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"US Sanctions On Russia May Sink The Dollar," Ron Paul Fears "Grave Mistake"

Tyler Durden's picture




 

Submitted by Ron Paul via The Ron Paul Institute,

The US government's decision to apply more sanctions on Russia is a grave mistake and will only escalate an already tense situation, ultimately harming the US economy itself. While the effect of sanctions on the dollar may not be appreciated in the short term, in the long run these sanctions are just another step toward the dollar's eventual demise as the world's reserve currency.
 
Not only is the US sanctioning Russian banks and companies, but it also is trying to strong-arm European banks into enacting harsh sanctions against Russia as well. Given the amount of business that European banks do with Russia, European sanctions could hurt Europe at least as much as Russia. At the same time the US expects cooperation from European banks, it is also prosecuting those same banks and fining them billions of dollars for violating existing US sanctions. It is not difficult to imagine that European banks will increasingly become fed up with having to act as the US government's unpaid policemen, while having to pay billions of dollars in fines every time they engage in business that Washington doesn't like.
 
European banks are already cutting ties with American citizens and businesses due to the stringent compliance required by recently-passed laws such as FATCA (Foreign Account Tax Compliance Act). In the IRS's quest to suck in as much tax dollars as possible from around the world, the agency has made Americans into the pariahs of the international financial system. As the burdens the US government places on European banks grow heavier, it should be expected that more and more European banks will reduce their exposure to the United States and to the dollar, eventually leaving the US isolated. Attempting to isolate Russia, the US actually isolates itself.
 
Another effect of sanctions is that Russia will grow closer to its BRICS (Brazil/Russia/India/China/South Africa) allies. These countries count over 40 percent of the world's population, have a combined economic output almost equal to the US and EU, and have significant natural resources at their disposal. Russia is one of the world's largest oil producers and supplies Europe with a large percent of its natural gas. Brazil has the second-largest industrial sector in the Americas and is the world's largest exporter of ethanol. China is rich in mineral resources and is the world's largest food producer. Already Russia and China are signing agreements to conduct their bilateral trade with their own national currencies rather than with the dollar, a trend which, if it spreads, will continue to erode the dollar's position in international trade. Perhaps more importantly, China, Russia, and South Africa together produce nearly 40 percent of the world's gold, which could play a role if the BRICS countries decide to establish a gold-backed currency to challenge the dollar.
 
US policymakers fail to realize that the United States is not the global hegemon it was after World War II. They fail to understand that their overbearing actions toward other countries, even those considered friends, have severely eroded any good will that might previously have existed. And they fail to appreciate that more than 70 years of devaluing the dollar has put the rest of the world on edge. There is a reason the euro was created, a reason that China is moving to internationalize its currency, and a reason that other countries around the world seek to negotiate monetary and trade compacts. The rest of the world is tired of subsidizing the United States government's enormous debts, and tired of producing and exporting trillions of dollars of goods to the US, only to receive increasingly worthless dollars in return.
 
The US government has always relied on the cooperation of other countries to maintain the dollar's preeminent position. But international patience is wearing thin, especially as the carrot-and-stick approach of recent decades has become all stick and no carrot. If President Obama and his successors continue with their heavy-handed approach of levying sanctions against every country that does something US policymakers don’t like, it will only lead to more countries shunning the dollar and accelerating the dollar's slide into irrelevance.

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Mon, 08/11/2014 - 20:14 | 5079640 Deathrips
Deathrips's picture

Ron,

 

No Shit, they want to blame this on Russia!!

 

Has nothing to do with Quadrillions of counterfeit instruments, fractional reserve lending and garbage for collateral....

 

on and on and on..... /faceplant/

 

RIPS

Mon, 08/11/2014 - 20:20 | 5079665 knukles
knukles's picture

D-u-fing-h
Cut people off from your currency, depreciate it or make it difficult to use and whaddya think's gonna happen?
Listen.... There are enough smart as in decently intelligent to figure this shit out.
Either abysmal ignorance or an evil plan.
I'll take the latter.
Within the Prism of Cloward Piven, it all makes sense.
And is going along swimmingly.

Mon, 08/11/2014 - 20:44 | 5079785 max2205
max2205's picture

Ron Paul is not worth listening to.

Blah blah blah.

All show no go.

All hat no cow

Mon, 08/11/2014 - 20:47 | 5079801 Quus Ant
Quus Ant's picture

What are you expecting him to do?

