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Collapse Of The Western Financial System Looms As A "Strategic" Russian Default Is Possible

Tyler Durden's picture




 

Authored by Pepe Escobar, originally posted Op-Ed at RT.com,

History may eventually decide the ‘New World Order’ started on September 28, when Russian President Vladimir Putin and US President Barack Obama had a 90-minute face off at the UN in New York.

Irrespective of spin – “productive” according to the White House, “tense” according to a source close to the Kremlin – facts on the ground accumulated almost immediately.

Putin did press Obama for the US to join Russia in a real grand coalition bent on smashing ISIS/ISIL/Daesh. The Obama administration, once again, relented. I detailed here what happened next: an earth-shattering game-changer in the ‘New Great Game’ in Eurasia, straight out of the Caspian Sea, that caught the acronym fest of US intelligence – not to mention the Pentagon - completely off-guard.

So this was Putin’s first message to Washington, and the Pentagon/NATO combo in particular; your fancy ideas of stationing tactical nuclear weapons or expanding missile defense to Eastern Europe, or even Asia-Pacific, are just a mirage. Our cruise missiles are capable of wreaking real effective havoc; and soon, as this piece argues, there will be more hypersonic, high-precision long-range missiles added to the mix.

Old habits don’t die hard – they remain in a coma forever. The Pentagon’s response to the facts launched from the Caspian Sea was to conduct an airdrop of light weapons to “a select group of vetted leaders and their units,” as in those famously non-existent Syrian “moderate rebels.” The weapons will inevitably be captured by assorted Salafi-jihadi goon outfits in no time.

Then the British government was forced to deny a Murdoch-controlled Sunday Times “report” that British Tornadoes in Syria are now armed with air-to-air missiles to counter potential Russian aerial “attacks.”

And to top it off, the proverbial “military experts” infesting US corporate media started spinning that we are only 30 seconds from World War III.

The Glazyev nuclear plan

A still apoplectic Pentagon will take time to absorb the new military facts on the Syrian ground – and skies. That will add to the utter desperation displayed by the ‘Masters of the Universe’ in the Washington/Wall Street axis – itching to break the China-Russia strategic partnership by all means necessary. Quite a feat when the Pentagon is still fighting World War II, with its weapons, ships and monster aircraft carriers displayed as sitting ducks against Russia’s new batch of missiles.

But then there’s also Putin’s second – silent - message to Washington, which didn’t even have to be delivered in person to Obama. US intel though may have a hint about it, as they closely follow Russian media.

It’s about Sergey Glazyev’s (presidential aide) plan for Russia’s immediate economic future here is a summary of the plan, in Russian. The plan was formally proposed to Russia’s Security Council. Here is a very good summary on how Russia’s Security Council works.

There are at least three absolutely key points in Glazyev’s plan. We may summarize them like this:

  1. If the emerging trend of freezing private assets of Russian legal entities and individuals continues, Russia should consider full or a partial moratorium on the servicing of loans and investment from the countries involved in the freezing.
  2. The amount of foreign currency assets of the Russian Federation located in the jurisdiction of NATO countries accounts to more than $1.2 trillion, including short-term debt of about $800 billion. Their freeze may be partially offset by retaliation against NATO assets in Russia, which amounts to $1.1 trillion, including over $400 billion long-term. So this threat would be neutralized if Russian monetary authorities organized a timely withdrawal of Russian short-term assets in the US and the EU.
  3. Glazyev is adamant that the Russian Central Bank continues to serve the interests of foreign capital – as in the financial powers in London and New York. He contends that the high interest rates practiced by the Russian Central Bank led Russian oligarchs to borrow more cheaply from the West, making the Russian economy dependent, a debt trap which the West used to slowly squeeze Russia. Then the rigged Western oil and ruble collapse increased the pressure as debt service in ruble cost and interest doubled.
Sergei Glazyev, Presidential Advisor for Regional Economic Integration © Ramil Sitdikov

So what Glazyev proposes, essentially, is that Moscow must gain total control of its Central Bank, preventing speculators to move their credit around for non-productive purposes; Moscow should also establish currency controls; and must create a central organization of technological research to replace the loss of Western technology, imitating the US methodology of rolling out from its centralized military research those technologies that can be commercialized for the consumer market.

The fact is Russia has lost access to Western credit and cannot roll over its debt with the creditors. So Russia will have to pay the principle and the interest as it comes due. That is a trillion dollars plus interest. Russia also cannot import anything from the West without paying double for it.  So arguably the country may be now in the very position it will be if Moscow opts for default. Thus, Russia would have nothing to lose by a default - as the damage is already done.

A shock to the system

Essentially, once again, a Russian default on a $1 trillion-plus debt to private Western parties remains a possible scenario discussed at the highest level – assuming Washington will persist in its anti-Russia demonization campaign.

It’s clear the squeeze Russia is feeling has less to do with sanctions than the grip maintained by Western financial powers over the Russian Central Bank. The Russian Central Bank did create a debt trap by maintaining high interest rates in Russia while the West was lending at low interest rates.

Needless to add, such a default, if it ever happened, would collapse the entire Western financial system.

One should never forget the Big Picture; the Syria/Ukraine/sanctions saga runs in parallel to Russia-China and closer BRICS integration shifting the balance of geopolitical power. For the ‘Masters of the Universe’, this is beyond anathema. Enter, for instance, the use of cash settlement through their Wall Street proxies to raise the A shares of China to hysterical highs and then try to crash their entire stock market by a reverse cash settlement rig as in 1987.

China is moving toward their own SWIFT payment system, not to mention a whole new Chinese-led set of international institutions independent of US control. Russia, for its part, recently passed a bill that would allow the seizing of foreign assets if Russian assets in the West are seized. As Glazyev pointed out, investment in Russia by the West are more or less equivalent to investments of Russia in the West.

The ‘Masters of the Universe’ may keep insisting on using financial weapons of mass destruction. Russia, silently and with a few key facts in the Caspian Sea, is letting them know it’s ready for whatever scenario they can come up with.

A less apocalyptic ending may be healthy. So here’s a popular joke in Moscow nowadays, as told by William Engdahl...

Putin is back in the Kremlin after his meeting with Obama in New York. He tells an aide he invited Obama for a game of chess. And then he tells it how it works: “It’s like playing with a pigeon. First it knocks over all the pieces, then it shits on the board and finally struts around like it won.”

 

 

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Mon, 10/19/2015 - 22:20 | 6687979 sysin3
sysin3's picture

That's a very old Reddit joke. Lame.

Mon, 10/19/2015 - 22:47 | 6688044 sysin3
sysin3's picture

So, I get downvotes for mentioning that the article's author brought in a joke that was old and moldy ?

You people really are fucking idiots.

Mon, 10/19/2015 - 22:50 | 6688048 Teh Finn
Teh Finn's picture

You weren't worshipping Putin, hence the thumbdown from the humorless web brigade.

Mon, 10/19/2015 - 22:54 | 6688054 sysin3
sysin3's picture

come back when you can speak English.

Mon, 10/19/2015 - 23:11 | 6688105 Inzidious
Inzidious's picture

Actually I thought he may have had your back there? Sounds like it's past your bedtime...

Tue, 10/20/2015 - 00:23 | 6688212 Deathrips
Deathrips's picture

Heads up SP 100 down 90%

SP 100 down 90% OEX flash crashed 90% ...back to green on the day.

Liquidity problems. PPT to the rescue.

