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Russia Is Liquidating US Treasury Holdings And Dumping The Dollar

Mac Slavo
July 18th, 2018
SHTFplan.com
Comments (34)
Read by 5,090 people
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The great dollar dump is upon us. Russia is now taking major steps to move away from the United States dollar. We just might see the collapse of the dollar, as other countries also bail on the greenback.

According to RT, the share of U.S. sovereign debt bonds in Russia’s portfolio has been reduced dramatically in recent months. Russia held $96.1 billion in U.S. Treasuries in March before selling half its holdings in April, dropping to 22nd place among major foreign holders of American treasury securities at $48.7 billion. Only eight years ago, in 2010, Russia was one of the top holders of U.S. debt. With its holdings falling to $14.9 billion in May, the country is now below the $30 billion threshold for inclusion on the Treasury Department’s monthly report of major holders.

A treasury bond is a fixed-interest government debt security with a maturity of more than 10 years. Treasury bonds make interest payments twice a year. The gradual sell-off of US sovereign debt started in 2011, and has intensified over recent years amid numerous rounds of sanctions imposed by the White House against Russia. RT

In the meantime, Russia’s gold holding continue to increase. Their share of gold has risen to its highest level in nearly two decades. Russia’s gold holdings in May grew by one percent to 62 million troy ounces, worth $80.5 billion, according to the CBR. According to Russian Central Bank Governor Elvira Nabiullina, gold purchases helped to diversify reserves. “In terms of the share of gold, actually we are not holding the records because there are countries that have a bigger share of gold in their reserves,Nabiullina saidThat begs the question: should we all be investing in gold?

Maybe. What does Russia know that our government and media refuse to say? The trade war with China likely has something to do with all of the problems the dollar is having.  In fact, some financial gurus say that the dollar is so weak it cannot withstand a trade war.

Global geopolitical conflicts along with the trade tensions have made some other countries follow suit as well. Turkey nearly cut its US Treasury holdings in half; from almost $62 billion in November to $32.6 billion in May. Germany has also taken steps to reduce its holdings from $86 billion in April to $78.3 billion in May.

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Author: Mac Slavo
Views: Read by 5,090 people
Date: July 18th, 2018
Website: www.SHTFplan.com

Copyright Information: Copyright SHTFplan and Mac Slavo. This content may be freely reproduced in full or in part in digital form with full attribution to the author and a link to www.shtfplan.com. Please contact us for permission to reproduce this content in other media formats.

34 Comments...

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  1. TharSheBlows says:

    Everybody needs to be dumping their US Dollars, in exchange for Gold and Silver. Real Money for 5000 years. Back up the truck boys, you will be rewarded handsomely.

    • Not everyone can afford to buy gold. On the other hand, no one can afford not to buy gold. It’s kind of a double negative. If you know what I mean.

      _

      • Archivist says:

        Buy silver. It’s relatively inexpensive right now, as the price is being held down artificially. Silver is becoming rarer, compared to gold. So the old ratio between gold and silver prices should be changed.

        Get some rolls of silver dimes and quarters.

        A silver dime has always been worth a loaf of bread. Eventually, it may be worth more, compared to other commodities.

        • TharSheBlows says:

          Forget Junk Coinage Silver. Its diluted garbage. Instead, get .999 Pure Silver 1 Oz Rounds. $15.50 today each. Got a good deal just .15 Cents over spot. Physical Silver 1 Oz Rounds. They will spend great in SHTF. Get a Big Steak and potato, a few beers for a 1 Oz Round. 2 will about fill your gas tank. in SHTF you can always use the silver to make your own silver collide for medical purposes. Electrical components, solar panels, etc. Dentists would be a big buyer of .999 Silver in SHTF.

          • Archivist says:

            Junk silver coins are more recognizable and will be easier to spend. There are too many varieties of 1 oz. silver rounds to be recognizable. Then you get into having to test each one.

            Where are you planning on buying a steak and potato when the SHTF?

            • Infidel says:

              Hardly anyone recognizes junk silver coins from other coins in circulation. That 1962 silver dime will be recognized as just a dime, 10 cents. You will not get anything more than face value.

              TSB is correct. Forget junk silver, buy 1 oz .999 silver rounds instead.

