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China Sides With Russia On Sanctions; Ambassador Warns "Western Nations Would Be Hurting Themselves"

Tyler Durden's picture




 

Amid a Russian spokesperson "hoping" tensions do not escalate into a new cold war with the US, China has come out (perhaps unsurprisingly) on Russia's side strongly condemning any sanctions:

"China has consistently opposed the easy use of sanctions in international relations, or using sanctions as a threat.”

The comments from China's Foreign Ministry reflect the country's close ties with Russia and confirm what Russia's ambassador to Canada noted, we "can always turn to China if the West follows through on threats of tougher sanctions," adding that "Western countries would largely be hurting themselves if they impose tougher sanctions."

 


 

Some cryptic words this morning:

  • WESTERN STATEMENTS ON UKRAINE MAKE US THINK OF TASKS, MEANS AND SACRIFICE THEY ARE WILLING TO MAKE - RUSSIAN FOREIGN MINISTRY
  • *PESKOV HOPING FOR COMMON GROUND WITH WEST ON UKRAINE: RIA
  • *PUTIN SPOKESMAN DOESN'T SEE NEW COLD WAR, RIA SAYS

 

Furthermore, as The Globe and Mail reports, it is clear the Russians have a plan...

Russia’s ambassador to Canada says he was surprised no one bothered to speak with him about the crisis in Ukraine before he received a diplomatic dressing-down last Saturday, and added his country can always turn to China if the West follows through on threats of tougher sanctions.

 

In a wide-ranging interview with The Globe and Mail, Georgiy Mamedov insisted Russia wants to see the crisis in Ukraine resolved peacefully.

 

And he said Western countries would largely be hurting themselves if they impose tougher sanctions or make good on warnings that they could boot Russia out of the G8.

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Fri, 03/07/2014 - 13:24 | 4521703 VD
VD's picture

hot messy war aint a cold war...

Fri, 03/07/2014 - 13:29 | 4521729 Unprepared
Unprepared's picture

Cold with a chance of hellfire flurries.

Fri, 03/07/2014 - 13:32 | 4521742 Hippocratic Oaf
Hippocratic Oaf's picture

China should just dump treasury.

All of it.

Fri, 03/07/2014 - 13:34 | 4521759 Occident Mortal
Occident Mortal's picture

Who will blink first?

Who are we kidding? We know our threats are empty.

Fri, 03/07/2014 - 13:38 | 4521774 StacksOnStacks
StacksOnStacks's picture

GOLD & SILVER BITCHEZ

fiat bitchez

Fri, 03/07/2014 - 14:33 | 4522047 johnQpublic
johnQpublic's picture

ok, lets pretend the chinese dump their treasurys and whatever other bits of our debt they have

what if there are NO takers?

we wont buy them

our allies wont buy them

their allies dont want them

then what?

no more cheap chinese shit obviously, but anything worse?

 

Fri, 03/07/2014 - 14:57 | 4522170 TerminalDebt
TerminalDebt's picture

you dont just dump 1T worth of debt, you exchange it for something. Like banknotes, or land, or maybe some american women.

Fri, 03/07/2014 - 15:45 | 4522421 Chief KnocAHoma
Chief KnocAHoma's picture

We could give them Oprah.

Fri, 03/07/2014 - 15:55 | 4522478 Occident Mortal
Occident Mortal's picture

Anyone got the link for that real time cyber warfare analysis page?

Wonder how things have been looking these past few weeks?

Fri, 03/07/2014 - 17:47 | 4522995 johnQpublic
johnQpublic's picture

i know you exchange the treasuries, but seriously, what if the US gets its allies etal not to take them....its an actual question

could there be a situaton where we would take them from anyoen, just not china or the ones previously sold to china?

Fri, 03/07/2014 - 18:00 | 4523034 Scarlett
Scarlett's picture

with no buyers, the bond bubble would collapse in a flash, and the usd would follow

Fri, 03/07/2014 - 19:08 | 4523273 new game
new game's picture

the fed would backstop the torrent and shelve them on their balance sheet.  the world would be awash with newly formed currency.  they could then buy _ _ _ _.

Fri, 03/07/2014 - 18:30 | 4523128 shitco.in
Fri, 03/07/2014 - 16:11 | 4522553 Headbanger
Headbanger's picture

Yes Oprah + Justin Bieber + Lindsay Lohan + Denis Rodman + CNN + CNBC + Nancy Pelosi + Boehner + Pierce Morgan !

Fri, 03/07/2014 - 16:37 | 4522690 tsuki
tsuki's picture

We cannot give them Justin Bieber.  It is  against International Law.  He is a Canadian. 