 

RIPS

 

 

 

Tue, 10/20/2015 - 01:40 | 6688365 California Nigh...
California Nightmares's picture

@ sysin3:  

  Yeah, I agree.  Escobar's article needs  deep rewriting.  It doesn't flow. I have to guess what he means in several places as I plow through the text.  Most of Escobar' sentences could benefit from some alteration.

But this is case with many of the articles ar Z.  The writing is sloppy.  

Tue, 10/20/2015 - 03:29 | 6688458 Pliskin
Pliskin's picture

So says Mark Twain.

 

Tue, 10/20/2015 - 03:39 | 6688463 Lore
Lore's picture

Escobar presumes above-average intelligence and knowledge on the part of his audience. It can be difficult for those who grew up in the back forty.

Wed, 10/21/2015 - 01:59 | 6693110 California Nigh...
California Nightmares's picture

@ Lore 

A fine writer (like Gore Vidal) can make  complex matters easy to understand. What make for this ease are myriad little things such as how words are arranged, how punctuation is used, and how words are chosen.  Take a close look at Escobar's use of dashes and semicolons.

Many of us Z participants read much and are also quite busy. We tend to pass over material that we feel consumes our time unnecessarily.  In the case of Escobar's article, it might be a loss for many readers who just move on the next article.

Escobar might have much insight to impart. If so, his grasp of the idiom is not quite up to the task.  

Tue, 10/20/2015 - 06:34 | 6688594 Give up. Realit...
Give up. Reality is not scientific nor even mathematical.'s picture

Holy shit, this is a good article. -Collapse Of The Western Financial System Looms As A "Strategic" Russian Default Is Possible-

www.zerohedge.com/news/2015-10-19/collapse-western-financial-system-loom...

"Needless to add, such a default, if it ever happened, would collapse the entire Western financial system."

I love the image/portrait of the Russian, Sergei Glazyev, looking for all the world like some kind of alien being from an otherworldly ancient past.  Whoever put this report together was an exceptional artist of great merit, because it screams credibility so subtly, and so profoundly.

https://cdn.rt.com/files/2015.10/original/561f8d49c4618899688b4599.jpg

Knowing that Putin is playing this hand for the benefit of his cherished western alliance, indicates to me that the plan is being laid bare for all to see as a pronouncement of seering authenticity.  This is definitely what's coming.  The Russians are going to default, toppling the western financial system, and thus forcing the hand of the Chinese who have been selling US Treasuries to keep their own economy from collapsing into a heap of screaming, flailing, machete-wielding, red-faced, sandal-wearing, pig-tailed revolutionaries.  In China, chaos has always had its very own special quality.

And Obama will say to the Chinese, "Your ally, Vladimir Putin, the Russian bear did this to you, not me."  Ta dum.

In other words, Obama is going to tell the Chinese to go fuck themselves.  And if the Chinese want to jump, then they should jump.  Because as far as the US government is concerned, the Chinese held US treasuries are as worthless as small bags of sand.  The Chinese can use them for ballast in one of their Chinese junks...

This is all very serious shit going on right now.  The Russian kabuki is eloquent, straight-faced and profound.

No poker player ever held such a hand as all this!

Tue, 10/20/2015 - 07:12 | 6688644 Keyser
Keyser's picture

Easy to say for someone whose native language is English... Let's see you write this article, in Russian... 

Tue, 10/20/2015 - 08:15 | 6688782 11b40
11b40's picture

Yo, Mr. California editor. Re-visit your last paragraph, then get back to us about sloppy writing.

Mon, 10/19/2015 - 23:15 | 6688112 TahoeBilly2012
TahoeBilly2012's picture

Beat  it kooks.

Tue, 10/20/2015 - 02:24 | 6688411 Carpenter1
Carpenter1's picture

The only enemies world leaders have are their own people. Behind the scenes, Putin and Obama get along just fine. That video of Medvedev being reassured by Obama about having more leeway after the election proved that once and for all.

 

 

Tue, 10/20/2015 - 06:52 | 6688616 Lea
Lea's picture

"The only enemies world leaders have are their own people. Behind the scenes, Putin and Obama get along just fine."

Yes, yes, we know, "they are all in this together. It's a scam, all Kabuki theater, there is no way out and nothing can ever get better. They are all bought by the Banksters anyway, so drop it. Go back to your porn and get fat, there is nothing else in the world you can do. Cheap solitary sex and food will be your only consolation".

Loser.

Tue, 10/20/2015 - 08:59 | 6688914 Volkodav
Volkodav's picture

Medvedev told later he had no idea what that was about

 

Mon, 10/19/2015 - 23:34 | 6688116 fudge
fudge's picture

http://www.defconwarningsystem.com/phpBB3/viewtopic.php?f=22&t=3675

Collapse Of The Western Financial System Looms As A "Strategic" Russian Default Is Possible

EAM channels 8992.0 kHz and 11175.0 kHz 10/14/2015 into 10/15/2015

Collapse message 1 http://vocaroo.com/i/s1hGyA2GR6HI
Collapse message 2 http://vocaroo.com/i/s1ETZ3l9fp0G
Collapse message 3 http://vocaroo.com/i/s03ZI6ui70LY
Collapse message 4 http://vocaroo.com/i/s01smhgkyNDL

 

Tue, 10/20/2015 - 00:06 | 6688221 OldPhart
OldPhart's picture

What do those calls represent, Naval communications, CIA, what?

Tue, 10/20/2015 - 00:15 | 6688243 fudge
fudge's picture

It's USAF, these channels have been inactive for a number of years, read these links.

http://www.defconwarningsystem.com/phpBB3/viewtopic.php?f=22&t=3675

http://www.defconwarningsystem.com/phpBB3/viewtopic.php?f=22&t=3627

http://www.defconwarningsystem.com/phpBB3/viewtopic.php?f=22&t=3675

I like the word 'collapse' at the end of the transmissions ;|

 

Tue, 10/20/2015 - 01:39 | 6688364 spyware-free
spyware-free's picture

Might Russian jamming equipment be fucking up their normal sat comms? Maybe they had to move to short wave for relaying commands. Just a guess.

Tue, 10/20/2015 - 09:18 | 6688607 Arnold
Arnold's picture

http://cont.ws/post/135220

https://translate.google.com/translate?hl=en&sl=ru&u=http://oko-planet.s...

I'll see if these links work

Russian to english translations of comments  about the same broadcasts.

Systems testing.

Tue, 10/20/2015 - 00:42 | 6688294 ersatz007
ersatz007's picture

Never mind

Tue, 10/20/2015 - 00:14 | 6688242 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

Putin supporters do everything better than everyone else in the world. Just ask them. They will compose paragraph by paragraph a clear and logical ( Russian logic) document as to why they have never been wrong and their forays into war on distant nations soil is uniquely different  than when other human beings do exactly the same thing.

The Russian is not like  the rest of us. He knows everything you ever did in support of your country is wrong. And the things he is compelled to defend in obvious dishonesty are right since his entire life depends on lying he cannot fathom a place where it might be different.

 

Tue, 10/20/2015 - 00:17 | 6688245 fudge
fudge's picture

your cuntry has been stolen by people who intend to do you harm ;)

Tue, 10/20/2015 - 01:46 | 6688371 spyware-free
spyware-free's picture

I don't think even you know what the fuck you're ranting about. You sound like a crazy dude that came in off the street corner yelling about the end of the world to post mindless noise here.

Tue, 10/20/2015 - 06:41 | 6688603 Latina Lover
Latina Lover's picture

Either that, or the typical crazy Ukie politician trash talking.

