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Petrodollar Alert: Putin Prepares To Announce "Holy Grail" Gas Deal With China

Tyler Durden's picture




 

If it was the intent of the West to bring Russia and China together - one a natural resource (if "somewhat" corrupt) superpower and the other a fixed capital / labor output (if "somewhat" capital misallocating and credit bubbleicious) powerhouse - in the process marginalizing the dollar and encouraging Ruble and Renminbi bilateral trade, then things are surely "going according to plan."

For now there have been no major developments as a result of the shift in the geopolitical axis that has seen global US influence, away from the Group of 7 (most insolvent nations) of course, decline precipitously in the aftermath of the bungled Syrian intervention attempt and the bloodless Russian annexation of Crimea, but that will soon change. Because while the west is focused on day to day developments in Ukraine, and how to halt Russian expansion through appeasement (hardly a winning tactic as events in the 1930s demonstrated), Russia is once again thinking 3 steps ahead... and quite a few steps east.

While Europe is furiously scrambling to find alternative sources of energy should Gazprom pull the plug on natgas exports to Germany and Europe (the imminent surge in Ukraine gas prices by 40% is probably the best indication of what the outcome would be), Russia is preparing the announcement of the "Holy Grail" energy deal with none other than China, a move which would send geopolitical shockwaves around the world and bind the two nations in a commodity-backed axis. One which, as some especially on these pages, have suggested would lay the groundwork for a new joint, commodity-backed reserve currency that bypasses the dollar, something which Russia implied moments ago when its finance minister Siluanov said that Russia may refrain from foreign borrowing this year. Translated: bypass western purchases of Russian debt, funded by Chinese purchases of US Treasurys, and go straight to the source.

Here is what will likely happen next, as explained by Reuters:

Igor Sechin gathered media in Tokyo the next day to warn Western governments that more sanctions over Moscow's seizure of the Black Sea peninsula from Ukraine would be counter-productive.

 

The underlying message from the head of Russia's biggest oil company, Rosneft, was clear: If Europe and the United States isolate Russia, Moscow will look East for new business, energy deals, military contracts and political alliances. 

 

The Holy Grail for Moscow is a natural gas supply deal with China that is apparently now close after years of negotiations. If it can be signed when Putin visits China in May, he will be able to hold it up to show that global power has shifted eastwards and he does not need the West.

More details on the revelation of said "Holy Grail":

State-owned Russian gas firm Gazprom hopes to pump 38 billion cubic meters (bcm) of natural gas per year to China from 2018 via the first pipeline between the world's largest producer of conventional gas to the largest consumer.

 

"May is in our plans," a Gazprom spokesman said, when asked about the timing of an agreement. A company source said: "It would be logical to expect the deal during Putin's visit to China."

Summarizing what should be and is painfully obvious to all, but apparently to the White House, which keeps prodding at Russia, is the following:

"The worse Russia's relations are with the West, the closer Russia will want to be to China. If China supports you, no one can say you're isolated," said Vasily Kashin, a China expert at the Analysis of Strategies and Technologies (CAST) think thank.

Bingo. And now add bilateral trade denominated in either Rubles or Renminbi (or gold), add Iran, Iraq, India, and soon the Saudis (China's largest foreign source of crude, whose crown prince also happened to meet president Xi Jinping last week to expand trade further) and wave goodbye to the petrodollar.

As reported previoisly, China has already implicitly backed Putin without risking it relations with the West. "Last Saturday China abstained in a U.N. Security Council vote on a draft resolution declaring invalid the referendum in which Crimea went on to back union with Russia. Although China is nervous about referendums in restive regions of other countries which might serve as a precedent for Tibet and Taiwan, it has refused to criticize Moscow. The support of Beijing is vital for Putin. Not only is China a fellow permanent member of the U.N. Security Council with whom Russia thinks alike, it is also the world's second biggest economy and it opposes the spread of Western-style democracy."

 

This culminated yesterday, when as we reported last night, Putin thanked China for its "understanding over Ukraine." China hasn't exactly kept its feelings about closer relations with Russia under wraps either:

Chinese President Xi Jinping showed how much he values ties with Moscow, and Putin in particular, by making Russia his first foreign visit as China's leader last year and attending the opening of the Winter Olympics in Sochi last month.

 

Many Western leaders did not go to the Games after criticism of Russia's record on human rights. By contrast, when Putin and Xi discussed Ukraine by telephone on March 4, the Kremlin said their positions were "close".

The punchline: "A strong alliance would suit both countries as a counterbalance to the United States." An alliance that would merely be an extension of current trends in close bilateral relations, including not only infrastructure investment but also military supplies:

However, China overtook Germany as Russia's biggest buyer of crude oil this year thanks to Rosneft securing deals to boost eastward oil supplies via the East Siberia-Pacific Ocean pipeline and another crossing Kazakhstan.

 

If Russia is isolated by a new round of Western sanctions - those so far affect only a few officials' assets abroad and have not been aimed at companies - Russia and China could also step up cooperation in areas apart from energy. CAST's Kashin said the prospects of Russia delivering Sukhoi SU-35 fighter jets to China, which has been under discussion since 2010, would grow.

 

China is very interested in investing in infrastructure, energy and commodities in Russia, and a decline in business with the West could force Moscow to drop some of its reservations about Chinese investment in strategic industries. "With Western sanctions, the atmosphere could change quickly in favor of China," said Brian Zimbler Managing Partner of Morgan Lewis international law firm's Moscow office. 

 

Russia-China trade turnover grew by 8.2 percent in 2013 to $8.1 billion but Russia was still only China's seventh largest export partner in 2013, and was not in the top 10 countries for imported goods. The EU is Russia's biggest trade partner, accounting for almost half of all its trade turnover.

And as if pushing Russia into the warm embrace of the world's most populous nation was not enough, there is also the second most populated country in the world, India.

