Putin Adviser Urges Dumping US Bonds In Reaction to Sanctions
Source: RIA Novosti
MOSCOW, March 4 (RIA Novosti) An adviser to Russian President Vladimir Putin said Tuesday that authorities would issue general advice to dump US government bonds in the event of Russian companies and individuals being targeted by sanctions over events in Ukraine.
Sergei Glazyev said the United States would be the first to suffer in the event of any sanctions regime.
The Americans are threatening Russia with sanctions and pulling the EU into a trade and economic war with Russia, Glazyev said. Most of the sanctions against Russia will bring harm to the United States itself, because as far as trade relations with the United States go, we dont depend on them in any way.
Glazyev noted that Russia is a creditor to the United States.
"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.
Read more: http://en.ria.ru/business/20140304/188081405/Putin-Adviser-Urges-Dumping-US-Bonds-In-Reaction-to-Sanctions.html
jakeXT
(10,575 posts)China Cuts Treasury Holdings Most Since 2011 Amid Taper
http://mobile.bloomberg.com/news/2014-02-18/china-cuts-treasury-holdings-most-since-2011-amid-taper.html
OKNancy
(41,832 posts)and I was glad to read it was just a personal opinion and not really "official".
Also, according to another person quoted in the article it would hurt the ruble.
So, it sounds like bluster to me.
tomm2thumbs
(13,297 posts)Putin just squandered billions on the Olympics. No doubt they are broke. What better way to raise money than to play 'hostage taker'... even if emergency world funding flows into Ukraine, it technically flows back to Putin through commodities and corrupt Ukrainian officials. This may be much more than meets the eye.
Perhaps Putin thought he could pull a world-scale hostage/extortion situation not unlike what North Korea does every now and again to get money from the West. I think sanctions and collapse of the Ruble may just be the tipping point for Russia to finally kick Putin out and have a new Russian Revolution against its stupidly autocratic leader.
Time for the people to rise up against the Putin
RobertEarl
(13,685 posts)Putin's Russia is number one in oil pumping.
Russia is not broke. Gas prices, you may remember, have gone from $1.50 a gallon ten years ago, to over $3 now. I think when Bush looked into Putin's soul, he saw another oil man who would love to jack prices. Because that is what happened shortly thereafter.
Russia is swimming in cash due to high oil prices. Like Exxon is.
tomm2thumbs
(13,297 posts)the countries devouring it weren't buying it on credit and bitcoin
<g>
RobertEarl
(13,685 posts)Russia can not afford to quit selling its oil. So all of us are, in a sense, over the barrel. Frankly, it is why we seek peace. Because money into the coffers of all those who control the oil is the grease that keeps peace running.
Saw another post about how the Ukraine owes Russia a few billion for fuel. It is a debt not to be sneezed at. How can Russia collect?
tomm2thumbs
(13,297 posts)posting a link:
http://finance.yahoo.com/news/aide-putin-makes-stupidest-threats-090338005.html
Sounds like oil is their only band-aid and even that is faltering
hostage grabbing might be more lucrative
Real gross domestic product growth has already slowed from 5.1 percent in 2011 to just over 1 percent in 2013. Car sales fell by 5.5 percent in 2013, despite the Russian government's introduction of subsidized auto loans.
If that weren't bad enough, European demand for natural gas -- about 30 percent of which comes from Russia -- has been steadily falling since 2010. Additional supply could come on line in the coming years from the U.S. and Israel at the same time as Russia expands its own production capacity. The net effect could be a glut that would lower prices and further reduce Russia's access to hard currency.
Meanwhile, world oil prices have been flat for years, while Russian production costs have rapidly increased. Some analysts think Putin's recent adventurism in Ukraine has been an attempt to distract his domestic constituents from these unpleasant economic prospects.
hack89
(39,171 posts)pampango
(24,692 posts)that if the United States were to impose sanctions on Russia over Ukraine, Moscow might be forced to drop the dollar as a reserve currency and refuse to pay off any loans to US banks.
According to this (Russian) report, a senior Kremlin source said that Glazyev was expressing a personal opinion and not speaking in his capacity as a presidential adviser."
http://www.theguardian.com/world/2014/mar/04/ukraine-crisis-shots-fired-crimea-airbase#start-of-comments
Probably like US politicians who use "advisers" to put certain messages out there. Then the politician can "distance" himself from the now-deemed-to-be "personal opinion" of the adviser. The statement is out there, as intended, but the politician has more room to maneuver than if he had said it himself.
yellowcanine
(35,699 posts)And financial markets will take this as a further sign that the Russian economy is not in capable hands and respond accordingly by selling Russian investments.
warrant46
(2,205 posts)geek tragedy
(68,868 posts)they'd be more than happy to get them at a fire-sale price from the Russian government.