Tue, 10/20/2015 - 02:58 | 6688439 Tall Tom
Tall Tom's picture

Neocons do everything better than everyone else in the world. Just ask them. They will compose paragraph by paragraph a clear and logical ( e.g.  Obama's and Bush's logic) document as to why they have never been wrong and their forays into war on distant nations soil is uniquely different  than when other human beings do exactly the same thing.

The Neocon is not like the rest of us. He knows everything that you ever did in support of your country, the United States especially, is wrong. And the things he is compelled to defend in obvious dishonesty are right since his entire life depends on lying. The Neocon cannot fathom any place where it might be different.

 

FIFY

Tue, 10/20/2015 - 08:48 | 6688897 Volkodav
Volkodav's picture

you got everything wrong again...

you forget to leave off the Soviet..Soviet was not Russians idea..stop the conflate

"forays into war on distant nations"...that is not Russian history

Russia history was attacks from outside, historical defenses of great sacrifice

you know nothing about this subject

Tue, 10/20/2015 - 02:57 | 6688438 HolyfieldsOtherEar
HolyfieldsOtherEar's picture

The article says that when Putin proposed a joint attack on ISIS, Obama "relented." I think the author meant to say he "refused." "Relented" means that he gave in. The opposite of the intended meaning.

 

Say a prayer for the English language.

Mon, 10/19/2015 - 23:10 | 6688101 Toxicosis
Toxicosis's picture

I think if you had added an 'oldie but a goodie' it might have gone over better.

Mon, 10/19/2015 - 23:15 | 6688110 cigarEngineer
cigarEngineer's picture

this article and your comments will be read by thousands of people, and you're seriously worried about fifteen neckbeards who think Putin is the second coming of their Savior Christ??

Mon, 10/19/2015 - 23:25 | 6688135 DeadFred
DeadFred's picture

Downvotes are automatic for people who worry about downvotes.

Mon, 10/19/2015 - 23:45 | 6688143 Mr Poopra
Mr Poopra's picture

I feel emotionally tied to this place being here a while, but the pro-Russian propaganda lately is absolutely remarkable.

Make no mistake, many of us are outraged at the deep state, shadow government shenanigans...but we still love our country very much.

Here come the red arrows...

 

 

Tue, 10/20/2015 - 00:02 | 6688211 Seer
Seer's picture

This is all so grade-school.  I mean, it's less about talking about the substance of the article than of: "Who do you think looks better, Obama or Putin?"  I could give a fuck.  I could give a fuck about anything other than actual data that gives me a sense of what's really going on out there (so I can brace myself).

I've followed Escobar for many years.  He's been dead-on, perhaps closer to nailing things than just about anyone else.  It's obvious what the West is doing (and has been doing for decades).  We're now seeing the strategic options that Russia has available to it.  While Russia may in fact be able to take down the existing global economic clusterfuck, the global clusterfuck is running head-on to it's own end (anyway).

I don't take Escobar to be "pro-Russian."  If because there are noted "positive" positions for Russia doesn't mean that by mentioning them that one is "pro-Russian."  Again, there seems to be WAY too many people that, rather than engage in dissecting what is written, engage in petty grade-school popularity contest banter.

"but we still love our country very much."

No.  I love my wife.  I love my land.  "country" is an abstract, it is a term that is used to control people's emotions and lives: it's great if your a "leader," and for the "followers," well...

Tue, 10/20/2015 - 00:16 | 6688237 Mr Poopra
Mr Poopra's picture

So you don't love your country, you're too high minded for that you philosopher you.  Perfect, i know at least not to rely on you when shit gets fucking real.

Try explaining to foreign soldiers that they're only fighting for an "abstract" idea when they're going door to door raping and looting in your nice neighborhood.

Tue, 10/20/2015 - 00:27 | 6688267 EverythingEviL
EverythingEviL's picture

You're a simpleton obviously.

Tue, 10/20/2015 - 01:00 | 6688271 Mr Poopra
Mr Poopra's picture

Says the genius whose only input is an ad hominem.

 

No one else is tired of the superfluous "Putin is a genius chess grandmaster and Obama is a fucking dumb nigger backed by the Joos"?  As if he has any input whatsoever in foreign policy that has been likely planned decades, if not longer, in advance.  You think the military allows every dumbfuck who gets elected to meddle in strategic long term goals?  His job is to sell these policies to us, not conceive them.  There are other people you've never seen or heard of doing that.  He's probably lied to constantly under the guise of "plausible deniablity".  He doesn't know what the fuck is going on.  Putin is essentially an autocrat in Russia, it's likely he knows more than any other world leader.

So yes, I love my country and I want her and her people to enjoy liberty and prosperity free from the coercive forces of a small group of powerful men that couldn't give a shit about anything but power and profit.  This is a controversial statement lately on ZH?

 

How utterly depressing.

Tue, 10/20/2015 - 01:11 | 6688338 Alvin Fernald
Alvin Fernald's picture

So when you say you love your country are you talking about the govt? Are you speaking of the arbitrary boundries on the map or what do you mean?

Tue, 10/20/2015 - 01:30 | 6688350 Mr Poopra
Mr Poopra's picture

My country is the land and people within those arbitrary boundaries, but it is more.  Maybe i'm being sentimental in thinking that the founding of this place was truly special.  I came here from a communist country and was extremely proud to become a citizen of The United States.  How many people throughout the world were inspired by what happened here, by the notion that a people could govern themselves?  The first time in history!  We've lost our way since then, we forget that we were warned of "political factions", and "entangling alliances", we meddle in other nation's affairs but I think this was only possible in the darkness of secrecy and ignorance.

I like to think that eventually these criminals will be removed and we will return to sound money, to a commodity or gold standard, the Fed, IRS, and Deep State dissolved.  I love my country enough to try to help it achieve these goals in any way I can.  I guess that's what i mean.

Tue, 10/20/2015 - 01:46 | 6688372 Alvin Fernald
Alvin Fernald's picture

Sorry to burst your bubble but the US was founded by oligarchs, the constitution was a coup on the articles of confederation and the worlds most notorius genocide took place here.
See The Trail of Tears, or the Whiskey Rebellion for that matter. But thank you for coming here, hopefully your life has been better.

 

Tue, 10/20/2015 - 01:59 | 6688387 Mr Poopra
Mr Poopra's picture

It is possible to look at the history of any country and become a nihilist.  Politics has no room for idealism, i understand your point.

Camus said, "There is but one truly serious philosophical problem, and that is suicide".  If we don't think that we can work to make tomorrow better than today...what's the point?  I think we can.  I'm proof.

Thanks for the kind words.

Tue, 10/20/2015 - 02:03 | 6688394 Alvin Fernald
Alvin Fernald's picture

Yeah no problem. I am not a nihlist. Tomorrow will be a better day after people drop the hollywood fantasies and they put their ass on the line.

Tue, 10/20/2015 - 02:06 | 6688396 Mr Poopra
Mr Poopra's picture

I agree.  I think that time is coming.

Tue, 10/20/2015 - 07:23 | 6688661 conscious being
conscious being's picture

Does this mean you're not gonna  leave?

Tue, 10/20/2015 - 02:25 | 6688413 mc225
mc225's picture

each of us needs to learn to become self-governing, or otherwise humanity will muddle along as it always has. politicians the world over are basically vampires, without exception.

Tue, 10/20/2015 - 03:52 | 6688478 Lore
Lore's picture

Exactly. "The notion that a people [collective] could govern themselves" is a very old con. It's time to grow up.