Fri, 03/07/2014 - 17:46 | 4522988 mbutler101
mbutler101's picture

Everyone knows that, but we're willing to lease/rehypothecate our Bieber interests, but only up to 100 times ;)

Fri, 03/07/2014 - 18:51 | 4523224 Carpenter1
Carpenter1's picture

I'm Canadian, you got my say so. Take the little punk ass, no charge

Fri, 03/07/2014 - 15:46 | 4522424 macholatte
macholatte's picture

 

if a large amount of UST is "dumped" it would cause the price to fall precipitously hurting the seller.  Say the price fell 30%. Most dealers get wet thinking about just a few points, 30% were be outright orgazmic.  Yellin could buy back her own paper for a 30% discount. Another $1T on top of the $20T outstanding is nothing, especially if it's just a buy back of old paper at a huge discount. It would all be over in a week or 2 at the most.

 

Fri, 03/07/2014 - 16:26 | 4522626 Soul Glow
Soul Glow's picture

lolz

I'd like to be there when Ol' Yellen thinks she is getting a discount when she shells out another trillion dollars that will never be paid back on worthless debt.  

Sat, 03/08/2014 - 02:11 | 4522807 hobopants
hobopants's picture

China sees the writing on the wall and doesn't want to rock the boat. They are exchanging US debt for gold at a pace that doesn't send prices sky rocketing. They know their best bet is to take advantage of the situation to buy hard assets like gold while the dollar still has value. Until they're devested the last thing they want is a dollar collapse. They have their own well being in mind, not some diabolical scheme to upset the system and rule the world. I think they have logically come to the conclusion that a collapse of the current paradigm will not be a controllable or predictable event and are hedging accordingly.

Fri, 03/07/2014 - 22:35 | 4523893 Wahooo
Wahooo's picture

She would not be buying at a discount as her dollars would be negatively adjusted.

Fri, 03/07/2014 - 15:03 | 4522206 ciscokid
ciscokid's picture

Then USA goes into DEFAULT!!!!!!!! No more reserve status for the $$$$$$

Fri, 03/07/2014 - 16:17 | 4522582 Lux Fiat
Lux Fiat's picture

The whole topic reminds me of Jim Rickards, who wrote about a similar scenario in Currency Wars.  Odd, not a peep from him of late that I am aware of on the major financial news channels (as best my surfing indicates).  That makes me very concerned that the situation behind the scenes may be worse than it appears on the surface.

Fri, 03/07/2014 - 15:19 | 4522268 DogOfSinope
DogOfSinope's picture

That would mean that no treasuries are taken - from any seller.
In turn that would mean that US issued debt is worthless and, that dollar value asymptotically converges to zero. Which in turn would mean that US can't finance itself and dollar hyperinflation would start. It would mean that US will default on it's obligations and actually go bankrupt. All govt services would stop, no govt employee would get salary, no foreign seller would sell any goods for dollars (since US doesn't honor it's issued paper debt - which is paper money, too), but would request some intrinsic value in exchange. Etc.
Look up Weimar Republic hyperinflation on Google.

Fri, 03/07/2014 - 17:25 | 4522902 Induced Coma
Induced Coma's picture

So, this is a win, right?

Fri, 03/07/2014 - 15:17 | 4522271 Dollarmedes
Dollarmedes's picture

"China sides with Russia on sanctions."

In other news: water is wet, says global media.

Fri, 03/07/2014 - 15:33 | 4522369 Handful of Dust
Handful of Dust's picture

Baryy wouldn't touch China; the NAR won't let him. Cali RE would collapse if the Chinese stopped flooding in here with their Millions....not to mention the too-many-to-count that now spend bookoos $$$ to woo Chinese students, esp the ones who stop by the BMW dealership on their way from the airport even before they hit campus and pay that $60k cashola for tuition.

Sat, 03/08/2014 - 05:53 | 4524500 americhinaman
americhinaman's picture

spot on insight, that very few realize!  there are 2 classes of such students...

1) is here on merit, and likely not all that wealthy but probably won a local chinese scholarship.  the USA school and area probably only nets the tuition payment and minimal poverty-level lifestyle expenditures, as these students live as cheap as they can.

2) comes to the USA and in addition to tuition spends 200k USD per year on food, car, rent, and other expenses.  california universities have rejected affirmative action exactly because of this (not just chinese students but also other rich interntional students).  when they come, their parents generally buy a luxury apartments or pay for luxury rentals price-no-object.  i'd guess just one big campus (say UCLA) could have 5000 wealthy chinese students, which on my back of envelope estimate would be 1 BILLION in local revenues!

Fri, 03/07/2014 - 18:26 | 4522082 zaphod
zaphod's picture

Due to the massive corruption that exists among the top 1% in these countries, the only reason most of the non-western world has done well over the past generation or two is that they have become integrated with the western world through trade and investment. 

Take that away, and their economies will stagnate and collapse as they have done before. ZH'ers rightfully see how the US's ruling class is corrupt, but it pales in comparison to Russia, China, etc. Which have even less rule of law. 

