After writing my piece yesterday, “Who Will Suffer The Most?” the following article appeared on Drudge report. This very short article speaks of the Russians “turning the tables” on the U.S. and basically saying that they may discontinue any business with the U.S. if sanctions are imposed. This would also mean that they will stop using dollars which got Saddam Hussein, Qaddafi and seemingly Chavez into some water that was too hot to survive in. This article was followed by another one in the Telegraph where the author mocks Russia’s ability to ever stop using dollars. He says that Russia could not survive without using dollars and that the world uses dollars by “choice.” Before going any further I would like to state the obvious, IT IS NONE OF OUR BUSINESS anyway!
That said, didn’t I just “wonder” yesterday what Russia and China might do if the U.S. pressed sanctions? “Would they…could they” turn the tables on the U.S. and treat us to our own medicine? What it comes down to really is who will suffer the most. The author from the Telegraph suggests that it would be the Russians, I disagree for several reasons. First and foremost, China has sided with Russia and they also happen to be our “banker.” Also as I wrote yesterday, the Russian people already know hard times first hand, could a global meltdown be any harder on them than what they went through back in 1990?
In my opinion, Vladimir Putin is simply “toying” with the West. He knows, the Chinese know, and yes even you should know if you use a little common sense…the West is still standing only out of “confidence” and nothing else. If confidence somehow broke (or was “broken”), then you have the Humpty Dumpty scenario. To this day, 5 years after the GFC we are treated daily to Washington fingers pointing to the stock market…”See, everything is great, just look at the stock market.” As I have said for over a year now, China can on their own “end the game” whenever they choose and almost however they’d like to do it.
China can simply sell Treasury bonds. They can sell dollars. They can put orders in for gold that cannot be filled…or, they don’t even have to do any of this. All they have to do is refuse to transact any business in dollars. Could Russia tank our system by shunning the dollar? Would they really follow through on the threat of defaulting and selling all of their Treasury holdings? Maybe not, but would the chess playing Putin have threatened this if he did not have Chinese assurances that they will also play this game? I sort of view this situation as “muscle” (Russia) and “money” (China), sort of like a Sicilian operation where Mr. Putin is akin to “Luca Brazzi.”
I ask you this, with respect to imposing sanctions, what exactly can Washington do that would injure Russia? Could they freeze deposits? Does Russia have enough capital outside of their control which if lost, would make them think twice and withdraw from Ukraine? Do we transact enough business with them to make a difference? Is Europe going to say, “No, please don’t send us your natural gas. We’d rather freeze?” One must also wonder what would happen if Mr. Putin in turn asked for payment of said natural gas in gold, how the Germans might respond. “We can pay but we’ll have to wait 7 years until the NY Fed sends us OUR gold back?”
I want to point out that this has a very high possibility of being our “Achilles heel” moment. I say this because those running the circus in Washington know that the gold is gone and running low. Mr. Putin knows this as do the Chinese. In fact, I believe that everyone knows and also that everyone knows that everyone else knows and this is exactly why we cannot impose sanctions. Mr. Putin will do whatever it is that he chooses because he knows that we cannot do anything in return. Nothing militarily nor financially. Is he “bluffing?” I don’t think so because he looks to be actually “re assembling” the old Soviet Union. In my opinion, he is doing this out in the open and daring the U.S. to respond or retaliate because he knows that if we act at all, we end our own charade.
Russia also launched a test ICBM missile yesterday. Why? I truly believe that it’s because of the “dirty little secret” that everyone knows but no one (in the West) wants to admit and few are willing to talk about …we are running and for all intents and purposes have run out of gold. There is also speculation that Saudi Arabia which had stored much of their gold in London has had their stash “borrowed” and even that is now gone. Is this true? Could be but we will know the answer to MANY questions the moment that “someone asks anyone for payment for anything in gold.” We will find out who has it and who doesn’t. We will immediately see a new pricing structure and the “issued” fiat of whoever it is that has no gold …will no longer be accepted. The “dirty little secret” may have been kept secret from the unsuspecting public but it is well known amongst nations. Mr. Putin is a Master chess player…with position and backing, we are playing poker with a jack high and our cards showing. I believe that there will be no “sanctions.” If there are they will be meaningless. I also believe that if assets are frozen it will be viewed as outright theft. No matter how it plays out, please understand that you are watching the creation of a “new world order” in real time. Though it’s not the one envisioned by George Bush back in 1990.
