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Russia Threatens To Abandon The U.S. Dollar And Start Dumping U.S. Debt

March 5, 2014 8:23 am est

I wish I had better news to report friends, but nothing has changed since the collapse of 2008, it’s only been covered up with fire blankets… As we await the release of last months jobs report, we can expect massive volatility in either the equites or the metals… depending on which way the numbers come out. Doesn’t that make you nervous? Maybe a little bit crazy? I mean, our investments hang in the wind based on a damn report that we know is BS anyway – Let me ask you this… Do you think the color diamond market gives a hoot about what any given report says? NO! It will continue to do what it does best, and that is protect your wealth and create legacy for your family members for generations to come!

Russia Threatens To Abandon The U.S. Dollar And Start Dumping U.S. Debt – The Obama administration and the hotheads in Congress are threatening to hit Russia with “economic sanctions” for moving troops into Crimea.  Yes, those sanctions would sting a little bit, but what our politicians should be made aware of is the fact that Russian officials are promising “to respond” if economic sanctions are imposed on them.

As you will read about below, one top Kremlin adviser is even suggesting that Russia could abandon the U.S. dollar and start dumping U.S. debt.  In addition, he is also suggesting that if sanctions are imposed that Russian companies would not repay the debts that they owe U.S. banks.  Needless to say, Russia could do far more economic damage to the United States than the United States could do to Russia.  The U.S. financial system relies on the fact that the rest of the planet is going to use our currency to trade with one another and lend gigantic piles of it back to us at super low interest rates.

If the rest of the world starts changing their behavior, we are going to be in a massive amount of trouble.  Those that believe that the United States is “economically independent” are being quite delusional.

Banks cannot forecast gold prices – Based on a short analysis of bank forecasts, we can conclude they are clueless about the direction of the goldprice. Last year we already gathered some forecasts by a number of big commercial banks and now we’ve added the most recent forecasts for 2014. Early 2013, when the gold price was about $1.650 per troy ounce, almost all banks expected prices would rise to $1.800 or even more dollars per troy ounce. Deutsche Bank and Merrill Lynch even expected the price would reach or surpass $2.000 per troy ounce in 2013. The lowest forecast was still $1.650 per troy ounce, so basically none of these banks expected the drop in price we saw last year.

Central Bankers are Our Enemies – Is the recent spate of banker suicides (murders?) telling us something? The mainstream media is not covering this story, but it certainly caught my attention when I noticed a common thread amongst these individuals: big banks and derivative ties.

The circus of events within the Federal Reserve continues to prove my point that central bankers are the common enemy of citizens and societies worldwide. The current zero interest rate policies of Fedzilla allow the bad boy bankster schmucks to borrow at three points from the Fed and lend at 25 basis points. This is a complete scam, and it is perpetrating the biggest subsidy to Wall Street in the history of the Federal Reserve.

Putin Adviser Urges Dumping US Bonds In Reaction to Sanctions – “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.

3 huge cities flirting with bankruptcy – Detroit’s looming bankruptcy is making news again, this time focusing on current restructuring plans aimed to wipe out $18 billion in debt by axing pension checks of city retirees, including police and fire.

Massive long-term retirement and healthcare promises were by no means solely responsible for the city’s fall, but these massive pensions coupled with a tax base weakened by high unemployment and housing vacancies caused the budget to bleed out quicker.

The Michigan city may be the most recent victim of bankruptcy, but many of the 61 largest U.S. cities have adopted the same retirement legacy leading to $118 billion in unfunded healthcare debts. Retired city workers stop contributing to the system; the system keeps paying them; and before you know, a fiscal crisis has begun.

If you think the three cities below are too big to fail, think again.

The solid performance in the stock market in 2013 may have allowed some of their investments within pensions to grow and cover costs. However, when the growth rate of investments slow, and the payout rate speeds up, expect to see any one of these cities next in line at bankruptcy court: