Putin Advisor Proposes "Anti-Dollar Alliance" To Halt US Aggression Abroad

Tyler Durden's picture

It has been a while since both Ukraine, and the ongoing Russian response to western sanctions (which set off the great Eurasian axis in motion, pushing China and Russia close together, and accelerating the "Holy Grail" gas deal between the two countries) have made headlines. It is still not clear just why the western media dropped Ukraine coverage like a hot potato, especially since the civil war in Ukraine's Donbas continues to rage and claim dozens of casualties on both sides. Perhaps the audience has simply gotten tired of hearing about mixed chess/checkers game between Putin vs Obama, and instead has reverted to reading the propaganda surrounding just as deadly events in the third war of Iraq in as many decades.

However, "out of sight" may be just what Russia's political elite wants. In fact, as VoR's  Valentin Mândr??escu reports, while the great US spin and distraction machine is focused elsewhere, Russia is already preparing for the next steps. Which brings us to Putin advisor Sergey Glazyev, the same person who in early March was the first to suggest Russia dump US bonds and abandon the dollar in retaliation to US sanctions, a strategy which worked because even as the Kremlin has retained control over Crimea, western sanctions have magically halted (and not only that, but as the Russian central bank just reported, the country's 2014 current account surplus may be as high as $35 billion, up from $33 billion in 2013, and a far cry from some fabricated "$200+ billion" in Russian capital outflows which Mario Draghi was warning about recently). Glazyev was also the person instrumental in pushing the Kremlin to approach China and force the nat gas deal with Beijing which took place not necessarily at the most beneficial terms for Russia.

It is this same Glazyev who published an article in Russian Argumenty Nedeli, in which he outlined a plan for "undermining the economic strength of the US" in order to force Washington to stop the civil war in Ukraine. Glazyev believes that the only way of making the US give up its plans on starting a new cold war is to crash the dollar system.

As summarized by VoR, in his article, published by Argumenty Nedeli, Putin's economic aide and the mastermind behind the Eurasian Economic Union, argues that Washington is trying to provoke a Russian military intervention in Ukraine, using the junta in Kiev as bait. If fulfilled, the plan will give Washington a number of important benefits. Firstly, it will allow the US to introduce new sanctions against Russia, writing off Moscow's portfolio of US Treasury bills. More important is that a new wave of sanctions will create a situation in which Russian companies won't be able to service their debts to European banks.

According to Glazyev, the so-called "third phase" of sanctions against Russia will be a tremendous cost for the European Union. The total estimated losses will be higher than 1 trillion euros. Such losses will severely hurt the European economy, making the US the sole "safe haven" in the world. Harsh sanctions against Russia will also displace Gazprom from the European energy market, leaving it wide open for the much more expensive LNG from the US.

Co-opting European countries in a new arms race and military operations against Russia will increase American political influence in Europe and will help the US force the European Union to accept the American version of the Transatlantic Trade and Investment Partnership, a trade agreement that will basically transform the EU into a big economic colony of the US. Glazyev believes that igniting a new war in Europe will only bring benefits for America and only problems for the European Union. Washington has repeatedly used global and regional wars for the benefit of  the American economy and now the White House is trying to use the civil war in Ukraine as a pretext to repeat the old trick.

Glazyev's set of countermeasures specifically targets the core strength of the US war machine, i.e. the Fed's printing press. Putin's advisor proposes the creation of a "broad anti-dollar alliance" of countries willing and able to drop the dollar from their international trade. Members of the alliance would also refrain from keeping the currency reserves in dollar-denominated instruments. Glazyev advocates treating positions in dollar-denominated instruments like holdings of junk securities and believes that regulators should require full collateralization of such holdings. An anti-dollar coalition would be the first step for the creation of an anti-war coalition that can help stop the US' aggression.