Putin did take time, however, to thank one other country apart from China for its understanding over Ukraine and Crimea - saying India had shown "restraint and objectivity".

 

He also called Indian Prime Minister Manmohan Singh to discuss the crisis on Tuesday, suggesting there is room for Russia's ties with traditionally non-aligned India to flourish.

 

Although India has become the largest export market for U.S. arms, Russia remains a key defense supplier and relations are friendly, even if lacking a strong business and trade dimension, due to a strategic partnership dating to the Soviet era.

 

Putin's moves to assert Russian control over Crimea were seen very favorably in the Indian establishment, N. Ram, publisher of The Hindu newspaper, told Reuters. "Russia has legitimate interests," he added.

To summarize: while the biggest geopolitical tectonic shift since the cold war accelerates with the inevitable firming of the "Asian axis", the west monetizes its debt, revels in the paper wealth created from an all time high manipulated stock market while at the same time trying to explain why 6.5% unemployment is really indicative of a weak economy, blames the weather for every disappointing economic data point, and every single person is transfixed with finding a missing airplane.

 

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Fri, 03/21/2014 - 13:53 | 4577777 besnook
besnook's picture

now that is offensive. there are many very wealthy jews in russia. some may call themokligarchs. for some reason putin thinks they serve russia well so he hasn't jailed them like many others who mad him upset. so you see, there are many jews involved in this apocalyptic pathway and they all need to be blamed but they are not all jews. just know the difference because bashing jews on a public forum is a time honored honorable tradition(as is bashing a few other usual targets).

Fri, 03/21/2014 - 17:34 | 4578586 Proofreder
Proofreder's picture

TRAV - is it really the reincarnated YOU ???

Fri, 03/21/2014 - 15:07 | 4578059 Seer
Seer's picture

"What Russia is doing is not only good for Russia but for the world."

The world would be perfectly fine without any of us.  Ideologies have ZERO to do with the success of an empire.  Read all about it (study of 3,000 of empires):

http://www.rexresearch.com/glubb/glubb-empire.pdf

Give-away: ALL empires get it in the end!

Fri, 03/21/2014 - 19:30 | 4578815 layman_please
layman_please's picture

geee, if turning russia against west doesn't sound like a chapter out of NWO playbook then i don't know what does. NWO has no national ties. you think they are western just because ussa is the horse they rode in on but this will change soon.

this shit is exactly what will bring about NWO. putin is not only part of the plan but he is the plan. they knew perfectly well how he would react when they poke ukraine, his last line of defence.

Fri, 03/21/2014 - 13:15 | 4577591 Pressfiretostart
Pressfiretostart's picture
China Is Reaping Biggest Benefits of Iraq Oil Boom http://www.nytimes.com/2013/06/03/world/middleeast/china-reaps-biggest-b...

This is after the $3 Trillion plus the idiots-in-charge wasted waging war over there. 1 million + Iraqis dead, 5,000 U.S. troops dead.

May God save America because we are led by devils. 

Fri, 03/21/2014 - 15:08 | 4578063 Seer
Seer's picture

"May God save America because we are led by devils. "

God has never saved an empire.

Try again.

Fri, 03/21/2014 - 13:14 | 4577612 Hannibal
Hannibal's picture

Looks like Mother Russia doen't only have huge balls to stands up against the US/UK/Nato war psychopaths but is also the better geopolitiek chess player,...check!

Fri, 03/21/2014 - 15:09 | 4578068 Seer
Seer's picture

Russia is the only big-power that has energy exports (and has markets adjacent to itself).

Fri, 03/21/2014 - 13:14 | 4577613 The wheels on t...
The wheels on the bus are going to fall off's picture

What i cannot understand, is that this is so obvious to anyone who follows what is going on in the world. 

The scary thing is, either the west are extremely dumb or that this is what the US wants, a systematic way of collapsing an unsustainable dollar and the blame is on Russia.

Is the US actually going to sit back and watch there empire collapse once they lose there reserve status and decimate there entire nation? if they do, then they are involved in this fiasco, or do they go to war to stop this from happening?

Every other country that has threatened the reserve currency status has been decimated by the US....this situation historically is no different, other than its no lame ass Arab / African nation they are dealing with here....

This feels staged to me and either Russia are part of the game or they are taking the bate.

Fri, 03/21/2014 - 15:12 | 4578092 Seer
Seer's picture

"This feels staged to me and either Russia are part of the game or they are taking the bate."

Perhaps you're getting that Deja Vu feeling?  This is ALL pretty standard fare as to how empires go:

http://www.rexresearch.com/glubb/glubb-empire.pdf

NOTE: Once again I'd like to thank the fellow ZH-er who posted this the other day.  It's a marvelous piece.

Fri, 03/21/2014 - 19:08 | 4578821 layman_please
layman_please's picture

DING DING DING, we have a winner.

 

dollar as a reserve currency with all the us banks and the military was a nice toy but it has served its purpose and now it's time for some WOAR.

if you ask me who's behind it, then look for someone behind both sides of the conflict, the IMF. 

http://www.thenewamerican.com/economy/item/17817-obama-exploiting-ukrain...

Fri, 03/21/2014 - 13:31 | 4577681 Dollarmedes
Dollarmedes's picture

It's amazing, really: after the rise of the ChiComs in the 1950's, the US always feared an alliance of the [Soviets] and the Chinese. This never happened because the two saw themselves as rivals, not partners. Obama's incompetence has overcome even that historic split.

 

...he really *is* a uniter, not a divider!

Fri, 03/21/2014 - 13:58 | 4577790 Postal
Postal's picture

Sounds like the worst boss I ever had. He united everybody: Men & women, blacks & whites, gays & straights, Muslim & Christian. Everyone despised him.

