View Poll Results: Can Russia financially hurt the USA?

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  • Yes, Russia has the ability.

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  • No, it probably won't have an impact.

    8 42.11%
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    4 21.05%
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Thread: Russia warns could 'reduce to zero' economic dependency on US

  1. #1
    Light△Bender

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    Russia warns could 'reduce to zero' economic dependency on US

    Is this a bunch of threatening rhetoric, with no legs?


    Russia warns could 'reduce to zero' economic dependency on US

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

    According to the below article, it's highly improbable.


    So Russia is going to abandon the dollar as a reserve currency? Good luck with that one – Telegraph Blogs

    I've written before about the inevitability of decline for the dollar as the world's major reserve currency, but this process is on a very long fuse and basically depends on China eventually displacing the US as the world's largest economy.

    That's not going to happen any time soon. In the meantime, the dollar remains overwhelmingly the currency of choice for international transactions, and is the middle currency in virtually all transactions. For instance, if you were looking to buy Singapore dollars with Russian roubles, you would typically first buy US dollars with your roubles and then swap them into Singapore dollars. The US dollar is also the pricing currency for virtually all commodity transactions, including crucially, oil. Repeated attempts to set up alternative pricing arrangements have all come to nothing.

    Then finally, more than 60 per cent of the world's central bank foreign currency reserves are held in dollars. The euro, the next biggest reserve currency, comes nowhere close. This is not about to change. In other words, Russian threats are as vacuous as Western ones. Hey ho.
    Einstein, "science without religion is lame, religion without science is blind."

  2. #2
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    Re: Russia warns could 'reduce to zero' economic dependency on US

    Well, that's a measured response from Russia. Of course they would and could replace any transactions that involved the US and Russia in the light of sanctions. Especially since any sanctions would not come from a group of nations but unilaterally from the US. They could indeed hurt the US a bit by abandoning the dollar as trade currency for them and their trdaing partners/ Wouldn't ruin us, but wouldn't make our future of mholding the default trading currency any brighter.

    Thank god China is the decider here. If it were any other nation we'd be boned. The moment China decides the default currency is no longer the dollar, the US falls to it's massive debt.

  3. #3
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    Re: Russia warns could 'reduce to zero' economic dependency on US

    Any major player in the global economy can cause issues for others but, there are a finite number of producers and consumers at any one time
    32 “Whoever acknowledges me before others, I will also acknowledge before my Father in heaven. 33 But whoever disowns me before others, I will disown before my Father in heaven.
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    Re: Russia warns could 'reduce to zero' economic dependency on US

    I don't believe that cutting Russia off would create a big issue for the USA; though this whole situation is just another proof that we should not be involved in foreign entanglements.

  5. #5
    Sage

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    Re: Russia warns could 'reduce to zero' economic dependency on US

    Quote Originally Posted by WCH View Post
    Any major player in the global economy can cause issues for others but, there are a finite number of producers and consumers at any one time
    Russia is far from a major player they are barely above 3rd world status and that is because of oil and gas reserves.

  6. #6
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    Re: Russia warns could 'reduce to zero' economic dependency on US

    Quote Originally Posted by grip View Post
    Is this a bunch of threatening rhetoric, with no legs?





    According to the below article, it's highly improbable.
    Russia has $200 billion in US bonds and could dump them to drop US Dollar value. Russia is the World's largest energy exporter and could price its' energy in Rubles and reduce demand for the US Petrodollar. Russia runs a surplus not a debt as the USA does. I think Putin usually does what's best for Russia and gives the World the finger regarding
    hypocritical accusations of Imperialism, expansion, etc. We are the ones that screwed Russia after the breakup of the USSR by encroaching upon Russia with NATO, missile bases and economic interference (a la Ukraine). If you check the inputs for all those pipelines bottlenecked through Ukraine, you will observe that the pipelines are filled with Russian petro. I wonder who controls the valves at the input? It's the typical Russian bear and do you want to poke the bear with a short stick in the bear's own badkyard? It doesn't require rocket science to analyze the problems and solutions for the Ukraine. I, for one, trust Putin and see in all the dealings since the USSR breakup that the USA has been dealing from the bottom of the deck.

    Russia has $200 billion in US bonds and could dump them to drop US Dollar value. Russia is the World's largest energy exporter and could price its' energy in Rubles and reduce demand for the US Petrodollar. Russia runs a surplus not a debt as the USA does. I think Putin usually does what's best for Russia and gives the World the finger regarding
    hypocritical accusations of Imperialism, expansion, etc. We are the ones that screwed Russia after the breakup of the USSR by encroaching upon Russia with NATO, missile bases and economic interference (a la Ukraine). If you check the inputs for all those pipelines bottlenecked through Ukraine, you will observe that the pipelines are filled with Russian petro. I wonder who controls the valves at the input? It's the typical Russian bear and do you want to poke the bear with a short stick in the bear's own badkyard? It doesn't require rocket science to analyze the problems and solutions for the Ukraine. I, for one, trust Putin and see in all the dealings since the USSR breakup that the USA has been dealing from the bottom of the deck.



    According to the below article, it's highly improbable.[/QUOTE]

  7. #7
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    Re: Russia warns could 'reduce to zero' economic dependency on US

    Then why haven't they done so already?
    He touched her over her bra and underpants, she says, and guided her hand to touch him over his underwear
    Quote Originally Posted by Lutherf View Post
    We’ll say what? Something like “nothing happened” ... Yeah, we might say something like that.

  8. #8
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    Re: Russia warns could 'reduce to zero' economic dependency on US

    Quote Originally Posted by clownboy View Post
    Especially since any sanctions would not come from a group of nations but unilaterally from the US.
    Why on earth would you say that?
    He touched her over her bra and underpants, she says, and guided her hand to touch him over his underwear
    Quote Originally Posted by Lutherf View Post
    We’ll say what? Something like “nothing happened” ... Yeah, we might say something like that.

  9. #9
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    Re: Russia warns could 'reduce to zero' economic dependency on US

    Quote Originally Posted by DaveFagan View Post
    Russia has $200 billion in US bonds and could dump them to drop US Dollar value.
    Back in June of 2013 China and Japan between them dumped about $40 billion in Treasuries.

    By November we were up to about $120 billion in net outflows, the biggest Exodus from U.S. bonds since 1977.

    During that period the DYX feel by ~3%.

    Did you notice?

    I didn't.

    My wife and I bought two new cars, she got a new job, I got a raise, nothing but good economic stuff happened.

    Now, explain to me why Russia dumping $200 million worth of bonds matters?
    “Now it is not good for the Christian’s health to hustle the Aryan brown,
    For the Christian riles, and the Aryan smiles and he weareth the Christian down;
    And the end of the fight is a tombstone white with the name of the late deceased,
    And the epitaph drear: “A Fool lies here who tried to hustle the East.”

  10. #10
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    Re: Russia warns could 'reduce to zero' economic dependency on US

    Quote Originally Posted by soot View Post
    Back in June of 2013 China and Japan between them dumped about $40 billion in Treasuries.

    By November we were up to about $120 billion in net outflows, the biggest Exodus from U.S. bonds since 1977.

    During that period the DYX feel by ~3%.

    Did you notice?

    I didn't.

    My wife and I bought two new cars, she got a new job, I got a raise, nothing but good economic stuff happened.

    Now, explain to me why Russia dumping $200 million worth of bonds matters?
    That would be $200 BILLION of US bonds. Russia is the World's second largest producer of oil. Pricing maybe 6,000,000 barrels per day in Rubles instead of dollars would also have an impact. I wouldn't hold my hand over my ass waiting for another new car if they do that.

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