2/10/2014 6:23
RIA Novosti

Business

Putin Adviser Urges Dumping US Bonds In Reaction to Sanctions

Topic: Sanctions Against Russia

13:45 04/03/2014
Tags: Kremlin, Vladimir Milov, John Kerry, Sergei Glazyev, Vladimir Putin, USA, Ukraine, Russia

MOSCOW, March 4 (RIA Novosti) – An adviser to Russian President Vladimir Putin said Tuesday that authorities would issue general advice to dump US government bonds in the event of Russian companies and individuals being targeted by sanctions over events in Ukraine.

Sergei Glazyev said the United States would be the first to suffer in the event of any sanctions regime.

“The Americans are threatening Russia with sanctions and pulling the EU into a trade and economic war with Russia,” Glazyev said. “Most of the sanctions against Russia will bring harm to the United States itself, because as far as trade relations with the United States go, we don’t depend on them in any way.”

Glazyev noted that Russia is a creditor to the United States.

"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.”

According to US Treasury data from the end of 2013, Russian investments in US government bonds total around $139 billion out of a total of $5.8 trillion of US debt held in foreign hands.

US Secretary of State John Kerry on Saturday warned that Russian military interventions in Ukraine, which have been justified by the Kremlin as protection for residents in heavily ethnic Russian-populated regions, could result in “serious repercussions” for Moscow.

"Unless immediate and concrete steps are taken by Russia to deescalate tensions, the effect on US-Russian relations and on Russia's international standing will be profound," Kerry said.

Kerry mentioned economic sanctions, visa bans and asset freezes as possible measures.

Former deputy energy minister and lively government critic Vladimir Milov slammed Glazyev’s remarks, saying they would put further downward pressure on the ruble, which was pushed down Monday to a record low of 36.5 against the dollar amid fears about the possible outbreak of war.

“That idiot Glazyev will keep talking until the dollar is worth 60 [rubles],” Milov wrote on his Twitter account.

A high-ranking Kremlin source was quick to distance his office from Glazyev’s remarks, however, insisting to RIA Novosti that they represented only his personal position.

Glazyev was just expressing his views as an academic, and not as a presidential adviser, the Kremlin insider said.

 

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RIA NovostiDollarPutin Adviser Urges Dumping US Bonds In Reaction to Sanctions

13:45 04/03/2014 An adviser to Russian President Vladimir Putin said Tuesday that authorities would issue general advice to dump US government bonds in the event of Russian companies and individuals being targeted by sanctions over events in Ukraine.>>

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  • KristophrBad advice, Glazyev
    22:41, 04/03/2014
    Getting out of the US dollar just makes sense.

    The US federal bonds will soon be worth nothing, since Obama just has the Treasury and the Fed print more greenbacks to cover the incredible debt load created by his bread and circuses and cronies spending.

    When the crash finally comes, the survivors will be the ones who found something other than US Dollars to base their currency on.
  • LatinLettersOnlyHK$ is still pegged to US$
    00:34, 05/03/2014
    HK bonds instead?
  • R.Deus-von HomeyerRE:BUYING HK bonds
    20:27, 05/03/2014
    When I was living in Sydney,Australia,I used to buy HK$.In 2000,2001 they were very cheap as in 1998 Hong Kong was returned to China.

    I sold then when my son went to the University of Queensland,in Brisbane.

    THere is STILL a Communist Government in CHINA...NOBODY knows how it will manage the economy in the future.
  • severnayazemlyaDump USD bonds. Be self sufficient.
    18:57, 06/03/2014
    Sergei Glazyev is absolutely correct. Best is to be self sufficient like he proposes.
    Luxury goods and automobiles will be totally worthless after the economic crash.
    Own gold, and usable assets like vacuum packed, freeze dried food, wood or coal for heating, vegetable seeds, wool blankets, Kalashnikov rifles, and 7.62 x 35 mm & 7.62x54 mm ammo in sealed steel cans.
    Buy only locally made products and products from your own country.
    Never incur any debt.
    Glazyev is entirely correct.
    • R.Deus-von HomeyerRE:DUMPING US $ BONDS
      20:33, 06/03/2014
      If the value of the bonds decreased,does not make sense to sell them as RUSSIA will lose pleeeeeeeeeeeeenty of assets!

      It depends on HOW many bonds Russia owes?

      Then you have take in regards the CONDITIONS of the bonds...RUSSIA might NOT have the right to sell them until maturity of the bonds....usually 10 or 20 or 30 years.


      CORPORATE bonds can be sold at any time on NYSE or NASDAG.
    • severnayazemlyaAre U.S. Treasury bonds held by Russia, worthless?
      02:48, 07/03/2014
      The point Sergei Glazyev is making is that U.S. can default on payment of the bonds before maturity, or at maturity, as a sanction against Russia, or anyone holding U.S. Treasury bonds.
      That's a good question. Can these bonds be sold prior to maturity, $200 billion USD of them?
      Replace them with gold, oil, wheat, and soybeans reserves, hard assets.
      • R.Deus-von HomeyerRE:WILL USA DEFAULT ON TRESURY BONDS?
        21:55, 07/03/2014
        Just two months ago the CONGRESS gave a green light for increase the DEBT cealing,e.g. it means USA Government is allowed to borow more.
        I doubt USA will default on Treasury bonds(bills are called in USA) as it will be ruin it's reputation in the Financial world.

        The bearers(holders) of Government bonds have to be satisfied by maturity of the bonds.

        That is what I remember from my Financial Studies in LOS Angeles ...it was in 1996,97,98.

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