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US Is "Wrong, Plain And Simple" On German-Russia Relations, Warns Schaeuble

Tyler Durden's picture




 

Speaking like a jilted girlfriend, German finance minister Wolfgang Schaeuble exclaimed that "Russia needs Europe more than China to develop economy," following the signing of the 'holy grail' gas deal this week. But the German saved his sternest comments for his US "allies" as he explained discussions over sanctions and negotiations with Russia over Ukrains would "be even more successful if the United States understands that it is also part of the West."

Reflecting on the waning US influence and slamming US Congress delays over IMF reform, Schaeuble unleashed the following: "Perhaps now more of those in power in the United States will ask themselves: Why is America's soft power, even though it is the indispensable nation, not so great as to be understood by the dumb Germans?"

As the WSJ reports, Schaeuble reiterated "we won't seek military escalation, but we will of course use our political and diplomatic abilities to increase the pressure on Russia to abide by the rules."

 

As WSJ reports, German Finance Minister Wolfgang Schäuble said his country is prepared to raise pressure on Russia to help stabilize Ukraine, sending a signal on the eve of Ukraine's presidential election that Europe's leading economic power isn't shy of confronting Moscow.

"We want good, partner-like relations," Mr. Schäuble said in an interview with The Wall Street Journal. But he warned: "If Russia does not follow the rules, then we won't seek military escalation, but we will of course use our political and diplomatic abilities to increase the pressure on it to abide by the rules."

 

The veteran conservative minister, seen as Germany's second most powerful politician after Chancellor Angela Merkel, dismissed criticisms in the U.S. that Berlin's response to the Ukraine conflict is hostage to German business interests as "wrong, plain and simple."

 

...

 

The Ukraine crisis is highlighting Germany's growing pains as it becomes a leader in geopolitics, Mr. Schäuble admitted. He called on the U.S. to work harder to win public trust in Europe.

 

"We, of course, need to make clear that we are part of the West," Mr. Schäuble said, in response to signs that many Germans don't fully support their country's Western alliance. "But we'll be even more successful if the United States understands that it is also part of the West."

 

...

 

But he said it also reflected waning U.S. influence here, something that had to do with Washington's reluctance to ratify and uphold international agreements in areas including finance. He blamed the U.S. Congress for frustrating reform of the International Monetary Fund, for example.

 

"Perhaps now more of those in power in the United States will ask themselves: Why is America's soft power, even though it is the indispensable nation, not so great as to be understood by the dumb Germans?" Mr. Schäuble said.

 

He said Moscow's short-term tactical victories in Ukraine would backfire in the medium term, because it needs "partnership with Europe" to develop its economy, which he said is overly dependent on oil and gas exports and "much less diversified than it was in Soviet times."

But reflecting on Germany's lackluster popularity in Europe, he could not resist one more jab at Obama...

Popular dismay with the political establishment isn't unique to the EU, Mr. Schäuble said: "Are the approval ratings in the U.S. triumphal?"

With friends like that... who needs Russia

 

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Sat, 05/24/2014 - 18:45 | 4791975 knukles
knukles's picture

And Europe needs Russia more than they need America.
here we fucking go again... smoke 'em if you got 'em, boys

Sat, 05/24/2014 - 18:50 | 4791985 DaddyO
DaddyO's picture

Bum 'em if you don't...

As the worm continues to turn, eh knucks?

DaddyO

Sat, 05/24/2014 - 18:57 | 4792004 JoeSexPack
JoeSexPack's picture

Jilted GF?

 

Sounds more like a freind about to take keys from a drunk.

Sat, 05/24/2014 - 20:50 | 4792256 COSMOS
COSMOS's picture

But he warned: "If Russia does not follow the rules, then we won't seek military escalation, but we will of course use our political and diplomatic abilities to increase the pressure on it to abide by the rules."

