Word War Two: After Calling Bernanke A "Hooligan", Putin Now Says America Is "A Parasite" Living Off The Global Economy

Tyler Durden's picture

Three weeks ago Putin called Bernanke a hooligan. Since that remark came from the (allegedly) largest oil producing country in the world, it provoked nary a peep from America's foreign department. Today, he decided to ratchet up the rhetoric, and in a speech to a Kremlin youth group told his listeners what the bulk of the rest of the world thinks of America: ""They are living beyond their means and shifting a part of the weight of their problems to the world economy," Putin told a Kremlin youth group while touring its summer camp north of Moscow. "They are living like parasites off the global economy and their monopoly of the dollar."" Russia has not made its distrust of America clear in the past, and while others (ahem China) have been jawboning about selling Treasurys even as they continue buying US one-ply paper, Russia has been actively dumping its Treasury paper to the lowest in years. The reason for the unprovoked outburst? The insanity in Congress. "Thank god," Putin said, "that they had enough common sense and responsibility to make a balanced decision." The former KGBer's solution? Other, and more deserving, reserve currencies.

From Reuters:

Putin, who has often criticized the United States' foreign exchange policy, noted that Russia holds a large amount of U.S. bonds and treasuries.

 

"If over there (in America) there is a systemic malfunction,

 

this will affect everyone," Putin told the young Russians.

 

"Countries like Russia and China hold a significant part of their reserves in American securities ... There should be other reserve currencies."

Well, if Russia and China are so worried about the USD, perhaps it is time they finally pool their resources and release a joint currency: perhaps the Rubimbi? Or the Yuable? After all, instead of bitching constantly, just offer the global capital markets an alterantive and the market will give a thumbs up or down. Frankly, at this point any paper that is backed by something, anything, crude, copper, underground rivers, SS-30 rockets, bubble gum, or even bananas will likely fare much better than the dollar. It will also achieve the goal that the Chair "hooligan" Satan is pursuing: namely to kill the reserve currency and give American bankers a second chance at multi-billion bonuses, unencumbered by the chains of trillions in worthless RMBS on their books.

Alas, we don't see that happening for quite a while, which is why the world will continue reorienting its flight to safety to the one "tradition" that continue to appreciate despite Bernanke's continued confusion over how a yellow metal which has no cash flows can increase in value over his currency day after day after day.

And for those who claims that Russian defaulted 13 years ago, so Putin should just shut the hell up, we can only say: yes - which is why the Russian debt/GDP now is where it is.

Perhaps it is time America thought about doing the same. Oh wait, the Status Quo would have to actually find some productive jobs to do... Never mind.

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Cleanclog's picture

Well, Putin isn't wrong.  Oil and gold can be the "reserve currencies".  In some ways they already are, but the storage and exchange of the oil is problematic.

Landotfree's picture

He is completely wrong, in a credit/debt global system without the US right now it collapses.   Japan has been sucking off the world for 20+ years, why?  Because they are not able to create the needed credit/debt to support their system.

 

Once you go down the road of credit/debt system with attached interest, it is just a matter of time before it collapses.  Putin is completely wrong.

TK7936's picture

The question isnt who colapses -thats everyone. The question is who has the capability to recover and thats more Russia than US now.

InconvenientCounterParty's picture

not so sure about that.

Putin's shiny dome is under Bernake's wingtips. He's just pissy about it. The west is their favorite customer.

Post wipe-out, the US has a number of advantages over Russia and Japan and China.

BTW, with crude trading for $, this ponzi can still run for years.

 

Spirit Of Truth's picture

No one here gets it.

I like this part: "The former KGBer's solution?"

Do you really believe Putin and his cohorts are "former KGB"?

PLEEEEZE!!!

Don't fix what's not broken is their mantra.

These a-holes think they are God!

http://thespiritoftruth.blogspot.com/2011/01/historical-epiphany-russias...

I disagree.

http://thespiritoftruth.blogspot.com/2010/04/good-friday-real-face-of-je...

http://www.youtube.com/watch?v=tCflJJbliew

Arrogant d&cks...

AldousHuxley's picture

This is how Putin responds to criticism "shut up or you will die"

http://www.youtube.com/watch?v=dEXF-TIJ-e8&feature=related

 

This is Putin making deals "sign or you will die":

http://www.youtube.com/watch?v=UMlsbB33QSc&feature=related

 

This is Putin's romance:

http://www.youtube.com/watch?v=53eF1-yX_lw

 

This is Putin practicing for foreign affairs "resolution":

http://www.youtube.com/watch?v=bH85R7wO1QM

 

This is Putin's party (look at that smile at 0:15):

http://www.youtube.com/watch?v=Cm-4_G0koxU

 

This guy's got KGB I-killed-so-many-I-lost-count written all over him

Fish Gone Bad's picture

What the United States did today was what will soon be referred to as "an economic crime."  I am surprised that a man as well spoken as Putin did not refer to the House and Senate as a bunch of economic criminals.  Honestly, when is the United States going to live within its means?  The world is a scary place.  Today it got a bit scarier.

TaxSlave's picture

Putin's advisors must have been reading ZH!

magpie's picture

It's simple, he just has to create oil or natgas denominated IOUs.

prole's picture

Who would trust a Ruskie IOU? I would rather have green ponzi chips than a "race to default" Russian coupon.

LMAO's picture

@ Cleanclog

True he might not be wrong, but he still is Putain.

midtowng's picture

Putin is right, America is living like parasites on the world economy, AND he should put his money where his mouth is by pushing for an alternative reserve currency.

