Money - reaping the chickens - Putin: 'US sanctions against Russia "a colossal strategic mistake"'

[Zenaan Harkness]

Remember the Fed.  The tail dat wags the almighty US dog.

Sanctions. Swift sanctions. Sanctions by SWIFT. Money sanctions
swiftly sanctioned - SWIFT, the Fed's global sanction regime.

Putin, being every intendedly friendly towards the USA and ever
seeking "normal" diplomatic relations, gave ample WARNing to "our
Western partners":

  US Sanctions Against Russia Are "A Colossal Strategic Mistake",
  Putin Warns
  https://www.zerohedge.com/news/2018-10-03/us-sanctions-against-russia-are-colossal-strategic-mistake-putin-warns
  ISO_DATE:2018-10-04

  As Russia is preparing plans to wean its banking system off the
  dollar, advancing a trend of de-dollarization among the US's
  largest economic and geopolitical rivals, Russian President
  Vladimir Putin accused Washington of making a "colossal" but
  "typical" mistake by exploiting the dominance of the dollar by
  levying economic sanctions against regimes that don't bow to its
  whims.

    "It seems to me that our American partners make a colossal
    strategic mistake," Putin said.

    "This is a typical mistake of any empire," Putin said, explaining
    that the US is ignoring the consequences of its actions because
    its economy is strong and the dollar's hegemonic grasp on global
    markets remains intact. However "the consequences come sooner or
    later."

  These remarks echoed a sentiment expressed by Putin back in May,
  when he said that Russia can no longer trust the US dollar because
  of America's decisions to impose unilateral sanctions and violate
  WTO rules.

  While Putin's criticisms are hardly new, these latest remarks
  happen to follow a report in the Financial Times,
  https://www.ft.com/content/a5187880-c553-11e8-8670-c5353379f7c2
  published Tuesday
  night, detailing Russia's efforts to wean its economy off of the
  dollar. The upshot is that while de-dollarization may be painful,
  it is, ultimately doable.

  The US imposed another round of sanctions against Russia over the
  summer in response to the ALLEGED poisoning of former double-agent
  Sergei Skripal and his daughter Yulia, and the US Senate is
  considering measures that would effectively cut Russia's biggest
  banks off from the dollar and largely exclude Moscow from foreign
  debt markets.

  With the possibility of being cut off from the dollar system
  looming, a plan prepared by Andrei Kostin, the head of Russian bank
  VTB, is being embraced by much of the Russian establishment.
  Kostin's plan would facilitate the conversion of dollar settlements
  into other currencies which would help wean Russian industries off
  the dollar. And it already has the backing of Russia's finance
  ministry, central bank and Putin.

  Meanwhile, the Kremlin is also working on deals with major trading
  partners to accept the Russian ruble for imports and exports.

  In a sign that a united front is forming to help undermine the
  dollar, Russia's efforts have been readily embraced by China and
  Turkey, which is unsurprising, given their increasingly fraught
  relationships with the US. During joint military exercises in
  Vladivostok last month, Putin and Chinese President Xi Jinping
  declared that their countries would work together to counter US
  tariffs and sanctions.

    "More and more countries, not only in the east but also in
    Europe, are beginning to think about how to minimise dependence
    on the US dollar," said Dmitry Peskov, Mr Putin’s spokesperson.
    "And they suddenly realise that a) it is possible, b) it needs to
    be done and c) you can save yourself if you do it sooner."

...



  Putin Sets The Table To Leave The Dollar Behind
  https://www.zerohedge.com/news/2019-06-12/putin-sets-table-leave-dollar-behind
  https://thedailycoin.org/2019/06/09/putin-sets-the-table-to-leave-the-dollar-behind/
  ISO_DATE:2019-06-13

  This is twice that Russian President Putin has said on the global
  stage the Federal Reserve Note no longer deserves the status and
  privilege of “world reserve currency” that allows unlimited
  printing of the currency.

  The first time he made mention he actually said that it was a
  threat to Russia’s national security.

  In a speech at the International Economic Forum, in St. Petersburg,
  Russia, “Russian Davos”, President Putin reaffirmed his position
  regarding the Federal Reserve Note and it’s international role. For
  the record, we see the abuse of the Federal Reserve and the Federal
  Reserve Note, U.S. dollar, in similar light as President Putin. The
  current status of “world reserve currency” should not be allowed in
  this day and time. The absolute abuse of power, excessive power
  granted and the ability to shackle entire nations through the use
  of a currency that is not even their own should have never been
  allowed but it is way past time for this system to be dissolved.

    In a speech at a plenary session, Mr Putin accused Washington of
    seeking to “extend its jurisdiction to the whole world.”

    “But this model not only contradicts the logic of normal
    international communication. The main thing is, it does not serve
    the interests of the future.”
    https://www.businesstimes.com.sg/government-economy/putin-says-role-of-dollar-should-be-revisited-in-global-trade

  As recently we pointed out Russia has been and is, apparently
  readying, a gold backed cryptocurrency to use as global trade
  settlement. When a man steps up to the microphone and says to the
  world – “The main thing is, it (U.S. dollar) does not serve the
  interests of the future.” while at the same time announcing that
  Russia, along with China, are working on a global trade settlement
  mechanism outside the dollar, well, you would have to be some kind
  serious stupid to ignore those words.

  The Business Times also reported:

    Changes in the global economy “call for the adaptation of
    international financial organisations (and) rethinking the role
    of the dollar which... has turned into an instrument of pressure
    by the country of issue on the rest of the world,” Mr Putin said.

  Then went on to say:

    The Kremlin chief – whose country has chafed under numerous
    rounds of US sanctions – has repeatedly slammed the global
    financial system established by Washington in the aftermath of
    World War II.
    https://www.businesstimes.com.sg/government-economy/putin-says-role-of-dollar-should-be-revisited-in-global-trade

  Let’s be clear about the effect of the sanctions against Russia.
  These sanctions that were supposed to cripple Russia have in fact
  made their economy stronger, more resilient and the ground work for
  long term growth is now in place. President Putin welcomes
  sanctions as he simply turns to the people and Russia, funds the
  next set of projects and Russia becomes a little more self
  sustaining. Sanctions no longer work, and the Federal Reserve, U.S.
  Treasury and the western allies have now been put on notice.

  Putin: Role Of Dollar Should Be Revisited In Global Trade
  https://www.youtube.com/embed/NtsfJ6KAqDo