Russia Warns Washington: Confiscating Gold Reserves Would Be "Declaration Of Financial War"

Tyler Durden's picture

In a surprising, and unexpected warning - which seemingly came out of nowhere - Russia's Finance Minister Anton Siluanov cautioned Washington yesterday that "If our gold and currency reserves can be arrested, even if such a thought exists, it would be financial terrorism."

The comment appears to have been prompted by consideration of escalating US/EU sanctions which could ultimately impact Russia's offshore held gold and reserves. If sanctions include the freezing of foreign accounts of the central bank, it would be equal to declaring financial war on Russia, Siluanov said, although he added that he considers such a scenario unlikely (for now).

After making the point that Russia's budget is prepared for the possibility of tougher US/EU sanctions, RT reports that Siluanov warned if the west include the seizure of Russia's foreign exchange reserves, it would be regarded as a "declaration of a financial war."

According to Siluanov, the budget takes into account the risk of income shortfalls. The budget is based on oil prices at $40 per barrel, which is almost a third lower than the current price.

 

The budget "has a margin of safety in case of restrictions and sanctions." It also includes losses incurred by a probable ban on investment in Russian government bonds for foreign funds. The US Treasury is currently considering such penalties.

 

"If we did not have a margin of safety, then it would be easy to weaken us. And then, our so-called friends would say – if you want to get help from the International Monetary Fund, you must do this and that," said Siluanov.

 

If sanctions include the freezing of foreign accounts of the central bank, it would be equal to declaring financial war on Russia, Siluanov said. He added that he considers such a scenario unlikely.

As a reminder, in June, Reuters reported that soon after the Crimea reunification with Russia, the Central Bank of Russia allegedly withdrew about $115 billion from the New York Fed. After about two weeks, Russian officials reportedly returned most of the money to its Fed account.

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MGTOW_MONERO_XMR's picture

It's gone, sorry Russia.

Boris Alatovkrap's picture

Boris is never believe day is come when Russia is more responsible government than USSA!

Ecclesia Militans's picture

Well they did get those funds back to the Fed after just a few weeks, so someone is clearly staying sober over in the Kremlin.

Dame Ednas Possum's picture

All war is financial war.  

The banksters' lust for slave debt and goy blood shall not go unsatisfied. 

Boris Alatovkrap's picture

"All war is bankster war"

There, is fix for you!

BennyBoy's picture

 

Remeber when just after the CIA Ukraine "revolution" ended, one night the US flew out all of Ukraine's gold?

webmatex's picture

And Libya, Iraq etc.

The old Gold Revolution.

Never One Roach's picture

"I'm sorry to inform you Petrov, but the boat sunk that had all your gold on it."

Occident Mortal's picture

That's not Russian FX reserves... That's Putin's money.

On a personal level it would be safer to steal money from the mob.

Gaius Frakkin' Baltar's picture

And still goldbugs wonder why cryptocurrency is becoming mainstream.

Bokkenrijder's picture

Why haven't the Russians asked it's gold back, simular to what the Germans did 5-6 years ago?

gladih8r's picture

It's almost a certainty that plans exist to confiscate Russian assets and these plans will be put into action when necessary. 

If the Russians still keep any of their assets with the NY Fed, well, good luck with that. If things get a bit nasty then by the time the Russian finance minister gets "somewhat concerned" it will be too late.

BarkingCat's picture

I would not want to work for the FED if they decided to freeze Russia's assets.

 

 

DownWithYogaPants's picture

I believe Russia could freeze the Fed's assets with a few clicks of the mouse.

If some gangster wog in asia can do it I have to assume the Russians can.  Or perhaps that was the Russians using them as a front for a test of the process.

HowdyDoody's picture

Interesting timing. A few days back, Putin mentioned that large Russian businesses should anticipate ramping up military production at any time.

http://www.independent.co.uk/news/world/europe/vladimir-putin-russia-bus...

 

IH8OBAMA's picture

What if the U.S. freezes Putin's Bitcoins?  Would that be declaring financial war?

 

Dabooda's picture

You boldly go where no man has gone before, into uncharted and boundless universes of stupid.

MsCreant's picture

That would be the logical "next response" in a financial war. That is the "coded message" I heard. You do this, we unleash the hacker dogs of war and will crash the whole fucking system which is already fragile anyway. 

Just think of the splendid creshendo of defaults, falling like so many dominoes, around the world, and the US imploding like a sink hole from hell popping up and sucking inward.

That kind of financial war.

pods's picture

If there was a concerted effort put forth, that could destroy the economy in no time.

That is more of a danger than any nuke flying.

pods

runswithscissors's picture

The crony capitalist dominoes would be falling across the West.

Ranger4564's picture

They and all BRICS aligned countries will immediately disembowel the Dollar. No one will accept it, no one will ship anything to the US for Dollars. They already have that plan in place, in case the US renegs on the asset backed currency theme the nations are unveiling.

Justin Case's picture

Fed's assets

What the printing press?

youngman's picture

Lots of Russians living in New York City.....jus sayin

Bastiat's picture

Perhaps the US already stole and sold whatever Russian gold they had control of and the current demonization campaign is to justify it, after the fact.  Not that the banksters would do anything so dastardly.

dumluk's picture

Yes, it does really make one wonder why Russia/Putin considering the current state of geo political affairs has not repatriated all their money and gold. It makes one wonder if things are as they seem.......

MonetaryApostate's picture

Because you can't make money on gold in a vault, you gotta loan it out with interest to the blank check banksters so they can have more fraudulent paper gold?

GreatUncle's picture

But China has its own market now why not move it to there?

If you were Russia who would you trust more?

caconhma's picture

Remember, Putin is a fake Russia President:

  • Russia Central Bank is under Rothschild control.
  • All Russia natural resources are sold out to foreign banks. 
  • All his associates moved their families and valuables to the USA and EU.

Putin just started to understand that he is about to follow the Saddam Hussein destiny.

Shemp 4 Victory's picture

You have a serious level analysis, you expert strong!

Bobzilla. Do not piss him off's picture

Exactly! Why would they hold any reserves/gold in the U.S.?? Be safer in Mother Russia. It's like asking your worst enemy to watch your house when you're on vacation! Thought the Ruskies were smarter than that.

BandGap's picture

Collateral for trade. They still trade here.

libertyanyday's picture

certain transactions are in GOLD only...........even our Gov doesnt trust fiat...........amazing

EddieLomax's picture

You can have all your 0's back, we are just keeping the 1's.

bluez's picture

"cryptocurrency is becoming mainstream" ----^^

There are two forces in the world that cannot be resisted: death and stupidity. (Not in reference to anyone here.) Anyone who trusts cryptocurrency or election machine voting has to be at least ignorant (sorry). For one thing, among many, the existence of the Deep Core ensures this.

What is the Deep Core, and why does it matter?

Any reasonably contemporary CPU (central processing unit -- the silicon chip at the very heart of your computer) has more than one "core". Which is to say that your CPU silicon chip has two or more actual CPUs ("cores") on it, which programmers try to use "in parallel". What people seem generally to not know is that their very own CPU silicon chip contains a very special Deep Core. And all of the other normal cores (and their programs), which all of your software can (potentially) access, cannot access, or even "discover" the existence of this Deep Core. However:

This Deep Core can "see" everything that the user cores do. And it can invisibly control those user cores, and thus the entire machine. It doesn't care about your operating system, or software, since it comes with it's own firmware and memory. It has even been found that contemporary CPUs cannot even run without permission from the Deep Core. It has also been found that the present-day Deep Core is a relatively simple 32 bit unit, but it nonetheless can (ordinarily invisibly) access the Internet. Of course, it is no simple task to strip the top off a CPU chip and look at the cores with a microscope, but it certainly can be done.

People are responding to this: The Russians and Chinese are rushing to produce their own "national" CPU chips. Some companies are also rapidly developing "open source" (hehehe) RISC-V CPU chips (mostly for use as super-size microcontrollers embedded in other devices; the ordinary user will not see them for decades).