This could be “Check” or “Checkmate”?
I believe this is only the second or third “check” in a series of “checks”. The thing is, “they” (both our foes and those pulling the U.S. strings) know how this will end. The U.S. will be neutered because we have squandered our advantages and power…not to mention our gold.
I have more respect for Putin than I do Obama and for the first time in my adult life (for the past 5 years) I am ashamed to be an American. There is an article on ZeroHedge today stating that the snipers shooting the rioters in Kiev are suspected of being from the new coalition, kind of like the Syrian chemical weapons users being the rebels themselves in order to draw in the US. I find it laughable how Palin and Romney predicted the Ukraine/Russia situation while idiot in chief was clueless and even mocking on the issue, but what is the solution? Seems to me the republicans would be more eager to intervene and I don’t think it is our business. If California decided to annex with Mexico, we’d have our forces there immediately. Who are we to say Russia cannot look after its interests in its own backyard? That was NOT a dictator that was overthrown, it was a democratically elected President!
correct, not our business.
This whole thing it getting terribly convoluted. It’s one thing to understand the financial frauds and the corrupt fiat system, it’s another to add geo-political machinations to the mix. We are starting to see the fracturing of the ‘alternative’ media message, ie. Abby Martin and Greenwald’s accusing fingers pointed at Russia. This is a worrying development, and indicative of how warfare comes into being, splitting opinion along multiple thought lines. IMO, if we lose cohesion with the message expressed in this blog, and insightful people like Paul Craig Roberts, then we are toast.
the problem is, we are a very small voice in a very noisy room.
Thanks to Bush and Cheney we wasted an unknown number of $Trillion$ on the fruitless wars in Iraq, Afghanistan, etc. only to hasten the end of the USD as a reserve currency.
Makes you wonder if that wasn’t the plan all along.
Kinda my thought Bill.
Nobody could be that stupid…not even Bush. That was definitely the plan!
I think so.
I agree with much/most of Bill Holter’s analysis, and thank him for putting that out. However, the comments about Bush wanting to de-stabilize the USD makes no sense to me at all, he was reacting to a threat on his and his families lives and the worst attack on American soil we have ever seen. No one to date has given a shred of evidence that our intelligence agencies were lying about WMD. Those were scary and very unprodictable/unique times, and should be kept in perspective. The failure in Irag was not staying long enough to secure the peace right after the bombings, and nothing more. We should have confiscated their oil to pay for the war like all other war powers in history (including US) have done in the past. Keep up the good work!
Thank you for the compliment on my work Steve. That said, I don’t recall writing that Bush wanted to “destabilize” the dollar. I also must disagree with just about everything that you wrote here, you and I see things differently I guess.
If we look back at the attack of 9/11, and discount the personal tragedy of those who lost loved ones, the real blow to our Nation was what our response to it did to us economically. Our foolish response mired us for years in unwinable conflicts in Iraq and Afghanistan… That was the real victory of those who engineered the attack, and not the attack itself.
true
Everybody is demonizing Russia here in Ann Arbor, Michigan. The muppets have doctors and intelligent people saying the exact opposite of Dr. Paul Craig roberts. So at this point the truth is either Obama cares about democracy(i doubt) and helping humans or Russia is. The Lie about this being promoted on mainstream media must be countered by the truth here. if not these “Washington fools” may blow us all up. so this blog is very important….more so than a silly coin in a box….perhaps we are doing more here than selling coins?
frank
I am sure there is disinformation from both sides (US and Russia), the “shining light of liberty” is dim no matter which government you look at.
Yes it is! Thought controlling governments, the enemy of free men – and freedom of thought – the world over.
Ed Steer posted the quote below on his blog yesterday, and it is so apropos to Bill’s point above.
“It is the absolute right of the state to supervise the formation of public opinion.” ~ Joesph Goebbels
This is what the State in Russia, and the State in the United States, are both doing their best to accomplish. You can call it, “supervising public opinion” or you can call it “indoctrination,” they are one and the same.
Those in the political classes seem to just about be born with a genetic mandate / they cannot abide individual freedoms, they seem to be DRIVEN to force and control…
Bill read an interesting article. According to this article Standard Bank of South Africa are the front runner to take DB’s seat at the gold fixing table. But Standard Bank is busy selling their commodity division to ICBC. If Standard gains the seat the Chinese will be sitting at the table where the gold price is determined.
I saw this also, it makes sense doesn’t it?