[mpholland]

Originally Posted by Samm

Nuland loses control of a Washington coup in Ukraine to replace the political leaders, Kerry threatens Russian troops and orders them out. Then Obama threatens sanctions that would end our roll as reserve currency.
How much longer should the truly stupid be allowed to run out government?
"A senior adviser to Putin said this morning 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 loans to U.S. banks.

As newswires reported the comments from Putin’s senior aide Glazyev, the USD Index fell marginally to session lows and broke below 80.00 before recovering.

Russia could reduce to zero its economic dependency on the United States if Washington agreed sanctions against Moscow over Ukraine, politician and economist Glazyev said, warning that the American financial system faced a "crash" if this happened.

Sergei Glazyev, a senior adviser to President Putin, added that if Washington froze the accounts of Russian businesses and individuals, Moscow will recommend to all holders of U.S. treasuries to sell their U.S. government debt.

Glazyev is often used by the authorities to stake out a hardline stance. He does not make policy but has the ear of Putin and would be aligned with the more hawkish elements in the Russian government and military.

"We would find a way not just to reduce our dependency on the United States to zero but to emerge from those sanctions with great benefits for ourselves," said Kremlin economic aide Sergei Glazyev.

He told the RIA Novosti news agency Russia could stop using dollars for international transactions and create its own payment system using its "wonderful trade and economic relations with our partners in the East and South."

Russian firms and banks would also not return loans from American financial institutions, he said.

"An attempt to announce sanctions would end in a crash for the financial system of the United States, which would cause the end of the domination of the United States in the global financial system,” he added."
http://economictimes.indiatimes.com/...w/31400020.cms

So Glazyev and Russia want to put their own companies into default? Who would that really hurt?

If Russia were to abandon the dollar, what would stop whoever receives those funds (in whatever currency they choose to use) from converting them back into dollars? Nothing, that is exactly what would happen. Again, more pain for Russia than the US.

I think Glazyev is forgetting the state of Russia's own economy at the moment. Their economy would collapse before we felt a thing, especially as Europes dependence on Russian natural gas continues to decline and Russia spends money it doesn't have beefing up production. If they continue down that road the market will flood and prices will drop further.

In my mind (just for you Don) YES, it is bullshit. These proposed actions are just a bunch of meaningless propaganda.