Of course, who or whatever the Deep Cores are "calling home" to on the Internet can see, and manipulate, all of your Bitcoin and votes.

DisorderlyConduct's picture

Wow. Just - wow.

Whoever told you this crap was having a good laugh at your expense.

Like you said, death and stupidity. To that I would add ignorance. Don't let your ignorance of technology allow you to be turned into someone who holds religious (I.e. not fact-based) views regarding technology. It is not something that will enhance your life.

bluez's picture

So I suppose you would demand that I "prove" my little conspiracy theory? Well, there's this:

"The Intel Management Engine (IME) is a component of virtually every Intel CPU released after 2008. Think of it as a CPU on top of a CPU; it does tasks separate from the main operating system while the computer is in use." -- The Next Web:

https://thenextweb.com/security/2017/11/09/researchers-find-almost-every...

"The Intel Management Engine (ME), also known as the Manageability Engine,[1][2] is an autonomous subsystem that has been incorporated in virtually all of Intel's processor chipsets since 2008.[3][4][1] The subsystem primarily consists of a proprietary firmware running on a separate microprocessor that performs tasks during boot-up, while the computer is running, and while it is asleep." -- The Wikipedia Scriptures:

https://en.wikipedia.org/wiki/Intel_Management_Engine

DisorderlyConduct's picture

Here's a few 'tells' you've got. BTW, never play poker - you'd lose your ass.

First, umbrage at the notion that evidence is expected. Like that's an insult. Uhm, no, that's what adults expect. But people who hold religious views get real testy over the whole proof thing.

Second, the fairytale about the dark crystal (or whatever you called it) was embellishment that was unnecessarily colorful. The reference you give is the self-same data, told like adults tell each other. Simple facts don't require colorful language or embellishment.

Third, a conspiracy requires someone to - you know - conspire. It may just be me, but Intel publishing a document explaining what the Intel Management Engine is would be what most people would call 'counterproductive' to a conspiracy. They laid it all out for you.

Dude. If you have a modern car, there's like 20 CPUs in it. Each one is doing something that is not documented to you, the customer in any way. Grab the tinfoil and put your shrink on speed dial baby.

bluez's picture

The big chip manufacturers know that they cannot completely hide their Deep Cores.

'"Limited hangout" is intelligence jargon for a form of propaganda in which a selected portion of a scandal, criminal act, sensitive or classified information, etc. is revealed or leaked, without telling the whole story. The intention may be to establish credibility as a critic of something or somebody by engaging in criticism of them while in fact covering up for them by omitting many details; to distance oneself publicly from something using innocuous or vague criticism even when ones own sympathies are privately with them; or to divert public attention away from a more heinous act by leaking information about something less heinous.' -- RationalWiki (so-called):

https://rationalwiki.org/wiki/Limited_hangout

DisorderlyConduct's picture

You're kidding - right?

That's much more complex of an answer than if they simply insert a bit of monitoring code into your O/S. Why all the cloak and dagger BS? There are probably tens of processors in a modern PC that have the capability to be used for nefarious purposes. None of that is documented.

If you take the sum of the hardware, firmware and software running on your desktop, laptop, tablet or phone you'd see that there are many places to hide - whatever. Viruses and Trojans take advantage of this all the time. But since Intel is a big evil corporation, they are conspiring to make a special processor that requires a mystical story to explain so that they can monitor you. LOL. Really? ^_^

bluez's picture

"Why all the cloak and dagger BS?"

Oh, I don't know. Maybe billions of dollars of Bitcoin? Whole entire national elections?

Just little things like that.

DisorderlyConduct's picture

And Intel isn't able to accomplish the same with a spot of code. Like thousands of hackers do every day. They need to do it above board in a special CPU core. That they document in a conspiracy. Ok...

(Steps away slowly, taking care not to startle insane person)...

bluez's picture

Yeah I know. Ignoring this little piece is very important to you, for some reason.

I must be crazy even to mention this Deep Core, right?

Why would anyone in their right mind care?