Political Ponerology: A Science on the Nature of Evil Adjusted for Political Purposes

"The issue which has swept down the centuries, and which will have to be fought sooner or later, is the people versus the banks." - Lord Acton

Tue, 10/20/2015 - 09:14 | 6688996 skipjack
skipjack's picture

Exactly. Governments are nothing but institutionalized force with a thin veneer of approval from the majority of the tribe.Governments are what happen when free people decide the burdens of freedom are too great and outsource it to the collective, to place themselves and their heirs in bondage to that collective until the next revolution.

 

Same as it ever was. Humans are incapable of learning from history, as the most overriding problems with humans are laziness and slothfulness.

Tue, 10/20/2015 - 01:49 | 6688376 DisasterCapitalist
DisasterCapitalist's picture

Red Dawn didn't happen, and it's not going to happen. The threat to this country comes from DC and Maryland.

Tue, 10/20/2015 - 07:26 | 6688668 conscious being
conscious being's picture

and N. Virginia and Tel Aviv and City of London.

Tue, 10/20/2015 - 07:30 | 6688675 NoVa
NoVa's picture

Thanks for not throwing VA into the mix.  

Have to admit that parts of NoVa are no different that DC or Southern MD.  

Western MD is more like WV.  

 

NoVa

 

Tue, 10/20/2015 - 00:09 | 6688227 malek
malek's picture

At some point you will have to decide if you also still love our psychopaths very much. Or not.

Tue, 10/20/2015 - 00:09 | 6688228 Insurrexion
Insurrexion's picture

Mr. Poop.

You have no country to love.

America was lost when Cheney's drones hit New York and the Pentgram.

Wake fucking up.

We are not Russia propagandists.

We know Russia is just as corrupt as the West.

But, there is a difference. They are not trying to rule the fucking WORLD.

We welcome the actions of any country that is trying to preserve itself against the deep state that you and we detest.

 

The real red arrows are coming to a theatre near you.

Tue, 10/20/2015 - 00:28 | 6688252 Mr Poopra
Mr Poopra's picture

"You have no country to love.

America was lost when Cheney's drones hit New York and the Pentgram."

 

So should we not reclaim her?  A country is simply a partition of land and her people.  The "country" did nothing wrong, the leadership is the cancer that needs to be removed.

The Russians aren't trying to rule the fucking world?  You are naive.  They would LOVE to they simply CAN'T...the U.S. just might, that's the scary part.  

Tue, 10/20/2015 - 00:58 | 6688322 PeakOil
PeakOil's picture

Call me naive, but actually I don't believe the Russians are trying to rule the world. The Atlanticists however, are a different matter.

Bill Clinton's mentor Carroll Quigley in Tragedy & Hope:

"The powers of financial capitalism had a far-reaching aim - nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent private meetings and conferences. The apex of the system was to be the Bank for International Settlements [BIS] in Basel, Switzerland, a private bank owned and controlled by the world's central banks which were themselves private corporations ... Each central bank sought to dominate its government by its ability to control Treasury loans, to manipulate foreign exchanges, to influence the level of economic activity in the country, and to influence cooperative politicians by subsequent economic rewards in the business world."

Tue, 10/20/2015 - 01:31 | 6688339 Mr Poopra
Mr Poopra's picture

This is a great quote.  Thank you for that.

The Soviets tried to take over as much as they could under the vehicle of communism, or more specifically the agents of the "communist conspiracy", likely a concerted effort by the global mafia to balance the accelerated resource consumption of capitalism.  If it wasn't for the U.S., the Soviets would have turned every future communist country into a vassal state.

Modern capitalist Russia simply does not have the capability for world domination while the U.S. and NATO exists.  Believe me, if they did, they would.

Tue, 10/20/2015 - 07:24 | 6688664 corsair
corsair's picture

 Believe me...

Why?

The Soviets agenda was understandable since, as per their own manifesto, communism could only work if the whole world was communist. Russia does not have that problem, but even if they did, the very fact that they do not have the capability is a good enough reason to root for them and their attempt to achieve some kind of balance.

To use your own logic, if it wasn't for Russia, the US would turn every country in the world into a vassal state.

And to think that you can brake that system from within is naive.

 

Tue, 10/20/2015 - 01:58 | 6688386 sun tzu
sun tzu's picture

What countries have the Russians invaded? Ukraine was the fault of the CIA. Same with Syria. You're just a drooling tool drinking the neocon koolaid that the Russians are coming!

Tue, 10/20/2015 - 02:05 | 6688395 Mr Poopra
Mr Poopra's picture

This is too stupid for me to write a real response.  Read something, anything, on Soviet history or books by any high level Soviet defectors (Anatoliy Golitsyn is a good start).  Russian history doesn't begin in 2011.

Tue, 10/20/2015 - 05:48 | 6688559 Karl von Bahnhof
Karl von Bahnhof's picture

Golitsyn is a CIA spook, and you still mix soviet (neocon) and Russian and know no history.

Actually Russia is trying to help you to win your real war for Independence, which is coming soon. (because they fought it several times and know something)

Tue, 10/20/2015 - 06:41 | 6688586 Mr Poopra
Mr Poopra's picture

Really? Russia wants to help? They could collapse the entire US regime overnight with their evidence of 9/11. You think they don't know what happened? Where is it? It's been almost 15 years and they're playing along using the terrorism meme like we are. You think it was "terrorists" that did the apartment bombings in '99? False flags are beneath the Russians I suppose.

Come on guys. How many of you are getting paid for your time on here?

Tue, 10/20/2015 - 07:39 | 6688685 corsair
corsair's picture

You started off quite good, but now you are getting lame.

For a moment I thought that you were a genuine (but deluded) US patriot.

Tue, 10/20/2015 - 08:22 | 6688808 Volkodav
Volkodav's picture

Soviet USSR was never a Russian construct

From 1917 thru Stalin Russians were never in control

even Kruschev and Breznev were Ukrainian nationals

and Gorby half Ukrainian

Soviet is defunct

Russian Federation is new 

I think Russian History is too much for you

but can try educate yourself other than western prop, think and apply critical thinking before post crap

Read Solzhenitsyn who met and believed in Putin, btw 

 

Tue, 10/20/2015 - 01:52 | 6688380 sun tzu
sun tzu's picture

I'm sure the Germans loved their country too, but it best that the Third Reich die a horrible death.

Tue, 10/20/2015 - 03:59 | 6688481 Lore
Lore's picture

And yet, who financed the Nazis?

Tue, 10/20/2015 - 06:28 | 6688587 justdues
justdues's picture

Oh no not "the Germans" again ! Now who,s drinking the victors (central bankers) Koolaid ?

Tue, 10/20/2015 - 06:59 | 6688624 Arnold
Arnold's picture

It's never too early for beer.

Tue, 10/20/2015 - 01:52 | 6688378 Zero Point
Zero Point's picture

Complains about downvotes. Gets downvotes. World sobs.

Mon, 10/19/2015 - 22:21 | 6687981 Newsboy
Newsboy's picture

So if I don't pay you, you'll punish me with the same punishment I'm already getting for something you made up?

That's pretty scary.

Have you thought this through?

Mon, 10/19/2015 - 22:50 | 6688049 Stuck on Zero
Stuck on Zero's picture

MAD.

Mon, 10/19/2015 - 23:06 | 6688088 sam i am
sam i am's picture

Here it's in English

Sergey Glazyev’s Report: “About urgent measures to counter threats to the existence of Russia”

http://thesaker.is/sergey-glazyevs-report-about-urgent-measures-to-count...