Mon, 08/11/2014 - 20:57 | 5079848 Anusocracy
Anusocracy's picture

Yeah, 434 to 1 and a mentally retarded populace, what do you expect?

Miracles?

Mon, 08/11/2014 - 21:37 | 5080045 TahoeBilly2012
TahoeBilly2012's picture

Hey man, it ain't your Country and it ain't your world. There are PTB that have a NWO to build, shutup and suck it up punk. 

Mon, 08/11/2014 - 22:37 | 5080304 Anusocracy
Anusocracy's picture

Mr. Punk to you.

I demand respect.

Tue, 08/12/2014 - 06:44 | 5080932 Truthseeker2
Mon, 08/11/2014 - 23:52 | 5080504 Ariadne
Ariadne's picture

Let the truth be known, properly equip the populace to clean up the mess and stand back.

Mon, 08/11/2014 - 21:27 | 5080003 ClassicCommodity
ClassicCommodity's picture

Agree with Max. Same old same old. Blah Blah

Tue, 08/12/2014 - 00:06 | 5080531 TheMeatTrapper
TheMeatTrapper's picture

Are you fucking stupid? The same old same old spews forth from CNN, MSNBC. FoxNews and the White Hut. Ron Paul and his views are in stark contrast to every other outlet. 

Why don't you face reality and man up for a change?

Tue, 08/12/2014 - 02:03 | 5080705 StychoKiller
StychoKiller's picture

Meh, my only quibble with the article:  I don't believe that China is one of the world's largest food producers.

Mon, 08/11/2014 - 21:19 | 5079953 Hugh G Rection
Hugh G Rection's picture

Don't be so short sighted ZH.  This shit show with Russia is only foreplay before the next great bankster harvest.

WW3 is uber bullish for the MIC and the money lenders. Dollar, Amero, or RFID chip up the ass will be fine once the mushrooms clouds settle.

More wars based on lies

Mon, 08/11/2014 - 23:02 | 5080106 TeethVillage88s
TeethVillage88s's picture

Yeah, US Bankers actually DISPROVE the Black Swan Theory.

Not so much that they have avoided complete Collapse and Chaos...

But we can make a laundry list of Fraud, Corruption, and things that Ron Paul has been pointing out. It is not the one Black Swan. And I think the Narrative of what happened in the 2008 Financial Crisis (Global) is false and a cover-up. We know this since World Leaders and Investors must have been close to thinking War With the USA. But US History doesn't have anything about this.

The Strength of the USA, It's Economy, and it Fraudulent Bankster has been great. But there must be a "Law of Exponential Shit Thinking" that says the US System is coming down because of "Poor Stewardship" and False Accounting, False Financial Ratings, and Fraudulent Financial & Corporate Structures.

Mon, 08/11/2014 - 20:19 | 5079674 Mr Pink
Mr Pink's picture

I've said it before and I'll say it again...

These scumbags aren't stupid, they're criminals

Mon, 08/11/2014 - 23:38 | 5080479 Anusocracy
Anusocracy's picture

Yes, criminals that make laws.

Mon, 08/11/2014 - 20:47 | 5079763 Escrava Isaura
Escrava Isaura's picture

Ron Paul: "US Sanctions On Russia May Sink The Dollar," Ron Paul Fears "Grave Mistake"

Mr. Paul,

1) The dollar is sinking because US lifestyle is unsustainable. War/Sanctions are scapegoats

2) And military expenditures are great for GDP and jobs

Mon, 08/11/2014 - 21:58 | 5080151 Omen IV
Omen IV's picture

The entire $17 Trillion debt can be traced to military adventure since 1951- nothing to do with lifestyle

You dumb fuck!

Wed, 08/13/2014 - 10:49 | 5087167 forensicator
forensicator's picture

more than $17 trillion spent on the War on Poverty you mean. http://rsc.woodall.house.gov/uploadedfiles/pb_povertyandgovernment_08281...

Mon, 08/11/2014 - 21:58 | 5080152 Omen IV
Omen IV's picture

The entire $17 Trillion debt can be traced to military adventure since 1951- nothing to do with lifestyle

You dumb fuck!

Tue, 08/12/2014 - 07:22 | 5080978 Escrava Isaura
Escrava Isaura's picture

Omen IV,

There's a say that goes like this:

Before speaking... Think

Before writing... Research

Otherwise you sound really stupid..... Let me show you:

US Private Debt (Not including financials and government) = $42 trillion dollars / 316 million Americans = $133 thousand each man, woman, and child.

