He told the RIA Novosti news
agency Russia could stop using dollars for international transactions
and create its own payment system using its "wonderful trade and
economic relations with our partners in the East and South."
Wait does he mean the Chinese? The Yuan is pegged to the dollar and they have trillions in bonds. If the Russians "crashed" the US financial system it would damage the Red Chinese as well. Also how would this payment system work? You won't be able to convert dollars into rubles? It's not like the rest of the world would stop using dollars because the Russians stop. It would effectively isolate their economy.
Russian firms and banks would also not return loans from American financial institutions, he said.
"An
attempt to announce sanctions would end in a crash for the financial
system of the United States, which would cause the end of the domination
of the United States in the global financial system," he added.
Um, can you say capital flight? The Americans would not be the only ones to pull their money out of Russia. Who knows if the loans of the Red Chinese or the Australians will be the next to be defaulted on. There will be a run on Russian banks that you have never seen before. This would probably collapse these Russian banks and firms as foreign capital will run for the door. I hope the Russians are good at bailing out their banks.
He
said that economic sanctions imposed by the European Union would be a
"catastrophe" for Europe, saying that Russia could halt gas supplies
"which would be beneficial for the Americans" and give the Russian
economy a useful "impulse".
This doesn't make sense. It would probably get Europe to increase their buildup of LNG terminals and the natural gas boom in the US will be huge. This would be a great boon for the US economy. Um, thanks Russia you just made one of our big exports even more expensive. Some European nations like Poland will hurt but it won't be a catastrophe for anyone but the Russians.
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