What a schmuck, so a sovereign nation like Russia should play by some playground bully made up rules. LOL.  These guys in Euroland are really living in a magical made up world. What the heck.  Rules, like their rules of violating the sovereignty of a nation and overthrowing a democratically elected govt, ah those rules Russia did not play by, is that why they are upset, they want Russia to waltz in and overthrow govts left and right like the EU and USA and Nato have been doing for a loooong time.  Tell you what you POS, the rules you better follow are when you have to ration gas to stay warm this coming winter.  But being a self entitled politcian prick I am sure your house will stay nice and warm all winter long while everyone else freezes. 

Sat, 05/24/2014 - 21:07 | 4792282 Omen IV
Omen IV's picture

MY interpretation was - this is a message for Washington consumption "not" Russia - this is a throw in  line to keep the speech safe for US State Department - probably more than him sending message

"we will of course use our political and diplomatic abilities to increase the pressure on it to abide by the rules."

key line is : ".......as to be understood by the "dumb" Germans?"

this means overwhelmingly Germans from unions to industrialists are not on board with Merkel and US position they dont buy the propaganda - he is being cute  - they are not dumb but smart especially compared to average american

No one believes anything  worldwide US puts out - US is a pariah and a scumbag nation

 

Sun, 05/25/2014 - 03:13 | 4792792 Oracle 911
Oracle 911's picture

"No one believes anything  worldwide US government puts out - US government is a pariah and a scumbag government."

 

Here fixed for ya. Otherwise I agree.

 

Edit: Some formating elements doesn't work.

Sun, 05/25/2014 - 03:58 | 4792821 jeff montanye
jeff montanye's picture

and, cosmos, the rule about getting to bomb other countries at will.  well, at least the will of the u.s.  

no one else though.  that's terrorism.  oh, except israel.

Sun, 05/25/2014 - 08:59 | 4792962 luckylongshot
luckylongshot's picture

Jim Willie says Ukraine has cost Merkel her job as the German business community are unhappy about her position on Ukraine and so she is on the way out. The recent trip to the US and the subsequent UN role announcement for Merkel are consistent with this. German business wants to be closer to neonazi opposing Russia rather than Neonazi supporting America and the German public are overwhelmingly on board with this.

Sun, 05/25/2014 - 07:29 | 4792892 Singelguy
Singelguy's picture

When I read that, my first thought was, What rules is he referring to? Those laid down by bitch Nuland? Biden? McCain?

Sat, 05/24/2014 - 20:52 | 4792258 old naughty
old naughty's picture

<--ovarb,

Russia will be brought in line !

Sun, 05/25/2014 - 13:10 | 4793455 CPL
CPL's picture

The ECB recycles oxygen to CO so the plants in their office don't die and cleverly developed a scheme to allow for the carbon tax swap of their own hot air... 

Am I missing something here?

Sat, 05/24/2014 - 19:41 | 4792108 knukles
knukles's picture

Yeah... everything is coming in backwards.
The West becomes more authoritarian with diminishing freedoms while the East and Asia display expansion (To wit, dress, language, debate amongst folks in Russia or China vs 30 years ago).
The East becomes more Capitalistic/free market (albeit oligarchy) whilst the opposite rings true in the West.
Most people have become more materialistic, self centered and egomaniacal at the expense of spiritual matters.
Rulers still rule poorly and in their own self interest, although it appears worse over the last several generations, the rise of the sociopaths and psychos.
That nobody cares anymore, as if they ever did, remains evident as exemplified by old men still bitching about the demise of civilizaiton.  To which I believe them right, self included.  Personal civility and honor have all but disappeared .

Long live the enablers of the Free Shit Societies!  The upper and lower tiers benefiting from the disappearing common man. 

Indeed ... how the worm turns, DaddyO

Sat, 05/24/2014 - 19:51 | 4792131 madmax1965
madmax1965's picture

Well said Knuks!

Sat, 05/24/2014 - 20:23 | 4792189 Remington IV
Remington IV's picture

Time for another Nobel Prize award , methinks

Sat, 05/24/2014 - 21:08 | 4792289 williambanzai7
williambanzai7's picture

Sat, 05/24/2014 - 23:21 | 4792549 dsty
dsty's picture

u b crazy

forther on some lovely Chinese ladies

Sun, 05/25/2014 - 13:12 | 4793458 CPL
CPL's picture

Beauty is only a light switch away.