Fri, 03/21/2014 - 15:14 | 4578101 Seer
Seer's picture

Yup, it was Bama's fault...

"the US always feared an alliance of the [Soviets] and the Chinese."

And what about the fear of constant devaluation of the USD (pretty much the end was stamped in 1971)?  Um, the future was quite clear, and it has everything to do with the normal cycles of an empire: a single individual has little to do with the outcome (nor does any ideology).

Fri, 03/21/2014 - 15:20 | 4578136 smacker
smacker's picture

China and Russia may appear to be partners today and for the foreseeable future because they have a common enemy (the West) to rid themselves of. If & when that is dealt with, they will then morph into being rivals.

Hitler & Stalin had cordial relations at one time but the battle to become top-dog soon got underway.

Fri, 03/21/2014 - 13:35 | 4577693 geno-econ
geno-econ's picture

Sitting on the shores of Crimea
I looked out at the vast horizon beyond the blue sky
Below lay a Sea sailors called Black with portals to the Medeterainian
When within the blue sky appeared a large bird the color of the Sea
At first indistinguishable, but then apparent---a Black Swan---heading towards the West

Fri, 03/21/2014 - 13:40 | 4577721 muleskinner
muleskinner's picture

Bought some bacon yesterday to eat today and now it's gone.  There it was, gone.

Also, I watched a movie about large breasted topless alien women from Angvia.  It was a pleasant diversion, but I digress. 

If the US was producing 25 million barrels of oil per day, with 18 million barrels consumed domestically, and exporting 7 million barrels per day, the price would be much lower.  Net exports would have us swimming in gopher gravy.  Jed Clampett's millions would be billions. 

The world would be awash in oil.  It's not, it's peaked, Peak Oil.  Not that it is all gone, it's still there, just like stones are still there, except that the Stone Age is long gone, but it is the end of oil as was once known.

88 million barrels used everyday has to be replaced the next day if you want it to be business as usual.

Russia has other ideas about business and how it is conducted, so it looks like they are a more reliable entity than the western aggregate of bums who don't know if they are afoot or horseback.

It is no longer business as usual, not because Russia makes it so, but because the world is producing as much oil as can be supplied to meet the demand.  At the end of each day, the world is another 88 million barrels short.  There it was, gone.

The ball game has changed and Peak Oil is the reason why.

Plenty of trees in Siberia, so wood is a good second choice out there in the woods of Siberia.  It's a taiga out there said Alexander Solzhenitsyn.

Russia's basket of eggs isn't about to tip over.

Fri, 03/21/2014 - 15:10 | 4578080 walküre
walküre's picture

US domestic production is supposedly getting stronger. Add Canada's dirty oil to that and I don't think we have to worry a whole lot.

Fri, 03/21/2014 - 13:44 | 4577737 mayhem_korner
mayhem_korner's picture

 

 

Game.  Changer.

Fri, 03/21/2014 - 13:51 | 4577773 observer007
observer007's picture
US-Laser-Weapon-Test on 8Mar14 at Diego Garcia, the day MH370 disappeared possibly there

 

more:

http://homment.com/US-Laser-Weapon-Test-on-8Mar14-at-Diego-Garcia-same-day-MH370-disappeared-possibly-there

Fri, 03/21/2014 - 14:16 | 4577863 magpie
magpie's picture

Probably hosts aliens too.

Fri, 03/21/2014 - 18:14 | 4578710 Bazza McKenzie
Bazza McKenzie's picture

Ahhh, so the CIA got the Malaysian pilot to reverse his flight path in order to make himself and his plane a sacrificial target for a US weapons test.   Damned clever, those Yanks.

Fri, 03/21/2014 - 14:45 | 4577840 besnook
besnook's picture

the formation of the asian axis has been in the works for, well, since the dawn of putin. when he splashed on the scene in the post collapsed and looted russia he was portrayed as ex kgb so he shouldn't be trusted and a rogue when he started putting oligarchs in prison for putting money too far ahead of russia. he is lucky to be alive. since the beginning he has consistently talked about a multipolar world as the most secure model for the new world order. he has allied with china since then through the sco(shanghai cooperation organization) and other established and new .orgs.

the key has always been india. with india in the axis of evil the world is effectively, de facto, conquered. energy, resources, land mass, people and economy with growth prospects say the west is done if the alliance is even close to successful. if japan follows through with the hatoyama manifesto the region covers 40% of the world economy with 2/3 rds the people on 60% of the landmass.

with the exception of south africa(which is also allied with china and russia) africa is a total wasteland since the success of the various daisy flowered springs across north africa.

and south america is effectively part of the alliance of the great satans.

the conundrum is australia. what will the aussies do? aussie chinese chicks would be hot!

Fri, 03/21/2014 - 14:10 | 4577841 Nexus789
Nexus789's picture

NATO has been doing all the expansion and russia wss already in crimea. Moronic reference to the 30's. The nimrods in washington are playing tiddly winks while russia plays chess.

Fri, 03/21/2014 - 14:24 | 4577878 Pressfiretostart
Fri, 03/21/2014 - 14:41 | 4577934 falconflight
falconflight's picture

The Greens in Europe and now the US have played their part well.  Their political ancestors...the Communists have the West in a squeeze that could only have been dreamed about 30 years ago. 

Fri, 03/21/2014 - 15:04 | 4578034 walküre
walküre's picture

Regrettably I have to admit that was their game plan all along. Unfortunately all the warnings that were made to that effect have not been popular and were discredited by propaganda.

Fri, 03/21/2014 - 14:53 | 4577973 yogibear
yogibear's picture

If Russia and China work this right and have the Federal Reserve printing into a falling and crashing US dollar they'll be able to control more without firing a shot.

Russia and China can work together to crash the US dollar and get others to no longer accept it as a world currency.

Then move the financial center from NYC to an Asian capital.

