Russians Treaten to Stop Using Petrodollar
March 18, 2014 at 12:26 pm #63481JohnyMacParticipant
It looks a shot has been fired over the Administrations bow.
From the economic point of view, everyone should get ready for tough actions from Moscow. Serge[y] Glazyev, the most hardline of Putin’s advisors, sketched the retaliation strategy: Drop the dollar, sell US Treasuries, encourage Russian companies to default on their dollar-denominated debts, and create an alternative currency system (reference currency) with the BRICS and hydrocarbon producers like Venezuela and Iran. Sergey Glazyev
Some interesting stuff. Also check out <ul=
Even if you think the Daily Sheeple or the Testosterone Pit is on the fringe, just think of what would happen if Russia and China decided not to use the petrodollar.
If this happened our current $17T deficit would cause a run on the dollar. Gas would double overnight to be more in line with what other countries pay. Inflation would be double digits within months. The stock market would correct negatively within 14 days. We could only guess what that correction would look like. Some think as much as 50% but certainly an amount equal to the percentage the dollar is trading “at” vs. what it was trading at before the move from the petrodollar.
Bottom-line, a major change to the average Americans life. Some of my friends think this is part of the “plan” hence the movement to DHS, heightened ammo sales, a move towards more gun control etc.
History is in the making as I type, which you will tell your grandkids about not unlike my grandmother telling me about the Great Depression.
March 18, 2014 at 5:37 pm #63482JohnyMacParticipant
Here’s some more not so good news on our economy….
<ul=http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100026831/fire-sale-of-us-treasuries-is-a-warning-of-acute-stress-across-the-world/> The Telegraph wrote:
Somebody is a selling a fistful of US Treasuries. It could be Russia, or China, Turkey, South Africa, or Indonesia, or all frantically selling bonds at the same time for different reasons.
We don’t yet know. All we know is that the US Federal Reserve’s custody holdings on behalf of foreign central banks plunged by $106bn in the week ending March 12, the biggest one-week drop on record.
Russia’s central bank is undoubtedly liquidating reserves at a breakneck pace to prevent a collapse of the rouble, as foreign companies scramble to get all their spare cash out of Russian accounts before the G7 guillotine comes down on the Putin clan next week. It is certainly trying to remove its assets beyond the jurisdiction of the US authorities – though that will not be easy. The SEC takes no prisoners. In the end, the world is more frightened of US regulators than it is of Putin’s tanks or his polonium. Soft power can trump hard power.
A new war not waged with bullets but economic collapse.
March 18, 2014 at 6:35 pm #63483MaxKeymaster
I suspect Putin has done his risk assessment but I wonder what will happen with China as they hold a good deal of our debt?
Trying to trade oil in Euros is one of the reasons Khadaffy got whacked. The other two were gold based pan-African currency and 6M cubic meters of fresh water piped daily to the Med.
Somehow I don’t think Putin is too worried.
March 18, 2014 at 7:08 pm #63484CorvetteParticipant
I don think he is too worried either…
Am still in shock on the misconduct of Nuland et al
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