hasn't even monitized the Grand Canyon yet.

Tue, 03/04/2014 - 14:28 | 4507910 Carl Popper
Carl Popper's picture

Shit. We got millions of acres of national forest. California coastal oil and gas leases.

We havent even scratched the surface.

150 billion in bonds is piddlly squat.

Tue, 03/04/2014 - 14:31 | 4507937 cro_maat
cro_maat's picture

That's because they sold it to China in lieu of interest payments on that $1.3 Trillion of U.S. Gov. debt.

Tue, 03/04/2014 - 14:36 | 4507972 Flakmeister
Flakmeister's picture

And Bennie just monetized over 2 trillion that is effectively sterilized....

Tue, 03/04/2014 - 15:23 | 4508317 silvermail
silvermail's picture

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.

Tue, 03/04/2014 - 15:53 | 4508513 Rylie
Rylie's picture

Sure they can.

Buy as many gold and silver contracts as possible with this 138b and take delivery.

Tue, 03/04/2014 - 14:07 | 4507761 icanhasbailout
icanhasbailout's picture

Russia's response is going to be to attack the US dollar reserve status:

http://news.yahoo.com/russia-warns-could-reduce-zero-economic-dependency...

 

Guess whose measures are going to be effective?

Tue, 03/04/2014 - 14:15 | 4507816 Roadhog
Roadhog's picture

Ah censorship at its best! Been trying to 0pen that yahoo article all day. Opps. F U Clapper

Tue, 03/04/2014 - 14:18 | 4507835 cornflakesdisease
cornflakesdisease's picture

The US.  The FED will gladly buy all those treasuries up for penny's on the dollar.  Sorry, the posh kids always win.

Tue, 03/04/2014 - 14:08 | 4507769 the not so migh...
the not so mighty maximiza's picture

asymmetric means spacing our guys out the airlock at the I.S.S. and then mounting a big laser cannon,  then aiming for the wookies big ole' butt

 

Tue, 03/04/2014 - 14:32 | 4507949 disabledvet
disabledvet's picture

umm...we've been paying the Russian part of that actually.

That's TENS OF BILLIONS of US taxpayer dollars.
"No more Russians in Space."
And...well...maybe an "ion canon"...that would do a number on your communication system. That think is only a couple hundred miles up there.

Refit the retro rockets and "park that bitch over the invaders and start unloading." no problem getting energy up there.

Tue, 03/04/2014 - 14:39 | 4507993 negative rates
negative rates's picture

And on your tombstone will read, froze in outerspace looking for the 10th ave planet freeze out.

Tue, 03/04/2014 - 14:10 | 4507784 post turtle saver
post turtle saver's picture

dumping treasuries lmfao... every seller has a buyer... so, you dump them to "punish" someone, they get bought, now what do you do for supposed "leverage", especially if the impact is "meh, whatever"... can anyone in this echo chamber think past two moves?

Tue, 03/04/2014 - 14:18 | 4507838 Spastica Rex
Spastica Rex's picture

So, let me get this straight: what matters about US treasuries is not whether they're held, bought, or sold, but rather that they simply exist?

Tue, 03/04/2014 - 14:21 | 4507863 magpie
magpie's picture

Yes...

Russia and China will divest themselves of them. Once one of the US "allies" does the same, the US does a selective default on specific bonds.

Tue, 03/04/2014 - 15:01 | 4508134 Ghordius
Ghordius's picture

"...the US does a selective default on specific bonds..."

you seriously believe this? has this any historical precedent, motive or sense?

Tue, 03/04/2014 - 15:09 | 4508198 magpie
magpie's picture

Yes

Tue, 03/04/2014 - 15:36 | 4508410 detached.amusement
detached.amusement's picture

I got a great idea, let's go off the gold standard again

 

waiiit a minute...

Tue, 03/04/2014 - 15:45 | 4508471 magpie
magpie's picture

The most recent example being the MBS, other examples would lead to undue conspirational ramblings.

Tue, 03/04/2014 - 18:08 | 4509271 silvermail
silvermail's picture

You have forgotten about the default U.S. in 1971, when Nixon refused to fulfill their obligations to ensure the U.S. dollar, by gold?
Or do you not think that such a failure to fulfill its financial obligations it is default?

Tue, 03/04/2014 - 17:47 | 4509160 Singelguy
Singelguy's picture

It is far more likely that Yellen will crank up the printing presses and buy up the bonds.

Tue, 03/04/2014 - 14:23 | 4507868 Dr. Engali
Dr. Engali's picture

Maybe if you would do some reading you would see that you are about three moves behind.

Tue, 03/04/2014 - 15:17 | 4508264 Pullmyfinger
Pullmyfinger's picture

I like your response better.

Tue, 03/04/2014 - 15:15 | 4508253 Pullmyfinger
Pullmyfinger's picture

It would work quite similarly to shorting the paper precious-metals market, allowing one the option of buying them back ( or not) for a lower price/higher yield.

Tue, 03/04/2014 - 14:12 | 4507789 Pablo Escobar
Pablo Escobar's picture

Kerry:  Treyvon's Dad said we were going to apply economic sanctions over your Ukraine actions.  Today, we have frozen all your assets

Putin:  You know this word, assymetric?, no?  Here let me show you asymetric economic warfare.  Today, we will only accept payment in gold for our oil and gas exports.  No gold, no energy. 

Kerry: But, but, you can't do that!

Putin: Maybe Treyvon's Dad better unfreeze our accounts, eh comrade?

Tue, 03/04/2014 - 14:15 | 4507811 drink or die
drink or die's picture

"Given that Russian boots remain on the ground in Ukraine and that the US (and the west - ex-UK) are still pressing for crushing sanctions against Russia; one has to wonder whether Putin's carefully worded "annexation" comment did nothing but enable exits for oligarchs... What really changed?"

 

Notice that as soon as Russia "backed down", US politicians couldn't stop flapping their gums with more veiled threats:

 

President Obama: 'We're prepared to make sure that the rights of all Ukrainians are upheld' - live video
Tue, 03/04/2014 - 14:17 | 4507831 DeliciousSteak
DeliciousSteak's picture

Ugly? Come on. War is ugly. This farce has already passed the point of serious. This is just a bunch of wannabe tough guys having a laugh and putting on a good show. This is just entertainment folks.

Tue, 03/04/2014 - 14:19 | 4507846 constantine
constantine's picture

Forget about bonds... Russia could just buy up the entirety of the COMEX gold market and demand delivery... or even more easily, silver.  This would damage severely the credibility of the dollar system in a manner that would be tough for the west to propagandize since they've spent decades brainwashing their citizens into confusion regarding the precious metals.

Tue, 03/04/2014 - 14:37 | 4507980 disabledvet
disabledvet's picture

they're selling their gold...massively. the price is getting crushed today.

the bulk of Russian assets are not only in dollars and euros...but also abroad. Those assets can and will be seized for the Western counter-offensive.

Tue, 03/04/2014 - 14:41 | 4508003 negative rates
negative rates's picture

Gold is fer spendin, not saving.

Tue, 03/04/2014 - 15:12 | 4508230 Bastiat
Bastiat's picture

 

"they're selling their gold...massively"

 

Please provide some evidence of this or are you just bullshitting, massively.

Tue, 03/04/2014 - 15:53 | 4508521 constantine
constantine's picture

The bulk of Russia's assets are fossile fuels in the ground.  Certainly the west has its options.  However, each time they use the SWIFT system or freeze assets, the quicker they hasten the pace with which adversaries (and there are plenty) will endeavor to dump the petro-dollar system.  That gun doesn't have an endless amount of rounds.  

Do you really think the USA wants to crush the Ruble?... this will leave Russia in the dangerous state of having nothing more to lose.

Tue, 03/04/2014 - 18:14 | 4509295 silvermail
silvermail's picture

Russia will arrest all oil and gas assets in their territory. And all of the assets of Western banks and corporations on their territory, too. LOL

Tue, 03/04/2014 - 14:47 | 4508043 TJ00
TJ00's picture

Or they could indict the boards of western banks for fraud and when extradition is refused just render them to Moscow, quick trial, death sentences a la China, Lehman x 1000 collapse.

Tue, 03/04/2014 - 14:20 | 4507852 Winston Churchill
Winston Churchill's picture

Just demand payment in gold for its oil and gas.

Then see what happens to the US financial system as everyone tries to get their

gold back from the FedRes.

That would destroy the dollar much quicker than selling UST's.

Your welcome Vlad.