Vladimir Pozner interviews Sergei Glaziev

http://thesaker.is/vladimir-pozner-interviews-sergei-glaziev/

Mon, 10/19/2015 - 23:49 | 6688186 Apply Force
Apply Force's picture

And if the Russians DO actually follow through with this plan, might their Russian central bankers then be swinging from lamp posts?

Tue, 10/20/2015 - 02:17 | 6688406 Blankone
Blankone's picture

The jumbled article has info, claims or statements that are baffling if you believe Putin has real control or the fortitude to follow through.

First, Russia has a central bank that is acting contrary to the national interests of Russia and this bank has monitary control simular to the FED.  Putin and the politicians have been incapable or are too afraid to end the actions of this corporation.  Ask yourself why are they so weak on this and why control was not established over the central bank the instant it moved to support the interest of the west and not Russia.

From the article - Needless to add, such a default, if it ever happened, would collapse the entire Western financial system.

And then the article states the impact (negative) to Russia's financial system by defaulting or not defaulting is the same if the west continues the attack.

This makes no sense at all.  If Putin has this weapon and the impact is no worse than what the west is already doing and planning to do then the only move is to default - yesterday.

And if such a default is being considered why would you telegraph your big move and give the enemy time to work out a counter to it?

This reads like a scare tactic being used in the hope to convince the enemy to back off.  At best Putin will get them to slow down the economic/fiscal war while they prepare for Putin's now predictable move.  Then when they are so prepared they go in hard, neutralize Putins known move and do extensive damage.  Everyone says they understand this is a war and it has begun.  Do you give such knowledge of a weapon that could completely destroy the enemy's financial and eonomic system?

Tue, 10/20/2015 - 04:36 | 6688517 Lore
Lore's picture

There are more levels to this. Geostrategists behind the Kremlin are holding up a mirror to their opponents and demonstrating their familiarity with the playbook of the opposing team. Most of us can only intuit much of the game theory involved, but you can sense deep, clear, powerful thinking, radically different from the characteristic megalomania of your typical unbalanced psychopath, which is why it's terrifying all the right figures. Simply, their thinking and planning is better.

Tue, 10/20/2015 - 07:07 | 6688640 Arnold
Arnold's picture

You know I generally agree, , but a large part of the players have run out the playbook in this cycle.

Chaos ensues.

Wed, 10/21/2015 - 16:45 | 6695799 Lore
Lore's picture

It would be interesting to see how you come to that conclusion, because I don't get that sense at all.

Tue, 10/20/2015 - 11:13 | 6689532 Blankone
Blankone's picture

If you hold a weapon that will destroy your enemy if he proceeds to destroy you, and that enemy has shown he does intend to destroy you and has been pressing the attack for a long time and has the advantage.  And if the consequences of using the weapon are no worse than the worse the enemy can do in his current attack only by using the weapon the enemy is destroyed.  You do not warn the enemy of the nature of your weapon, you simply use it.

All with the understanding we are not talking using nukes.  But even then you can not let the threat of nukes stop you from using this weapon to defend against the fiscal attack.  What other choice is there, to let Russia be once again destroyed economically by the west.  (And if taken down again the zionist intend to finish Russia, burn it to the ground, split it up and make it no more.

Talk about foolish - or just noisy threats with no substance.  Or someone is too timid to win the war.  Or too weak, too weak even to deal with an internal corporation that has taken control of Russia's monetary system and works for the west, not for Russia.

Mon, 10/19/2015 - 22:23 | 6687985 optimator
optimator's picture

T-34 in 1941 was also a suprise, actutally a shock as everything except an 88 Flak would bounce off it.  Oh, and 1941 also brought another surprise, the Japanese Mitsubishi 00, the Zero.

Mon, 10/19/2015 - 22:29 | 6688000 Normalcy Bias
Normalcy Bias's picture

Reminds me of the arrogance of the Germans who thought that the sub-human (so they thought) Russians couldn't produce a tank to challenge theirs.

The T-34 was hands-down the best all around tank of WWII.

Mon, 10/19/2015 - 22:57 | 6688066 Stuck on Zero
Stuck on Zero's picture

Oddly enough the Japanese Zero was based on a design by Vought and the T-34 Soviet tank was based on a design by an American, J. Walter Christie.

What did Stalin say about rope?

Mon, 10/19/2015 - 23:16 | 6688114 Normalcy Bias
Normalcy Bias's picture

No shit? Thanks for the education, SoZ.

Tue, 10/20/2015 - 22:43 | 6692633 SixIsNinE
SixIsNinE's picture

and even more than that, check out Anthony Sutton's interviews from the 1970s i think, on youtube - he details that US tech was given to the Soviets all along ....

Mon, 10/19/2015 - 23:59 | 6688209 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

I thought all romantic reminders of WII military doctrine was deemed meaningless by the Soviets new and improved more better hypersonic impossible to be countered missile technology

They have countered every counter measure counted on by those who challenge the fastest counter counter counter measured manufacturing chess master Ruskie.

Sorry I forgot it is mandatory for the Russian soul to have at least a million plus deaths of service members by incompetent dictators before These clear failures of leadership can be spun as successful examples of how to prosecute combat arms.

Is there a location in Russia where the names are recorded of the millions who died while Stalin was allowed to live by cowards who could have ended his sorry life at anytime but chose to stand by while countrymen were trotted out as cannon fodder for the dream of communism yet once again.

No no they was making the more better impossible stop will in the future but not yet hypersonic T tanks. Which stopped all Soviets combat deaths.  Thereby giving the culprits cover.

Tue, 10/20/2015 - 03:16 | 6688446 Pliskin
Pliskin's picture

What? How about you get back to us when you're not using Google translate.  The Estonian/Latvian or whatever little piss-ant Baltic country you hail from, doesn't translate very well into English.

Nice try though, I'm sure your team leader will give you some extra potatoes for trying to infiltrate a site such as ZH.

Tue, 10/20/2015 - 02:38 | 6688420 mc225
mc225's picture

only thing that gave the axis an early advantage in barbarossa tank combat were a) 5-man crew/3-man in turret b) crew intercom (throat mics/headphones) c) radios between tanks, d) experienced crews. oh and they faced a lot of 'inferior' bt* and t-26 tanks in the early going, and the soviets were disorganized and had supply chain and mantenance problems.

 

t-34 though... tank versus tank... better gun, protection, speed, and reliability. truly a legendary tank.

 

*bt series were inferior because of protection but (on paper at least) had decent gun for 1941. the 45mm was apparently notorious though for getting faulty ammo from the factories. bt tanks could practically fly though (ridiculous amount of mobility for tanks of that era), and could run on roads without treads. but the 20mm 'auto-cannon' of a pzII or psw222 armoured car could take out a bt.

Tue, 10/20/2015 - 02:40 | 6688424 mc225
mc225's picture

worst tank of 1941 was the hungarian toldi... 20mm gun (but not auto), poor protection, middling mobility. might have had a fighting chance against russian armoured cars, and maybe light tanks, but was totally outmatched against any t-34 or kv.

Mon, 10/19/2015 - 22:24 | 6687987 Normalcy Bias
Normalcy Bias's picture

What it must be like to have intelligent leaders who act in the best interest of their own country... one can dream.

Mon, 10/19/2015 - 22:41 | 6688030 A Lunatic
A Lunatic's picture

Once Donald Trump is at America's helm things will come out alright.........

Mon, 10/19/2015 - 22:56 | 6688059 Normalcy Bias
Normalcy Bias's picture

Nah, sorry, we're FUCKED.