Sat, 05/24/2014 - 18:45 | 4791977 q99x2
q99x2's picture

Was ist das? Er ist Mude.Ich gehe joggin M'Fers.

Russia, China and Germany.

Yeeeeehaaaaa.

We will come rejoicing bringing in the theives. FU Goldma Sachs.

Sat, 05/24/2014 - 18:47 | 4791980 Saratoga
Saratoga's picture

"Russia needs Europe more than China to develop economy".....wait till they turn off your oil and gas

Sat, 05/24/2014 - 18:57 | 4791998 BrosephStiglitz
BrosephStiglitz's picture

It's a no-brainer that Russia cannot afford to sever ties with Europe right now.  All this Russian/China talk does not bode well for the future, but it will take time to lay the basic infrastructure for that deal to even come to fruition.

Right now Russia and the EU have a symbiotic relationship, or should if not for US meddling.  Though Russia wants to fragment the EU to reduce their bargaining power in future energy deals.

In the long-term future things may change.  The Russians obviously cannot be trusted and isolating the US entirely would certainly give them a great deal more power to act in a militaristic manner.  Europe is balancing on a knife-edge right now, one wayward step could lead to World War 3.

Sat, 05/24/2014 - 19:16 | 4792040 Stanley Lord
Stanley Lord's picture

I will believe the Russia China gas deal when I see pipe being laid.

Sat, 05/24/2014 - 19:31 | 4792066 Theta_Burn
Theta_Burn's picture

I'll be laying some of that pipe a bit later....

Sat, 05/24/2014 - 21:11 | 4792295 ltsgt1
ltsgt1's picture

This symbiotic relationship between the Russia and EU is what the conflicts in Ukraine and Syria are about. US doesn't want this relationship to go further and is forcing EU to choose side.

Sat, 05/24/2014 - 21:21 | 4792316 CrashisOptimistic
CrashisOptimistic's picture

Pretty much that.

The older politicians cannot grasp what oil scarcity means.  Or gas for that matter.

They didn't grow up in this world.  So they pontificate about geopolitical this and that and economic this and that and they just cannot understand that it's all changed.

The oil can be cut off.  The gas can be cut off.  Russia doesn't need Europe.  For what?  Big screen TVs?  Luxury cars?  Russia needs food and water and warmth in the winter.  The rest is wants, not needs.  Europe doesn't provide any "needs".

When you are negotiating with someone about your life, and that someone can whimsically take or leave what you offer to them, you're in deep shit.

Sat, 05/24/2014 - 18:48 | 4791984 TeamDepends
TeamDepends's picture

"America's soft power".  Are you happy now, Demorats?

Sat, 05/24/2014 - 18:51 | 4791990 nmewn
nmewn's picture

It seems like only yesterday they were promising "Smart Power"...so I guess this is it...lol.

Sat, 05/24/2014 - 19:06 | 4792022 Pure Evil
Pure Evil's picture

With Obama in the White House it's now all about Queer Power.

Sat, 05/24/2014 - 19:30 | 4792083 nmewn
nmewn's picture

They're definitely some odd ducks I'll grant you that, having some weird perceptions of right, wrong, restraint & force.

I mean, they were actively agitating to bring foreign national islamic nutcases to be tried under US law at basically the same time as their killing by drone an American national islamic nutcase living in a different country without benefit of a trial.

(Scratches head)

So I guess its time to jawbone somemore about illegals "living in the shadows" and make them legal (even though what they did was illegal) cuz there's an election coming up and they've got to get some corporate contributions flowing by execs who will profit immensely by having even moar cheap labor at the expense of the lower & middle class.

#SmartEverlastingPower ;-)

Sat, 05/24/2014 - 19:30 | 4792087 Dull Care
Dull Care's picture

Ugh I can't wait until Barry and his tranny 'wife' leave. They are just so evil.

Sun, 05/25/2014 - 04:05 | 4792824 jeff montanye
jeff montanye's picture

i am actually getting to like having him around.  what with obamacare and the ukraine, he is helping to, if not drown the empire in the bathtub, at least waterboard it a bit.

