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How Russia Could Bankrupt the U.S.

The Impact of American Sanctions on Russia and Russian Sanctions on America

17:15 - 21:45 the U.S. is miscalculating the impact that sanctions on Russia and their retaliatory sanctions will have on the United States. They have the potential to cause price inflation in the U.S.

Obama Scoffs at Russia

Obama scoffs at Russia, claims they don't have much of an economy citing that no one is moving to Moscow to get a job. The U.S. view of Russia is that it is a gas station masquerading as a country. This view severely underestimates Russia.


The more non dollar deals Russia does with others and convinces others not to deal in the dollar impacts the demand for and value of the U.S. dollar, reducing its value and causing the price of all imports to the US to rise.

As prices rise in the US the government will have to recognize the rise in the CPI and increase the payouts on social programs. This would have the impact of further putting the US into debt. Where would the money come from to pay for the increased social spending? print more, which will cause even more price inflation.

It seems like the same tactic the U.S. used on Russia in the 80's -outspend Russia on the arms race until they collapse. Today is seems that Russia is trying to create an environment where the US over spends on social programs until it collapses.

Podcast Summary:


Russia's Plan to Bankrupt the United States


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egapele's picture

Russia's relations with Israel

not a factor here?

EU 'shot itself in foot': Hungary PM

Viktor Orban is awesome: once again he speaks out against the idiocracy in Brussels.


Nigel Farage is a fan as well:

"One resists the invasion of armies; one does not resist the invasion of ideas" Victor Hugo

1 Russian Ruble equals .028

1 Russian Ruble equals .028 cents.

Less than 3 pennies.

That is the current exchange rate.

Russia can't bankrupt the United States with 3 cents.

Never be afraid to ask simple questions.

why do you think

that value(?) of piece of paper has any significance in economic relations. it's only their mutual ratio, which can go up and down. if russians and americans had same pay in absolute numbers then russians wouold have 30-40 times less money but that's not the case.

Russia did not bankrupt

Russia did not bankrupt America. American politicians bankrupted America. Decades of spending more money than the government took in bankrupted America. Americans re-electing political idiots bankrupted America. I could go on, but I think you get the point.

This whole "blame Russia" thing is just about politicians trying to deflect blame for their failures. In the end, the last resort way for politicians to achieve this deflection is via war.

I am seeking to learn the way things ACTUALLY are, not the way someone tells me they are

Not blaming Russia- You are right

American politicians, put the US in this state.

Under my scenario, Russia would just be taking advantage of the US weakened economic situation and push it over the edge by forcing it to spend more.

But what I say is unimportant. You are also correct the politicians will demonize russia as an excuse for war.

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I think you make a good

I think you make a good point. After all, Osama bin Laden stated that it was his goal to draw the U.S. into a war which they could not afford (which he accomplished) in order to speed up America's bankruptcy.

I didn't mean to sound so disagreeable with your message. I fully expect Russia, China, Iran and whoever else to continue drawing America into situations it cannot afford while also moving away from the dollar.

I am seeking to learn the way things ACTUALLY are, not the way someone tells me they are

Of course he does

We have forced his hand. Why on earth would Russia want to trade in USD or Euros when we are imposing sanctions? The response is predictable. Dumb "wins" again in Washington DC.

"One resists the invasion of armies; one does not resist the invasion of ideas" Victor Hugo

The only rationale is "because we say so"

that works if countries are dependent upon you are they live in utter fear of you.
Apparently Russia is not afraid and Russia does little trade with the US , so why use the dollar.

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Fools dilemma

The stupid are cocksure, while the intelligent entertain restraint.

"One resists the invasion of armies; one does not resist the invasion of ideas" Victor Hugo

Market forces always win

Sanctions do not work. They only hurt the one imposing them. Its the law of supply and demand - so the US and a few of its fragile EU allies refuse to sell beef and apples to Russia. So what. In comes any number of countries to fill the demand.