DisorderlyConduct's picture

No, it's just when people make up stuff and pass it on like it's fact, that makes an already complex world simply chaotic. Some thrive from the self-inflicted chaos, I know. But really, life is bad enough without going and inventing more of it. (To quote Marvin the paranoid android).

At some point, you are placed into a position of having to trust others. For the most part our lives are boring enough that no one cares. No one monitors you or I because, to put it bluntly, we aren't worth the time or trouble.

Now, for a corporation to embark upon a plan to monitor or control people through their computers is not really very farfetched. But to do so in the way that you've presented is ludicrous. For one, there is no such thing as being able to communicate over the Internet in a way that can't be monitored. A core does not give you a pipe to the outside world. I run a packet sniffer as part of my job, just like many do. If this were the conspiracy you propose, one of the thousands of technical people like me would have spotted the traffic.

The truth is that the management facility is provided so that your applications and OS functions are not impacted by housekeeping functions that are required. All code has to run on a core, and having a dedicated one for system overheads is a feature. But i guess it is true, this could be used for bad purposes. Just like every other piece of your PC. Which is my point. Why bother when the whole thing is a sieve anyway?!

Take it from someone with decades on Intel chips. There are better, faster and easier ways to do what you propose. And a big evil corporation is certainly going to know that.

bluez's picture

Well, um, do you own Bitcoin, or vote on a computer?

I have nearly been arrested for protesting against electronic ballot scanners at a voting station.

Keep sniffing those packets.

Bring the Gold's picture

Bluez already crushed you, but it's worth noting he is correct. I remember reading about how among all the various assaults on civil liberties in the first of the Five Terms of the W Bush admin we have had so far, that the government demanded backdoors in firmware/core for all future computers. Some tried to resist and then the story just went away. Bluez just cited it. At the end of the day if you aren't an elite cryptographer your bitcoins are vastly less secure than properly stored PM's on many, many levels. Governments cracking down is an inevitability which will cause price to crash as businessmen and the wealthy get out and only cartels etc use it.

However, were I into holding crypto, my concern would be hackers as I simply do not trust that I have anything like the level of knowledge to stop them other than keeping my wallet offline in a UBS stick. Even then, if I ever want to realize my money I have to connect to the internet at some point and then all the vulnerabilities come surging back. If you are super fluent in crypto (by which I mean computer security) hats off to you and you know who you are and probably can safely store Bitcoin.

A part of being intelligent is understanding what you don't understand and I do not know how to keep my cryptocurrency safe from thieves let alone central banks and governments. Ergo, I missed out on buying Bitcoin when I first became aware of it years and years ago in the single and double digit pricing due to these concerns. Obviously that risk was not worth missing out on the gains and no doubt I missed the boat and it would have been worth at least trying even if they were stolen at those prices. I can admit I didn't see this epic bubble of the ages or I would have tried. Again to people who have navigated this and taken money off the table booking profits in something safe like PMs well fucking done.

Some of my friends did buy in and most of them have lost their coins to hackers or Mt. Gox etc. to all the people making money hats off to you. Thinking that something that consumes as much electricity as a home for a week per transaction and at current rates of expanse will consume ALL electricity generated on earth by early 2020 is a forever thing might not be clear seeing.

Were I smart enough to have secure bitcoins I'd hope I was smart enough to sell a substantial portion for PM's. Bitcoins are doing what PM's should have been doing for quite some time. Yet no real crackdown from the governments. Why? Please don't come back with they can't. That's laughable NSA owns the internet.

NiggaPleeze's picture

 

Actually it's priceless for the NSA and other spooks.  Imagine if you are able to use some radio signal to cause CPUs used in miitary hardware to add incorrectly?  Or just disable them altogether?  Or what if it can just allow someone to remotely (through radio) send instructions for the chip to execute, such as "record all audio and transmit over this frequency or to this IP address"?  If you put your mind to it there are really unlimited options.

Actually it makes a lot of sense to have backdoors on chipsets since then no matter what operating system is running, you can control the computer.  Software is relatively easy to replace.  The hardware/firmware in the chip:  not so much.