Monday, August 13, 2018

As U.S. implements even more sanctions on Moscow, Russia ready to retaliate by dumping Treasuries and even completely cutting off dollar

Despite the fact that Washington has the most power in the global financial system to impose sanctions and conduct economic warfare anywhere it sees fit, that same power is also America's Achilles heel.  And by this we mean that U.S. economic dominion only functions if the world continues to accept the dollar as the primary trade currency.

For many years the U.S. has used the reserve currency (dollar) as both an economic and foreign policy weapon on multiple countries, and for the most part these nations were powerless to combat it.  However with the decision by Washington to use economic warfare and sanctions against Russia simply because Moscow had become a threat to their global hegemony, the world finally found an economy and leader strong enough to not only withstand such warfare imposed upon them, but also in one having the tools and will to turn the tables against them.

Thus in the wake of new sanctions imposed on Russia by President Trump for the spurious and fake Skripal poisoning, Moscow is set to retaliate by not only dumping what remaining Treasuries they hold, but in also cutting off the dollar completely in their energy and trade activities.

Moscow will continue selling off its holdings of US Treasury securities in response to the new penalties Washington is ready to introduce against Russia in the near future, according to Russia’s Finance Minister Anton Siluanov. 
The minister added that the government will stick to the plan of moving away from the US dollar for international trade, as it recently proved to be a “risky” payment method. – Russia Today
Dollar use has become too risky
The US dollar is becoming an unreliable tool for payments in international trade, Russian Finance Minister Anton Siluanov stated in an interview. 
The minister did not rule out the possibility of using national currencies instead of the dollar in oil trade. 
"I do not rule it out. We have significantly reduced our investment in US assets. In fact, the dollar, which is considered to be the international currency, becomes a risky tool for payments," he noted. – Sputnik News
Russia alone does not necessarily have the strength to harm the U.S. by cutting off the dollar from international trade use, but when coupled with Europe's reaction to Trump's new sanctions on Iran, the potential for even America's long time allies joining Putin in disengaging from dollar hegemony becomes a much greater reality.

Economic sanctions, tariffs, and belligerent rhetoric against both allies and competitors are just a few of the things President Trump has wielded in his short time in office to cause most of the world to want to stand up against the dollar and U.S. hegemony.  And without the ability to force the world to have to buy and use dollars in international trade, America's financial and economic structures will easily fold like a house of cards.

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