Sat, 05/24/2014 - 19:33 | 4792089 Dull Care
Dull Care's picture

Of course given the inertia of democracy and the decivilization of the general public, it's highly likely the next puppets will be even worse.

Sat, 05/24/2014 - 19:56 | 4792140 Goldilocks
Goldilocks's picture

"We're here, we're queer and we'd like to say hello!".

John Lennon-Power To The People-Offical Video-HQ
http://www.youtube.com/watch?v=RtvlBS4PMF0 (3:45)

Sat, 05/24/2014 - 20:24 | 4792192 Remington IV
Remington IV's picture

Obama + Kerry = Leading from behind

Sat, 05/24/2014 - 18:50 | 4791986 Rican
Rican's picture

As the WSJ reports, Schaeuble reiterated "we won't seek military escalation, but we will of course use our political and diplomatic abilities to increase the pressure on Russia to abide by the rules."

 

He's the Finance Minister, right? How is it he lets it slip in plain view that he has power over military decisions? May be too subtle (and obscure) to be a "duh" moment for the sheep, but let's get the nooses ready anyhow. 

Sat, 05/24/2014 - 19:42 | 4792114 knukles
knukles's picture

Well of course they won't seek military escalation.
The EU have no fucking military except for barbers and parades.

Sat, 05/24/2014 - 23:43 | 4792585 BlussMann
BlussMann's picture

The Euro's also have their bearded Tranny Eurovision Queen to keep their morale up during the long 2 week war with Russia.

Sat, 05/24/2014 - 20:22 | 4792185 williambanzai7
williambanzai7's picture

Finance is war by other means.

Sat, 05/24/2014 - 20:59 | 4792269 COSMOS
COSMOS's picture

I am surprised Russia has not said fine, if you dont want to do business with us that is fine, but if you ever sanction companies in other countries that do business with us that is a declaration of WAR.

Pure and simple let the Duma in Russia pass that resolution that is will be automatic war.  Then when the Euros try that crap Russia should make them aware that they are now in a state of war as they close down the Straits of Hormuz with Iran's help.  Lets see then what will the next step be of the USA or EU, are they going to take it nuclear or are they going to put their tails in their ass cracks and walk away.

Listen if Russians are going to feel pain then the Euros better get used to the same kind of pain.  Russia can close the Straits of Hormuz and lock down the transit of most of the world's oil to Europe and there is nothing the EU or USA can do about it except go nuclear, and the Russians can be ready for that by mobilizing their missile forces and keeping their fingers on the button.

 

 

Sun, 05/25/2014 - 01:19 | 4792693 August
August's picture

Well, a lightening stike by combined armor and motorized infantry to seize Moscow would be worth a shot.

It's worked before!

Sun, 05/25/2014 - 00:53 | 4792669 lrdrvrZH
lrdrvrZH's picture

Schauble is the #2 person in power behind Merkel. If he says 'no military force' then that's pretty much the official government stance.

 

Besides they don't have a military that could challenge Russia. http://www.aei.org/outlook/foreign-and-defense-policy/defense/nato/germa...

Sat, 05/24/2014 - 18:51 | 4791991 edotabin
edotabin's picture

Soft power. What an oxymoron. No power is soft except Microsoft.

Sat, 05/24/2014 - 20:04 | 4792153 Terminus C
Terminus C's picture

Tsunami = soft power

Sat, 05/24/2014 - 18:54 | 4791997 kill switch
kill switch's picture

Untontacted tribes need europe?? This a mono a mono!!!!

Sat, 05/24/2014 - 18:57 | 4792005 Hughing
Hughing's picture

Fu king things up is Obama's plan. What part of that don't they understand?

Sat, 05/24/2014 - 18:59 | 4792009 BruntFCA
BruntFCA's picture

As if Schaeuble speaks for all of Germany.....what an ego.

Sat, 05/24/2014 - 19:10 | 4792029 DaddyO
DaddyO's picture

He speaks for the part that currently has the sway!

DaddyO

Sat, 05/24/2014 - 19:19 | 4792050 Theta_Burn
Theta_Burn's picture

No..