Unsurprisingly, Sergey Glazyev believes that the main role in the creation of such a political coalition is to be played by the European business community because America's attempts to ignite a war in Europe and a cold war against Russia are threatening the interests of big European business. Judging by the recent efforts to stop the sanctions against Russia, made by the German, French, Italian and Austrian business leaders, Putin's aide is right in his assessment. Somewhat surprisingly for Washington, the war for Ukraine may soon become the war for Europe's independence from the US and a war against the dollar.

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Confused's picture

Well. That just happened. So. Yeah. Things are looking good. Recovery for the win! 

Soul Glow's picture

Faith and credit, bitchez!

Latina Lover's picture

Fed Reserve Notes will eventually earn an honored place in the failed currency hall of fame, right beside the Zimbabwe Dollar.

Of course the Fed Reserve Banksters, and their Ultimate Capos, the BIS, will do everything they can to destroy Putin and subjugate Russia, hence their back door support for the Kiev Fascists.

THX 1178's picture

Good. The fedgov, MIC, and banking cartel will go with it.

pods's picture

Now that is a shot across the bow. Even moreso than an ACTUAL shot across the bow.

Fuck, they could sink a carrier and it would not be as damaging as this idea. 

Note to my compadres in the states, roughly 90% or so of the FRNs in existence are OUTSIDE the US.

What happens when the world no longer needs them?  They come home.

pods

Headbanger's picture

Oh fucking great! 

Either the U.S. really goes broke now

Or it starts WW III to save its ass!

DaveyJones's picture

Actually this is WWIII and "we" aint gonna win.

Fish Gone Bad's picture

What would the German army from WWII would look like if Germany had won? 

THX 1178's picture

Davey jones is right. WWIII is a geurrilla information war with no difference between civilian and military populations. We here at zerohedge are on the front line. WWII culminated in the BIG ONE aka the atom bomb. We today will see our own present WWIII end with worldwide destruction. But it makes no sense to destroy physical property these days as our world is girded by information. we will see a worldwide crackup boom and hyperinflation. A worldwide death of money as rickards calls it. So that is our atom bomb.

DaveyJones's picture

Yup, the derrivatives, the debt and the dollar are the atomic weapons but this time the "enemy" can ignite them from anywhere

saveandsound's picture

@pods:

What happens when the world no longer needs them?  They come home.

But before that there is a way to render them worthless at the eve of hyperinflation and it is called currency reform.

Only USD inside the US is switched into the New-USD (goldbacked, I guess). Apple and friends are already discussing how to transfer USD into the States without paying to much taxes. I'm convinced they get a deal offered by the government.

maskone909's picture

time to load up on hedgeless horsemans survival products.  preping is not so crazy now is it?  years supply of food, fuel and water.  dont forget the lead and gold too!

Thought Processor's picture

 

 

We need to decentralize this whole marble again.  What a mess.

 

Welcome to the Human Race.

Manthong's picture

“It is still not clear just why the western media dropped Ukraine coverage like a hot potato”

Um.. I can see clearly (I would have hyperlinked the Utube, but I will not impose the ad on anybody)

WTF..  like it is not clear that the media is OWNED by .gov ?

DaddyO's picture

Oh look, silver's up, I wonder who took the day off at the PM fixing office?

http://www.kitco.com/charts/livesilver.html

How long before these heavy hitters decide they want moar and smack the pm's with a big hammer.

Putin will move one of his pawns and the west will get their panties in a bunch and flip their checker board over accidently on purpose.

Just like the IRS and its hard drives...

DaddyO

Aaaarghh's picture

thank fuck for the ruskies!!!

Manthong's picture

in case you are not aware..

JPM has been building a massive stockpile of physical Ag.

all the while, deluging the market with paper shorts.

.gov wants JPM to enjoy the profit that it denied to the Hunt bros.

hobopants's picture

If you think the lunatics in charge are going to go quietly into the night, you have another thing coming.

They didn't get to where they are by being rational and considerate people. 

Hopefully stuff breaks down before they have a chance to start World War III, but I doubt it.

Gaius Frakkin' Baltar's picture

Here is an idea for Sergey Glazyev.