Check second line:

http://www.federalreserve.gov/releases/z1/Current/accessible/l1.htm

Mon, 08/11/2014 - 22:13 | 5080215 TeethVillage88s
TeethVillage88s's picture

You have some interesting comments.

Let me try to add some examples that might be pertinent:

A) Downward Sticky Wages, No one wants to take lower wages, but sometimes our skills are not current, the Peter Principal Applies, and if the Industry and Companies are not growing in Productivity then wages should shrink, of course Executive wages only shrink after the position is vacated but the incumbent can see the writing on the wall by that time
B) Avg Household & Young Adult wants to maintain high expectations, high salaries, and high expenses if they are from the middle class even though the Labor Force is shrinking, without retraining, re-education, getting additional skills, downsizing housing, downsizing autos, cutting food expenses, and leaving US Health Care System would be a good idea except that there are few jobs overseas for youngish US People (Retired or able to invest is better)
C) Europe & Latin America & Asia have Public Transportation that is affordable and many citizens rely on public transportation everyday, in the USA you have to be in the right city to be able to use Public Transportation to work, although buses seem the best type, uh, well maybe US Citizens just have to accept living without a car to shift the paradigm

Tue, 08/12/2014 - 07:24 | 5080989 Escrava Isaura
Escrava Isaura's picture

TeethVillage88s,

It's not complicated:

1) Peak global reserve currency (dollar). American lifestyle it's about to collapse

2) The Long Descent: The End of the Industrial Age – By Greer

3) We live in a finite planet

4) Demographics ‘Population’ still growing exponentially

Mon, 08/11/2014 - 23:02 | 5080390 globalvagabond
globalvagabond's picture

Exxon drills ahead with plenty of now-banned pipe and Norway sells more offshore drilling rigs.  Arranged pre-sanctions of course.  Get your facts straight.  These sanctions are toothless by design.

Mon, 08/11/2014 - 20:19 | 5079671 surf0766
surf0766's picture

His intention is to crush the dollar. Top down, bottom up, inside out.

Mon, 08/11/2014 - 20:45 | 5079764 Quus Ant
Quus Ant's picture

The dollar IS crushed.  His(Obama's) intention is to pass the buck. 

 

Mon, 08/11/2014 - 20:20 | 5079675 NoDebt
NoDebt's picture

Empires don't collapse for a single reason.  They collapse for a lot of little ones.  Add this one to the heap.

Someday you'll hear a cracking sound (only if you listen very closely) and you'll know the camel's back just broke.

 

Tue, 08/12/2014 - 02:14 | 5080716 Implied Violins
Implied Violins's picture

The camel's been dead for some time. They just stuck a horse under it.

Now, the horse is about to die. Once it does, we better beat that fucking thing until all the maggots are dead. If even one fly escapes, the disease goes with it...

Mon, 08/11/2014 - 20:21 | 5079678 F0ster
F0ster's picture

DC knows the Dollar is a gnats fart away from collapsing and Putin is the fall guy obviously. This is a mutually agreed upon 'backroom' arrangment I believe.

Mon, 08/11/2014 - 20:22 | 5079685 db51
db51's picture

Ron Paul.   Dear God.   Please get all of these political creeps out of our face.   Ron Paul Rand Paul hillary Clitoon, Romney, McCain Boner,  they're all the same.   Fucking sick of looking at their fucking faces and listening to their incessant drivel.   Fuck em all.

Mon, 08/11/2014 - 20:33 | 5079735 Grande Tetons
Grande Tetons's picture

No down arrow from me. 

I agree with your sentiment for the most part. However, RP does seem to be a decent man behind the surface. He is not perfect...but he is decent. 

Mon, 08/11/2014 - 20:46 | 5079796 fonzannoon
fonzannoon's picture

down arrow from me. There is a stark difference between RP and the rest. It ain't RP's fault not enough people embraced him to give him a shot. We will never know. But you can't just lump him in there.

Mon, 08/11/2014 - 22:19 | 5080234 TeethVillage88s
TeethVillage88s's picture

I agree. There are few Congressmen that I would listen to. Ron Paul is one. You may disagree with me on all the rest that I like. But I have no knowledge that Ron Paul is less that Sterling.

Ron Paul is the Answer to Lobbying and Financial Interest.