Here's the rub - if for example, Brazil mobilizes to meet Russia's agricultural needs and does so adequately there will be little motivation to return to EU or US suppliers after sanctions are lifted.

Nice play from Dumb and Dumber...

"One resists the invasion of armies; one does not resist the invasion of ideas" Victor Hugo

That's True

Russia will just go on to trade with South and Central American countries for the food. As a bonus, they're rid of all the GMO foods.

But doesn't the Russian import ban just hurt ordinary people - the consumers and farmers, compared to the US-EU sanctions, which targeted state-owned banks and arms-manufacturers (which apparently didn't work anyway)? Russia didn't import much of its food from South and Central America from the very beginning because it is cheaper to get it from the EU, which is closer to Russia and not on the other side of the world. If Russia goes through with closing airline routes to Asia, the US-EU could just retaliate and close their routes to Russia, which would drive the import costs even higher.

It's good in the long-run because Russia has a wake-up call to further develop it's own agricultural sector (which would also be GMO-free!) but in the meantime only ordinary people are hurt by Putin's ban.


ridiculous !

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What is/was the biggest export to Russia?

High tech hardware and software?

Are the sanctions just hiding the fact that the demand for wormy technology secretly bugged by NSA has plummeted.

Microsoft has been downsizing. I wonder what the story is in the rest of the tech sector.

Free includes debt-free!

Cyril's picture

In 2011 already

Well, they had done one earlier twice as big if I recall well, in San Jose in 2011, already.

Seemingly, they have to go with their cutting plans to span several years.

That's the "recovery", ya know...

"Cyril" pronounced "see real". I code stuff.


"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Yep just keep saying recovery

And one day it will happen

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isn't recovery something for

isn't recovery something for addicts?

"The pioneers of a warless world are the youth who refuse military service." - Albert Einstein


Cyril's picture

I guess we have to blame it on a parallel universe

Well, that must be a parallel universe we live in, parallel to the media's or the BLS' that is.

What I can say is:

in 5 years 1/2 spent in the US by now, I have heard of, or seen, or experienced (last time was 3 months ago) more downsizing in my sector over the course of 2011-today than I had in the first 2 years (2009 and 2010).

Granted, I'm in a blessed sector so to speak for my skillset and experience, and the media probably report growing employment, there.

Only one hiccup, though:

out of all the job gigs / contact requests that I've been continuously receiving over the same period, I couldn't miss to notice the ever increasing proportion of contract jobs, shorter also (3 to 6 months only) vs. full time, permanent employment. Also, less and less in CA, btw.

What does that tell you, EVEN in that sector?

So much for a recovery where jobs, incl. for seniors, tend to be found elsewhere, and with less and less a priori commitment from employers, no?

"Cyril" pronounced "see real". I code stuff.


"To study and not think is a waste. To think and not study is dangerous." -- Confucius

So what is it here?

Is the US really that inept at foreign policy? Or is there a more sinister reason for this? I could see either or a combo of both.

To climb the mountain, you must believe you can.

Egos expand currency war

U.S: "My weak dollar is stronger than your weak ruble."

Russia: "My weak ruble is less phony than your counterfeit dollar."

Will currency war lead to hot war or will egos be checked?

There is the US problem

The dollar can only lose market share.
Since the ruble five years ago was not used at all in international trade, it can only increase market share as it starts to do non dollar deals and some ruble deals.

As I mention it only takes a 5-15% decline in demand for the dollar for the impact to be felt in import prices

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I think its ineptitude

I think the US underestimates Russia and overestimates its own strength

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Exxon Mobil should have...

moved its corporate headquarters to another country to not only get away from paying high taxes to the U.S. but also to get away from suffering the consequences of stupid American foreign policy.

Minnesota Mary

There are some who think there is a war going on between

the oil lobby and the bank lobby.
Under this theory Obama is in the bank lobby and his actions are dictated by the banks.

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