          • Peter Pan says:

            Dentist won’t be buying silver. Silver without mercury, tin, and copper is useless as a filling material. Gold, on the other hand, much more useful. Besides, you are going to be giving your dentist silver anyway, otherwise, they are not going to pull your tooth!

      • enough says:

        Then buy silver. You can afford silver at 16 bucks an ounce

        • TharSheBlows says:

          Well the controllers want to take Gold down to $1200 an OZ, and Silver worst price ratio of 80:1 to Gold, would mean Silver may bottom out at $15 even. Its hit $15.11 today, now up some. A steal to load up the truck. Last chance before SHTF. You have all been warned, You got at least some PM’s just in case, the dollar is worthless. Which is .02 cents of its original value, so Zero is not far off here. Silver could triple in price within a year or less, look at the charts.

  2. Maranatha says:

    Well, every nation buys each other’s government securities to maintain global financial stability. But then under Obummer, the Federal Reserve started buying government securities which had no buyers…but bought them with no currency.

    If all governments followed through by dumping government securities, the chain reaction hurts the every currency and bond, not just the dollar. There is no valid reason for an American to buy any foreign products, only rare earth metals which we lack. If they want a true trade war, bring it, but realize that WW3 comes next. And it has been a long time coming.

    When the USSR collapsed, few thought Russia could survive. But they did albeit due to the Russian mob.

    China is immensely unstable as Chicoms in the street realize automation and robotics will worsen and their short experiment with capitalism will be over.

    It’s all phony because we have no true money anymore. When people realize this, we’ll have an even worse Great Depression.

    And FDR already set precedent by demanding citizens turn in their silver and gold, so don’t presume you will keep yours. Even so, metal prices are so manipulated that honestly it’s doubtful in the short run as an investment. Seizure affects the value even if they don’t get yours.

    In the World Made By Hand novels by Kunstler, people later take pre1965 silver in trade and of course other silver and gold. So ultimately it is a good investment.

    • Archivist says:

      We don’t lack rare earth minerals. Environmentalists just caused the mines to be closed down. They can always be reopened.

      Chromium is about the only mined material that we don’t have. That comes from Africa. Most of it was used for car bumpers and 1950s dinette sets. I have a chrome-plated penny.

      FDR might have called for gold, but he didn’t get it all.

      Metal prices are irrelevant to me. All that matters is the value of gold and silver compared to other commodities. That ratio has stayed pretty constant for the past 100 years. One silver dime equals a short loaf of bread. An ounce of gold equals a very good suit of clothes. Silver is becoming rarer compared to gold, so its purchasing power will eventually go up.

  3. Wont be needing any money or gold or silver for what may come. Now you can always get what you need if you out gun them .. just saying… and if your that worried about it just trade in your dollars for rubles lol… all in all you aint takeing a damn thing with ya….

  4. Wonder if i can pay my electric bill with silver rounds lol

  5. Maranatha says:

    The smarter thing to do when the SHTF would be grow tobacco. You should have zero trouble trading that.

  6. Stuart says:

    “… all the problems the dollar is having”

    What problem?

    https://finance.yahoo.com/quote/DX=F?p=DX=F&.tsrc=fin-srch-v1

  7. YohanSmythe says:

    According to ZeroHedge, they liquidated $47.4 Billion in March, and ANOTHER $40 Billion in May, leaving Russia with only $9 Billion in U.S. Treasuries.

    :0

    “Readers may recall that last month we first reported that for all the confusion about sharply higher yields in April, the explanation was simple: it was Vladimir Putin who liquidated a whopping half of Russia’s Treasury holdings, which declined by $47.4BN to just $48.7BN – the lowest since 2008 – from $96BN in March.

    But wait, it gets better, because as Trump continued to jawbone about more sanctions targeting Russia, Putin did not stop and in May he continued what was an outright liquidation of Russia’s TSY holdings, which plunged by another $40BN, or 82%, from $48.7BN to just $9BN in May. Keep in mind this was over $100BN at the start of the year.”

    ht tps://www.zerohedge.com/news/2018-07-17/russia-liquidates-its-us-treasury-holdings

  8. rellik says:

    Do these people know about Treasuries? Russians may have “dumped” their bonds, but somebody bought them on the secondary market for pennies on the dollar. You can’t just “cash in” a Tbond. I would not worry about it. In fact I’d be fine with ALL foreign investors dumping their bonds, if I were in Equities, I’d move my money from Facebook to Tbonds that I could get for pennies on the dollar.
    As for investment in Au and Ag, that is not a free market and I do not trust it. I’m a peasant so I stick to barter and government toilet paper.

