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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disabledvet's picture

The whole Edifice Rex feels like spin now. "Spinning out of control."

buzzsaw99's picture

too bad their own currency is junk also. nobody can be trusted to fairly administer a currency, everyone is a crook.

R3ap3R's picture

True its junk but if russia will go after its banking system wich fully endorses the dollar with the money (Rubles) they recieve from the russian central bank just to make money of the rubles inflation by holding their capital in dollars, then the dedollarization will be in full swing. But i dont think it would be great for the ruble maybe the euro

buzzsaw99's picture

the euro is the exact same as the dollar. broke indebted nations issuing a debt currency backed by nothing. the same squidly maggots are even in charge of the central bank. driving a wedge between euro countries and the usa will only end up with russia getting screwed in the end by a con job.

R3ap3R's picture

The russians are alrdy getting conned by the corrupt russian bankers keeping their money in dollars sponsering the US eversince Yeltsin. Their have been some changes made when putin came to power like shops in russia no longer exepting the dollar as methode of payment and also in business to business transaction (yet no one rly follows that) this is years ago but the bank problem is still there. Might as well keep their money in euros

lasvegaspersona's picture


better have a look at the ECB balance sheet.

You are not alone in being wrong about the Euro. It was developed with a gold backing. It is NOT a gold standard currency but it holds, as an asset, 10,800 tons of gold on it's balance sheet. It's #2 asset is dollar derivatives. If the dollar fails the ECB can defend the Euro with  gold. The gold is marked to market so if the dollar goes to zero the gold goes to infinity in dollar terms. Thjat may be the point at which we see the true value of physical gold emerge.

explosivo's picture

Consider the possibility that they are lying.

Panafrican Funktron Robot's picture

"it holds, as an asset, 10,800 tons of gold on it's balance sheet."


Right, but where is the actual, physical gold?  

Now re-assess the backing.

mc225's picture

it is seriously doubtful that they have ~11k tons of gold.

BringOnTheAsteroid's picture

It's sort of sweet lasvegaspersona that you still believe balance sheets reflect anything other than blatant lie.


angel_of_joy's picture

Every paper currency turns invariably to junk (being conceived out of thin air, kind of like the "immaculate conception").

They are excellent as mediums of exchange but they fail miserably when it comes to holding value over time.

There is no exception from this rule, so draw your own conclusion...

R3ap3R's picture

True but the problem is that Russian businesses dont want Ruble loans since the interest is much higher because of the higher infaltion risk, they want the cheap dollar loans where the intrest is much lower. If Russian banks would be charged for keeping a large amount of dollars this problem might end.

shouldvekilledthem's picture

nobody can be trusted to fairly administer a currency, everyone is a crook.


btc FTW

Armed Resistance's picture

Here here. Collapse the motherfucker and let's begin anew. I'm so tired of all of the lies, propaganda, bullshit, HFT "managed markets" and the decay of civil liberties. I wish it didn't have to be this way but the infestation has taken over.

Burn it down so the natural, organic rebirth of a free-market system can begin.


The USA economy burned down in 2008 and you are living in the re-birth of the 'free market system' today. Unfortunately, the same clowns that burned it down in 2008 are the same ones that gave us the re-birth. Frankly, this is what you get when you permit ZOMBIES to run the system for their benefit and not yours. Furthermore, one needs to salt the earth after burning down the Capitalist system and the ZOMBIES arn't that bright IMHO. Alan Greenspan and Larry Summers et al don't want the earth salted quite yet, AR.

p.s. The 'free market system' is a mythology replete with heros

and hero worship! Hank Paulson and Ben Benanke are the heros being worshipped by the 1% while they nationalize your SUPER banks and Insurance providers like AIG, Fannie & Freddie, et cetera.

Armed Resistance's picture

2008 burned down?  That was only your top ramen boiling over and flaming up  It was a zit on a mosquito's ass.  I'm talking about a REAL fire, with a REAL re-birth.  And you are mistaken- the free market system is not a myth but a social construct based on the natural laws of supply and demand. You are discussing a CONTRIVED system that masquerades as a free market.  But for the market to be free means the government and it's filthy paws need to be removed from the situation.


Like I said, the so-called 'free market system' is based on a

mythology that you cannot seem to operationalize without

invoking the rhetoric of Equilibrium Economics and the ZOMBIES that support it. Please define the 'free market' and explain how

free markets tend to eliminate millions of people throughout the world? The American 'free market system' is free for the 1 % ruling

kleptocrats and not free for the unemployed and recently foreclosed upon subprime borrowers that the so-called 'free market' system shorted for financial gain in the short term.

