Posts Tagged ‘cold war’

Cold War Reloaded

Posted: May 21, 2014 in Uncategorized

What Ukraine has done for the world is to push all the world in a Cold War scenario.

The fear is fortunately not nuclear – world war 3 …but financial.

Putin is trying not to invade Ukraine, but his red line is that Ukraine must not be coherently under the US influence. Chaos or a federalisation will be enough.

But already Mevdev (now Russian PM) already told us that we are back in the Cold War 2.0.

But now the Russian are smarter. They understand that the core of the US Power is the US Dollar as reserve currency and that is what they are aiming at.

Putin is almost signing a mega contract for a Russian -Chinese pipeline. Maybe it will push for the price to be paid in Yuan.

Already Hong Kong banks like HSBC and Standard Chartered have a lot or reserves in Chinese Yuan.

In July there is a BRICS conference in Brasil (and Brasil is quite against US due to the currency war) where the BRICS Development Bank (sort of IMF for third countries) will be launched. And maybe now in USD.

Russia is studying an alternative to the VISA/Mastercard system payment, after the sanctions .

The fact is that the US Dollars in 2000 was the currency of choice for 55% of global transaction and in 2013 was 33%. Other currencies increased, in the same time, 400% (China does not disclose that data so other will include certainly Euro…but you could guess the Yuan increased a lot – China is aiming to make it fully convertible in 2018).

The US certainly knows this and replicates old Cold War scenario weaponizing all the Balcanic and ex USSR country and helping the Pacific Rim (Philippines, Vietnam, Australia mainly). It is quietly pushing Japan to leave its pacifist constitution. And UK is “leaving” Europe for the US.

Europe is struggling as military and “democratically” is linked to the US. But economically and energy is linked to Russia.

So back to the future!

In the news they talk to you of Russia, Ukraine they will talk to you of Russia taking over Crimea and the West that does only sanctions.

In reality the war has already started as a financial war.

The US is trying to economically crippling Russia with a triple hit (depreciation of currency, stock market crash, oil shorting – plus the freezing of assets).

They are also trying to assess how much Treasury Bond the Russian have has they will retaliate. A note I saw, says that the Russian do not have enough T bonds to hurt the US. But you can never trust Putin….also investigating why Belgium is the third largest T Bond holder with USD 310 Billion at the end of January (Belgium has a GDP of just $100Bn).

Let’s see how the Russian will retaliate…cutting the gas is one idea (but it is bad also for them)…we will see

I am not saying that the US have them or the Russian have them. I just say that is illogical and someone parked there the amount of money (one third of the entire US Treasury bond market and, if true, Belgium in two months would have bought the equivalent of its entire GDP in Treasury Bonds*).

*Font Zerohedge