He speaks for the ones in charge of Germany..

And everything was functioning relatively smoothly till somebody mistakenly decided to fuck with yet another broke ass county. 

 They went to far, now they got real problems..

Was there really any other option for Germany? now they must choose, their country or the American status woe... take a guess what side they will chose.

 

 

 

Sat, 05/24/2014 - 20:49 | 4792138 Winston Churchill
Winston Churchill's picture

I will take ,who was von Ribbentrop for $100 Alex.

Sun, 05/25/2014 - 00:20 | 4792636 angel_of_joy
angel_of_joy's picture

He does speak for all Germany...  And don't forget who stole their gold !

Sun, 05/25/2014 - 06:11 | 4792869 caShOnlY
caShOnlY's picture

Schauble, being a finance minister and speaking out this deep, should prove how bad things really are and how to the tipping point it is.  Normally the political leadership take his advice and makes a speech, now it comes right from the horse's mouth.

The IMF reforms are never going to happen if the US can help it as it will lead to the death of the dollar hegemony even quicker.

Sat, 05/24/2014 - 19:18 | 4792048 Schmuck Raker
Schmuck Raker's picture

Wow, he practically makes sense.

Sat, 05/24/2014 - 19:19 | 4792051 rtalcott
rtalcott's picture

senile?  old timers disease...he and mccain...and quite a few others.

Sat, 05/24/2014 - 19:28 | 4792079 Peter Pan
Peter Pan's picture

This poisonous little man would do well to bring Germany's gold back to Germany.

Or perhaps he has forgotten that he has probably been spied upon by his American friends like his boss has been.

Or perhaps he might like to recall how the 'allies" (all lies) delt with the issue of Sarajevo.

And while they are at it they can pay compensation to Greece instead of blackmailing and bribing the current crop of Greek politicians not to push the matter to a conclusion.

Miserable little man.

Sat, 05/24/2014 - 19:35 | 4792096 blindman
blindman's picture

follow the funny money

Sat, 05/24/2014 - 19:44 | 4792115 QQQBall
QQQBall's picture

Flacid power would be more like it... Obomber having sex is like pushing on a string

Sat, 05/24/2014 - 19:44 | 4792117 Volkodav
Volkodav's picture

Gott shutze uns

Sat, 05/24/2014 - 19:44 | 4792118 buzzsaw99
buzzsaw99's picture

the usa should pull out of germany

Sat, 05/24/2014 - 19:48 | 4792122 Herdee
Herdee's picture

But what he doesn't mention is the fact that if Germany wants its economy to continue leading in the EU then it must partner with Russia.That means goods from Germany to China by rail and the other way around as well.If you want business to become more competitive that's what it takes.Not cutting off natural gas and going along with further American sanctions.That is the wrong way for the economy in Germany but good for neocons in DC.Besides,who wants to be associated with right wing neo nazis running Kiev.Victoria Nuland sucks too.

Sat, 05/24/2014 - 19:55 | 4792136 knukles
knukles's picture

"soft power" is what Viagra is made for....
The plebiscite are more interested in their peckers and pussies than reality.

Sat, 05/24/2014 - 20:33 | 4792212 eddiebe
eddiebe's picture

What an asshole! Or: Du bist ein Arschloch!

Sat, 05/24/2014 - 20:38 | 4792227 kchrisc
kchrisc's picture

Dear Mr. Schaeuble,

My advice to you is:

1) Get your gold back stat. Like yesterday.

2) Get the fuck out of the dollar. I hear Belgium is buying.

3) Remember, a cold people is a pissed people.

Sincerely,

The Dot Connector

Sat, 05/24/2014 - 20:39 | 4792231 freedom5000
freedom5000's picture

With Germany relying on 40% of gas imports from Russia I would say he has a few things backward in his head. If Russia turned off the tap tomorrow, who is more dependant on who? 

Sat, 05/24/2014 - 20:40 | 4792235 WTFUD
WTFUD's picture

It's called Piggy in the middle; sitting on the fence!
Had he said wake the fuck up ussa, very few Europeans (whole world bar a few puppet lick ass states, france/uk elites } are happy with your constant intimidation and warmongering.
Who benefits from your terrorism other than the fiat men?