In the long run of so-called 'free markets' we tend towards

a run down system. The Third Law of Thermodynamics would not support your argument if one takes Entropy into account and the so-called 'free markets' are not free for a majority of people contained in the 'free market' system. Closed looped systems tend to run down over time because they lack the qualities that open and 'free systems' perpetuate. Moreover, free market systems support bankruptcy and the Federal Reserve Government Sachs does not. The 1% love the rhetoric

and profit by the ignorance each and every business quarter.

Free markets, my ass.

BigJim's picture

You must find this place a bit confusing after all those years at HuffPo.

Never mind, you'll learn more by reading round here than typing.

Calmyourself's picture

Oh Jeez another psuedo scientist invoking thermodynamics to explain that peoples choices just don't work. But lucky for us, his system can fix all those nasty mistakes caused by free choice, just give him the reins and oh yeah get on your knees, this sickness will only be cured one way..


Did I offer to fix something here? The USA cannot be fixed

even if I wanted to adopt it and fix it myself. Maybe John Chen could fix it for you when he finishes selling off BlackBerry.

p.s. The United States of America is already on it's knees but

my ethics prevent me from assisting the patient in such a late stage of the cycle of death. I'll just write her some poetry and sing a song or two.


Mea culpa!

It was CBC not HuffPo but I'll give you points anyways. And I

have been reading Zerohedge and felt that I should sign up and

pontificate at will just to see what happens. So far the 'like' and 'dislike' groupies are fairly balanced so the feedback 'like' generation seems to be a weak social monitor. Good humoured feedback is always appreciated and I get your point, thank you.

Tall Tom's picture

Welcome to Fight Club. I disagree with your pontification that "it burned down in 2008". Hell it has been in a state of Exponential Collapse since 1913 and the damage is progressively becoming worse.


We have not seen the collapse yet. But when we do then it will be devastating. That will be sad for most people as they will be unprepared.


You have bought Physical Gold, right?


James Rickards is correct when he claims that the Death of Money will be a Global Event. Unfortunately it is "Audience Participation Night" on the Grand Stage.


You make sure that you have some Gold.

Tall Tom's picture

Big Jim...I think that if you re-read his post carefully then you may get the clue that he is mostly in agreement.


Both you and I have not ever experienced a Free Market in America ever. Free Market Economics died when the Federal Reserve was hatched in the den of iniquity....the brainchild of the Jekyll Island and Hyde Park oligarchs. Many may argue, perhaps correctly, that the Free Market did not exist before 1913.


Thus it is an ideal...to be realized...to be made real...at some point in the future.


But a Free Market does not exist today. It did not exist Ten Years ago, and unless you are 101 Years old...which I seriously doubt...you have not ever experienced a Free Market. In that sense it is a myth.

aardvarkk's picture

It's sort of like when you're trying to get a nice lawn, only no weed-be-gone exists.  Pulling the damn dandelions and clover and whatever until all your tools are broken and your fingers are bleeding.  Then suddenly you sit up and look out over a sea of crap weeds and realize it's time to go buy a jug of roundup or maybe a tiller and some grass seed.


It's impossible to break a steel weeding tool IMHO. Pull the weeds out with a steel weeding tool and make sure to get the root structure entirely. The nicest lawns are tended to by hand and not


p.s. wear gloves or hire a bright kid.

7.62x54r's picture

Chemicals are cheaper and more effective.

If you are that green, stop planting grass and enjoy your dandilions.

Tall Tom's picture

I enjoy the feel of the soil when tending a lawn or garden. I do all of my weeding by hand and spade.


As for chemicals I have nothing against them. In my kitchen there is a flask of Aqua Regia with Gold in suspension as Gold Chloride Ions, and Mercury (I) Chloride at the bottom. I use chemicals all of the time.


And there are plans for the Mercury salts as they are quite toxic. Never let a good poison go to waste.