Tue, 03/04/2014 - 14:34 | 4507961 disabledvet
disabledvet's picture

how about "terawatts" phucker.

Tue, 03/04/2014 - 15:18 | 4508273 Chuck Knoblauch
Chuck Knoblauch's picture

Isn't that what Gaddafi did?

Tue, 03/04/2014 - 18:17 | 4509311 silvermail
silvermail's picture

Absolutely. But Putin is not Gaddafi and Russia is not Libya.

Tue, 03/04/2014 - 15:50 | 4508496 The man with po...
The man with pointy horns's picture

Winston Chruchill

How about Russia sells 200 billion dollars of US treasuries and then uses the cash to buy ALL of the COMEX's reserves plus gold futures, AND then demands delivery of said gold futures? That would destroy the dollar.

Tue, 03/04/2014 - 15:57 | 4508540 Flakmeister
Flakmeister's picture

COMEX is cash settlement Or they might plop a bunch of freshly created GLD shares in his lap...

Quit fantasizing...

Tue, 03/04/2014 - 14:21 | 4507855 olle
olle's picture

China has said nothing = Russia will not say anything if China moves on. It´s not only Russia, it´s EM that might respond (all hurt by FED policy) ... don´t underestimate Putin he can play chess

Tue, 03/04/2014 - 15:08 | 4508173 Chuck Knoblauch
Chuck Knoblauch's picture

China is like an old cat surrounded by young mice. The mice will get bold until the old cat crushes one of them with its golden paw. The NED in China better not get too close.

Tue, 03/04/2014 - 15:36 | 4508408 Freddie
Freddie's picture

Russia is supposedly the largest oil producer in the world now.  I assume one of the largest in nat gas as well. Add in neighboring -Stan allies - they are huge plus Iran.    If Russia wants to get paid in gold then it is game over.  Even if they say they will accept half in gold and half in yuan/euros then game over - checkmate.

F Obam, Nuland-zio and Mr. Ed.

Tue, 03/04/2014 - 14:21 | 4507864 walküre
walküre's picture

Damage is done. Putin had his turn and accommodated our concerns, now it's time for our side to crawl back. Ukraine needs UN boots and blue helmets on the ground to monitor the new government and a 3rd party intermediary (Mutti) can frame agreements between Russia and Ukraine.

I think both sides are ready to talk. No need for the US to escalate this, just keep the pressure on. It seems to work for now.

 

Tue, 03/04/2014 - 14:28 | 4507915 Canucklehead
Canucklehead's picture

Putin is talking trash because Samantha Powers loves that.  Putin knows his Schtick makes Samantha Hot! Hot! Hot!  Putin is looking for another defection, this time from the USA.

Tue, 03/04/2014 - 14:50 | 4508058 Chuck Knoblauch
Chuck Knoblauch's picture

Why doesn't the NED stay and finish what it started?

Tue, 03/04/2014 - 14:22 | 4507867 Debugas
Debugas's picture

by assymetric move he means trade war - no oil no gas, no flying pigs meat

Tue, 03/04/2014 - 17:18 | 4508908 supermaxedout
supermaxedout's picture

or this

http://www.usnews.com/news/articles/2013/08/29/us-purchases-all-afghanis...

or this http://www.washingtonpost.com/national/national-security/a-logistics-mir...

or the Northern Distribution Network (NDN)

Lithuania together with Latvia and Estonia play an important role in the Northern Distribution Network (NDN). Established in 2008, the NDN is a strategic transportation corridor consisting of a 3,100-mile network of sea, road, and rail routes going through the Baltic States, Belarus, Russia, Kazakhstan, Uzbekistan, Kyrgyzstan and Tajikistan, and terminating in northern Afghanistan. Created as an alternative to the overloaded Pakistan Ground Line of Communication, the NDN’s main goals are to support

https://www.cimicweb.org/cmo/afg/Documents/Security/130614%20-%20CFC_Log...

In short USA needs Russia in order not to leave Afghanistan in the same style as it happened in Vietnam. As long as the US and the UK are engaged in Afghanistan they need Russia. But when leaving Afghanistan and Pakistan these countries are going to be part of the Russia/China/India economic zone

http://thediplomat.com/2014/02/india-drawn-to-the-shanghai-cooperation-o...

 

 

 

Tue, 03/04/2014 - 14:24 | 4507877 Carl Popper
Carl Popper's picture

Rally on. The market has this one figured out already.

