Putin Responds: "US Sanctions Will Boomerang And Cause Very Serious Damage"

Tyler Durden's picture




 

It took just a little over an hour for Vladimir Putin to respond to the latest, most provocative and toughest round of US sanctions yet. The response, appropriately enough, came just after the BRICS summit in Brazil, where the world's developing countries yesterday announced the formation of both a BRIC bank and a $100 billion currency reserve to provide a liquidity alternative to the insolvent developed world's central banks. Here Vladimir Putin was asked to comment on the new package of sanctions against Russia announced just minutes earlier by Obama.

Putin's response: "We aren’t the ones introducing sanctions, you should ask them."

"Sanctions have a boomerang effect and without any doubt they will push U.S.-Russian relations into a dead end, and cause very serious damage, and it undermines the long term security interests of the US State and its people." he said to reporters while elaborating that said he needed to see the details of the sanctions to understand their full scope Reuters added.

And as was largely expected, Putin's next jab was right where it hurt: energy.

"This means that U.S. companies willing to work in Russia will lose their competitiveness next to other global energy companies."

Putin said the sanctions will hurt Exxon Mobil Corp which has been given the opportunity to operate in Russia. "So, do they not want it to work there? They are causing damage to their major energy companies," he said.

While we don't know for sure, we are confident that following the press conference Putin sat down with the rest of the BRICS, which command a population of just over 3 billion not to mention the world's fastest growing economies, and realized that for all the posturing, it is really a game of reserve fiat vs energy, with the US controlling the former, while the BRICS, and especially Russia, dominating the latter. And as long as the BRICS don't have their own monetary system, they will be reliant on the every swift (pun intended) whim of Janet "price-to-equity ratio" Yellen and her central planning kind.

We are just as confident that he and his peers are currently contemplating how to no longer be bound by the former ever again.

In the meantime, and to further distance itself from western reliance, Moscow ordered state officials to only use Russian-made cars. From Reuters:

Top Russian officials may soon forfeit the sleek black Mercedes limousines that speed them through the Kremlin gates in favour of home-produced cars as part of a push to protect domestic industry threatened by Western sanctions over Ukraine.

 

Prime Minister Dmitry Medvedev said he had signed an order limiting purchase of imported cars for state and municipal officials - a move in line with Vladimir Putin's bid to increase self-reliance from engineering to defence, but carrying more symbolic than commercial importance.

 

Many Western cars are now assembled in Russia, but not the Mercedes limousine, the car of choice for many government officials and often used by President Putin.

 

In Soviet times, homemade limousines such as the ZiL and for lesser officials, the Volga were de rigeur. These have now largely vanished from the streets, to the chagrin of some who see profligacy and a lack of patriotism in the preference.

For now it is a political decisions:

"This will not influence the market at all, it is a political decision," said Vladimir Bespalov, an analyst with Moscow-based VTB Capital, putting the share of state-funded car purchases at less that 3 percent of the market.

But how long until this too escalates to other industries and other consumers, first in Russia but in the other BRIC nations, all of whom one can safely say appear to have finally had it with western/IMF-led global hegemony.

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Wed, 07/16/2014 - 20:52 | 4965186 ShrNfr
ShrNfr's picture

With Obama, you just can't fix stuck on stupid.

Wed, 07/16/2014 - 20:55 | 4965197 y3maxx
y3maxx's picture

...BRICS vs PRICS

Wed, 07/16/2014 - 21:21 | 4965280 codecode
codecode's picture

Obama's looking for someone to take the blame for the economic mess he has already created here in the USA... Who better than to blame Putin by having him accelerate it.

Wed, 07/16/2014 - 21:35 | 4965338 CognacAndMencken
CognacAndMencken's picture

 

 

What the fuck are you talking about?  The right-wing in America was so traumatized by the election of a black president that they actually developed retrograde amnesia in January 2009.

When Obama took office, this country was headed full throttle into the ditch.  We were losing 750,000 jobs per month... the stock market was crashing.... retirements were crashing....housing prices were crashing...the entire financial system was blowing up....we were 2 years into the worst recession in modern history.....etc. etc. etc.

And yet Obama caused this?  WTF.....?

Wed, 07/16/2014 - 21:40 | 4965353 Liberal
Liberal's picture

As a staunch liberal, I am against Russia...as long as the Dems are in charge. If the Republicans take back the WH, I reserve the right to change my stance. Until then, Putin is racist!