Sat, 05/24/2014 - 20:41 | 4792238 freedom5000
freedom5000's picture

When Russia and China invite Germany to the party, they had better not be late.

Sat, 05/24/2014 - 21:04 | 4792281 blindman
blindman's picture

germany throws parties, never late ....

Sat, 05/24/2014 - 21:43 | 4792356 Sick
Sick's picture

The US government has shown itself to be a bunch of lying murderous thieves.   You cannot change that without changing the actors.  The toilet must be flushed and someone will do it one day.

Sat, 05/24/2014 - 23:09 | 4792532 disabledvet
disabledvet's picture

we've paid for your an entire defense for sixty straight years asshole. what more "public trust" do you want?

without the USA there would be no Europe "whole and free."

How ironic the solution appears to be to get those borders up again.

I don't recall the USA truly having a beef with Russia EVER.
They sure don't like the USA right now though.

The irony is that we're being modest this time around. The whole thing feels like a Cheap Shot actually.

Phuck you Putin you worthless phuck.
We're more than happy to let you win.

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

Sat, 05/24/2014 - 23:39 | 4792577 BlussMann
BlussMann's picture

You nailed it- Germany's future lies in the East with Russia, not with the bankrupt EU and the "Sick Man of the West" - the US.

Sat, 05/24/2014 - 23:53 | 4792599 nathan1234
nathan1234's picture

Trust the Americans Herr Schäuble ?

Just see what they did with your Gold !

Don't Germans have any "Stolz" left? Are you slaves to America?

They allowed Germany to develop as their corporates made money and they could dangle you from their Puppet string. Germany doesnt owe them anything.

On your own together, with Russia & China you coul'd do wonders for Germany and the rest of Europe.

I dont' say ask the American's to F..k Off.  Let them treat you as an equal and not as slaves to do their bidding.

Sun, 05/25/2014 - 00:15 | 4792631 Joe A
Joe A's picture

"sending a signal on the eve of Ukraine's presidential election that Europe's leading economic power isn't shy of confronting Moscow."

Until of course when Russia closes the gas flow...

Sun, 05/25/2014 - 00:40 | 4792655 kurt
kurt's picture

Revenge piece for Germany not keeping its fringe legitamate media from blowing the whistle on the 400 Acadamei and 300 Greystone mercs. Gemany, waiting for its gold and tired of onerous economic compromise, and arrogant demands, are being made, here, to look like snivelers.

Sun, 05/25/2014 - 02:07 | 4792737 GoldIsMoney
GoldIsMoney's picture

Ah Schäuble, a shame for all Germans, but we like our shame much more than anything else....

Sun, 05/25/2014 - 02:19 | 4792744 nah
nah's picture

Russia has a "special relationship" with Ukraine

.

we are slavs bitchez

Sun, 05/25/2014 - 03:37 | 4792808 The wheels on t...
The wheels on the bus are going to fall off's picture

Just recently on RT news, they were saying that Europe, particularly France and Italy have 1 year left domestically of energy before they rely on full exports. The UK has 5 years left (these are the official figures).

The options therefore seem to be either Africa(which is a real battle ground) or Norway for future energy, otherwise they have no choice but to start co-operating with Russia or wage a WW3 for the control of Syria to get a pipeline from Qatar to the europe (which Russia will never accept)

The bottom line is, the west is fucked, bankrupt, no sound money, and soon to be reliant on Energy from the east (which prices are on the rise).

Putin doest even have to a fire a shot to gently squeeze the necks of the west, which happens every time a barrel of energy is imported.

Germany says they have diversified themselves away from just energy and that Russia hasnt which means they are reliant on energy, well who the fuck isnt? whats the point in diversifying your economy if you have no energy to fuel it.

They call it Black Gold for a reason and the shift of power has now changed and is becoming more and more crucial every day that goes by.  

My gut tells me, that something bad is in the making, and i suspect it will be a final push on controlling Syria to try and get Qatar back into the picture for Europe. 

