Putin Adviser Urges Dumping US Bonds In Reaction to Sanctions

[RonPaulFanInGA]

http://en.ria.ru/business/20140304/188081405/Putin-Adviser-Urges-Dumping-US-Bonds-In-Reaction-to-Sanctions.html

[Mini-Me]

...and since that will hurt the dollar, we come back around to the real reason this conflict started in the first place: Currency wars. Expect Obama to react like bulls in China shops usually do.

[unknown]

"We hold a decent amount of treasury bonds – more than $200 billion – and if the United States dares to freeze accounts of Russian businesses and citizens, we can no longer view America as a reliable partner,” he said. “We will encourage everybody to dump US Treasury bonds, get rid of dollars as an unreliable currency and leave the US market.”

Reading from the US foreign "policy" playbook, this is the cue to start dropping bombs on said nation.

But wait a minute, Russia can actually defend herself.

Hmmm. Now what? :(

[Mini-Me]

Reading from the US foreign "policy" playbook, this is the cue to start dropping bombs on said nation.

But wait a minute, Russia can actually defend herself.

Hmmm. Now what? :(

Bomb Iran instead? ;)

[Seraphim]

Russia tests some missles and Barry pees himself;

http://www.zerohedge.com/news/2014-03-04/stock-rally-stalls-russia-test-fires-inter-continental-ballistic-missile



Reading from the US foreign "policy" playbook, this is the cue to start dropping bombs on said nation.

But wait a minute, Russia can actually defend herself.

Hmmm. Now what? :(

[phill4paul]

http://a.gifb.in/1234525508_ben_stiller_-_do_it.gif

[Mini-Me]

Russia tests some missles and Barry pees himself;

http://www.zerohedge.com/news/2014-03-04/stock-rally-stalls-russia-test-fires-inter-continental-ballistic-missile

I had to chuckle at the cavalier comment on that article that said,
"I am definitely bullish on total nuclear armageddon."

Hopefully not, but man, this whole thing is so ridiculous that I don't know anymore.

[Philhelm]

Reading from the US foreign "policy" playbook, this is the cue to start dropping bombs on said nation.

But wait a minute, Russia can actually defend herself.

Hmmm. Now what? :(

Proxy war!!!!

I'm fairly certain that the U.S. government uses a war flow chart that starts with, "Does the target possess nuclear weapons?"

[Natural Citizen]

Reading from the US foreign "policy" playbook, this is the cue to start dropping bombs on said nation.

But wait a minute, Russia can actually defend herself.

Hmmm. Now what? :(

Well Syria is easier to fiddle with if Russia is occupied with Ukraine.

[aGameOfThrones]

I had to chuckle at the cavalier comment on that article that said,
"I am definitely bullish on total nuclear armageddon."

Hopefully not, but man, this whole thing is so ridiculous that I don't know anymore.


Just wait until Season 4 of Game of Thrones is over and possibly Season 5 of Boardwalk Empire.

[HOLLYWOOD]

The BRIC nations, et al, need to drop the petro reserve dollar and do a gold/PM/commodities backed currency... they should also kick out the occupants in the US spy centers under the cloak of "US Embassies and US Consulates, oh, an buildings called "Annex"

Be nice to see them all dump their US toilet paper... it will be a brutal awakening to all the ass clowns across America that push for; more spending, borrowing, debt insecurity, and inflation. The Central Banking thieves and all their schemes need to be exposed.

[Danke]

http://signalinea.com/this-is-what-will-take-down-putin-achilles-heal-that-he-is-unaware-of/

The Russia today is not the Russia of 20 years ago when every transaction was a cash deal, people spent what they had earned and there were no credit lines or home loans for the average working class person.

Real statistics on this are hard to find but from asking around moscow banking contacts it looks like around 70% of all home purchases are now done with bank financing. I’ve seen this number rocket up almost every year since the late 90′s when it was an all cash market.

Russians are now almost as credit reliant as their Western counterparts.

What would happen if the credit markets were to be frozen and simultaneously both underlying asset values and the currency itself are in precipitous decline? The Russian government will have no choice but to inflate their way out of what could become the social unrest that leads to ousting of the Putin regime.

The Russian government itself is sitting on sizeable and diverse foreign FX holdings but with inevitable bond market chaos and much higher rates alot of this would be eaten up at a rapid pace. But in general the Russian government wouldnt be that bad off at first.