Wed, 07/16/2014 - 22:06 | 4965432 Troll Magnet
Troll Magnet's picture

Hey CognacAndMencken,
I logged in just to tell you:

GO FUCK YOURSELF, YOU PARASITE!

Wed, 07/16/2014 - 22:13 | 4965469 Manthong
Wed, 07/16/2014 - 22:18 | 4965492 markmotive
markmotive's picture

Russian Bear is awake.

Bombers intercepted off California coast.

http://www.planbeconomics.com/2014/06/two-russian-tu-95-bear-h-bombers.html

Wed, 07/16/2014 - 22:23 | 4965513 Latina Lover
Latina Lover's picture

I'll bet Obama's next book will be called:

Audacity of Stupid:  how I spent 8 years with ugly Michael aka Michelle Obama instead of constantly sucking Reggies Root.

Wed, 07/16/2014 - 22:27 | 4965528 Troll Magnet
Troll Magnet's picture

I just want somebody, anybody, to ask him:
"Hey Mr. President, what's it like to be the worst president in American history?"

Wed, 07/16/2014 - 22:55 | 4965637 Lore
Lore's picture

That is really strange, that people downvote the educated comment by CognacAndMencken.  Do ZHers not see that Obama is merely the latest appointed figurehead, part of a process that has been unfolding for decades, shaped and influenced and directed by a cadre that has been around longer still?  I have books by authors who understood the causal relationships and foresaw current events back in 1971.  The parabolic acceleration of decline was inevitable regardless of who was groomed to sit in power in the 21st century. Is it simply a matter of lazy thinkers preferring to blame the sitting president, especially given the [convenient] color of his skin?  Don't lose sight of historical context.  Today's psychopaths may be switching to overdrive, but current events have been a long time coming!

Maybe they're downvoting the post because it falls back into the simplistic, misleading left-right paradigm. In that case, I join them.

Wed, 07/16/2014 - 23:06 | 4965673 BlindMonkey
BlindMonkey's picture

I see no problem with blaming the messenger.  At all.  This was a role that Barry asked for and he got it.  Fuck him.

 

https://www.youtube.com/watch?v=-qR0Uke2XNI

Wed, 07/16/2014 - 23:33 | 4965774 economics9698
economics9698's picture

Obama is the tribe sticking a black ass in goyims face one last time.

Wed, 07/16/2014 - 23:42 | 4965809 MeMadMax
MeMadMax's picture

Hey man, don't look at me...

 

I didn't vote for the village idiot... Other village idiots did...

Wed, 07/16/2014 - 23:49 | 4965835 economics9698
economics9698's picture

Voting is a formality.

Thu, 07/17/2014 - 00:15 | 4965959 eatthebanksters
eatthebanksters's picture

Obummer wants oil prices through the roof to promote his 'lectric' cars...if he can blame Putin then its all good for him.  We're now worried about our coal importing ability even while we have shut sown the coal industry at home.

I personally think everything Obama is doing is made to look like he's fighting a bad guy but what he is really doing is dismantling this country and its middle class...the big step toward socialism and communism.  Yes I said it.

This guy realy scares me.  The economy flounders, Main Street is starving.  Our economic policy may have reinflated asset values, but at what cost?  While the majority can't find jobs, those with any assets have benefited substantially from inflation widening the wealth gap (perfect fr fomenting division when the middle class is destroyed).  Meanwhile our president takes 30+ days a year of vacation in multimillion dollar beach front homes in Hawaii and Martha's Vineyard...is this guy completely out of touch or what?

Thu, 07/17/2014 - 00:40 | 4966041 CheapBastard
CheapBastard's picture

personally, i'm looking forward to palladium at $2,000 and plt at $3,500.

Thu, 07/17/2014 - 04:54 | 4966385 Bingo Hammer
Bingo Hammer's picture

"hmmm, we thought we's done had it bad in them days, we couldn't wait to get rid of Bush jnr who it turned out wasn't as much of a village idiot and we's thought, and then the false messiah Hopey One Apoke-Me got in and sucked hard so's things got worse, but nothing, NOTHING compared with when the pre-ordained, "carpet muncha", psycho supreme Killary "what difference does it make" Hinton..... became President"

......something wicked this way comes

Thu, 07/17/2014 - 00:23 | 4965989 IllusionOfChoice
IllusionOfChoice's picture

Lore, I'm with you. I read the comment and do not get the downvotes. I hope we can agree on a number of things around here, to wit:

1. There is clearly too much influence of money in our political system.

2. The actual differences between the prescribed acceptable-to-vote-for parties in the US is rather small when it comes to real action (see point 1 for the reason).

