Russia Wants to Ditch the Dollar, Mattis says “Prepare for War”

But it’s because the russkies hate our freedom doncha no?

In a testament to the success of the latest Trump sanctions against Russia, overnight Russian aluminum giant Rusal announced that its chief executive, Aleksandra Buriko, and half of its managerial board resigned to make sure the firm avoids U.S. sanctions against its founder, billionaire oligarch, Oleg Deripaska. The mass resignations were part of “the efforts that have been made by the management of the group to protect the interests of the company and its shareholders” since the sanctions were imposed last month, Rusal said in a May 24 statement.

Buriko resigned after the U.S. Treasury’s Office of Foreign Assets Control (OFAC) announced new punitive measures against Russia in early April in response to Russia’s “malign” activities around the world. The latest round of sanctions primarily targeted Russian oligarchs close to President Vladimir Putin, especially Oleg Deripaska – who had previously been interviewed by Robert Mueller – prompting Rusal shares to tumble while the price of aluminum soared.

That said, Rusal is not out of the woods yet, and earlier today Bloomberg reported that Deripaska had asked the Russian government to buy aluminum for state reserves, in other words engage in an indirect bailout of the state’s largest aluminum producer, although the Kremlin hasn’t made a decision yet. Furthermore, Rusal which is facing significant debt maturities in the coming months, has applied for state support to Promsvyazbank, and a decision is pending.

The common theme here is that Trump’s sanctions against Russia – with which he is supposedly colluding – not only work, but are very effective in achieving their goal. And they do so though the biggest weapon the US has: access to the world’s reserve currency, because with one phone call to SWIFT, Trump can lock out an entire nation.

So what alternatives is Russia planning, aside of course from increasingly closer trade, financial and monetary ties to China, which renminbi many speculate is only a matter of time before it replaces the USD as the world’s reserve currency?

Addressing precisely this issue, Russia’s Finance Minister Anton Siluanov said at the St. Petersburg International Economic Forum that settlements in US currency could be dropped by Russia in favor of the euro. That said, Russia would only engage in such an unprecedented transition under one condition:  if the EU takes a stand against the latest US sanctions on Moscow.

It was supposed to be a joyous occasion, marking the commencement of a new and better phase in the life of nearly 1000 graduates. Instead, Defense Secretary Jim Mattis told the 984 new lieutenants who are graduating from the U.S. Air Force Academy to prepare for the worst: war.

On Wednesday night, Mattis spoke at the graduation ceremony on the campus outside Colorado Springs and told the 2018 graduates they must be ready to fight and win. The Pentagon chief also told the 60th class to graduate from the academy that they must maintain U.S. military superiority in the air, and urged them to make the Air Force better.

As the ceremony ended, the newly commissioned officers threw their white hats into the sky as the Air Force Thunderbirds roared overhead, a longstanding tradition. Of the nearly 1000 graduates, more than 400 are headed to pilot training, and 69 will be trained to operate drones.

(full Mattis ceremony speech here)

To be sure, this is not the first time time Mattis who urged those around him to prepare for war.

And while not as intense, the warning is similar to that issued by a US Marine Corps general who last December, warned troops station in Norway to be prepared for a coming war.  As we reported at the time, on a brief visit to the 300-member unit ahead of Christmas, the commandant and the sergeant major of the Marine Corps both described the strategic role the small unit fills — and the fact that a peacetime mission can be preface to combat if circumstances change….

Americans had better be among the first to ditch the federal reserve note or we’re going to be very very screwed, as we trade real property for the bits of paper that are about to come flooding back home.   We’ll have trainloads of worthless paper and nothing else.

Just to put this in a little historical perspective, 25 or so years ago this empire stood astride the world, with the ability to print its way into purchasing pretty much anything and anyone, anywhere.   It was great for some americans, a nightmare for most everyone else.   But now the final betrayal is happening: after exporting most of our industrial infrastructure and putting the people on the hook for $22T of fake debt, washington is basically giving the world a choice: keep accepting fed paper as they print it to infinity or face annihilation.

It makes no difference that this is a kamikaze foreign policy.  The central bankers who arranged for it to happen will make out like the satanic bandits that they are, while the govt bureaucrats who play their final roles will think they’re serving their country right up until the moment that they’re vaporized.

Clearly there is only one way out of this impending catastrophe and that’s monetary reform.


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