    • jpl_texas says:

      I agree with the idea of not buying or trusting in gold or silver. The government has a precedent of stepping in resetting the value. Let say I bought ounces at $1500/oz and the price skyrocketed to $10,000/oz – who is going to be buying at $10,000/oz? Nobody, there won’t be a market. The government will confiscate gold again and reset the prices. How about land? Collectibles?

      • enough says:

        Ummmm no. Gold and silver are Not an investment, they are a hedge against super inflation and SHTF. AND the paper dollar has no actual value, no tangible worth. Gold and silver do, although it varies widely. Water is The most valuable thing on the planet, then food, shelter and freedom. Plan accordingly

  9. DWEEZIL THE WEASEL says:

    Keep in mind that US silver coins are still legal tender. In an “economic correction” situation, “junk silver” dimes, quarters, 50-cent pieces and silver dollars can still be bartered or used to buy needful things. That being said, the one thing you cannot do with any precious metal is eat it.
    Your preps, which you should be diligently working on in these troubled times, should include stores of food, water, medicines, hygiene items and other needful things we all take for granted. And have a plan. The interruption could happen in the course of one business day. You and your tribe members need to stay vigilant and ready.

  10. Young Otis says:

    With the Keynesian fraudsters at the Fed intent on debasing the dollar into worthlessness, dumping their US Treasuries is a prudent move by Russia, especially if they buy gold at these bargain-basement prices.

    • rellik says:

      Otis,
      I have to ask, why a commodity, Au, costs ~$1000( per Oz) to produce
      (mine from the sea or land) and sells for ~1200 per Oz is a bargain?
      In your bubble, all things being equal, what use is of one Oz of Au,
      when you need food to survive? Take Venezuela as an example, no amount of Au you have stashed in your mattress will get you food from a store that has none. If you leave your area you may find a place that has food and will take your Au, but it will be at the price of their choosing not yours, as you cannot eat Gold and expect to survive.
      If you think you can make money investing in Gold go for it! As a means of International exchange it may work. However in my little world, land, arms, food storage and production, and water are far more valuable than any yellow(Au) or white(Ag) metals.

  11. Feckless Sweat says:

    This article wreaks of fear-mongering from precious metals dealers.

    Although, I must say that if Russians have watched how the media, politicians, and other noteworthy scum have disrespected our President for doing what must be done. I might not want anything to do with such a nation of treasonous, lying, and offensive swine either. SUPPORT TRUMP….He worked hard to bring us up this far; now he needs more than lip service and may require the physical strength of those of us on the right who are patriots and defenders of freedom. Remember antifa = Anti-First Amendment….

  12. The Russians didn’t own very much. The numbers they had were nothing compared to the Chinese and Japanese. There is a movement by China, Russia, India, Iran and others to pay for gas and oil with their own currencies. Thereby hurting the petrodollar.

  13. They have been selling off treasuries. Not too many years ago Russia had the third most treasuries behind China and Japan.

    However, there is not enough information here as to why they are selling them. It could be that they have to keep their currency from devaluing too much…generally this is why they are sold.

    What did they do with the FRNs they gained from the sale? Did they pay off dollar denominated debt? This is another reason that treasuries are sold.

    No country “dumps” treasuries for retaliation. They generally do it to stabilize their own currency or pay off international debt.

    Need more information to make a judgement.

    • YohanSmythe says:

      I’d guess that they know what is coming!

      Both FRNs **AND** U.S. Treasuries will be WORTHLESS.

      And who said they got FRNs for them. Maybe they traded them for Gold, or paid off a debt (Here’s $10 Billion in U.S Treasuries for that $10 Billion that we owe you” (suckerrrrrrrr…….)).

  14. John Wayne said says:

    Got any Gold,
    No Gold.
    Got any Silver,
    No Silver.

    All I have is Lead (45 Long Colt for you).

  15. the blame-e says:

    The Russians and the Chinese are in this together. They are playing the game very, very well. Add a currency devaluation to a bond default to a trade war.