3. We've been diving down this rabbit hole for some time and it should be of more concern to the general populace.

I am not trying to let our excellently duplicitous Mr. President off the hook for anything by mentioning the above! However, if we don't approach this as a crisis of self government, the situation is never going to change.

I don't think what is wrong with this country is a right-wing versus left-wing debate - it's a privileged kleptocrat versus the rest of us debate, and regardless of anything else we may not agree on, that is the one thing we all need to act on.

Thanks for reading and considering.

Thu, 07/17/2014 - 00:48 | 4966061 Lore
Lore's picture

Good post. "Privileged kleptocrat" is being exceedingly polite. We have some very dangerous individuals and groups jockeying for control, some more human than others.

Thu, 07/17/2014 - 02:08 | 4966130 zhandax
zhandax's picture

While I completely agree with you guys, I still understand (but didn't add to) the downvotes.  His statement was framed in a fashion that seemed to imply that things had improved since then.  We are now six years into the worst depression since at least the 30's and the most optimistic outcome appears to be complete financial collapse (what too-much-cognac was railing about being interrupted).  This is not by accident.  Ogolfer's task is to engineer a bogeyman for the inevitable.  He wanted the job, he can take the heat.

Thu, 07/17/2014 - 08:04 | 4966615 oudinot
oudinot's picture

I downvoted you because you and your intellectual brethen continue to blame Obama.  Yes, yes, he is a 'bad president' but so was his predecessor and so was Clinton.

Don't you guys realize the presidents since Kennedy are but  puppets?  Their policy mistakes are not their creation, they are but the 'errand boys'.

The real culprits are behind the curtain, pulling the strings, destroying the economy, the Constitution .  Let's focus on those malignant  forces rather than pointing at the 'dumb puppets'.

 

Thu, 07/17/2014 - 21:10 | 4967375 IRC162
IRC162's picture

-1

 

If a drug Cartel member shoots up a street  in Matamoros because he was instructed to do so,  is he a messenger or a murderer? 

 

If I rob a bank because my creditors are demanding more cash than I have available,  am I simply excused as a messenger? 

 

Fuck no. 

 

This man breeds hate and contempt with every breath he takes.  No excuses. 

 

Thu, 07/17/2014 - 01:47 | 4966161 fencejumper
fencejumper's picture

Very, very good, IllusionofChoice - I wish I could give you more than one up-vote!

Thu, 07/17/2014 - 01:05 | 4966089 RichardParker
RichardParker's picture

It goes back way further than '71...  Just Sayin'

Thu, 07/17/2014 - 04:48 | 4966382 Terp
Terp's picture

Oh it does, but "None dare call it conspiracy" was still a good read, and one of the first summing it up like that.

 

At least I think that is the book he was referring to.

Thu, 07/17/2014 - 00:12 | 4965943 thestarl
thestarl's picture

He's bad but Dubya was worse

Thu, 07/17/2014 - 03:12 | 4966283 Tall Tom
Tall Tom's picture

Obama has just continued the policies of his predecessor. It is a continuation on a spectrum. Obama is worse then Dubya beause he added on more tyranny. (along with a tranny First "Lady".

 

But the next one will be even more abysmal...no matter whom that may be.

 

If you are seeking a political solution then all that you will end up with is just more bitter disappointment.

Thu, 07/17/2014 - 05:28 | 4966409 old naughty
old naughty's picture

"...no matter whom that may be."

They know whom. All according to agenda. Woar led by the dragon lady.

Wed, 07/16/2014 - 22:54 | 4965583 willwork4food
willwork4food's picture

Hey Troll, I logged in just to tell you that Cognac had a point and was right about the timeline of the crash. I remember Bush just telling everyone we need to help the American Banking System and not get in the way of the majority votes (all blackmailed) of the respectable members of congress. Look it up. This isn't about Democrate/Repulican antics. They have planned this disaster with the best bought out minds money can buy. (Anybody that works for the US Dept in DC).

Wake up and smell the coffee.

Wed, 07/16/2014 - 22:55 | 4965645 willwork4food
willwork4food's picture

and FUCK the dude that trashed me. Prove me wrong.

Wed, 07/16/2014 - 23:19 | 4965719 willwork4food
willwork4food's picture

O Brutus, e tu?

Wed, 07/16/2014 - 23:58 | 4965878 Escrava Isaura
Escrava Isaura's picture

That sounds Portuguese

Thu, 07/17/2014 - 03:14 | 4966287 Tall Tom
Tall Tom's picture

Latin.

