Putin did press Obama for the US to join Russia in a real grand coalition bent on smashing ISIS/ISIL/Daesh. The Obama administration, once again, relented. I detailed here what happened next: an earth-shattering game-changer in the ‘New Great Game’ in Eurasia, straight out of the Caspian Sea, that caught the acronym fest of US intelligence – not to mention the Pentagon – completely off-guard.
So this was Putin’s first message to Washington, and the Pentagon/NATO combo in particular; your fancy ideas of stationing tactical nuclear weapons or expanding missile defense to Eastern Europe, or even Asia-Pacific, are just a mirage. Our cruise missiles are capable of wreaking real effective havoc; and soon, as this piece argues, there will be more hypersonic, high-precision long-range missiles added to the mix.
The Glazyev nuclear plan
But then there’s also Putin’s second – silent – message to Washington, which didn’t even have to be delivered in person to Obama. US intel though may have a hint about it, as they closely follow Russian media.
It’s about Sergey Glazyev’s (presidential aide) plan for Russia’s immediate economic future here is a summary of the plan, in Russian. The plan was formally proposed to Russia’s Security Council. Here is a very good summary on how Russia’s Security Council works.
There are at least three absolutely key points in Glazyev’s plan. We may summarize them like this:
- If the emerging trend of freezing private assets of Russian legal entities and individuals continues, Russia should consider full or a partial moratorium on the servicing of loans and investment from the countries involved in the freezing.
- The amount of foreign currency assets of the Russian Federation located in the jurisdiction of NATO countries accounts to more than $1.2 trillion, including short-term debt of about $800 billion. Their freeze may be partially offset by retaliation against NATO assets in Russia, which amounts to $1.1 trillion, including over $400 billion long-term. So this threat would be neutralized if Russian monetary authorities organized a timely withdrawal of Russian short-term assets in the US and the EU.
- Glazyev is adamant that the Russian Central Bank continues to serve the interests of foreign capital – as in the financial powers in London and New York. He contends that the high interest rates practiced by the Russian Central Bank led Russian oligarchs to borrow more cheaply from the West, making the Russian economy dependent, a debt trap which the West used to slowly squeeze Russia. Then the rigged Western oil and ruble collapse increased the pressure as debt service in ruble cost and interest doubled.
The fact is Russia has lost access to Western credit and cannot roll over its debt with the creditors. So Russia will have to pay the principle and the interest as it comes due. That is a trillion dollars plus interest. Russia also cannot import anything from the West without paying double for it. So arguably the country may be now in the very position it will be if Moscow opts for default. Thus, Russia would have nothing to lose by a default – as the damage is already done.
A shock to the system
Needless to add, such a default, if it ever happened, would collapse the entire Western financial system.
One should never forget the Big Picture; the Syria/Ukraine/sanctions saga runs in parallel to Russia-China and closer BRICS integration shifting the balance of geopolitical power. For the ‘Masters of the Universe’, this is beyond anathema. Enter, for instance, the use of cash settlement through their Wall Street proxies to raise the A shares of China to hysterical highs and then try to crash their entire stock market by a reverse cash settlement rig as in 1987.
China is moving toward their own SWIFT payment system, not to mention a whole new Chinese-led set of international institutions independent of US control. Russia, for its part, recently passed a bill that would allow the seizing of foreign assets if Russian assets in the West are seized. As Glazyev pointed out, investment in Russia by the West are more or less equivalent to investments of Russia in the West.
The ‘Masters of the Universe’ may keep insisting on using financial weapons of mass destruction. Russia, silently and with a few key facts in the Caspian Sea, is letting them know it’s ready for whatever scenario they can come up with.
Full article: Collapse Of The Western Financial System Looms As A “Strategic” Russian Default Is Possible (Zero Hedge)