Obama and western europe wont do anything but talk and maybe exclude russia from the next G8 meeting.

Crimea holds a plebiscite on independence. It becomes independent with russian security guarantees.

Nary a shot is fired, except a few warning shots.

Tue, 03/04/2014 - 14:27 | 4507902 LawsofPhysics
LawsofPhysics's picture

Will it matter when the U.S.S.A is no longer in the G8?  (especially after a few productive states leave the union?)

Tue, 03/04/2014 - 14:46 | 4508036 Carl Popper
Carl Popper's picture

Possibly lol.

But the market is only discounting the next few months

Tue, 03/04/2014 - 14:34 | 4507956 walküre
walküre's picture

Nobody wanted to meet in Sochi anyway. Curiously none of the heads of state would go and see the Olympics, not even Mutti.

Now they cancelled the venue and that saves Putin money he didn't want to spend on hosting the G8 gong show.

Tue, 03/04/2014 - 14:29 | 4507925 darteaus
darteaus's picture

The one documented instance when the guy who brought a gun to a knife fight lost:

http://en.wikipedia.org/wiki/Death_of_Meredith_Hunter

Tue, 03/04/2014 - 14:51 | 4508063 kchrisc
kchrisc's picture

Hilarious.

My first, and biased, response was that, "The guy had to be black, as who else would draw a gun against a knife and lose." When I clicked on the link and saw that it was at Altamont, I thought that I must be wrong. Then I saw the picture. Bingo! Bingo! Can I get a chicken dinner?!

And of course his mother blamed everyone but her kid and sued. Despite at least a $10,000 ($60,000 in 2012) settlement, she never purchased a headstone for her kid. Others had to do that in 2008. LOL

Tue, 03/04/2014 - 15:43 | 4508452 detached.amusement
detached.amusement's picture

first thought in most people's minds, how the hell did THAT happen...

 

in his defense, he was high on meth and it was against hells angels...

 

if you've got to be that one idiot that loses with a gun at a knife fight...

Tue, 03/04/2014 - 14:30 | 4507931 kchrisc
kchrisc's picture

Putin: "Do you want the next sound you hear to be the sound of me, us, pulling the rug out from under you?!"

Israel Dominated West: "Sorry. We were just kidding. Press on."

 

"If a paper-tiger makes a demand, does anyone hear it?!" LOL

Tue, 03/04/2014 - 14:30 | 4507935 monger
monger's picture

This from a recent Reuters article,

""Over time this will be a costly proposition for Russia," Obama told reporters.

A Kremlin aide said that if the United States did impose sanctions, Moscow might drop the dollar as a reserve currency and refuse to repay loans to U.S. banks.

The European Union, which will hold an emergency summit on Thursday, has threatened unspecified "targeted measures" unless Russia returns its forces to their bases and opens talks with Ukraine's government."

Wait a minute, wait a minute, back up a moment please?

"A Kremlin aide said that if the United States did impose sanctions, Moscow might drop the dollar as a reserve currency and refuse to repay loans to U.S. banks."  ???!!!

Excuse the f*ck out of me but wasn't that deserving of a god damn headline?

In another article it was stated that Russia and China are "close" on this matter of Ukraine.  Let's see, Russia just said it might drop the dollar as a reserve currency, it's close to China on the issue at some degree, and all this is just left hanging there?

Yesterday I asked if this could be The black swan. Now I'm saying it, if this happens its the black f*cking swan!  Maybe it's the excuse they were waiting for.

Tue, 03/04/2014 - 14:43 | 4508014 Chuck Knoblauch
Chuck Knoblauch's picture

Russia will buy Chinese bonds. China will buy Russian bonds. Both will exit US Treasuries. Love to see it happen!

 

Having China take a position against the FED would be EPIC!

Tue, 03/04/2014 - 15:03 | 4508149 nonclaim
nonclaim's picture

They still have to ship a boatload of junk to the USA every minute to keep going... What are they going to say? "Oh, I don't take dollars anymore" and face a riot in every corner of coastal cities?

Or take it and sell at a loss because of ideological limitations?

Not going to happen anytime soon... unless it is a hot war.

Tue, 03/04/2014 - 15:13 | 4508236 Chuck Knoblauch
Chuck Knoblauch's picture

If China doesn't want to be a US bitch forever, they should think about phasing the USD$ out. Doesn't China want to dominate the reserve currency market with the RMB???