Thu, 07/17/2014 - 06:58 | 4966491 Escrava Isaura
Escrava Isaura's picture

It's Portuguese, Tom... And maybe Latin, too.

Portuguese descend from Latin, anyway.           

And I am not saying it, Hedgers. It is a FACT!

Wed, 07/16/2014 - 23:23 | 4965732 TheMeatTrapper
TheMeatTrapper's picture

Anybody who thinks that the color of Obama's skin is the reason that people hate him is a simple minded fool. 

The racism card has been played so many times that it has lost its value. Anyone who still plays it is simply broadcasting the fact that they are intellectually bankrupt. 

"They hate me because I'm half white"! lol - you gotta fucking laugh at that shit. 

Wed, 07/16/2014 - 23:33 | 4965773 WeNeedaRealGovt
WeNeedaRealGovt's picture

Hey Troll Magnate, go fuck yourself with a rubber hose. I am never surprised to hear another tool GOP voter deny the facts as the rest of the country knows them, we were so fucked in 2008 we voted for a black guy just to get the GOP NEOs out of the way. You assholes still can't accept you had your head stuck so far up Fox News ass you didn't have a clue.

Wed, 07/16/2014 - 23:49 | 4965832 Troll Magnet
Troll Magnet's picture

You dumbfuck!
I have never voted GOP my entire life, you fucking retard!
That said...
Who repealed the Glass-Steagall, asshole?
GTFO with that red/blue bullshit!
Fucking moron...

Thu, 07/17/2014 - 03:21 | 4966296 Tall Tom
Tall Tom's picture

WeNeedARealGovt is just a troll. For the most part he is not even worthy of any response including a Downarrow. (The Downarrow lets him know that someone has read his post and considered it at least.)

 

Do not feed the Trolls.

 

LEFT...LEFT...LEFT, RIGHT, LEFT.

LEFT...LEFT...LEFT, RIGHT, LEFT.

LEFT...LEFT...LEFT, RIGHT, LEFT.

 

That is the march that they are seeking to distract you with. Do not buy into it.

 

Ignore him.

Thu, 07/17/2014 - 07:04 | 4966497 Bill of Rights
Bill of Rights's picture

Another fuck'en retard claiming that we were fucked in 2008 when the facts are it was all a set up so the Progressive Dolts such as you can gain more control over us.

 

Ross Perot warned you Dumb fucks of this mess and here it is!

Thu, 07/17/2014 - 06:40 | 4966471 Pigface
Pigface's picture

What part of CognacAndMencken's statement is incorrect, in your opinion?  I can't stand the present President of the US but I won't pretend that all was well with the country when he first took the reigns.  

Thu, 07/17/2014 - 08:12 | 4966638 sleigher
sleigher's picture

We were fucked in 2008?  We were fucked in 1971.  Or 1933, or 1860's even...

Wed, 07/16/2014 - 21:58 | 4965406 nmewn
nmewn's picture

Yes.

So clearly the thing to do was DOUBLE the nations debt, pay off political cronies with fiat, fling open the borders, (play a round of golf), run a few guns to Mexico, drone nations it is not at war with indiscrimantely, doodle around with redlines in the sand, (play a round of golf) open everyones emails and listen in on their conversations (play a round of golf) berate those with corporate jets as you fly off to Maaahhhthas Veeenyard & Hawaii while unleashing your bureaucracy on "carbon", leave a "good friend" to fend for himself in Benghazi (play two rounds of golf), destroy the rule of law, race bait...

...and now, start a trade war with Russia.

To be followed by three rounds of golf no doubt.

Wed, 07/16/2014 - 23:08 | 4965684 BlindMonkey
BlindMonkey's picture

He will go on vacation immediately after the declaration of war.

 

This might be sooner rather than later.  The Russians are firing back at this point.  I would not want to be on the other end of that Grad attack.

 

http://vineyardsaker.blogspot.com/2014/07/russian-forces-fire-across-bor...

Thu, 07/17/2014 - 00:19 | 4965834 gallistic
gallistic's picture

While we announce "new sanctions" for Russia, look on approvingly at the Palestinian genocide, destroy entire nations with conventional and proxy forces, etc., the nations of the world are moving forward in many areas, totally bypassing the "exceptional" and "indispensable" "world leader".

The majority of the world is not on board with any of these "exceptional" debacles. Multipolarity is not just a convenient buzzword. Putin and many other world leaders believe it, recognize its urgency, and are actively working to develop it.