Fri, 03/21/2014 - 15:00 | 4578018 walküre
walküre's picture

NYC is no longer the only financial center. The transition has been going on for years now. But you know where the financial centers NOT are? They're not in either Russia or China. Neither Moscow nor Beijing are relevant in terms of the global financial industry.

Fri, 03/21/2014 - 14:56 | 4577989 walküre
walküre's picture

Chinese and Russian wealth is parked in the West. For good reason. 'Nuff said. The Russian and Chinese government can delude each other all day and night long about how powerful they might be and how grandious their schemes are.... at the end of the day, the private citizen and even more so, the public official (who knows the crap going on behind the scenes) are taking their money out of China and Russia and parking it elsewhere.

Fact. End of story.

Fri, 03/21/2014 - 14:59 | 4578011 magpie
magpie's picture

Right...right until the West starts cutting up the credit cards.

Fri, 03/21/2014 - 15:01 | 4578020 walküre
walküre's picture

What's your point? We lived and thrived before credit cards.

Fri, 03/21/2014 - 15:05 | 4578026 magpie
magpie's picture

Credit means a lot.

The point is fast approaching when the West will not only look like kleptocrats in East and South...no, they will look like incompetent kleptocrats.

Fri, 03/21/2014 - 15:06 | 4578048 walküre
walküre's picture

It sure does. A man who is worthy of credit has more influence than a man who is not worthy of credit. Will investors pile into a Russo/Sino trade pact and finance the schemes? Absolutely not. Neither Russia nor China have much credit worthiness. I'm not sure if you and I actually disagree on this.

Fri, 03/21/2014 - 15:21 | 4578083 magpie
magpie's picture

The EU seizing and sanctioning left and right might be beneficial to others...Basically the Russian POV is that Europe like the Ukraine, will cease to pay for its gas imports in the near future. So why bother. You will probably agree that that is a good thing, as you sound like a particular strain in German politics that wants to rid itself of all economic connections to Russia and East Asia.

Who knows, you might get your wish, waiting for the monthly LNG shipment of American Obamagas and a Germany with a living of standard of Romania.

Fri, 03/21/2014 - 15:44 | 4578225 walküre
walküre's picture

Nonsense. Europe needs Russian gas and will always be importing and paying for Russian gas. Forget the noise.

Fri, 03/21/2014 - 16:13 | 4578333 Seer
Seer's picture

"Nonsense. Europe needs Russian gas and will always be importing and paying for Russian gas."

Pretty bold statement.

Ukraine essentially fell apart because it was becoming unable to actually pay for that gas.  The "trick" was for the EU to pretend that this wasn't about energy, that it was about... "democracy?" (whine, whine... but we really need that energy; we promise that if you let us have it that we will pay you nexst Tuesday...)

Europe is fucked.  That is, in the paradigm that Europe is currently playing under (perpetual growth) it is fucked.  To suggest that they can stay in the same game in which they find themselves losing, well... Logic FAIL.

Fri, 03/21/2014 - 16:39 | 4578429 walküre
walküre's picture

Ukraine imported at discount and couldn't pay. Wasn't Europe's problem.

Russia's demographics are among the worst in the world. If you want to go there, we're all equally fucked.

Now tell me, why should I trust (that's a pretty heavy sentiment) a guy who just boldly annexed part of another country just because? He's a dictator, end of story. Looking more and more like Napoleon by the day.

Fri, 03/21/2014 - 19:18 | 4578881 layman_please
layman_please's picture

because people have moronic tendency to love strong leaders. pathetic if you ask me.

Thu, 04/10/2014 - 17:40 | 4645031 bombdog
bombdog's picture

You're both wrong on different counts. Crimea wasn't annexed by a guy, it was integrated into a federation... of democracies, the president of which is probably the most popular politician in the world today. Like him or lump him that's the facts. And ANYONE that says the People of Crimea can't get out of a country that banned their language (RUSSIAN FOR FUCK SAKE) by organising a referendum and declaring themselves to be independent of an unelected government brought to power in a coup... is a dick!

Thu, 04/10/2014 - 17:34 | 4645006 bombdog
bombdog's picture

It's not really a bold statement. Some German industry dude was just on the TV saying Russia has supplied gas reliably for 40 years and German industry will continue to use Russian gas. There is no reason for Russia to stop supplying it (they get paid!) and to conflate Ukraine's situation with the rest of Europe is just stupid. Russians buy German goods and vice versa. That's why this whole sanctions charade is just that, a meaningless waste of time.

Fri, 03/21/2014 - 15:37 | 4578193 bk1037
bk1037's picture

First I see posts blaring out about imminent Chinese bond defaults, and then we see a blaring post like this about Russia-China unity and trade deals. I also had seen Russia agreeing to take over Crimea's financial deficits as the new overseer of Crimea. Did ZH really think that China and Russia weren't kindred spirits all along? Give me a break.

Let's look at the flipside of these arguments. For the West to have peace with Putin, we have to be agreeable to his terms where he could march his military or paramilitary wherever he wishes, is that right? Look at the reaction of others in Eastern Europe if one needs evidence that being under the Russian sphere of influence may not be all that it is cracked up to be. This could well play out to the USA's favor in the long run since we are going to become the biggest energy exporter in the next 10-20 years.

93-97% support in elections for Putin's stuff indicates what an abomination all of it is. He is afraid of losing a legitimate election and requires military to ensure his outcome. Activist opponents have a tendency to disappear in Russia and always have, whether it be in the Russian Duma or in Crimea or elsewhere in Russia. I would love to see the Ukrainians have a legitimate and free election as a finger in the eye to Putin to show how an election should really be conducted.

For apparent support India offered, you had better believe they will not sour any trade relations with the West.