Tue, 03/04/2014 - 15:17 | 4508263 Ghordius
Ghordius's picture

chuck, Chinese have many virtues. and one of them is... patience

Tue, 03/04/2014 - 15:32 | 4508374 Chuck Knoblauch
Chuck Knoblauch's picture

The Sphynx may have been relevant at some point in history, until it became irrelevant. There is a difference between being patient and being stuck.

Tue, 03/04/2014 - 15:54 | 4508525 elwind45
elwind45's picture

That boatload is not as big as yesterday and will be less tomorrow. Americans are buying a lot less except food and energy. (CPI could be over 2% adding food and energy proper overnight) that less is going to put strain on them in the worst way? The Chinese will have money supply shock followed by a demand collapse. Domestic prices fall below cost of production and companies are already selling at the margins to falling US demand. The lack of overseas demand reduces yuan creation at a time when exports are declining. In order to maintain capital controls it is decided that gold will be sold for much needed dollars instead of US DEBT HOLDINGS. It is also in the best interest of the party to split the currency

Tue, 03/04/2014 - 15:35 | 4508398 Jorgen
Jorgen's picture

Having China take a position against the FED would be EPIC!

I think you greatly underestimate the FED/BIS

Tue, 03/04/2014 - 15:58 | 4508504 Chuck Knoblauch
Chuck Knoblauch's picture

I don't underestimate them. They were the first ones that came to mind as opponents to be neutralized. If Israel can assassinate Iranian nuclear physicists, then anything is possible. I would like to see a black market in banker assassinations. We could create a market exchange and trade derivatives on their lives. Any bookies out there?

Tue, 03/04/2014 - 16:06 | 4508590 elwind45
elwind45's picture

Made me chuckle. In the past if Russia pulled this kind ofstunt all the elites would be slapping themselves with rope and such

Tue, 03/04/2014 - 17:22 | 4508620 Chuck Knoblauch
Chuck Knoblauch's picture

They can all move to Barvikha, Russia and play chess with Saddam & Muammar & Assad.

Tue, 03/04/2014 - 15:03 | 4508153 kchrisc
kchrisc's picture

The position of the Israel Dominated West against Russia is like when one is playing Chess and one has several moves and none of them good-"It's not checkmate, yet, but..."

Tue, 03/04/2014 - 14:35 | 4507965 olle
olle's picture

As far as I´ve learrned over the last few day´s, Ukraine has a Government that Germany, and most of the modern western world would hate, not seen sice pre WW2. 

Actually, there has been a Russian intervention i Crimelia.. but no one has been killed, nothing big has actually happened.

Now Kiev is screaming for EU, US and NATO to engage.... what for?

Who is the provocative force....?

Tue, 03/04/2014 - 14:47 | 4508042 Dollarmedes
Dollarmedes's picture

Todays buy-in must not have been big enough. TPTB need more stimulus, but unlike the usual euphemism this one will be driven by *actual* adrenaline. The adrenaline of being shot at.

Then, the "miraculous" resolution where we all heave a sigh of relief and BTFATH.

Tue, 03/04/2014 - 14:48 | 4508048 elwind45
elwind45's picture

I not eat food you put in cage and I throw more than it back at you! Why you turn off lite why you not listening? I am winning damnit!!!! Ok back goes Snowden and turn on all lights and give me good food comrades

Tue, 03/04/2014 - 14:52 | 4508069 Quinvarius
Quinvarius's picture

Palladium has a decent boner today.

Tue, 03/04/2014 - 14:56 | 4508098 johny2
johny2's picture

200 usd billion can be created in a matter of time it takes for Yelen to log in on the computer.

 

if Russia really wanted some asymmetric action, they would try to buy the gold and silver. 

 

Also they should stop exporting the oil and gas, after all they have been through the hunger during the previous invasions by the cartels puppets.

Tue, 03/04/2014 - 14:59 | 4508118 LawsofPhysics
LawsofPhysics's picture

Please, if they were to keep their oil and gas, they wouldn't be cold and hungry.

Tue, 03/04/2014 - 15:01 | 4508132 Johnny Cocknballs
Johnny Cocknballs's picture

Ivan is going to lose E. Siberia one day anyway, why not sell it to China now?