    Overnight, China devalued the Yuan again. Some say Trump will need to increase tariffs by as much as 24-percent just to stay even. After that nobody knows. With the trade imbalances as big as they have been between the US and China and only getting bigger — if you increase tariffs to 100-percent isn’t that pretty much game over — for all sides?

    Nobody ever wins these things. Besides, China already pretty much owns the United States (in debt related obligations), just like Australia is owned (its natural resources anyway), by China.

  16. Bigbluedrew says:

    Ah the weekly buy gold now article.. My question is why. The market is currently controlled by bankers, they will never allow it to rise to its true value. In an economic collapse, does anyone really believe the government will set back and let it rise to 5 thousand an once, Dream on. They will either confiscate it, much easier in the computer age than in Roosevelt’s time or set on artificially low price and force compliance. Buy land, bullets booze, tobacco, pharmaceuticals, extra tools, barter items that governments have never been able to control.

  17. Maranatha says:

    A lot of old preppers have junk silver coins that were not purchased but collected and handed down from our ancestors. I have no plans to trade them. They are for emergency use.

    It makes sense to diversify with 5-10% in physical silver and gold but since the market is wantonly manipulated, I haven’t bought any.

    A ready cash crop is far more useful like tobacco. There will always be a demand.

    Smart folks on the coasts should learn the proper slow drying way to acquire sea salt as that was immensely valuable in history. Likewise some could make coconut husk charcoal which makes the very best water purification.

    A few in Texas might work a trade with Coffee beans. Tea will grow in a few places in the South and will be the major caffeine source. The only American coffee is from the Kona Coast on the island of Hawaii.

  18. MStriker says:

    Whoop-tee-do. Just another act of aggression by a known enemy. More adaption necessary, but ignore the fear-mongering. (Or, you can cash out ALL of your stocks in the hope of adding to the hints of incipient panic.)

    (I doubt this will cause the stock failure that many preppers fear. China doing dumping treasuries and stocks for pennies on the dollar might trigger a major adjustment. But, Russia? Doubtful.)

  19. PeterFrancisco says:

    Most important thing to remember about Treasuries: they are used as trade settlement paper for global trade contracts. Look at two of the largest holders of Treasuries: Ireland and Brazil.

    Ireland is a tax haven. It’s also a parking lot for US companies to park the Treasuries they receive from selling their products abroad. Look at the balance sheets of companies like Apple. The “cash and cash equivalents” line item is teeming with Treasuries parked where? Ireland.

    What happens when no one needs to buy Treasuries to buy the goods of US companies? They’re going to look to get out of their Treasury position.

    Then there’s Brazil. What does Brazil sell? Commodities. Coffee, beef, orange juice concentrate, cocoa, soy beans. All these contracts are settled in dollars (Treasuries). That’s why Brazil has such massive Treasury holdings. It’s also why a drink of orange juice in Argentina costs more than a drink of Dom in the US.

    When we have a true and pure free market, where no one is forced to buy Treasuries to settle a global contract, a bunch of things are going to happen. Gold is going to take off first because whoever is holding Treasuries for which there is no demand is going to want to get their hands on real money.

    Silver is the one to watch. Who is going to be the only buyer in town for these Treasuries no one will need any longer? The Fed and the Exchange Stabilization Fund. This is where JPM comes in. They have two silver vaults. One has 240m ounces to settle stand for delivery on Comex. The other has over 600m ounces. This is the one that will be used to settle these Treasuries which would effectively be “bounced” back to the US. JPM will be the clearing house for ESF, and will settle the Treasuries in silver. Instead of the dollar going off a cliff at warp speed, it goes off a cliff in slow motion.

    The end game is silver moving toward par with gold. You’ll have a substantially devalued dollar. Silver comes out of the ground at 8 ounces to one ounce of gold, and that ratio is moving closer to par every day. And you will have a severe physical shortage of silver in the US. The US mines only 40m ounces per year. The US mints 45m silver eagles per year. What makes up the shortfall? Mexico. Then add all your silver rounds and bars on top of that. Right now, Mexico is force to throw all that silver away by selling it for dollars to pay its dollar-denominated debt, which is significant. When Mexico stops squandering its silver in this manner, watch silver begin to move big and quickly.

  20. Sarcastic1 says:

    Good grief. Whatever, man. Russia’s economy is so small that they simply CAN’T have much of an effect on the dollar. Wake up and smell the rubles, folks! 🙂

 
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