Mon, 10/19/2015 - 23:56 | 6688201 BarkingCat
BarkingCat's picture

You are right. We are fucked but Trump should at least make the circus entertaining and funny.

Instead of these clowns pissing us off, he will be pissing them off.

The veins bulging on their necks and foreheads will be absolutely hilarious to watch,

If we are lucky there will be an epidemic of stokes in DC or better yet something like this

 

https://www.youtube.com/watch?v=pjnZO5ZgWE8

 

Tue, 10/20/2015 - 09:15 | 6688389 RaceToTheBottom
RaceToTheBottom's picture

"Instead of these clowns pissing us off, he will be pissing them off."

The clown will be pissing on us.

Fixed it

Mon, 10/19/2015 - 23:36 | 6688160 Rusty Shorts
Rusty Shorts's picture
Van Halen - Won't Get Fooled Again ( LIVE inside the 5150 studio )

 

https://www.youtube.com/watch?v=JYUKtW8ayhA

Tue, 10/20/2015 - 00:28 | 6688266 Mr.BlingBling
Mr.BlingBling's picture

VH rocks but no one does that song as good as The Who.  (Live from 1978)

https://www.youtube.com/watch?v=htz9CS-Zmms

 

Tue, 10/20/2015 - 01:11 | 6688337 Rusty Shorts
Rusty Shorts's picture

Excellent !

Tue, 10/20/2015 - 02:55 | 6688435 mc225
mc225's picture

yeah, watched/listened to baba o'reilly after this... definitely a powerful band. 

Tue, 10/20/2015 - 09:23 | 6689031 schadenfreude
schadenfreude's picture

Donald Trump reminds me of Nero.

Mon, 10/19/2015 - 23:34 | 6688157 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

When countries other than Russia behave as Putin, his fan boys and paid by the Russian treasury schills, lament across all media where they have been placed, begin screaming how evil, bad, racist, non chess master like suicidal next nuclear war causing idiots all other nations are.

When you learn to be a good KGB officer it is important to remind those who would listen, that lies and the willingness of your countrymen to love the lie, are necessary tools of the communist.

Just because the USSR was destroyed by ethnic Russian inability to , govern once again does not mean these same ideologically stagnant ethic Russians will ever tire of imposing their adolescent worshiping of masculine men who they  repeatability give autocratic rule over themselves too, will ever understand how genuinely free men find their choice ignorant and kinda gay.

Tue, 10/20/2015 - 00:11 | 6688231 malek
malek's picture

bla bla bla... do you actually have a point?

Tue, 10/20/2015 - 00:19 | 6688251 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

Putin good. Anyone who cannot see how good is Putin be bad. Understand now gypsy bitch.

Tue, 10/20/2015 - 04:46 | 6688521 Lore
Lore's picture

If you're a plant, you're a poor one.

Tue, 10/20/2015 - 00:26 | 6688263 BarkingCat
BarkingCat's picture

Hey dumb fuck... who were these ethnic Russians that lacked the ability to govern.

Lenin who started that shit show was not a Russian but a Jew,/German/Sweede combo.

Stalin who ran the USSR the longest was a Georgian and Brezniev whose tenure at the helm was second longest was a Ukrainian.

 

When Russia fucks up I will be the first to scream about it.... but in this instance they are not the bad guys.

 

 

Tue, 10/20/2015 - 00:41 | 6688293 o r c k
o r c k's picture

Listen, many of us love our Constitution and are glad to see our current "leaders" paying a price for the US's decades of global violence and crowd-bending propaganda. Our culture makes us susceptible to cheering for the under-dog. Putin-Shmutin, the name don't matter. He's just a role in a temporary game of pay-back. We lovers of Karma find it fascinatingly satisfying.

Tue, 10/20/2015 - 03:10 | 6688443 Pliskin
Pliskin's picture

I find your post ignorant and kinda gay, and I'm a genuine free man.  How do you like them apples?

Mon, 10/19/2015 - 22:27 | 6687995 theFNG
theFNG's picture

Remember "Shock and Awe"....well it's Russia's turn to flex it's muscles before the next great crisis.

Mon, 10/19/2015 - 22:28 | 6687997 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

Definitely bullish

Mon, 10/19/2015 - 22:35 | 6688008 azusgm
azusgm's picture

Do not prod the bear.

DO NOT prod the bear.

Tue, 10/20/2015 - 02:11 | 6688402 Alvin Fernald
Alvin Fernald's picture

Don't feed the bears
(Ode to US foriegn policy)
https://www.youtube.com/watch?v=nr94YywFJ5M

Mon, 10/19/2015 - 22:40 | 6688012 Miketheterrible
Miketheterrible's picture

Something seems wrong with this article though.  The time the interest rates skyrocketed, the russian enterprises and state were barred from foreign cheap currency from the west in long term loans.  Then short term loans happened not long after.  In essence, there hasn't been any loans at all, since overall, Russia has greatly reduced its debt to the west:

http://www.vestifinance.ru/articles/62448

Finance Ministry: Russias Foreign Debt Drops to $500B

Russia's foreign debt will be reduced by 1 October to $ 500 billion to $ 550 billion as of July 1, said Deputy Finance Minister Maxim Oreshkin. 

As well, member KVS at a forums Russiadefence put it quite well:

http://www.russiadefence.net/t4513p15-russian-economy-general-news-2#125897

Actually it is the debt servicing costs that matter and not the nominal debt number. Russia's federal government is not
constricted by debt servicing costs. This is why lumping private (corporate) debt with state debt and then running 
around bleating about it is retarded. Russia's state debt is trivial and servicing costs are negligible. Private companies
are obviously not going bankrupt due to their debt levels so there is nothing to talk about. The US total debt from 
government and corporations is $25 trillion ($16 trillion government + $9 trillion corporate). 

The interesting news is that Russia is unloading debt and fast

http://www.reuters.com/article/2015/01/20/russia-crisis-cenbank-debt-idUSL6N0UZ15320150120

http://sputniknews.com/business/20150616/1023419663.html

http://www.cbr.ru/eng/statistics/credit_statistics/debt/debt_maturity_e.xlsx

Russian government debt as of June 2015 was $36.4 billion down from $61.7 billion in December 2013. Total debt
went down from $728.9 billion in December 2013 to $555.7 billion in June 2015. And the unloading is still in progress.

Mon, 10/19/2015 - 23:04 | 6688083 besnook
besnook's picture

as the article stated the western debt is russia's vulnerability. they are unloading it as fast as possible and buying gold with the same fervor. all they want is to be not dependent on western banks. the best way is providing an alternative competing system they have spent the last ten years working on with china. the completed structure rolls out in 2016. once russia is economically diversified the western system is impotent.

Mon, 10/19/2015 - 23:09 | 6688098 Miketheterrible
Miketheterrible's picture

Indeed.  But it isn't just in gold.  They are also buying US bonds for a reason that is pretty complex (more like gambeling.  Buy US bonds then to eventually buy gold by selling those bonds as the USD increases in value over gold, which we have seen so far in recent days).  And yes, they are paying off their debt.  Because one thing they are afraid of, is if they just all go bankrupt, regarding regional nations willing to work with Russia, wont have faith in Russia's debt sector and will see the unpaid debt from the west as a red signal.  So they would be afraid to invest.

Russian enterprises got themselves in that mess.  But good to know they are (slowly) getting out of it.