But the average Joe that holds bank-financed real estate, equities, income in rubles…well he’ll be wiped out. ..and pissed.

The question to me isnt whether or not it will happen this way. I’m fairly certain of it. The question is whether Putin will be able to deflect his population’s anger away from the fact that he destroyed his economy with his incursion into Ukraine and convince them that it’s the evil western aggressors that caused it all..or will Russians see it all clearly for what it is and come after him.

If economic sanctions are put on Russian exports than i’d say he would lose the oligarchs’ support and the oligarchs using their influence to get the population on their side to oust Putin. But this would only happen after a long propaganda war that would probably see most of these guys in prison before it’s over.

Alot of questions here but it’s safe to say Putin will be gone within a year or so and good time to buy moscow again..

I’ve mentioned before that i have a Russian CB contact that told me almost 18 months ago that they plan to close all but 4 Russian banks over the next 3 years.

Sberbank, VTB etc will run the show. The high interest rates of 7-10% will be a thing of the past.

Now look at this.. Maybe conspiratorial but think on it for a minute.

1. Consolidate the banking sector into his those that are loyal to Putin.

2. Create a credit bubble. November FT article where Russian CB warns on customer debt levels

3. Pop the Bubble

4. Collect the spoils

5. But up Russian assets for pennies on the dollar

Anyway that cycle has worked for the western banks for 300 years so why not the Russians.

[Madison320]

Reading from the US foreign "policy" playbook, this is the cue to start dropping bombs on said nation.


I'm imaging a different scenario. I can see Janet Yellen meeting with Obama and telling him to stay the hell away from the Ukraine.

[Mini-Me]

http://signalinea.com/this-is-what-will-take-down-putin-achilles-heal-that-he-is-unaware-of/

The Russia today is not the Russia of 20 years ago when every transaction was a cash deal, people spent what they had earned and there were no credit lines or home loans for the average working class person.

Real statistics on this are hard to find but from asking around moscow banking contacts it looks like around 70% of all home purchases are now done with bank financing. I’ve seen this number rocket up almost every year since the late 90′s when it was an all cash market.

Russians are now almost as credit reliant as their Western counterparts.

What would happen if the credit markets were to be frozen and simultaneously both underlying asset values and the currency itself are in precipitous decline? The Russian government will have no choice but to inflate their way out of what could become the social unrest that leads to ousting of the Putin regime.

The Russian government itself is sitting on sizeable and diverse foreign FX holdings but with inevitable bond market chaos and much higher rates alot of this would be eaten up at a rapid pace. But in general the Russian government wouldnt be that bad off at first.

But the average Joe that holds bank-financed real estate, equities, income in rubles…well he’ll be wiped out. ..and pissed.

The question to me isnt whether or not it will happen this way. I’m fairly certain of it. The question is whether Putin will be able to deflect his population’s anger away from the fact that he destroyed his economy with his incursion into Ukraine and convince them that it’s the evil western aggressors that caused it all..or will Russians see it all clearly for what it is and come after him.

If economic sanctions are put on Russian exports than i’d say he would lose the oligarchs’ support and the oligarchs using their influence to get the population on their side to oust Putin. But this would only happen after a long propaganda war that would probably see most of these guys in prison before it’s over.

Alot of questions here but it’s safe to say Putin will be gone within a year or so and good time to buy moscow again..

I’ve mentioned before that i have a Russian CB contact that told me almost 18 months ago that they plan to close all but 4 Russian banks over the next 3 years.

Sberbank, VTB etc will run the show. The high interest rates of 7-10% will be a thing of the past.

Now look at this.. Maybe conspiratorial but think on it for a minute.

1. Consolidate the banking sector into his those that are loyal to Putin.

2. Create a credit bubble. November FT article where Russian CB warns on customer debt levels

3. Pop the Bubble

4. Collect the spoils

5. But up Russian assets for pennies on the dollar

Anyway that cycle has worked for the western banks for 300 years so why not the Russians.

Western banks may attempt this, but it may not work this time. If worse comes to worse, the Russians could turn to the Chinese for lending, especially considering this whole thing is happening as a result of Russian and Chinese plans to replace the petrodollar altogether (which avoids the plunging currency problem too). To corroborate this, Putin knows that dumping US bonds would hurt the dollar, which would hurt the reserve currency underlying the western banks in the first place. Even aside from banker retaliation, that's self-defeating for a country intent on continually borrowing from western bankers. In other words, if he does this, it could indicate Russia is already prepared to forsake those banks anyway. (...and as far as the old money banking families are concerned, I'm sure they have cushy escape plans for realigning if it comes to that.)