Sun, 05/25/2014 - 04:10 | 4792825 Mediocritas
Mediocritas's picture

A little overview to show just how much Germany needs to stay on friendly terms with Russia and just how must they must be pissed at the Obama regime's foreign policy behind the scenes:

http://euanmearns.com/germany-energiewende-kaput/

Demographics are awful and 2/3rds of German energy consumption is imported, including 100% of its oil use and almost 100% of its gas use. That said, Germany can fund its energy deficit with a healthy trade surplus and does have a cushion of recently decommissioned nuclear that can be brought back online at some point (and will be, let's not kid ourselves), unlike the UK which is utterly fucked and hits another major crisis within 5 years, France and Italy within 2 years.

Europe is in no position to be playing hardball with Russia.

Sun, 05/25/2014 - 04:29 | 4792837 Ghordius
Ghordius's picture

"Reflecting on the waning US influence and slamming US Congress delays over IMF reform..."

which go hand in hand. ALL member countries of the IMF want that reform. mostly it's junior partners wanting a bigger share and ALL are willing to increase the capital base

even in America, the Senate, the Prez, the Treasury... ALL are pushing for this IMF reform. ALL THE WORLD... except the US Congress

I'm not taking sides. I'm just trying to point out an interesting rift. and note: it's not about SDR, it's about control over the IMF

the US Congress could just cough up some more funds and match what the others are willing to put in

or it could just say: fine, we'll be ok with a smaller share

here, the US Treasury explains it this way (http://www.treasury.gov/connect/blog/Pages/Myth-vs-Fact-IMF-Quota-Reform...):

"

Myth: The IMF reforms will benefit Russia in the IMF.

 

Fact:  Under the quota reforms, Russia’s voting power in the IMF changes from 2.4 percent to 2.6 percent of the Fund’s total voting power. This is an immaterial change.  In contrast, the United States’ voting power will be 16.5 percent, giving us veto power over key IMF decisions. Further, the G-7 quota shares will remain well over 40 percent. It is preposterous to think that the United States government would act to strengthen Russia’s influence, when Russian behavior is violating international laws and norms. Russia currently has an outsized role at the IMF because of its bilateral agreement to lend the IMF $10 billion and is exploring if the IMF can move forward without the United States.  That is unacceptable. Approval of the IMF reforms will make the IMF less dependent on bilateral loan arrangements from countries like Russia and more dependent on the resources provided by the United States and our allies.  "

Sun, 05/25/2014 - 08:12 | 4792923 Canucklehead
Canucklehead's picture

You are missing the point. The IMF is a bank. It is not a democracy.

Sun, 05/25/2014 - 08:12 | 4792920 Canucklehead
Canucklehead's picture

2 months ago, everyone was worried about WWIII. Now, things have been de-escalated to the point where we are talking about effects on the German-Russian trade relationships.

I fully suspect this message from Germany is intended to muddy the waters and take some wind from Putin's sails, vis-a-vis the results of the upcoming Ukrainian election. Putin is being marginalized further yet.

It would be pretty hard for Putin to do some sabre rattling when Russian business and German business have been working so hard in the background. It is fair to expect "understandings" have been made to the benefit of Ukraine. After all, Germany is the good cop.

If the Russian Ukrainians escalate matters after the election, the Russian Ukrainians will become pariah in the world view.

Sun, 05/25/2014 - 09:18 | 4792981 Winston Churchill
Winston Churchill's picture

Are you sure you're Canadian ?
Your world view is one of a inhabitant, born and raised, in Foggy Bottom.

Sun, 05/25/2014 - 11:22 | 4793237 litemine
litemine's picture

Your reply and namesake makes me reply to you Sir.....We are no longer Colonials and your Elite will no longer lead out youth to death for British profits. We now need our Prime Minister to do what the People request and tell Harper to stand staight up and pull up his pants. Stop the Trans Pacific Pact from giving the American Corporations more rights that the peoples Wants and requests. Stop selling out our Country.

Sun, 05/25/2014 - 11:17 | 4793224 bugs_
bugs_'s picture

never forget the "eastern front" and why there is still a germany.

Do NOT follow this link or you will be banned from the site!