Allow Americans to open Russian bank accounts online and give them the opportunity to convert some of their USD to RUB. Personally, I wouldn't mind a little RUB as a backup plan.

Manthong's picture

Oh, crud..

The next thing you know is that some Putin advisor will be suggesting that a free economy should be loosed from market manipulation and intervention,

F’n heresy.

new game's picture

the enemy within the matrix is not russia but your coworker, neighbor or relative that refuses to hear the truth.

quite the advisary, but us patriats of truth must carry on...

7.62x54r's picture

That physical is nearly gone by now. JPM has almost run out of all that silver they stole from the Hunt bros.

Manthong's picture

geez,, does anybody undersrand that one sixth of the population on the planet (India) is taking their agri-power from oil to solar?

Well, guess what.. JPM knows that and although flooding the market with short Ponzi paper  it is stacking millions of ounces of physical.

F me (and you) in the short crevice.

SF beatnik's picture

I take it to be a VERY VERY VERY BAD SIGN that ZH commenters (most, presumably Americans) actually want to see the USA collapse.

This means many of the nation's smart people are rooting for the other team(s).  FUCK! Be careful of what you wish for!

I'm not ready for this, yet. I haven't gotten rid of my cash. I'm still shopping for hard assets. 

Slow the fuck down.  Please.  

 

luftmensch's picture

Seems like Tyler is rooting for the other side, most of the articles on here about Ukraine seem to be swallowing the Russian propaganda and spitting it back out again?  KGB has invested in ZH or what?  I mean, I'm all for hearing both sides, but this is pretty biased pro-Russian coverage..

Just because we think the US has problems, I recently spent a few months in Moscow, known as the most unfriendly city in the world, shit still don't work there, like there aren't even many restaraunts, whole place is run by a small group of insiders, if anything becomes big or threatens them they take it over or kill it.  In otherwords, the US may suck, but Russia's way of doing things sucks harder.  You think the Ukranians want Russia to take them over?  Google Stalin ukraine genocide, Stalin starved them off by the millions.  You really think a lot of Ukranians are nazis?  After Stalin, the Nazis took over and their idea was to kill most slavs for lebensraum.

Ukranians have been thru a lot of trauma as a country/culture.  They need a stable, less corrupt government, or at least try to move in that direction.  As far as I can see, Putin isn't exactly offering a move in that direction...noone wants to take over Russia or start a cold war.  Russia is still stuck in an old mentality of xenophobia, and protecting their entire region as a personal fiefdom of a small group of cronies...rather than looking out for the greater good, and trying to further develop mutually beneficial economic partnerships with those around them.  This is all about the old model of rape & pillage (other countries & your own), vs less corruption / better management / more enlightened governance.

 

 

Squid-puppets a-go-go's picture

Tyler is for a free market

The US govt is the enemy of free markets

The russians, while not angelic in any capacity, are one of the few forces that can bring the US govt to account, thereby providing an opportunity to revert to free markets

ergo if you are a friend of freedom, of the true and traditional America, the america for and by the people, Russia is for this brief window in history your friend

hobopants's picture

A fair majority of the morons on here aren't capable of critical thought, The US is a country with some serious issues, but Russia is basically run like a Mafia as well.

Oh and if you are some Russian nationalist reading this shit to make yourself feel better about your own crappy country, fuck you.

barre-de-rire's picture

fuck you alice, go back to rabbit hole

.

SF beatnik's picture

And where the fuck is Boris Alatovcrap now that we need his guidance most ??? 

Squid-puppets a-go-go's picture

he's busy on some Russian version of Zero Hedge in his alias as a Southern Hick

7.62x54r's picture

The friday puking at SLV is becoming less effective. The price recovered by wednesday this week.

And the physical silver keeps hemmoraging out of JP Morgan. Holding paper SLV longs will really suck soon.

SWRichmond's picture

How can we get an alliance to stop aggression domestically?

conscious being's picture

One step at a time SWR.  The side effects of the collapsing USD may cause the homeland version to evaporate like the E. German Stasi.

