Putin Advisor Proposes ‘Anti-Dollar Alliance’ To Halt US Aggression Abroad

–  Putin Advisor Proposes “Anti-Dollar Alliance” To Halt US Aggression Abroad (ZeroHedge, June 18, 2014):

It has been a while since both Ukraine, and the ongoing Russian response to western sanctions (which set off the great Eurasian axis in motion, pushing China and Russia close together, and accelerating the “Holy Grail” gas deal between the two countries) have made headlines. It is still not clear just why the western media dropped Ukraine coverage like a hot potato, especially since the civil war in Ukraine’s Donbas continues to rage and claim dozens of casualties on both sides. Perhaps the audience has simply gotten tired of hearing about mixed chess/checkers game between Putin vs Obama, and instead has reverted to reading the propaganda surrounding just as deadly events in the third war of Iraq in as many decades.

However, “out of sight” may be just what Russia’s political elite wants. In fact, as VoR’s  Valentin Mândr??escu reports, while the great US spin and distraction machine is focused elsewhere, Russia is already preparing for the next steps. Which brings us to Putin advisor Sergey Glazyev, the same person who in early March was the first to suggest Russia dump US bonds and abandon the dollar in retaliation to US sanctions, a strategy which worked because even as the Kremlin has retained control over Crimea, western sanctions have magically halted (and not only that, but as the Russian central bank just reported, the country’s 2014 current account surplus may be as high as $35 billion, up from $33 billion in 2013, and a far cry from some fabricated “$200+ billion” in Russian capital outflows which Mario Draghi was warning about recently). Glazyev was also the person instrumental in pushing the Kremlin to approach China and force the nat gas deal with Beijing which took place not necessarily at the most beneficial terms for Russia.

Sergey Glazyev

It is this same Glazyev who published an article in Russian Argumenty Nedeli, in which he outlined a plan for “undermining the economic strength of the US” in order to force Washington to stop the civil war in Ukraine. Glazyev believes that the only way of making the US give up its plans on starting a new cold war is to crash the dollar system.

As summarized by VoR, in his article, published by Argumenty Nedeli, Putin’s economic aide and the mastermind behind the Eurasian Economic Union, argues that Washington is trying to provoke a Russian military intervention in Ukraine, using the junta in Kiev as bait. If fulfilled, the plan will give Washington a number of important benefits. Firstly, it will allow the US to introduce new sanctions against Russia, writing off Moscow’s portfolio of US Treasury bills. More important is that a new wave of sanctions will create a situation in which Russian companies won’t be able to service their debts to European banks.

According to Glazyev, the so-called “third phase” of sanctions against Russia will be a tremendous cost for the European Union. The total estimated losses will be higher than 1 trillion euros. Such losses will severely hurt the European economy, making the US the sole “safe haven” in the world. Harsh sanctions against Russia will also displace Gazprom from the European energy market, leaving it wide open for the much more expensive LNG from the US.

Co-opting European countries in a new arms race and military operations against Russia will increase American political influence in Europe and will help the US force the European Union to accept the American version of the Transatlantic Trade and Investment Partnership, a trade agreement that will basically transform the EU into a big economic colony of the US. Glazyev believes that igniting a new war in Europe will only bring benefits for America and only problems for the European Union. Washington has repeatedly used global and regional wars for the benefit of  the American economy and now the White House is trying to use the civil war in Ukraine as a pretext to repeat the old trick.

Glazyev’s set of countermeasures specifically targets the core strength of the US war machine, i.e. the Fed’s printing press. Putin’s advisor proposes the creation of a “broad anti-dollar alliance” of countries willing and able to drop the dollar from their international trade. Members of the alliance would also refrain from keeping the currency reserves in dollar-denominated instruments. Glazyev advocates treating positions in dollar-denominated instruments like holdings of junk securities and believes that regulators should require full collateralization of such holdings. An anti-dollar coalition would be the first step for the creation of an anti-war coalition that can help stop the US’ aggression.