On top of this, for all of Putin's land grabbing in Crimea and possibly elsewhere, Turkey has signalled to Russia they will shut down the Bosphorus if Crimean Tatars are victimized in Ukraine. A lot of good the Russian ships will do if they are bottled up in the Black Sea and can't get out. And yes, the USA will engage Russia over Turkey as part of NATO.

ZH continues to try to depict this dispute as if the West is coming out on the short side of this stuff. I will take the USA side over the Russian side in this dispute any day of the week. The main fault lies in the West deluding themselves to feel they could rely on a tyrannical government in Russia. This is a long overdue realignment of relations with Russia, until they can show they can act in a civilized manner in the 21st century, normal trade and business could not or should not be possible. This is the 21st century Cold War, fought with economics instead of military. We don't have to hit Putin, we just hit his support network, the Russian oligarchs who maintain his power base. If the Russian stock market continues its slide as it seems like it will, how long before this destabilizes the corrupt structure inside Russia?

 

Fri, 03/21/2014 - 15:55 | 4578266 IridiumRebel
IridiumRebel's picture

Economics aside, it's ok for us to help destabilize Ukraine and install NeoNazis and Goldman puppets? Why must we meddle in everything?

Fri, 03/21/2014 - 16:14 | 4578339 Seer
Seer's picture

Because we're championing for democracy!  Geez, even I knew that one! </sarc>

Fri, 03/21/2014 - 17:13 | 4578530 IridiumRebel
IridiumRebel's picture

I was being semi-rhetorical, but yes....

Thu, 04/10/2014 - 17:26 | 4644980 bombdog
bombdog's picture

"For the West to have peace with Putin, we have to be agreeable to his terms where he could march his military or paramilitary wherever he wishes, is that right?"

NO. It's not right now and it wasn't right before we fucked up Ukraine either.

Fri, 03/21/2014 - 16:09 | 4578312 overqualified
overqualified's picture

if they were smart they would park it in some blacklisted jurisdiction under a cover of an IBC + trust or more, or even bitcoins

Fri, 03/21/2014 - 16:16 | 4578337 smacker
smacker's picture

And how much money in the West is leaving or left years ago??

 

The best advice ever which I've always believed and Simon Black will tell you:

                                          "wherever you live in the world, keep your money somewhere else".

Fri, 03/21/2014 - 16:16 | 4578344 Seer
Seer's picture

For the US the money belongs to the Fed, so it's not really "your money."

Fri, 03/21/2014 - 23:57 | 4579593 damicol
damicol's picture

well I suppose the cabbage patch doll toy cellphone maker apple is in reality Chinese so I wonder why that turd keeps its money abroad instead of parking it in the US

Fri, 03/21/2014 - 15:21 | 4578142 Pressfiretostart
Pressfiretostart's picture

How far the "west" has fallen.

 

It's a pity.

Fri, 03/21/2014 - 15:25 | 4578153 BlackVoid
BlackVoid's picture

The west is suicidal, trying to bite the hand that feeds it with energy.

I expect sanctions to be muted and for show only for this reason. If not, expect economic calamity of epic proportions and then possibly war.

Fri, 03/21/2014 - 15:32 | 4578178 magpie
magpie's picture

These people cannot be stopped, not even by Putin.

Fri, 03/21/2014 - 15:48 | 4578241 walküre
walküre's picture

Are you serious? Putin is the aggressor, the antagonist in this drama. He should be in the gulag, not Pussy Riot or anybody else who dares speak out against him.

You must be in love with Putin. Was your father not worthy of your respect? Why do you need to suck up to Putin?

Fri, 03/21/2014 - 16:10 | 4578315 falak pema
falak pema's picture

don't take sides see the impending dilemma of 30s proportions in an age of Oppenheimer's toys galore! 

Fri, 03/21/2014 - 16:45 | 4578441 walküre
walküre's picture

As opposed to the guys rooting FOR Putin, I'm actually not taking either side. But given the choise, I prefer to be ruled by a lame black dude over a former central intelligence white egocentric psychopath ANY DAY.

The Putinistas salivate at every word and action of their idol Putin. I get that. They hate America so much that they will idolize any foreign leader who will challenge American hegemony. Got it.

If they only knew what it would be like for THEM to live under just such a guy, they would hopefully change their opinions. One can only hope. But then again, the majority of people are dumb sheep.

Fri, 03/21/2014 - 18:32 | 4578752 libertysghost
libertysghost's picture

By comparing domination and saying you have to pick one...aren't we presented with a false choice?  They are all sociopaths and psychopaths. 

Fri, 03/21/2014 - 18:54 | 4578812 falak pema
falak pema's picture

More on that theme of using propaganda to take sides : The View from the top as per The Economist

Hee is the prime MSM Oligarchy mouthpiece and Old Etonian ra-ra-rag-tag shag-a-lag that now says Putin's NWO, post Crimea, is worse than the Bush NWO of US dystopia.

When thieves fall out this Cameronian and Maggie farm  "freedom is for free free free Oligarchs benefitting from tax breaks in City" now sings Putin is Hitler's son incarnate...If they ever pull their money out of London town...and Chelsea has to find a king pin replacement ...

Diplomacy And Security After Crimea: The New World Order - Business Insider

Fri, 03/21/2014 - 22:12 | 4579340 walküre
walküre's picture

False choice, no choice what does it matter. I was speaking in hypothetical terms. We are clearly not as free as we'd like to be. Did you ever swear allegiance to this country?

Fri, 03/21/2014 - 16:44 | 4578453 Volkodav
Volkodav's picture

Pussy Riot Sochi beatdown by Cossacks-Soviet Bear:

http://www.youtube.com/watch?v=fR24BNreizw

outside funded deviant troublemakers

Truth about Pussy Riot:

http://www.tomatobubble.com/pussyriot.html

Fri, 03/21/2014 - 16:46 | 4578461 walküre
walküre's picture

Sure, every opponent is a deviant and funded from the outside.