 

just spitballin' here.

 

Tue, 03/04/2014 - 16:05 | 4508583 johny2
johny2's picture

stoping their revenue would hurt them, as long as the fiat usd survives. As they are targeted and the attack on them will continue in any case, they may as well try this pacifist option.

 

Tue, 03/04/2014 - 15:31 | 4508358 Jorgen
Jorgen's picture

if Russia really wanted some asymmetric action, they would try to buy the gold and silver.

And who says they haven't been doing just that... along with China. On the other hand, I wonder what is India's position on this Ukrainian situation. They have been extensively coöperating with VP's Russia on military programs.

Tue, 03/04/2014 - 15:30 | 4508361 elwind45
elwind45's picture

And some day your income along with everything else income will be gobbled up by the Fed tracker beam? And made this log in and many other log in's count to your and every other central banker around the planet? Your spending of the rest plus extra keeps it keeping on or I would gladdly print 200 billion because BABY IF YOUR NOT GOLDEN THAN NOBODY IS GOLDEN

Tue, 03/04/2014 - 14:59 | 4508125 Johnny Cocknballs
Johnny Cocknballs's picture

the more things change...

the worse it gets for most of us.

Tue, 03/04/2014 - 15:13 | 4508233 elwind45
elwind45's picture

This is like the second best day off from walmart ever? Anything you contact is like Putin this and Putin that its crazy GENEROUS! You think for one moment if Russian regulars stormed across Afghanistan looking for a fix instead of fresh arse in Ukraine the 21st century Ronald Reagan would allow that type of transgression to pass lightly? Rofhma

Tue, 03/04/2014 - 15:14 | 4508242 CaptainSpaulding
CaptainSpaulding's picture

But but this morning, Tommy said i was alright Spider. 

Tue, 03/04/2014 - 15:45 | 4508289 Chuck Knoblauch
Chuck Knoblauch's picture

Does Putin dare to be as bold as Qaddafi? I hope Vlad knows that if Russia was Libya, Vlad would be dead? Do you think he knows that?

Tue, 03/04/2014 - 15:20 | 4508292 magpie
magpie's picture

Basically sanctions are an act of war.

Tue, 03/04/2014 - 15:22 | 4508304 Billy Shears
Billy Shears's picture

 

Yes,  all your cheese (burger) eating, surrender monkeys have become ours!

Tue, 03/04/2014 - 15:43 | 4508454 Sufiy
Sufiy's picture

The big difference with Iraq, Afghanistan, Libya and Syria is that all those countries can not be compared to Russia and China even close. These two countries have means to make life very messy for everybody involved and U.S. has managed to be involved with both. It is getting very hot very fast in Ukraine with Russia and you can imaging who is orchestrating China - Japan confrontation as well. It is not the way to make friends and find the new buyers for U.S. Debt or even retain the old ones. Are those people who write the teleprompter for Obama just went totally crazy? We do not think so. Unfortunately the friends are lost long time along the way with ongoing US Treasury sales by Russia and China and diversification out of US Dollar. Now we are witnessing the very dangerous play with the last asset left in U.S. from Super Power stage - its Military Complex. There is nothing to match it in the open confrontation, but if we will be all lucky to exclude mutual nuclear distraction, we can expect a lot of asymmetrical steps from the Rising Powers. Ongoing Financial War can now be considered to be escalating to the dramatically new levels.

 

http://sufiy.blogspot.co.uk/2014/03/ukraine-and-peter-schiff-recovery.ht...

Tue, 03/04/2014 - 15:44 | 4508462 Groucho
Groucho's picture

Washington is going to have a very difficult time getting their junior partners in the EU on board for resurrecting the cold war for two primary reasons;

1.     The whole Edward Snowden thing including the revelations that the US was engaging in commercial espionage and spying on their allies has significantly impacted European public opinion and that of many EU governments, in fact pretty much all of them except the toadies in Britain. And even more important,

2.    In 2007, the EU imported from Russia 185 million tonnes of crude oil, which accounted for 32.6% of total oil imports, and 100.7 million tonnes of oil equivalent of natural gas, which accounted for 38.7% of total gas imports. These numbers have likely increased since then. Any material trade impasse/ sanctions would cripple the EU economy. It ain't gonna happen.