Kaiser Sousa's picture

tick toc...

must be a bitch when everyone that matters in the "new world order" has had it with your bullshit...

the US is a maingey mutt with rabbies waiting to be put to sleep...

nighty, night you fucking MoneyChanger controlled fucks....

viahj's picture

"MoneyChanger controlled fucks...."  look in the mirror.  name me one currency/country that isn't

COSMOS's picture

LOL not the Chinese, the chinese are probably the best business people in the world, the Asians saw how the game was played and learned very well from it.  But you can't say Whitie isn't trying to get in the system there, Rupert didnt make half chinese kids for nothing.

viahj's picture

dumb ass the PBOC has printed a fuckton. fiat = money changers

youngman's picture

No but there are a bunch of USA haters out there....so this might catch on

youngman's picture

I think Russia still owns some treasuries.....why not sell them first...try to start a run on them or something..to show the rest of the world you really mean it

gcjohns1971's picture


If you understand what a numeraire is then you understand that so far this is all just pissing in the wind.

All the agreements in the world won't replace the Dollar as the reserve currency without the establishment of an alternate numeraire.

There is only one viable alternate numeraire at present - GOLD.

Any attempt to use SDR's or any fiat vehicle as an alternate numeraire is going to run into a circular logic problem with the current numeraire.

You simply can't get THERE (alternate fiat numeraire) from HERE (Dollar numeraire).


Let me know when they propose Gold as the numeraire in international transactions.

Until that happens they are not serious.

valley chick's picture

Bet you are fun at a party.  :-) 

gcjohns1971's picture



I know.

I am the guy who says, "If youuse more than a 1:5 ratio of everclear to fruit juice in your jungle juice everyone will pass out and there will be no party."

But someone has to do it.

bbq on whitehouse lawn's picture

That would be next as the east forms its own bretton woods. They now have the gold to do it. Good delivery in .9999
But they would need China and India on board to do it.

NotApplicable's picture

The whole goal of the moneychangers is to eliminate the concept of numeraire. Yes the SDR will run into the same problems... EVENTUALLY, but that won't stop them from doing it, as it is the next step in removing the presence of "wildcat banks" that clearly show the imbalance of value amongst various currencies. I'd bet they are quite sure they can manage the transition to SDRs TO THEIR BENEFIT (which is the only thing that matters).

If gold is ever proposed as the solution again, I'm quite sure only CBs will be allowed to own it, as all of the previous damage will be blamed upon greedy gold-bug speculators.

Remember, it's for the children.

gcjohns1971's picture

"The whole goal of the moneychangers is to eliminate the concept of numeraire."

They want to CONTROL the numeraire.

There is a difference.  To eliminate the numeraire is to return to a barter economy.  The money-changers definitely do not want that.

bigkansas's picture

Learn Esperanto!

angel_of_joy's picture

Better yet, learn Spanish !

insanelysane's picture

How long will it take the EU led by France to compromise with USSR, throw the USD overboard, and have a new red euro currency?

Winston Churchill's picture

Depends on their Strontium 90 tolerance.

The US would nuke europe,you can bet the farm on it.

813kml's picture

A nuking is highly unlikely as the US can continue to manipulate Europe via Ukraine.  The EU's Achilles heel is Russian gas, destroy the Ukraine pipeline (already occurring) and the EU will be forced to buy into the LNG fantasy.

Winston Churchill's picture

Last resort I grant you.Uncle Scam will cajole and try everything else first.

But make no mistake, its on the table.

I posted months ago that this could end up with missils fired at the US by

its erstwhile allies at some point.There is a reason their deterents are outside US

control.US tridents fired by the UK, at DC ,is not so farfetched. I know for a fact it was planned back

in the 1960's, and is updated on a regular basis.

813kml's picture

The US and UK are destined to sink together as their financial houses are built on the same quicksand, they will be each other's only friends when the SHTF.

I agree that nothing is impossible, but the US nuking Europe would render its own military bases useless and destroy its strategic advantages.  All countries can be manipulated via energy, much easier to keep the EU dependent on the petrodollar.

A nuking of the Ukraine is definitely within the realm of possibilities.

7.62x54r's picture

No, they will just drive a bigger pipeline through Poland.

Shipping enough LNG to heat the EU is an Ofucktard fantasy.

mkkby's picture

Insanelysane -- how long? 

If you knew your history France tried that in the 60s, which is why the Euro was created in the first place.  That was only 50+ years ago. 

Everyone knows the US has huge advantages from being able to print the reserve currency.  This alliance isn't the first to want out.  Let's see if they can gain traction.  I doubt it.


Winston Churchill's picture

Thats going to leave a scar.

About time someone came out in plain English ,or Russian, about the true motives

behind Washingtons machinations.Shame you need an IQ above the US average to understand it


The looks I get when explaing what a petrodollar is,say its a wasted effort here in America.

10% already know, and the rest don't want to.