GO FUCK YOURSELF

Fri, 03/21/2014 - 23:53 | 4579575 damicol
damicol's picture

Actually no Putin is not the agressor

Any sane rational person would do precisely as he did.

Watching and listening to the antics, the lies, corruption and deviancy of the degenerate incompetent fraudulent and self aggrandizing perverts, and when I say perverts, I do mean perverts, from the Kenyan monkey getting blown in the back of a limo by fat rent boys and snorting coke to the inanities lies  and utter stupidity of whole corrupt lickspittle appointees from reid the cretin to the criminally insane hag pelosi and the twin retards clinton (hilarious) and kerry ( should be curry) in and out like a vindaloo and the laughing toilet bidet.

Then when you stand back you immediately see the problem.

Putin can see it to, as can the Chinese, and the Afghans, and the Iranians, and and every other  semi literate  semi intelligent, and reasonable sensible person on the planet.

The fucking US has  appointed the most dumbed down illiterate incompetent  fuck witted  half baked corrupt assholes on the planet to lead it.

Just where the fuck do you think it is going to go when even my fucking cat is laughing its fucking ears off.

Any sane person would be kicking this joke in the bollox as hard as they can until the pain finally gets to the brain and if finally decides to exit its deeply delusional state.

So as long as you have the rent boy bothering credulous monkey living in his airy fairy never never land sucking himself off every morning in front of a whitehouse mirror  then you can expect the rest of the world to laugh its head off and fuck you over at will.

Dont you have some obummer fluffing duties to perform

 

Sat, 03/22/2014 - 00:49 | 4579647 walküre
walküre's picture

Thanks for the long diatribe about a big bag of nothing. US political establishment is corrupt, self serving and has a tendency to air their dirty laundry in front of the world. When has that not been the case?

Care to discuss the other side? What the fuck are you thinking? They're all choir boys over there? The political situation in Russia is FAR WORSE.

By the way, Russians who live in America think Putin is bad motherfucker. That's why they left. How many Americans have sought asylum or have otherwise immigrated to Russia?

Crickets....

How many Syrians has Putin killed due to his refusal to authorize sanctions against the Assad regime? Who cares how the rebels were funded and who they represent? Assad is a bad dude and so is Putin. Obama may not be a saint either but at least I'm not being arrested for protesting Obamacare.

Sat, 03/22/2014 - 02:11 | 4579695 damicol
damicol's picture

My point is very simple., I do not care about the rights or wrongs of Putin Assad or any other asshole around the world. Whether it is some blood sucking canbnibal living in a mud hut in the african jungle or a  slimy orang utang like the filthy despot on Zimbabwe,

 

The point is that the US  voted  in a cock sucking Kenyan monkey  and bunch of filthy corrupt ass wipes  to run the country  and every single  one of them corrupt or not is going to kick the cunt in the shivelled testicles until he on his fucking black knees sucking thgier cock.

And the ridiculous monkey is emasculated and utterly incapable of doing anything about it.

Because he has single handedly destroyed the US as a power by granting that fuck wit bernanke and now that cunt yellew bitch the keys to the fed to destroy half the wealth and facilitate the theft of the rest.

And the dumb fucks whine and stump up the fines taxes and bow to the cunt, instead of assassinating him.

Dont blame Putin, Its like blaming the virus whern you get sick by not taking the shots and walking into a leper colony.

You didnt get innoculated by letting the filthy virus get a hold, bypassing the pain of an injection, and now you are standing in the middle of a leper colony, and the lepers dont give a fuck if you die or not.

Fri, 03/21/2014 - 15:57 | 4578270 css1971
css1971's picture

The west is delusional.

Fri, 03/21/2014 - 16:19 | 4578194 abatis
abatis's picture

Putin has to love Obama - who has done more for Putin's resurrection as a world leader and richer dude.

Nice

Fri, 03/21/2014 - 15:46 | 4578236 DarthVaderMentor
DarthVaderMentor's picture

Checkmate, Obozzo!

Fri, 03/21/2014 - 16:31 | 4578398 Chuck Knoblauch
Chuck Knoblauch's picture

Kind of puts China into the driver's seat, doesn't it?

Fri, 03/21/2014 - 16:01 | 4578283 no1wonder
no1wonder's picture

Ukraine Recalls Ambassador to Armenia over Crimea Recognition 

YEREVAN (RFE/RL)—Ukraine recalled its ambassador to Armenia on Friday after warning of serious damage to bilateral ties and demanding an official Armenian explanation regarding President Serzh Sarkisian’s acceptance of a disputed referendum in Crimea that led to its annexation by Russia.

Fri, 03/21/2014 - 16:07 | 4578303 falak pema
falak pema's picture

trade war brings us closer to the 30s...

When thieves fall out and its reactionary empire against predatory empire...

Fri, 03/21/2014 - 16:15 | 4578318 magpie
magpie's picture

If i remember correctly, in 1913 German companies started to withdraw their capital from Russia...i am not sure what happened later.

To understand the people running the USA, be they neocons zionists masons nwo liberal imperialists etc in relation to Russia, you have to understand the year "1905", not 1917, Communist Ideology, Stalin, Cold War cloak and dagger diplomacy or any revanchist or nationalist aspirations of the Eastern EU states.

Fri, 03/21/2014 - 16:26 | 4578376 Seer
Seer's picture

Short view of history...

Ideologies are just marketing ploys.  Never have they made one iota of difference in ANY empire.

Read for yourself:

http://www.rexresearch.com/glubb/glubb-empire.pdf

Fri, 03/21/2014 - 17:03 | 4578508 magpie
magpie's picture

That was a refreshing read, no need for a thousand pages of Spengler.

Fri, 03/21/2014 - 16:15 | 4578342 CheapBastard
CheapBastard's picture

"Because while the west is focused on day to day developments in Kim Kartrashian's life...."