 

At the end of the day this whole Ukraine thing was promoted by the US security state as part of the ongoing effort to surround Russia with NATO clients. Putin sees this as an existential issue for Russia and he has lots of public support. These jokers really are deluded if they think he will back down. Hard to support Putin, thug that he is however the shock expressed in Washington that Russia would resort to aggression to pursue what are arguably legitimate security interests is a little disingenuous in the wake of Iraq, Afghanistan etc. (I don’t think we need to back any further to make the point.)

 

If I were Vlad I'd be interested in transacting oil outside the USD system (gold anyone?).

 

Tue, 03/04/2014 - 19:35 | 4509599 zionhead101
zionhead101's picture

That SNOWDEN & ASSUANGE are MOSSAD slow release propaganda is old news.

All of the SNOWDEN revelations were made public in the 1970's and even earlier, if you were alive and reading books.

*

It's fairly clear that the CIA/MOSSAD are now working against USA interests, that the CIA/MOSSAD is getting the world to turn against the USA.

TelAviv at this point only wants to be able to Sell SAUDI heating oil for Euro's which will fund the millions of ELITE CONDO's on the beach forever, and allow Tel-Aviv to be the new Hong Kong forever.

The USA is being brought down hard and fast.

Tue, 03/04/2014 - 15:55 | 4508530 all-priced-in
all-priced-in's picture

Did Vladimir just go Kim Jong-un?

Tue, 03/04/2014 - 16:07 | 4508567 Chuck Knoblauch
Chuck Knoblauch's picture

Barvikha, Russia is the real Russian capitol, not Moscow.

http://vimeo.com/65480862

Tue, 03/04/2014 - 16:00 | 4508555 waterhorse
waterhorse's picture

With their Viagra-induced "hard-ons for Russia," this is just the news that Lindsey Graham and John Bolton wanted to hear.

Tue, 03/04/2014 - 16:09 | 4508608 thewayitis
thewayitis's picture

 

 Don't cross this LINE obammy .....

 

 

Tue, 03/04/2014 - 16:16 | 4508636 PhilofOz
PhilofOz's picture

Dr Paul Craig Roberts  :   "No greater evil exists than the government of the United States."

This should go down as one of the great quotes of 2014. 

http://thenewsdoctors.com/the-end-could-be-nearer-than-you-think/

Tue, 03/04/2014 - 19:31 | 4509583 zionhead101
zionhead101's picture

No the greater evil is those that RUN the USA,... and Robert's doens't have the balls to go there.

You need to peel back the onion a few more layers.

The USA is a nation, a Mercenary Army that is a puppet, and the USA has a money tree that generates infinite free FIAT to buy cop toy's, and has unlimited human tissue to be sent to fight in foriegn wars, but to blame the USA is crazy.

It's like Blaming the horse or the pig for the FARM, ... at some point you have to look at the plantation owner.

*

Robert's is better than most at telling it like it is, and he's right, ... but he doesn't get to the core of why the USA apple is rotten.

Tue, 03/04/2014 - 16:42 | 4508780 Duc888
Duc888's picture

 

 

The black lipped Chalky one will just instruct Androgenous Pat to print moar.

Tue, 03/04/2014 - 16:45 | 4508797 Duc888
Duc888's picture

 

 

Groucho "1.     The whole Edward Snowden thing including the revelations that the US was engaging in commercial espionage and spying on their allies has significantly impacted European public opinion and that of many EU governments, in fact pretty much all of them except the toadies in Britain."

 

Well, funny thing is this, you could have read The Puzzle Palace....and Privacy for Sale, two books written in the early 1990's and have gotten Snowdens "revelations" 20 years ago.  It's all there in black and white ink.  They TOLD you what they were gonna do, you just didn't read it.

 

LOL.

Tue, 03/04/2014 - 16:59 | 4508867 giggler321
giggler321's picture

Is it worth commenting?  I mean I'm out of the game since the UK isn't playing.

Tue, 03/04/2014 - 17:22 | 4509019 Rudini
Rudini's picture

When Libya happened, the way I recall it, Putin said 'no more'.

This is a state of emergency. I know you all need a doctor.

https://www.youtube.com/watch?v=tqtGJKa26AU

Tue, 03/04/2014 - 18:25 | 4509351 Rastadamus
Rastadamus's picture

Russia dumps all UST bonds in just 10 seconds..... 9-8-7...............

 

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