Deliberately under-reported, or not reported at all are a great many things that are happening very fast and are flying under the radar for most people in the US.

Here is a hugely under-reported fact: The BRICS Summit in Brazil is also a UNASUR-BRICS summit. The Presidents of more than 20 countries are in attendance and personally heading up their delegations. There are a lot of political, military, and economic deals and agreements being made. In addition, the BRIC bank concept is being directly presented to the UNASUR nations for their consideration as an alternative to the IMF.

Of course, we are all aware of the initial agreements for the nascent "BRIC Bank", but many people are not aware that UNASUR has been implementing a similar project with the more modest and regional "Bank of the South". These two institutions could conceivably merge, expanding their base and scope.

Also flying under the radar was Putin's proposal of an "energy reserve" for BRIC nations. If implemented, this could arguably be as important as the development of a BRIC bank, since it would mean close coordination on energy strategy between the BRICS. The implications are enormous, and I will not even try to flesh them out here.

Putin met with Merkel in Brazil, (before the BRICS-UNASUR summit) and undoubtedly discussed many issues face to face. The fact that they conduct frequent talks face to face says a lot to me. This could turn into a new form of Ostpolitik and change US-German relations; time will tell.

Putin traveled to Nicaragua to entertain a pitch by President Ortega on taking a stake in the recently approved Nicaragua Canal which a Chinese consortium is going to start work on. If this massive engineering feat is completed as envisioned (big if!) it will dwarf the Panama canal in capacity and reduce that canal to obsolescence. The Nicaragua canal is a potential game changer, and the Chinese would have the concession for the first 50 years. See here for more (in Spanish and Mandarin). Work is scheduled to begin this December. Putin and Ortega discussed and reached an  agreement on the establishment of GLONASS stations in Nicaragua, and also closed a commercial deal for agricultural machinery among other things.

Putin met with Kirchner of Argentina, and reciprocated Kirchner's support for Russia's re-incorporation of Crimea by supporting Argentina's claim over the Falklands (Malvinas) from the UK. Putin said he “highly valued” Argentina’s stance on international issues, and noted that the growth in trade between the countries had increased by double digits in the past year alone. They also reached accords to build Nuclear power plants, and possibly exploit one of the largest shale oil and gas fields in the Americas (Vaca Muerta in Patagonia). They also discussed the establishment of GLONASS stations in Argentina. Argentina is considered by many to be a prime candidate for future inclusion into the BRICS.

In Cuba, Putin met with Raul and Fidel Castro. He forgave and cancelled Cuba's 32 to 36 Billion dollar debt (reports vary), and announced the re-activation of a large Russian military base and SIGINT station in Cuba (Lourdes). Among other things, Putin spoke publicly of a revival of military, technological, and economic cooperation with Cuba but gave no specifics.

I have not even talked about Chinese President Xi Jinping or any other leader of importance and their actions.

The point is that BRICS and UNASUR Leaders are all having substantive discussions, hammering out agreements, breaking new ground, and implementing an alternate model. The nations of the world are walking with a steady pace towards multipolarity, while the "exceptional" nation, excluded and deluded, is screaming at the wind somewhere out on the frayed edge of irrelevance.

The Fortaleza Declaration and Action Plan of this BRICS-UNASUR Summit is a truly remarkable document if you know what you are reading and are able to read between the lines of polite diplomatic speech.

 

Wed, 07/16/2014 - 23:56 | 4965866 Troll Magnet
Troll Magnet's picture

Don't forget his executive orders to backstop potential losses with taxpayer money if/when the derivatives market crashes ANNNNND giving himself the authority to assassinate Americans. The guy is a big time motherfucking thief and a sociopathic murderer. As well as an avid golfer.

Thu, 07/17/2014 - 00:32 | 4966024 palmereldritch
palmereldritch's picture

His clubbing to death of Habeas Corpus (NDAA) and its subsequent burial in a sand trap counts as an eagle I think

....and the gallery politely applauded

Wed, 07/16/2014 - 23:21 | 4965728 willwork4food
willwork4food's picture

And don't forget the early days of Bush 2..vacationing @ his home in Texas for months prior to 911. Gave everyone the creeps back then...until we FORGOT ABOUT IT.

Wed, 07/16/2014 - 23:34 | 4965786 WeNeedaRealGovt
WeNeedaRealGovt's picture

Hey nmewn, I see you caught Megan Kelly tonight.  Thanks for the recap.  Quite a dish , huh?

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