Unsurprisingly, Sergey Glazyev believes that the main role in the creation of such a political coalition is to be played by the European business community because America’s attempts to ignite a war in Europe and a cold war against Russia are threatening the interests of big European business. Judging by the recent efforts to stop the sanctions against Russia, made by the German, French, Italian and Austrian business leaders, Putin’s aide is right in his assessment. Somewhat surprisingly for Washington, the war for Ukraine may soon become the war for Europe’s independence from the US and a war against the dollar.

2 thoughts on “Putin Advisor Proposes ‘Anti-Dollar Alliance’ To Halt US Aggression Abroad”

  1. This article only makes sense if one still believes this is a new game. It has been going one nonstop since November of 2010 when Russia and China established their own trade agreement, using their own currencies, leaving the dollar out. What they did was to model their system on the one Hugo Chavez established, using an electronic currency of their own, making need for a world reserve currency obsolete.
    Now, they want to make it obsolete?
    This makes no sense at all, it has been in place for nearly four years, and was set up by Hugo Chavez back in 2010. The electronic model might have a different name, but it is identical to the Sucre, and they are well aware of it.
    When Russia and China came out with their grand announcement of de-dollarizing the world a couple of weeks ago, that is all it was, the announcement. The real deal happened years ago.
    I was astounded. Why announce it now? Why wait so long?
    But, as the chaos settled, the reasoning began, making total sense. Putin was going to win this game, as he won all the others. China went on to recruit Turkey and Iran, most emerging African nations, and many emerging central and south American and Caribbean countries. By the time they finished, they had recruited more than half the world to their system, many showing outright disdain for the dollar.

    Every day, more money goes into Russia and less into the US. The chess player from Russia has finally decided to go public a couple of weeks ago, and he always plays to win. Pity the US and other world leaders didn’t pay attention in time. Now, it is too late.

    As usual, the US is 5 years too late, and their game (I agree with the author) will fail. The European Union cannot afford such harsh measures right now, and will side with Russia. The cost to the US dollar will be enormous as I have been saying for months. I don’t know who is mastermind, but whoever he is ought to be fired and sent home. Starting another worn out BS Arms race against Russia, including impotent sanctions is beyond stupid…….it is old, and no longer has any power against someone like Russia. Look at what their BS has done to Iran. Regardless of their games and name calling, the US has made Iran a rich nation…….and they are pushing money east to Putin.

    The one who will lose is the US dollar. This play is beyond stupid……it is delusional. If the US is playing as the author says, and I fear it is, the US will lose their shirt. Playing currency wars in the middle of something like this is sheer madness…….the US will lose their shirt. The US has abused it’s position as the world reserve currency to the point that nobody believes in the long term strength of the dollar. And, banking and currency……..belief is where it lies.
    The author’s statement US media is focused elsewhere is profoundly true. Lies are claiming employment is getting “better” because the FED says it is on Bloomberg, the other issue is renaming the Washington Redskins, FED confident recovery on track, CNBC, MSNBC, Cheney and daughter, FBN Dick Cheney Unleashed, FOX, Cheney says Obama blind to impact of his policies, Republicans cover up IRS scandal on OAN, BBC, Software tracks all police matters/offenders, Fusion: Movie coverage, CNN, FED expects to raise interest rates in 2015. Your author is right on, not one word on any of this…..so Americans will be blindsided by this event which started in 2010 by Hugo Chavez.

    People will go to the banks only to find their money isn’t worth what they thought…..the US currency will collapse according to this author. There are many US greedy guts who are going to suffer, and the time is now. This has happened so much faster than I thought……. this is going to cause a real estate and stock crash such as the west has never seen……..

    Great article, I will await its unleashing with great interest.

    For those foolish enough to have put it all in the dollar……they are screwed. Russia will prevail. And, for what? More corporate enriching wars started by the US with nobody behind it. You CANNOT fight a war without a powerful coalition.

    Dragging troops back into Iraq won’t divert the people from realizing their money doesn’t buy the same as it did a month ago.


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