[AuH20]

The U.S. wants to be the last one standing after a global currency crisis but the BRICs aren't playing along. I think we may see war before that is allowed to happen.

[Mini-Me]

The U.S. wants to be last one standing after a global currency crisis but the BRICs aren't playing along. I think we may see war before that is allowed to happen.

That's what I'm afraid of. If there's a World War III in our lifetimes, the larger conflict underlying current events is going to be the most likely cause. The US simply isn't going to allow other countries to compete with the petrodollar on economic terms and sink it; our illustrious leaders would prefer going down kicking and screaming so everybody loses except the usual suspects who always profit from this kind of garbage.

[politics]

Bomb Iran instead? ;)

I would be laughing but, I guess some hawk flying around may think that indeed a retaliation action would be a go ahead in Syria for instance.

[Dianne]

They are just getting ready for the dollar crash, and will blame Russia/China for it; rather than the Feds and Banksters. I don't believe anything I read in the news.

[surf]

$200b? that's nothing....

though probably enough to piss China off

[Mini-Me]

$200b? that's nothing....

though probably enough to piss China off

Judging by all the gold they've been buying, they might be thinking a lot of their US debt is a lost cause anyway...but you make a good point. While China and Russia both need a petrodollar replacement, China probably doesn't want to go down this road until they trade as many dollars and Treasuries as they can for something that will maintain value after a major financial or military confrontation begins.

[DamianTV]

Not all wars are fought with Tanks and Bombs. This is Economic Warfare.

[Zippyjuan]

Reading from the US foreign "policy" playbook, this is the cue to start dropping bombs on said nation.

But wait a minute, Russia can actually defend herself.

Hmmm. Now what? :(

Bluster.

"We hold a decent amount- over $200 billion"? As of December, 2013, they had $138 billion which represents about two percent of all foreign held US Treasuries and seven tenths of one percent of all US Treasuries. . http://www.treasury.gov/resource-center/data-chart-center/tic/Documents/mfh.txt Investors have moved big into US Treasuries in the last few days.

http://www.foxbusiness.com/markets/2014/03/03/treasury-prices-soar-on-escalation-in-ukraine/


Treasury Prices Soar On Escalation In Ukraine

NEW YORK – Treasury prices rallied Monday as investors moved money into haven assets amid escalating conflict in Ukraine. The U.S. and its allies said they would punish Russian President Vladimir Putin for his country's occupation of Ukraine's Crimean region, according to The Wall Street Journal. The benchmark 10-year note yield, which falls as prices rise, was down 4.5 basis points at 2.615%, but dipped as low as 2.592% in early trade, according to Tradeweb. The 30-year bond yield fell 3.5 basis points to 3.559% and the 5-year note yield fell 3.5 basis points to 1.474%. Stock futures tumbled as gold, oil, and the dollar also rose.

Meanmwhile the Russian Ruble is tumbling.

[ctiger2]

Russia's getting ready to default on their debt...again.


https://www.youtube.com/watch?v=pV0cWtiY9Y8

https://www.youtube.com/watch?v=pV0cWtiY9Y8

[oyarde]

http://en.ria.ru/business/20140304/188081405/Putin-Adviser-Urges-Dumping-US-Bonds-In-Reaction-to-Sanctions.html

Who buys US bonds ? LOL

[Natural Citizen]

Who buys US bonds ? LOL

Yeah, right. Russia, as it is, has been investing billions into U.S. technology infrastructure. I had a thread on it some place around here.

Nobody pays attention though. :cool:

[belian78]

They are just getting ready for the dollar crash, and will blame Russia/China for it; rather than the Feds and Banksters. I don't believe anything I read in the news.
More like this is orchestrated between all three countries to help usher in a new international currency. I've said for the longest time that once the players were in place the USD would be dumped, and scare tactics would be used to push US citizens into an international currency to 'save at least some of their savings and retirement'.

[oyarde]

More like this is orchestrated between all three countries to help usher in a new international currency. I've said for the longest time that once the players were in place the USD would be dumped, and scare tactics would be used to push US citizens into an international currency to 'save at least some of their savings and retirement'.

Best I can tell , that would have little effect on my savings , as it is not in FRN's.