"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.
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.
What more needs to be said? The guy's an idiot.
By the way, Russia holds $138 billion of Treasury debt. That's about one tenth of what China holds. What this guy doesn't understand is that even if they sold everything, the Fed's role as interest rate setter would require that it buy bonds to keep rates where they wanted them to be.
If they want to unload I'll take all the 30-years I can afford off of their hands at 40 cents....
ReplyDeleteAnd Mike I'd wager those on our side in this are thinking the same way... but they then think "that is a risk we have to take" type of thing...
ReplyDeleteThis shows how the current lack of knowledge/expertise on these matters is actually threatening OUR national security....
These falsehoods act to make US less safe....
The NSC needs a quick course in "MMT 101" I'd say and pronto... we cant continue to have idiots in charge over there going all around thinking "the Russians are lending us money!" in cases like this.
rsp,
Matt,
ReplyDeleteFOR SURE our side is wringing their hands over the possiblity of triggering "massive selling" of Treasuries.
Forget about the crash course in MMT. They'd pooh-pooh it for sure. They'd think we were crazy.
But if we had some military connections to maybe get us some access that would be nice.
ReplyDeleteUnfortunately all the people I knew back from teh days of my National Security Seminar are no longer around.
Please please PPPPLEASE
ReplyDeletesell of your treasuries Mr Rusky Tusky !
We need the currency drop, we need the stimulus.
You would undo all the Austerity from today back to the inception of the Austrian school.
Please sell off your treasuries
please
I beg of thee ...
It might even make your ruble and yuan bump up a notch, but I know for a fact you don't like that because your currencies are artificially low to keep your slavs, I'm sorry - more PC : Slaves have to be stuck inside your polluted countries.
That could acctually work, but not this stupid way they imagine.
ReplyDeleteAs of first Putin would reduce export of oil which would skyrocket the price and even reach $200, another thing is dolars that would Russia and China get for Tsy's. What would they with it? Import from USA is only thing they can do with it. That demand would also put more preassure on oil prices which could destroy financials, again.
Just as previous price of $146 triggered deleveraging in USA, it could do it again since private debt is not much smaller then earlier.
$200 oil will inflate other prices too and discretionary spending will suffer and start another round of deleveraging.