Did Putin just put an end to the America’s living large IOU party financed by the Chinese/Japanese credit and the FED printing? It sure looks that way. After destabilizing Ukraine and plunging that country it outer chaos, the US has agreed to provide Ukraine with Loan Guarantees to help pay for a massive $15 Billion debt to Russia. Yet, Putin, now wise to the American bullshit is not buying it. Instead, he demands CASH and he wants it in Euros. The CASH that America doesn’t have.
That is on top of a massive gas/oil deal that Russia is about to sign with China. A deal where Russia has asked China to pay in Euros instead of “Petrodollar”. Thus far, China has responded with “We don’t have a problem with that”. So, will this combination deliver a death blow to the Dollar as a reserve currency which will, in turn, send the US Economy into the pits of the next Great Depression? We don’t believe so. As we suggested earlier, the US/World Economy is too reliant on the US Dollar and it will take a lot more than this to cause the USD to blow sky high. Yet, Putin’s action puts a first and a massive dent into the USD’s armor….. make no mistake about it.
Come on Obama, lets hit Russia with more sanctions.
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US loan guarantees to help Ukraine are worthless – Putin
Washington’s offer to provide $1 billion in loan guarantees to help Ukraine is worthless as there are no banks willing to finance the recovery of crisis-hit country, President Vladimir Putin said Friday. Putin called Washington’s negative response to his letter addressed to European leaders, which contains proposals on how to solve the Ukrainian crisis, “a bit strange” as the United States was able so far only to offer guarantees rather than actual loans.
“What are these guarantees to the banks that would be ready to issue loans, but there are no such banks, which means there is no aid,” Putin said at a meeting with members of Russia’s Security Council. “We are seriously concerned about this,” he added.
Putin says Russia will fulfill its obligations to European gas clients
Russia will fully honor its obligations to supply natural gas to European partners, Russian President Vladimir Putin said.
“Russia is acting very neatly, very considerately and respectfully towards our partners. We will certainly guarantee in full the honoring of all our obligations to our European consumers. We are not the problem, the problem is ensuring transit via Ukraine,” Putin said at a Russian Security Council session on Friday.
Putin calls Ukraine’s non-payment for consuming Russian gas ‘completely intolerant’
Russian President Vladimir Putin on Friday called the Ukrainea’s non-payment for gas consumption “completely intolerable.” “The situation’s dramatization includes the fact that in the first quarter of this year [Ukraine] had the lowest gas prices, and even at those prices our Ukrainian partners stopped paying.
On April 7, there was another payment due according to the gas contract for March of this year. Out of the $540 million owed, not a single dollar or ruble was paid. Absolutely nothing, zilch,” Putin said. “This is an absolutely intolerable situation,” the president said.
Russian President urges Europe to help prevent economic ‘chaos’ in Ukraine
Russian President Vladimir Putin on Friday urged Europe to help prevent Ukraine’s economy from “slipping into complete chaos.”
“What is the current number-one problem? It is that Russia can’t carry this burden single-handed. It is for this reason that we have suggested to our European partners and friends that all of us meet as soon as possible and map out ways of support for the Ukrainian economy,” Putin said at a meeting of Russia’s Security Council.
He said anyone who is a friend of Ukraine and loves the Ukrainian people should help prevent the country from defaulting on its debts.
“Dumplings in the Maidan can’t do the job. That’s not enough to prevent the Ukrainian economy from slipping into complete chaos,” Putin said.
USD is still the world reserve currency and there isn’t any candidate for replacement, as you stated in some articles here. The recent dollar sell off is caused from two factors:
1. Russia tends to sell dollars in USA due to the fear of any “frozen” accounts or confiscation of the assets and bring those dollars in Europe (the Eurodollar futures) every time when there’s political turmoil like it was a “journey” to Budapest, Prague, Afghanistan..
2. USA investors sell dollars to buy foreign assets, mostly European but this trend will end very soon I think and the money will back to home.
Hi Bobby, great analysis. I tend to agree