 

fixed it....

Fri, 03/21/2014 - 16:29 | 4578393 Chuck Knoblauch
Chuck Knoblauch's picture

The Queen is willing to give Hawaii to China if they don't accept Russia's deal.

What else can the Queen give China that doesn't belong to him?

China needs females. Finally, Facebook has a purpose.

Fri, 03/21/2014 - 16:34 | 4578406 Chuck Knoblauch
Chuck Knoblauch's picture

Some Americans are going to realize how it feels to be occupied.

Ask the Palestinians how much they enjoy occupation and genocide.

Fri, 03/21/2014 - 17:42 | 4578615 Johnny Cocknballs
Johnny Cocknballs's picture

Been under the ZOG my whole life, my good man.

Our occupation may even be worse. You can't even talk about ours.

Fri, 03/21/2014 - 20:46 | 4579143 zionhead
zionhead's picture

Good point the Palestinians can openly discuss the Bastards,

But here in the USA were not even allowed to mention their names in public, or on the internet.

This is exactly what Cass Sunstein means when he says that "CONSPIRACY THEORY" should be crime, that you should be taxed or fined for spreading filthy talk about AIPAC.

I completely agree, that in Palestine 'free speech' isn't even an issue, ZIONISM is is not a taboo word, and anti-semitic would be ludicrous,

Which is my point, that the USA is the most controlled nation of domesticated hair-lips sheep on earth.

Palestinians are real men, and will tell a zionist to his face what he is, but an american, no fucking way in hell.

Fri, 03/21/2014 - 16:44 | 4578451 Philalethian
Philalethian's picture

Some revelations around bankster antics.:

http://beforeitsnews.com/alternative/2014/03/banksters-admit-its-money-o...

From GW.:

http://www.washingtonsblog.com/2014/03/forget-treasuries-russias-real-le...

Greg's new weekend report.:

http://usawatchdog.com/weekly-news-wrap-up-3-21-14/

 

All the best of Spring's beautiful New Beginnings to one, and ALL.

 

Cheers!

 

 

Fri, 03/21/2014 - 17:02 | 4578506 Pullmyfinger
Pullmyfinger's picture

"ALL YOUR BASE ARE BELONG TO US"

Fri, 03/21/2014 - 17:11 | 4578525 pupdog1
pupdog1's picture

Russia, China, Iran ... AXIS.

How 'bout them apples, Mr. Community Organizer?

See, you keep pissing people off with weekly acts of war and this kind of stuff happens.

Fri, 03/21/2014 - 17:42 | 4578616 robertocarlos
robertocarlos's picture

You wanna go to war!? I take you to war!

Fri, 03/21/2014 - 17:52 | 4578644 robertocarlos
robertocarlos's picture

China kicked out of WTO? Can you imagine paying $200 for a toaster. We're toast. Thank G-d for March Madness.

Fri, 03/21/2014 - 18:16 | 4578715 walküre
walküre's picture

Depends. If that toaster will work again for 10 years and doesn't need replacement every 6 months, I'd say it will be a good thing for the consumer and the landfill. China produces nothing but garbage and massive amounts of it.

Sat, 03/22/2014 - 08:29 | 4579934 SubjectivObject
SubjectivObject's picture

Word.

And careful all those teeny weensie electrical components in the ............ essential ........... electronic components techno culture so loves to depend on.

You gets the quality you inspect for.  No inspector?  Then what quality?

Fri, 03/21/2014 - 18:22 | 4578728 Pressfiretostart
Pressfiretostart's picture

This whimpering little bitch called the USA doesn’t seem to understand that they are not top dog anymore.

It’s funny how the hook nosed rats sent America into the Middle East under Bush all gung-ho, and when the US military finally arrived, they suddenly had reservations and went all anti-war while the US military was paralyzed and bleeding dry.

That’s what happens when you let them run things, they run things into the ground. That is their sole objective; the destruction of America. 

Fri, 03/21/2014 - 18:42 | 4578781 libertysghost
libertysghost's picture

We knew the weak spots of the western economic system...and what would exploit it...namely the abandonment of the value added strategy for the fiat banking/'investment' confidence game.
It's fascinating to watch the events adorning it.

Supposed Chinese Proverb/Curse:
'May you live during interesting times.'

Fri, 03/21/2014 - 18:43 | 4578790 Death By Cold S...
Death By Cold Steel Report's picture

This was announced a long time ago; and presented with the potential crash of all crashes. Simply using math and looking at the control systems should bode well for a sell opportunity in metals lol. 

The status quo will change; but this deal won't effect anything short time; but the metals you have been buying now at a cheap price... Further more I know the Chinese people don't trust there government; and for good reason. They are just as corupt as the people leading in America. Anybody who hasn't been there; I would invite you to go there and spend a year. Then you will get the picture; and keep a look out for the mobile kiddnaping vans. They will run a stop sign quicker then you can shake a stick; and along with there survailence team while running your rear end into the ground if your not careful. 

No way in hell am I living or going along with these people at the helm. 

Fri, 03/21/2014 - 19:13 | 4578868 Johnny Cocknballs
Johnny Cocknballs's picture

the neocons are suddenly concerned and outraged by annexation in Crimea.  You know, 'annexation' - that phenomenon they are remarkably tolerant of when it's Israel doing it.

http://smallwarsjournal.com/blog/open-letter-to-president-obama

http://www.redressonline.com/2014/03/us-and-eu-hypocrisy-on-display-over...

http://www.redressonline.com/2014/03/usas-israeli-inspired-new-world-dis...

Cute.

Why does anyone take Bill Kristol at all seriously?  If he and Douglas Feith are for something, it is probably not out of love for freedom and apple pie and has something to do with Israel. 