Mon, 10/19/2015 - 22:37 | 6688017 Temerity Trader
Temerity Trader's picture

We are going to lose it all soon. We will bankrupt our country just like the Soviet Union did to themselves. We are wasting trillions of $$ we don’t have to be the self-declared exceptional world policemen. Elections here are a farce. We are now an oligarchy, worse than what we say about Russia. Only a few morons would vote for either Hillary or Jeb. Two loser, worthless, professional politicians. If Putin could run for president, he would do better than either of those two. Trump is a buffoon, but at least no one owns him, and he is the ONLY candidate who will slash government spending, including entitlements. He will also start massive deportations, the others will do nothing.

The final collapse is coming, no matter who wins the election. There is no way back from our debt-driven spending madness. Negative rates will only scare people; they will know the Fed is desperate.  Our defense budget and entitlements have driven the U.S. to insolvency, and kick the can is useless. The left want even more handouts and the right want more wars.

The Silicon Valley property mega-bubble will go soon, and nobody realizes the massive impact it will have. If you thought the last banker bailouts were big; this will be a sheer panic-driven free-for all. As the tech companies that actually make something, are seeing declining sales and all that remains is Facebook and Twitter, it will get ugly fast.

Russia will be a convenient target for a distraction, and the oligarchs in the MIC starting a world war is not out of the question.

Tue, 10/20/2015 - 00:38 | 6688285 Mr.BlingBling
Mr.BlingBling's picture

Trump won't do shit because . . . heck, let's let Bill Hicks tell this part.  Take it away, Bill!

https://www.youtube.com/watch?v=Ytv15ono5J0    (1:05)

 

 

Mon, 10/19/2015 - 22:40 | 6688018 Salah
Salah's picture

Well, NO SHIT SHERLOCK....the Russkies have developed an inland sea strategy that's a near-invulnerable military "back door" to northern MENA, the eastern Med, and most of Europe.


AND THOSE U.S. POLITICAL FUCKS THOUGHT EL CHEAPO CRUISE MISSILES WERE LIKE THE OLD NAZI 'BUZZ BOMBS'

ROFLMAO

SALAH


Mon, 10/19/2015 - 22:38 | 6688021 JerrySpringer B...
JerrySpringer B All Over This Shiznit's picture

Knight to K4. Checkmate 

Mon, 10/19/2015 - 22:39 | 6688023 Time for Titus
Time for Titus's picture

Comments here and at the Saker and other sites seem to be divided as to whether Putin is for real or ultimately part of the banking regime. If Glazyev gets his way, and they either stiff the Western banks or force Russia's Central Bank to stop serving the Atlanticist's interest ... well, then, that would put an end to most of the debate. 

Mon, 10/19/2015 - 22:57 | 6688064 Miketheterrible
Miketheterrible's picture

They can speculate all they want.  Issue is that all the economists in Russia are byproducts of western interference in the 90's and not much Putin can do about it.  Remember, the CBR in its current form is stated through the constitution of the Russian Federation.  If Putin was a real dictator, he would have already said screw it and decided to re-write it himself.  But that isn't the case.  Most economists with power, like Nubilina, Kudrin, etc are all from the "Moscow Higher School of Economics", which is a heavily liberal controlled education center that has bred most of Russia's economists.  Many of them are also very critical of Putin's moves, as I read it all the time.

Putin has found ways around these people that really just kind of puts a hinderance to many of what they do.  Their methods may not be intended to be evil (Nubilina) but they are very narrow minded when it comes to the economy.  You see, CBR's one and only job is the Ruble and protecting its value.  I imagine that they did do some back room deals to let it float, but not too low.  But in doing so, they make sure they use moves that are not necessairly going to help the country - the interest rate hikes. As it did indeed greatly help reduce the devaluation of the Ruble, it really didn't help all too much in inflation, as inflation is being reduced thanks to increase of production of various agricultural products and other goods re-starting production for domestic markets.  The way Putin found around them, is through their own reserve funds (welfare fund and reserve fund, which contrary to popular belief is actually used as a form of investments in key industries and infrastructure development) and venture funds or major state owned enterprises like Rusnano and Rostec.  Rostec being one of the worlds largest industries is also now one of the largest innovators (well, their asset companies are) like KRET or Schwab (former UOMZ).  They use their wealth to invest in various projects and industries.  Has also shown many good results like new lithium ion batteries being used for various projects, NatGas powered locomotives, NatGas powered Lada Vesta (still in works but test model ready apparently), Laser Microscope, R&D in Photonics for semiconductors, etc.  Which will bring great results in the future.

So there is indeed discrepencies.  And Putin is actually doing what he deems necessary.  But he also has to because now that the Communist Party has gained popularity (and won the elections in Irkutsk) and the growing popularity of the Just Russia party, is what actually is helping Putin more than anything.  Because it is these groups that are very much against the current economists and even CBR methods, that they are for bypassing them.  And they have been doing so.

Glazyev has some good ideas no doubt.  But also his ideas can be considered real dangerous too.  And at this current time, Putin isn't really going to stir the pot too much as it could also hinder his plans of economic diversification and military modernization.  After date, they will look into it again.  I know I have read various other oppositionists very much in favor of Glazyev's ideas.  Only people against it of course are the CBR and the liberals of the higher school of economics in Moscow.

Mon, 10/19/2015 - 23:45 | 6688181 lazysunday
lazysunday's picture

 

Tell me how will the $50B spent in 'infrastructure' in Sochi is going to diversify their economy? Or the $20B on the World Cup? 

Also please lay out the plan on how they will diversify there economy from a resourced based one in any significant way? They are to busy bulldozing cheese, to worry about these economic concerns.

Tue, 10/20/2015 - 07:28 | 6688670 Arnold
Arnold's picture

I would only guess that those venues have had substantial  'other people's money' flowing in.

The distinction between .gov and corporations is less well defined in the commie states.

(yes i need a light sarcasm notation)

Tue, 10/20/2015 - 00:36 | 6688283 BarkingCat
BarkingCat's picture

 Nice write up. I don't know who down arrowed you but I hope it is because they know something about the topic you wrote about and not because they are ignorant fucks..... of course I suspect that the reason is the latter.

Mon, 10/19/2015 - 23:17 | 6688118 Socratic Dog
Socratic Dog's picture

Yeah.  I'm really hoping the answer is that he isn't beholden to the jews, like the rest of us.  It's the only hope for most of the peoples of the world, meaning everyone outside the 0.01%.  If it turns out he is, then it's new world order run from Tel Aviv for everyone.

And that's the reason so many here are rooting for Putin.  He actually represents real hope.  I hope.

Mon, 10/19/2015 - 22:41 | 6688031 Salah
Salah's picture

THIS COULD DESTABALIZE GLOBAL MKTS. JUST LIKE PUTIN DID IN AUGUST 2008, WITH THE INVASION OF GEORGIA

Tue, 10/20/2015 - 05:01 | 6688534 Lore
Lore's picture

Yeah, Putin was the real Maestro behind lousy western monetarist central bank policy. Yawn.

Mon, 10/19/2015 - 22:41 | 6688032 Schacht Mat
Schacht Mat's picture

We load the gun  .... they pull the trigger  .... then we piss and moan that they aren't playing fair .... did I get this right (oops - forgot the neocons - the crazy wild cards)

Mon, 10/19/2015 - 22:43 | 6688035 buzzsaw99
buzzsaw99's picture

Needless to add, such a default, if it ever happened, would collapse the entire Western financial system...

dream on.

Mon, 10/19/2015 - 22:44 | 6688041 tarabel
tarabel's picture

 

 

... preventing creditors from moving their credit around for non-productive purposes.