Ron Paul probably would have set up a Reformist Government.

Mon, 08/11/2014 - 22:32 | 5080278 Slave
Slave's picture

Ron Paul, unforunately, is just a wet dream. They would never (and did not) allow him to become President. If somehow it happened, he'd be setup with a neocon VP and be assassinated.

Look how Fox News treated him. It was lost from the beginning.

https://www.youtube.com/watch?v=54WFoV-veCM

Mon, 08/11/2014 - 20:47 | 5079805 denverdolomte
denverdolomte's picture

I did downvote you. 

 

In this bizare world, yes agreed, get the political voices out of our faces just meaningless dribble. My counter question would be please list me anyone who has openly opposed and made numerous attempts to warn of the coming economic disaster since the late 80's? (in the political realm)

 

Having actually met this man at a cafe in San Diego, I can say I've never met such an honesty homely person of political nature. No security, shook hands and spoke with anyone that approached him, had a wonderful demeanor about him, enjoyed his time with his wife and grandchildren. Yes some of his ideas are off the wall and at times archaic, but we have not and probably will not see the likes of his honesty in the public realm again. 

Hate him if you must but unless your going to go about changing the world yourself, understand that your comparison of linking Ron Paul to McCain is possibly one of the most uneducated assumptions I've ever heard. Maybe pick up some books and read into the reality of geopolitical happenings and their inception some hundreds of years ago and their outcomes. 

Mon, 08/11/2014 - 20:58 | 5079845 Silky Johnson
Silky Johnson's picture

You lumped a man that often makes staements of truth with a bunch of fucking crooks that have never spoken a word of truth in their whole lives. And it's true Rand Paul is a little fuckin puke that fell far from the tree.

Much love for Dr. Paul.

Mon, 08/11/2014 - 21:29 | 5080016 Berspankme
Berspankme's picture

Rand is a politician. Ron never was

Tue, 08/12/2014 - 08:54 | 5081205 sfisher
sfisher's picture

I am a big fan of Ron and Rand.  The question I have is, even if Ron were elected President and Rand were to be his VP and they had all of the Austrian economists on their cabinet, would it really matter at this point?  At this juncture, are the issues insurmountable and this effort would only delay the inevitable collapse (and be blamed on their approach).  Perhaps, the biggest upside of Ron/Rand would be that we would have a chance to collapse without WWIII?

 

Mon, 08/11/2014 - 21:03 | 5079879 Savyindallas
Savyindallas's picture

You are one stupid fuck. Go blow yourself.

Mon, 08/11/2014 - 21:30 | 5079963 Tall Tom
Tall Tom's picture

The technical term for that is autofellate.

 

Now one either has to be a contortionist or lack a spine to do so.

 

The way that Ron Paul was lumped into a bunch of LYING CROOKS is most evidential of CONTORTION.

 

And my bet is that he also LACKS A SPINE as he will not go out to hunt with me.

 

Thus db51 is the perfect candidate for being an autofellator.

 

For db51's convenience here is my address.

 

12223B Woodside Ave., Lakeside, CA, USA.

 

I will not hold my breath waiting.

Mon, 08/11/2014 - 22:47 | 5080342 TeethVillage88s
TeethVillage88s's picture

Tall_Tom; This guy db51 is probably in his Teens or 20s, so he is typical useless eater till he grows up. But you could be a level headed Patriot. You remind me of someone first born and older than me. Maybe a little Reckless.

You and db51 can be Patriots, can support the US Constitution, and can speak out in a very effective way that I will not... For db51 it will take 10 years for him to grow into this. You are older and more experienced. You are dangerous. However, you seem to be Suicidal.

Don't bring shit on yourself. Expose shit. Publish. Watch activism and maybe publish that stuff. Watchdog.

Look no one listens to me. So you won't. No BigD. But instead of Catching Shrapnel, maybe you want to pass info and expose corruption?

Tue, 08/12/2014 - 05:18 | 5080880 Tall Tom
Tall Tom's picture

Yeah...Perhaps I am a bit suicidal.

 

I am at the point where there is no joy in watching the breakdown. I just do not care to live under the jackboot of an oligarchy.

 

I have read other posts by db51 and I believe that he has the makings of a Patriot.

 

But he was far out of line by doing what he did. That just was not right.

 

I believe that Ron Paul is a good and decent man. He was not a politician by any means. But he loves his country and her people. He is a moralist. I happen to agree with many of his attitudes...not all of them...but most.