 

p.s. Haven't read it all, but this paper from a couple years back probably sheds a lot of light on the oligarchs in Ukraine:

THE OLIGARCHIC DEMOCRACY THE INFLUENCE OF BUSINESS GROUPS ON UKRAINIAN POLITICS
Fri, 03/21/2014 - 19:15 | 4578872 Billy Shears
Billy Shears's picture

The first paragraph of this essay demonstrates precisely why the US government should not be allowed to interfere with the domestic economy, amongst other things.

Fri, 03/21/2014 - 19:38 | 4578943 hockeypuck777
hockeypuck777's picture

Did the idiots who run the USA really think that the rest of the world would continue to tolerate such bad behavior?  MAD assures no nuclear war but there are other ways to fight.

Fri, 03/21/2014 - 19:42 | 4578950 Hannibal
Hannibal's picture

All this geo politics is bullshit, a waste of time. 

Think local, make a differnce, be active local.

What have u Hedgies done lately?

 

Sat, 03/22/2014 - 00:26 | 4579620 IridiumRebel
IridiumRebel's picture

Planning a garden, met the new neighbors, took a long walk, grilled out, went to the park with my daughter and tomorrow I get to sing.

Fri, 03/21/2014 - 20:05 | 4579022 Johnny Cocknballs
Fri, 03/21/2014 - 20:19 | 4579064 bugs_
bugs_'s picture

Axis of Flatulence

Fri, 03/21/2014 - 20:50 | 4579164 Raging Debate
Raging Debate's picture

I have mentioned a few times in passing here that the Chinese Reserve currency is a feature, not a bug of central banking. The West is gutted and the east won't grow for some time either.

Fri, 03/21/2014 - 21:12 | 4579197 Pressfiretostart
Pressfiretostart's picture

The Obama Administration is launching a three-pronged attack against Russia to halt its expanding world influence:

1) Attorney General Eric Holder is filing a disparate impact lawsuit against the Russian Federation because it does not have sufficient people of color in its universities and positions of power. Russia will need to provide a plan to embrace diversity and multiculturalism.

2) Thousands of same sex couples will converge to kiss in the parking lots ot Lukoil gas stations.

3) Sandra Fluke will call out Vladimir Putin as a sexist and part of the WAR ON WOMEN(TM) because he won't pay for her birth control.

I'm sure Vladimir Putin is quaking in his boots right now.

Fri, 03/21/2014 - 21:25 | 4579234 Runs-With_Toast
Runs-With_Toast's picture

Yes apparently its all about racism. Holder Rice Bummer et al. Many many of us dont like them not because they are unlikable phoney puppets reaming the constitution, selling the USA down the drain to criminals and banksters, Elite delusional psychos, big corps and the military intel industrial complex. No, its cause they are black (Kind of). Thats why not cause they are loading the kids with debt and creating a vast food stamp dumbed down uber lower class. Its true we hate em only cause they are black.

Fri, 03/21/2014 - 21:14 | 4579218 Runs-With_Toast
Runs-With_Toast's picture

This story has the ring of Fate to it

Fri, 03/21/2014 - 21:51 | 4579299 401-Kulak
401-Kulak's picture

Econony-the-size-of-California says what?!??

Fri, 03/21/2014 - 21:53 | 4579303 AdvancingTime
AdvancingTime's picture

This should all come without surprize. What do you think Putin was up to as far back as the middle of 2012. At that time Putin said at a joint press conference. “Thanks to our efforts we have lifted the level of Russian-Chinese cooperation to unprecedented heights.”

http://brucewilds.blogspot.com/2012/06/putin-strenghtens-ties-with-china...

Fri, 03/21/2014 - 21:56 | 4579308 Son of Loki
Son of Loki's picture

Holy Cow!

Fri, 03/21/2014 - 22:35 | 4579386 Peanut Butter E...
Peanut Butter Engineer's picture

I'm seeing many NSA paid shills on ZH now a days, easy to tell with all those TD pointed out and it's even easier to tell them by their patriotic us flag waving avatar.

Sat, 03/22/2014 - 01:19 | 4579665 Negative1
Negative1's picture

ZH is primarily a Putin man boy love association headquarters. Need some balance here.

Sat, 03/22/2014 - 01:05 | 4579657 boeing747
boeing747's picture

We are in the final stage of empire, only 5% of gold in 'coins', do we need to goto 0.5%?

 

Sat, 03/22/2014 - 01:18 | 4579664 Rogue Economist
Rogue Economist's picture

Latest Frostbite Falls Daily Rant on the Collapse of the Chinese Real Estate Market on the Doomstead Diner.

RE

Sat, 03/22/2014 - 01:22 | 4579666 abgary1
abgary1's picture

China still owns a large amount of US treasuries and destroying the dollar as the reserve currency probably won't increase their value.

What to do?

Sat, 03/22/2014 - 05:12 | 4579799 Kina
Kina's picture

The condition of US foreign policy...

 

https://www.youtube.com/watch?v=mv25TQibN8g

 

Sat, 03/22/2014 - 07:18 | 4579886 shutupnsing
shutupnsing's picture

It's NOT a war with Russia "they" fear most...http://shutupnsing.wordpress.com/2014/03/22/its-all-a-scripted-fake/

Sat, 03/22/2014 - 09:10 | 4579986 smacker
smacker's picture

From that blog article:

"It is not war with the Russians they fear, it is the one here at home! The abuser is here to stay. This war is coming my friend. I have never been more certain of anything in my life."

 

Given the sheer breadth and depth of political abuse & criminality that's going on, I'm amazed that some sort of fightback has not already started.

It sort-of confirms the view that people only fight back when they've nothing else to lose.

Sun, 03/23/2014 - 18:49 | 4583509 q99x2
q99x2's picture

Maybe the banksters intended for three currencies. The Euro, the dollar and the rublejuan.

Sounds about right.

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