Spoken like a true apparatchik. WE WILL DECIDE what is and is not a productive use for your credit. Which handily explains why Russians like to keep their money in a country that does not issue that sort of pronunciamentoes.

Okay, it's actually spoken like a true Golden Pheasant.

But the only real difference is that the Nazis were more sharply dressed than the frumpy Communards.

And I'm not sure I grasp the utility of absconding with 1.1 trillion of internal assets if it ends up costing 1.2 trillion in external assets.

Plus it accelerates the flight of Russia's critical foreign energy buyers by stealing their stuff at a time when a huge new supply of petroleum is just hitting the market. Strategically, this idea doesn't make a lot of sense to me. It seems to comprise an accelerant to the fire that is already consuming Russia's resources.

 

Mon, 10/19/2015 - 22:53 | 6688053 Zero-Hegemon
Zero-Hegemon's picture

Perhaps it's the Russian version of the Blazing Saddles strategy, employed by Clevon Little when escaping the racist townspeople.

Mon, 10/19/2015 - 23:42 | 6688174 dark pools of soros
dark pools of soros's picture

what's it matter..  they have energy to burn.. do they even need money or credit?  

Tue, 10/20/2015 - 00:38 | 6688286 MrPalladium
MrPalladium's picture

the 1.2 trillion in external assets - that is Russian assets parked in non-russian banks and businesses will be confiscated in any event. Defaulting on 1.1 trillion of external debt and external equity ownership of internal assets will be retaliation which mitigates the damage to the Russian economy. The study is a threat and the expectation is that EXXON, BP and others will lobby to stop the econonomic warfare. If the lobbying fails then Russia has the capacity to retaliate economically in ways that minimize the damage and do much to strengthen their economy over the longer term

What is it about economic warfare that you do not understand?

Tue, 10/20/2015 - 09:35 | 6688691 Arnold
Arnold's picture

Just noodling

Perhaps Deutchebanks derivative holdings are the substantial part of the mentioned Trillion dollar former Soviet out of country holdings.

The former Soviets have to make that Big Vig somehow.

And a place to launder dollars to rubbles.

Though not part of the G 7, the former Soviet would have to have skin in the game to be part of the G 20.

Just noodling.

Mon, 10/19/2015 - 22:45 | 6688042 Circle of DNA
Circle of DNA's picture

Great article! Thank you!

Mon, 10/19/2015 - 22:46 | 6688043 Omega_Man
Omega_Man's picture

I find this is BS... he will not default.. just print rubles and buy Euro... or EURO bonds 

 

You think Russia can't play QE games too?

Tue, 10/20/2015 - 02:03 | 6688393 Haager
Haager's picture

For the record: Atm the Russian Central Bank can't print roubles at wish - it has to have dollars to convert into roubles, which they usually get by exporting oil and gas.

No wonder that changing this situation is a top priority in the agenda.

Mon, 10/19/2015 - 22:48 | 6688045 Vlad the Inhaler
Vlad the Inhaler's picture

Doesn't the Western world owe Russia any debt?

Mon, 10/19/2015 - 23:57 | 6688203 Rusty Shorts
Rusty Shorts's picture

...just a couple tankers of Vodka, we good.

Mon, 10/19/2015 - 22:51 | 6688050 Zero-Hegemon
Zero-Hegemon's picture

Russia always fights on its own terms, drawing one army after another deeper and deeper into the point of no return. Napolean and Hitler are case studies in this strategy. Geographically, there are no steppes to scorch or horrible winters in Syria, but the strategy is still the same. Only this time they didn't have to draw the Western coalition in, they just had to wait for certain conditions (Iran Treaty) and the moral high ground (defeat ISIS). Afghanistan was certainly a historical exception in this regard to Russian strategy, but Afghanistan was an exception in every empire's history. It looks like Assad is going to stay for awhile. The US & Britain, etc., couldn't think of winning public support for another "real" war in the ME, short of a nuclear exchange. In any case, it never ends well.

Mon, 10/19/2015 - 22:51 | 6688051 arrowrod
arrowrod's picture

Oooh.  Russia's GDP is $2t.  Yeah, they're going to run roughshod over the US.

The average Russian male dies at 50.  Their draftees are underfed snot nosed dregs.

This horseshit reminds me of the Pentagon puffing up the Soviet resources in the 40s, 50s and 60s.

More vodka!

Mon, 10/19/2015 - 22:55 | 6688061 Zero-Hegemon
Zero-Hegemon's picture

Maybe Putin can turn Obama onto some Krokodil

Mon, 10/19/2015 - 22:59 | 6688075 Miketheterrible
Miketheterrible's picture

GDP PPP is more appropriate to measure thanks to the costs within the country, and the fact that they are local producers for a lot of their own goods.  As well, Russia's economy is well known to be heavily under valued.

As well, the average males life expectancy in Russia is roughly 67 years and female is 70 and over.  With these figures increasing thanks to the huge drop in alcohol consumption in Russia (traditional beverage consumption was tea, look it up).

I suggest you start doing your homework before spewing garbage please.

Mon, 10/19/2015 - 23:20 | 6688126 Socratic Dog
Socratic Dog's picture

He might also want to consider the percentage of the USSA GDP represented by financialization.  Piss and wind.  It means nothing.  It ain't PRODUCT.

Tue, 10/20/2015 - 05:09 | 6688536 Lore
Lore's picture

Re: "With [life expectancy] increasing thanks to the huge drop in alcohol consumption in Russia..."

...AND NO GMOs...

Tue, 10/20/2015 - 07:50 | 6688702 Volkodav
Volkodav's picture

dup  I agree  good post

Tue, 10/20/2015 - 00:43 | 6688296 BarkingCat
BarkingCat's picture

I bet you that an average Russian 18 year old would beat the shit out of an average 18 year old American any day of the week.

This is not the 40s, 50s or 60s when American teens were lean and bright. Now they are dumbed down fat asses who have been so feminized that they probably shop for tampons on a monthly basis......

Tue, 10/20/2015 - 07:48 | 6688697 Volkodav
Volkodav's picture

Male life expectancy is 65 plus last I know.

gdp is overated especially when based on lies and printing press

 

 

 

Mon, 10/19/2015 - 22:54 | 6688056 earleflorida
earleflorida's picture

Bravo!!! Pepe & Tyler

Mon, 10/19/2015 - 22:57 | 6688067 MASTER OF UNIVERSE
MASTER OF UNIVERSE's picture

There is only one MASTER OF UNIVERSE, and I am that individual. The so-called 'Masters of the universe' were outed March 10th 2008 as frauds en masse. They were not real whereas I am.

Mon, 10/19/2015 - 23:13 | 6688107 yogibear
yogibear's picture

"Collapse Of The Western Financial System Looms "

Keep hearing this all the time but the Fed comes out with a new sweeter batch of Kool-Aid

Mon, 10/19/2015 - 23:21 | 6688129 yomutti
yomutti's picture

Pepe Escobar gets paid by the Russian government and the Iranian government. Of course he says whatever they want.

 

Tue, 10/20/2015 - 03:00 | 6688441 Pliskin
Pliskin's picture

yomutti gets paid by the Latvian government and the Ukraine government. Of course he says whatever they want.

Fixed/

Mon, 10/19/2015 - 23:25 | 6688137 luna_man
luna_man's picture

 

 

ANTICIPATION!...for something BIG to hit the wires, any day now!

 

brings out the kid in me

Tue, 10/20/2015 - 00:54 | 6688314 o r c k
o r c k's picture

It's the Holidays.  Already?

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