 

But he is not a liar and I know that he means what he says.

 

Perhaps you are right that db51 is a youngster. Perhaps he will mature and become wiser. (Hell I have not become wise, even at my age of 55 Years.)

 

But what I hope that you understand is that my "Fight Club" persona is just that.

 

Hell I am just as "dangerous" as anybody else. Some of the Military posting here are probably more dangerous than me. They just do not teach. (They need to teach...)

 

As for anyone coming over I would like to take them hunting...or shooting. (I am not going to shoot them...)

 

But, if needed, I will lay down my life for others. I am convicted in my beliefs about Liberty and Freedom. I do not fear death but only the process of dying.

 

Liberty and Freedom is our only hope. I can see turmoil and revolution ahead. I am hoping for the best but I do not see the manifestation thereof. Thus I also PRUDENTLY prepare for the worst. I am not as "reckless" as I let on to be.

 

I did read you and I have paid you due attention. Believe it or not most contribute something of great value here. (I get more from the comments than I do the articles.)

 

And you can bet that I will continue to expose truth and uncover deceit and lies because that is what matters.

Mon, 08/11/2014 - 22:28 | 5080258 TeethVillage88s
TeethVillage88s's picture

What is the Projected Life Span of db51?????!!!!!

Inquiring Minds want to Know.

Tue, 08/12/2014 - 00:09 | 5080534 TheMeatTrapper
TheMeatTrapper's picture

@db51:

Why don't you shut the fuck up, step up to the plate and show us why Ron Paul is wrong and you are so much better? 

Put up or shut up. It's really pretty simple. 

Of course, being the little bitch ass pussy you are, you'll have nothing substantive to say, will you?

Mon, 08/11/2014 - 20:23 | 5079686 HippieHaulers
HippieHaulers's picture

It seems to me this is all part of the plan. Destroy the dollar to bring in Amero and end our sovereignty. US citizens have this pesky illusion of liberty and these pesky guns. The sooner we can get over that the sooner we can have our one world government utopia.

Mon, 08/11/2014 - 20:23 | 5079687 HippieHaulers
HippieHaulers's picture

It seems to me this is all part of the plan. Destroy the dollar to bring in Amero and end our sovereignty. US citizens have this pesky illusion of liberty and these pesky guns. The sooner we can get over that the sooner we can have our one world government utopia.

Mon, 08/11/2014 - 20:33 | 5079731 PeeramidIdeologies
PeeramidIdeologies's picture

That NAFTA business is a shysty little piece of work that was drawn up years ago. Really makes you wonder.

Tue, 08/12/2014 - 03:22 | 5080829 Ghordius
Ghordius's picture

this is a view that confuses causes and effects. mixed with a few soundbites of truthiness

btw, did you note? Ron Paul writes "There is a reason the euro was created..."

Tue, 08/12/2014 - 07:29 | 5081020 PeeramidIdeologies
PeeramidIdeologies's picture

Are you insinuating that it was not created in anticipation of a loss in sovereignty or perhaps a currency crisis? I haven't reviewed the details of the agreement in years but I recall it having a definite "lean" in certain "directions" that as a north non-American were troubling.

I have not seen the exact writing, but have heard tell of it. It is not difficult to recognize the reasoning behind the push to put the "world" under one roof. There are plenty of expert opinions as to why this movement is beneficial to everyone, despite much evidence to the contrary. Attempting to channel commerce through specific check points is great for the gate keepers, everyone else, not so much.

Tue, 08/12/2014 - 07:48 | 5081054 Ghordius
Ghordius's picture

insinuating? Hippiehaulers was talking about US "loss of sovereignty". You are talking about the EUR, aren't you? Further, he is talking about "a plan", of the kind of "master plan", which is the view of those who think the whole world is steered by the same hidden group. And you are talking about "pushing the world under the roof", (with "world"?), which is again one of those US "ideas" which make very little sense to foreigners, both as workable concept and as reasonable assumption, usually used to moan against the UN or whatever "scares the little man on the street"

yes, the EUR was created in anticipation of eventual currency wars. which are here

yes, the EU was created in anticipation of eventual trade wars. which are here

no, both were not created in anticipation of anything from the US - otherwise they would have had a different story. in fact, they were created in anticipation of the US not learning anything and for sure not changing anything in it's stance towards the world. which is the current situation, complete with Freedom Fries in the US Congress Cafeteria

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