IMF Says Europe Crisis Escalating, Needs External Assistance; Russia Will Use Proceeds From Sale Of US Treasurys To Help Europe

Tyler Durden's picture

And so risk assets go to the OFF position following the latest statement from the IMF's Christine Lagarde, who until very recently was France's FinMin, and thus personally responsible for the current economic crunch:


Well, we know the UK is now out, courtesy of idiotic statements such as this one by Christina Noyer. So who will step up? Why Russia it seems.


Why's that? Because like China (more on that in an upcoming post), Russia just dumped US bonds for the 12th straight month and instead both Russia and China are now focusing on making Europe their vassal state. So now we know where the money is coming from - sales of US debt of course!

Source: TIC

Is the US quietly becoming increasingly isolated in global affairs?

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Jay Gould Esq.'s picture

Well, Col. Putin's pledge has at least re-ignited the capital gain Cold War: the S&P is now only up 3, as of this writing, and sinking like a lead babushka in the Black Sea.

Stoploss's picture

I will go ahead and throw in twenty dollars also.  Twenty billion should last them about a day.

gojam's picture

Pretty close Stoploss.

The ECB has a 20 billion Euro limit a week for EZ bond purchases.

Taku's picture

Euro elites say bail us out to extend and pretend or you're screwed. As if doubling down never makes it worse. If you keep your hopium in them, really, it's the only logical way to go with all the record shopping sales, great home deals, and don't you just love seeing all those green shoots?

Ahmeexnal's picture

Meet the eurozone's new sugar daddy: Vladimir Putin.

Eally Ucked's picture

He will provide EU with sibirian pine dildo with self exploding load with orgasm sensitive sensors. 

Mountainview's picture

After the recent kicks of European leaders after the Russian elections I expect some gunpowder in the cigar! 

spiral_eyes's picture

America isolated herself when she took herself off the gold standard and decided to enjoy a free lunch at the worlds' expense through printing shitloads of money.

narnia's picture

that's subjective morality.  the world wanted a piece of US education, products, ingenuity...  and some begged Americans for protection.  

every country in the world with a central bank has played the same stupid con game.  i'm not shedding a tear for any foreigner who chokes on our fiat.

pan-the-ist's picture

You no doubt also believe the consumers are to blame for the MBS crisis.

narnia's picture

consumers are partially to blame for the MBS crisis, but that has nothing to do with whether or not foreign central banks issuing paper money are morally superior to the Fed.

john39's picture

either Russia has some internal divisions working against each other, or, Putin is screwing with U.S. plans to engineer a euro collapse to prop up the U.S....

Doubleguns's picture

Russia wants to ensure the EZ has enough money to buy gas for the homes through the winter. They do not want to be stuck with all that gas if EU has no money. Self preservation is what this is about and a poke at the USA to go with it. They got a twofer.

Nussi34's picture

The USD 20b is the bribe for Burroso & "Van who" for getting Russia in the WTO!

walküre's picture

Germany+France+Italy+Spain+Switzerland+Russia+China+Iran vs USA+UK+Israel

Euro vs USD

America's days to live off the export of debt are over. The days of the reserve currency are coming to an end as well. The fact that so many nations need to trade in the currency of one nation (USD) is hurting them. It's blocking trade, it's blocking liquidity. Swap lines are the crack cocaine to the beaten down street hooker.

Some withdrawal will give the world a chance to shake the dependency.

Ahmeexnal's picture

Euro is over. China doesn't need it. Russia doesn't need it, the ME doesn't need it.

No need for the BRICS to directly punish the USD, as by design once the euro spirals into hyperinflation, the USD will soon follow.
All this is just talk so the BRICS can accumulate more real assets with which to pick up bargains in the eurozone/US/Canada/UK/Australia/Japan in the post-collapse blowout sale.

sullymandias's picture

Frickin euro types should use their own frickin paper to paper over the frickin mess. Not Russia, not China, not US, not IMF, and no combination of them, is ever gonna print enough money to solve their debt problems. Either they print Euros, or they print Drachma, Lira, and Peseta. Whats it gonna be?

If they mess up in this little game of chicken we will end up with a full-on global collision with deflation.

Uchtdorf's picture

Whoever hits the down arrow on your post is having a hard time accepting reality.

Uchtdorf's picture

Guess I deserve THOSE down arrows.

clones2's picture

Thank goodness we can print our own money...

SeverinSlade's picture

Until of course the rest of the world refuses to accept USD as payment.  Then we be fucked.

Dr. Richard Head's picture

It seems to me that the rest of world IS refusing to accept the USD as payments. Bond market first, capital and raw material goods next.  The chart in this article implies that indeed the Fed is purchasing US debt, as China and Russia dump it.  WEEEEEEEEEEEEEEEEEE!!!!!!!!!!!!!!

Comay Mierda's picture

USD currency collapse coming soon

had to brush up on the Andrew Maguire interviews last night.  the gold/silver price suppression scheme is the only thing holding up this house of cards.

I forgot he and his wife got hit by a car the day after he revealed JPM's price suppression techniques.  The JP Morgue is a bitch

sullymandias's picture

JPMorgue is totally mob. Oh, they wanna take silver delivery and we don't have it? Let's set up MFG with a bunch of bad derivatives trades, weasel all their (small player, mostly long) clients positions into those bad trades, bring down MFG and force those trades to unwind, JPM reaps the profit from that, plus MFG client positions are destroyed, even fucking clients "eligible" silver goes to the Morgue. And as an added bonus, anybody long on the COMEX with any intention of taking delivery, figures out they need to get their physical elsewhere, so more longs pull out of the COMEX bringing paper metal prices down even farther. Any rapper who likes to call themself a "thug" oughtta check out the Morgue and rethink it.

youLilQuantFuker's picture

Yea right.

Funny thing is how much of the Russian sale of US debt comes full circle right back into US debt?

NotApplicable's picture

Likely leveraged at each step, too.

Popo's picture

Even funnier that it's a drop in the bucket.   $20B will do exactly nothing. 

Cognitive Dissonance's picture

The good news is that all that (new) fiat will float to the surface of the exisiting sea of worthless fiat. Then again, most turds also float so..........

I am a Man I am Forty's picture

Good, let interest rates go up.

CPL's picture

Exactly.  Let them go to where they should be, well and over 20%

Uchtdorf's picture

Musical chairs. Whoever is caught holding US Treasuries when the music stops, loses.

LawsofPhysics's picture

So then that would be the vast majority of pensions and 401ks. 

Dr. Richard Head's picture

Bingo, bango, boingo.  401k holders tend to bitch at union pension (because of the math behind the ponzi), but fail to acknowledge their Mutual Fund holdings are nothing more than worthless Treasury IOUs. 

Dcheeth2's picture

Roll the tanks baby!!

QQQBall's picture

Someone is buying it...

LongBalls's picture

Exactly. Unfortunatley they seem to be from the Caymen Islands which does not exactly boost my confidence.

CPL's picture

You noticed that as well...just like the TARP crap all over again.

vegas's picture

No worries, the Excrement Pile Known as the Bernank will monetize everything and things will be fine. Move along, no story here.

Global Hunter's picture

Why does Russia own any USTs?  

B-rock's picture

...So they can dump them. 

Comay Mierda's picture

to put their iron fist around uncle sam's ballsack

Comay Mierda's picture

all your sovereignty are belong to us

pods's picture

So they are going to fix a trillion+ Euro problem with 20 billion?



B-rock's picture

Hey neighbour, your house is on fire... Let me make you a cup of coffee...