Tuesday, March 4, 2014
"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."
Many of us have been wondering when one the of the large holders of U.S. Treasuries was going to brandish a freshly sharpened sword and threaten to swing it at the Achilles' Heel of the United States.
The quote above is from an advisor to Putin in response the the threat of the U.S. implementing economic sanctions against Russia. You can read the article from a Russian newspaper here: (sourced from Zerohedge) LINK
While I highly doubt that Russia will actually dump Treasuries as a form of financial war against the U.S. - at least this time - the Putin advisor just made it clear that several powerful countries, with interests that often conflict with U.S. imperialistic behavior, hold a weapon of defense that is the equivalent of a financial nuclear bomb.
What's most fascinating about watching the Ukraine events unfold is the shamelessness with which the U.S. attempts to impose its will on Russia for defending its own interests, and yet the U.S. wantonly goes into countries like Iraq and Libya, assassinates the leader, overthrows the Government and installs its own puppet. It's truly amazing, if not utterly Orwellian, the way in which the major U.S. media outlets have conveniently forgotten about the Victoria Nuland tape that Russia released discussing the U.S. role in destabilizing Ukraine in the first place.
The biggest problem for the U.S. is that, despite the progressively fraudulent Government reports to the contrary, the U.S is spending far more everyday to keep the lights on than it takes in to cover those expenses. Watch this year as the spending deficit increases dramatically. We'll soon understand why the Obama Government pushed so hard to remove entirely the debt ceiling limit.
Unfortunately, it is becoming increasingly apparent to anyone who examines the facts which belie U.S. Government pomp and circumstance that, short of unleashing nuclear weapons, the U.S. is only capable of bringing knives to a gunfight.
Posted by Dave in Denver at 8:39 AM