Fri, 03/07/2014 - 18:53 | 4523233 IronShield
IronShield's picture

"...rule of law."

Sheep, Slave, Muppet..

Fri, 03/07/2014 - 13:38 | 4521776 kliguy38
kliguy38's picture

They're not empty......our skull n crossbone Yalies will rally our troops and lead them to slaughter from the CNN news room desks........YOU ARE OWNED

Fri, 03/07/2014 - 13:49 | 4521814 disabledvet
disabledvet's picture

"what is thy bidding my master....

Fri, 03/07/2014 - 13:51 | 4521823 kliguy38
kliguy38's picture

"yours is not to reason why .......yours is to do and DIE" !

Fri, 03/07/2014 - 14:04 | 4521886 HoofHearted
HoofHearted's picture

Shit's about to get real for the US. Who holds a ton of T-bills (besides the Fed). Instead of real wars, we may see currency wars, and there is one definite loser there. 

Fri, 03/07/2014 - 14:19 | 4521964 johnQpublic
johnQpublic's picture

WAR

what is it good for?

all Kinda shit

say it again

theres a broken window

ah

WAr

MIC stocks rising

ah say it again

WAR

Fri, 03/07/2014 - 14:28 | 4522008 MagicHandPuppet
MagicHandPuppet's picture

LET THE GAMES BEGIN, PUSSIES!

Fri, 03/07/2014 - 14:32 | 4522036 Harbanger
Harbanger's picture

The Fed and establishment politicians can then blame the Chinese and Russians for the dollar collapse.  Sounds like a good plan.

Fri, 03/07/2014 - 15:00 | 4522184 analyzer_66
analyzer_66's picture

+1 KMFDM

Fri, 03/07/2014 - 16:43 | 4522722 Dr. Destructo
Dr. Destructo's picture

KMFDM forever sucks.

Fri, 03/07/2014 - 14:22 | 4521979 11b40
11b40's picture

We blink first.....again.

Bluffing works fine until you get called.  Then, not so much.

Once we had WISE leadership.  I think that JFK was the last in that category, and there is a big difference betwee clever, smart, intelligent, educated, etc., and WISE.

Fri, 03/07/2014 - 14:33 | 4522046 Oldballplayer
Oldballplayer's picture

Nikita wiped his ass with JFK in Vienna. The last crew that could dance with the Russians was Nixon. Not a big fan, but they could stand toe to toe.

Sat, 03/08/2014 - 13:04 | 4525083 11b40
11b40's picture

Even with the mis-steps, Cuba did not turn out so well for the Soviets.  They blinked, if I recall correctly.

Nixon did a great job with the Chinese, didn't he, keeping Viet Nam a communist vassal in the soft underbelly of China, and removing the US from any bases near them on the South China Sea.

Fri, 03/07/2014 - 15:57 | 4522492 Nehweh Gahnin
Nehweh Gahnin's picture

It's hard to blink when you have your eyes closed.

Fri, 03/07/2014 - 17:50 | 4523004 Kirk2NCC1701
Kirk2NCC1701's picture

Regarding the Globe & Mail (Canada's #1 newspaper) article...

In spite of pretenses to the contrary (I get national pride), Canada has always been somebody's colony ("bitch"): First it was a bitch for the Brits, and now for the Americans and their Neocon/Globalist bosses.

And Harper has so much "more flexibility after the election" than even Obama, that he is happy to be the smegma*-licking lackey of his NWO/Neocon masters.

* Look it up.

Fri, 03/07/2014 - 18:20 | 4523092 emersonreturn
emersonreturn's picture

kirk2ncc1701

 

harper loves israel more than barry.

Fri, 03/07/2014 - 13:51 | 4521822 No Euros please...
No Euros please we're British's picture

I think that might be what they were hinting at. The Chinese are inscrutable and the US are about to get well and truly scruted.

Fri, 03/07/2014 - 14:17 | 4521951 aVileRat
aVileRat's picture

Yup.

China finally clued in, the occupation and annexation of Georgia and now Crimea can now be applied to Vietnam (where over 40% of the country is Chinese Han), Taiwan and the South-China isles. ie. this is their "cheat code" to imperial expansion.

Ironically, this whole, settlement & annexation business model was pioneered by the United States back with Mexico & Texas.

Funny how things work that way.

Also it's funny how nobody came to Mexico's aid back then because everyone was afraid of what the United States would do with their Cotton trade, which UK & France were heavily dependant on at the time.

 

Fri, 03/07/2014 - 13:31 | 4521739 NOTW777
Fri, 03/07/2014 - 13:52 | 4521831 SilverIsKing
SilverIsKing's picture

If the third vacation is cut short, they'll just follow it up immediately with the fourth vacation.

Fri, 03/07/2014 - 14:58 | 4522174 viahj
viahj's picture

I get a little leary when in the midst of international crisis, the POTUS and VPOTUS both leave the mainland at the same time.

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