Prominent U.S. trader warns Russia can collapse U.S. economy anytime it wants to

March 2014 FINANCERussia can collapse the United States, prominent U.S. trader Jim Sinclair believes. The economist, famous for his forecasts, explains that the strength of the dollar is based on the US agreement with Saudi Arabia that all contracts for fuel deliveries be in the US dollars. Now, Moscow can collapse the petrodollar in one moment. The slapping of sanctions on Russia is tantamount to a shot in the foot. The expert explains that the only true value in the world today is the petrodollar. But Russia can collapse it by demanding Euros or Yuan for its oil. What’s more, the US may lose its influence on Europe for good, if Russia starts selling its fuels for anything but the dollars. Angela Merkel would be only happy, for Germany, as well as other European countries would then have no need for currency markets. The rate of the Euro would then grow, while the cost of oil and gas would go down. But the United States should be ready for an abrupt increase in gasoline prices, for hyperinflation amid a poor business climate and a crash of the Dow Jones industrial average, Sinclair predicts. But does Moscow need this kind of scenario? One of the tough measures that the West said it would resort to should be cutting Russia off the SWIFT interbank payment system. But should this happen, the sanctions would hit hardest their own authors, says a Stock Market Chair Professor at the Higher School of Economics in Moscow, Alexander Abramov, and elaborates. “Technically, it is pretty easy to cut Russia off the SWIFT system by blocking Russian banks’ IP addresses. But SWIFT is one of the main systems that banks use for international payments. Hardly anyone in the US or Europe would like to resort to this kind of move, since banks are interrelated. If Russian banks are unable to use the system, they will fail to make timely payments to their western counter parties, which will prove quite a shock to the financial system. Now, this is by far more real a threat than using Euros to pay for oil. I think the financial world, which has just started emerging from the crisis, can’t be happy about these kinds of shocks.”
Now, Moscow would not have to exert itself to retaliate for sanctions, says the director of the analytical service of the Alpari Company, Alexander Razuvayev, and elaborates. “Russia accounts for a large share of the energy market, above all, in Europe. Russia is also paid in dollars for its gas deliveries, and only partly in Euros. Russia therefore props up foreign currencies by accepting those for its oil and gas supplies. Well, energy markets were formed quite some time ago, so Russia accepted the rules of the game. But since Russia sells its own raw materials, it can change these rules. At least Russian state-run companies, such as Rosneft and Gazprom considered that option in late 2008. But, of course, this kind of move would only prove suitable in an extreme situation.” Russia is fully in control of the petrodollar and could cause the Dow Jones industrial average to plummet as it has never done before. One can wave the Stars and Stripes as long as one likes, but it’s a fact that the Russians can turn the US economy upside down, Sinclair warns. So far, Moscow has been in no rush to resort to extreme measures. Russia is going to react in a mirror-like way, – to retaliate with a blacklist of US officials for a US list of Russian officials. The West’s economic bans have thus far failed to prove too grave, so they rather cause Russians to mobilize themselves. For instance, when Visa and MasterCard boycotted some Russian banks for a short while recently, the Russian authorities took the decision to set up Russia’s own payment system shortly. Meanwhile, serious partners with a long history of cooperation, such as Siemens, are signing new contracts and are not about, or so it seems, to shoot themselves in the foot. –Voice of Russia
Advertisements
This entry was posted in Apathy, Anger, Mistrust, Disillusionment, Arms Race, Austerity, Bank Run, Banking Crisis, Bankruptcy, Boom and Bust Cycles, Civil Unrest, Depression and Anxiety, Economic Collapse, Economic Hardship or Loss, Fiat Money Printing Fiasco, Financial market turmoil, Hierarchal Control, Infrastructure collapse, New World Order, Political Corruption, Political turmoil, Protests, Resource War, Social Meltdown, Struggle for Survival, Terrorism threat, The Pyramid Model, Unemployment rising, Unsustainable Debt Burden, Widening gap between rich and poor. Bookmark the permalink.

4 Responses to Prominent U.S. trader warns Russia can collapse U.S. economy anytime it wants to

  1. Dennis E. says:

    The KGB Agent is eating the Community Organizers Lunch.
    The world is now a very dangerous place.
    It could go at anytime.
    Why do I think The President is aware of this? Bad thought……

  2. niebo says:

    Petrodollar = middleman; cut-out the middleman and . . . the US dollar falls outta the sky and maybe bounces a couple of times. The interview is quite an eye-opener, especially the bit about “selling oil for ANY currency BUT the dollar.” Here’s a video-link to the interview:

  3. lannyboy1 says:

    Siemens does business with Russia? Uh, yeah! http://www.siemens.com/press/en/pressrelease/2014/energy/energy-service/ese201401020.htm
    Sanctions? What sanctions? Global businesses do whatever they want to do! How many businesses during WW2 made huge sums of money off of this war? Standard Oil, based in NYC, supplied oil and fuel to the German’s and the American’s who were fighting each other. Banks in NYC financed Nazi Germany to power after the 1st World War. All this is well documented. Nothings changed. Business, as usual.

  4. tonic says:

    “petrodollar”……………..”bitcoin”
    Almost like seperate economies from the world that we live in everyday.
    Just make money and all is ok in cyber world. The consequences in our world,……….well… WE have to deal with that. (who cares about the hardship. Afterall, it,s, only people)

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s