   If no one does anything to push the world (kicking and screaming) towards a better solution then no one will act until the collapse finally hits.

Long-John-Silver's picture

We are Hooligan Bitchez!

Max Hunter's picture

We've been called worse, by better..

Max Hunter's picture

You could make a case that some are terrorized by the Tea Party goals.. Unfortunately, the military industrial complex is not one of them.. Use to be.. but when the take over happed by the neocons, well... we all knew how that would play out.

WSP's picture

What good will that do?  The media is intellectually dishonest, and by extension, the majority of the public are deceived.   Combine that with the fact that progressives in Washington will do or say whatever it takes with no regard for civility or honesty and what do you have left?  Seriously?  Do you really think an apology means anything?  The media won't even report it unless it is the other way around.  Face it people, this country is finished!

Real Estate Geek's picture

sounds about right.

<sigh>

rocker's picture

Tea Party is on Putin's side. Call the tp's what you want.

MobBarley's picture

I feel a couple pints of Black and Tans and some traditional Gaelic singing coming on

followed by chair smashing and Lawry stomping outside

 

P Rankmug's picture

If Russia wants to get a war on it needs to get in line behind Syria, Iran, North Korea, Venezuela, China, and California.

wannabe traitor's picture

LOL!!!  I just R Kelly'd myself after that!!

Cursive's picture

I somewhat agree with him except that it's more of a symbiotic relatonship than parasitic. Everybody's got some shit on their doorstep and Putin/Russia have little room to talk. He's jealous because our bankers are better at global dominion than his party was.

AnAnonymous's picture

It is simply a matter of magnitude when it comes to Putin and Russia.

But the story of everybody's got some shit on their doorstep, waoooo...

In this US world order, exportation of shit is the Smithian paradigm.
Export the bad consequences of your actions, keep the good consequences.

And countries at the bottom have to deal with their own shit and shit they are forced to accept coming from the exterior...

toady's picture

...export the bad...keep the good...

Much like socialise the losses, keep the profits.

Glad to see the government learned something from wall street. Or is that the other way around?

john39's picture

his party and the russian revolution was created by the same group that controls the bank.  all coming out now. 

WallStreetClassAction.com's picture

True, and I hate Putin to no end, but fck he is right! America could not last without its arch nemesis 15 years and is about to follow a similar path to ruin. So, no winners here.

jo6pac's picture

Russia and China already trade without using $ so may be they will some day.

zerozulu's picture

Don't forget to add IRAN in your list.

kito's picture

shouldnt that read world war III? or cold war II?

Tyler Durden's picture

Re-read the first word of the title.

cossack55's picture

Damn those plays on words for being so tricky. Damn those Sovi......Russians for being so correct.  BTW, who exactly won Word War 2?

israhole's picture

" BTW, who exactly won Word War 2?" cossack55

 

The Jews, or course.

 


SwingForce's picture

Hudson said it, nobody reads.......(maybe they can't).

kito's picture

sorry tyler, im an ass, too many hours in front of the screen today. i deserve the junks.

andybev01's picture

Red flag for overt supplication.

Get off your knees.

TSA Thug's picture

No one deserves junks Kito. They are demoralizing and create an atmosphere of groupthink. It's the easiest way to create converts.

I too thought it said World War.

andybev01's picture

Excuse me ladies but this is Fight Club if you recall.

*and that makes 2 of you who can't read*

TSA Thug's picture

It use to be fight club years ago. Now it PC fight club, watered down by the musings of the cog dis. Don't hurt my feelings or scare me, ok comrade. Groupthink me!

prole's picture

Get back in Character you grandmother groper.

Bolweevil's picture

You're unfunny at best. Trollish with no constructive input beyond inspiring my complete, salivating hatred for all things TSA and what it represents. I'd go to the pokey to sock you in your halitotic face while you're in your skin tight, blue polyester monkey suit; sweating your ass off while feeling up the populace because of the, "killer health plan". Groupthink that.

Votewithabullet's picture

What a sniveling cunt. You have hatred for ppl trying to save innocents? If you want to go to to the pokey so bad y havnt you smacked anyone yet cunt? If you hate the head house man then say it simple fucking useless racist.  

Bolweevil's picture

Russian credit will be downgraded by morning. I know I know, in soviet Russia credit rates you.

WallStreetClassAction.com's picture

And in America, you rate your credit! Ha ha ha ha

Yancey Ward's picture

Putin is correct, we are parasites, but Russia is free to sell their oil in any currency of exchange they wish.  Now, why don't they?

AnAnonymous's picture

He enjoys the freedom of the extorted. Extorted are free to walk away anytime they want. No backlash from the extorter. After all, the extorter does not live off the extorted so why should he care?

US world order.

Led7Zepp's picture

Iraq and Libya tried to sell their oil in other currencies.  What happened to them?  So, what is this "they are free" to do this and that business?

AnAnonymous's picture

Ummmm, Mr. Putin, considering his past, made me think of the US middle class, that schizophrenic class by nature.

The US are first and most the best extorter of the weak and the farmer of the poor the world has ever known.

Mr.Putin does not oppose extortion and farming. Or, like a true US citizen (he only misses the ID card), he only opposes them when he is the extorted and the farmed.

The Russian, there are the middle class on the world scale. They do not oppose extorting poorer countries, on the contrary. But they oppose being extorted by the new nobility of the world, the current upper class, the US citizens.

US citizenism is spreading fast. Mr. Putin to become the new George Washington, opposing selectively misdeeds according to his own benefits.

Such is the US world order.