Oracle 911's picture

The Putins advisor is such a nice guy. Why? Because he is practically yelling: "Get out from the US$."

BTW if the Russians let him say this, this mean the BRICS countries already made their move, they just need officially announce it.

Poundsand's picture

And to think that the rehypothication bomb going off at just this moment is an accident?

7.62x54r's picture

The rehypothication will continue until Russia and China hold most of the metal.

The fact that this guy has lit the fuse should tell you something.

WVO Biker's picture

Since a long time, if you import to Germany from India and PRC you pay in €. Buying from R.O.C. its $ of course.

MarkAntony's picture

Global reset - yup, that's where were heading...

Antifaschistische's picture

ultimately....everyone (including every country and every company like Apple) who "stacks" fiat as a means of wealth preservations gets stung.  Either..repartirate your dollars and visit the tax man, or keep stacking your fiat and visit the devaluation man.   Either way....you will pay.

john39's picture

>> derrivatives

thank the money changers.  they engineered all this.

TVP's picture

And don't forget, these financial weapons will prove FAR more lethal than those puny atom bombs.  

What happens to the 50 million Americans who rely on food stamps to survive, when a currency crisis strikes?  DEATH HAPPENS.  

How about millions of elderly who rely on social security and pensions? DEATH.

And thousands more will commit suicide, go insane and get themselves killed, or be slaughtered by military/law enforcement.  Let's not forget FEMA camps, who KNOWS wtf those will really be used for.  

 

macholatte's picture

 

The Gangs .......

Don't forget the Gangs.

The Armageddon concept is remote at best. USA is preparing for war against its citizens. If the food supply is cut off, 3 weeks into it there will be dead bodies all over the place. After six weeks most of the population will be gone and disease will be a real problem. Survivors will be more like schools of baracudda & other predators in a constant search for resources without any regard whatsoever for their fellow man. Cops & military will be hearding "their own" into shelters and doing whatever they need to do to be considered "essential" to the protection of the elites (politicians & hyper wealthy folks) who will allow them to live. Most of the elites will have left the country for their island enclaves stocked with popcorn.

 

 

SMG's picture

Right now it's an information and finance war.   But the Banksters intend for this war to go conventional, (yes that's right nukes and all that apocolyptic stuff).  WWIII will accomplish 2 things for the Oligarchs.

1.   Massively decrease the worlds population.
2.  Force the world into the global government they will create.

Here's more about the plan if you're interested:

http://www.worldaffairsbrief.com/keytopics/threats.html

Hopefully people will wake up in time to stop it.

 

 

 

tonyw's picture

A nuclear war would certainly decrease the world's population including many of the banksters and destroy much of the infrastructure. Japan shows us what happens when a nuclear power station is disconnected from the grid. Once we face multiple meltdowns there will be no coming back, our society is too complicated and interwoven.

Here you can read how the MIC through the use of lobbying have received $40 billion for a system that does not work.

IMHO worth reading the whole article to get a feel for how much power the lobbyists have over the politicians or put another way what the politicians are prepared to sell out for.

http://www.latimes.com/nation/la-na-missile-defense-20140615-story.html#...

 

macholatte's picture

Hopefully people will wake up in time to stop it.

 

The day Barry is impeached and thrown out of office with his Progressive Czars and that scumbag Holder is the day I will begin to believe the sun may shine again. Until then, it's just wishful thinking.  Look out your window, do you see which way the wind is blowing? Does it carry the smell of slavery or rebellion?

BringOnTheAsteroid's picture

All US citizens have to do is park their cars at the cities choke points. It would only take a few people acting in co-ordination and entire cities could be grid locked, ceasing commerce and cutting off funds to US.gov. Start in Washington and work your way to other cities. This will render police/military forces ineffective as roads will be blocked. This is the best anmd most effective form of dissent and you're barely even breaking any law, except maybe local parking laws. Just a few cars parked at strategic points on the roads is all it will take.