patrick.net

How USA Today covers the story http://abcnews.go.com/Business/story?id=7804696
vs. IBT
http://www.ibtimes.com/ukraine-crisis-takes-new-spin-russia-threatens-dump-us-treasurys-if-sanctions-imposed-1559238

No worries. The Fed will buy them.

That's what I think too. Russia holds "just" $180 billion of US Treasuries. For the Fed that's about three or fourth months of QE.

bgamall4 says

smaulgld says

That's what I think too. Russia holds "just" $180 billion of US Treasuries. For the Fed that's about three or fourth months of QE.

But it isn't just selling bonds. It is selling bonds, not paying American banks back, and changing its reserve currency. http://www.zerohedge.com/contributed/2014-03-04/putin-economic-adviser-warns-russia-will-sell-us-bonds-and-%E2%80%9Ccrash%E2%80%9D-financial-

Agree it would be major a gambit and huge if it worked

bgamall4 says

smaulgld says

That's what I think too. Russia holds "just" $180 billion of US Treasuries. For the Fed that's about three or fourth months of QE.

Would China help?

If China joined forces it would be game over. BUT they would have to be willing to forefeit most of their reserves (they have A trillion in US tbonds) and a lot of trade with the US.
It's a form of MAD that prevents the dumping discussed in the You tube

smaulgld says

bgamall4 says

smaulgld says

That's what I think too. Russia holds "just" $180 billion of US Treasuries. For the Fed that's about three or fourth months of QE.

But it isn't just selling bonds. It is selling bonds, not paying American banks back, and changing its reserve currency. http://www.zerohedge.com/contributed/2014-03-04/putin-economic-adviser-warns-russia-will-sell-us-bonds-and-%E2%80%9Ccrash%E2%80%9D-financial-

Agree it would be major a gambit and huge if it worked

How to go long on that unlikely possibility?

Blurtman says

How to go long on that unlikely possibility?

You short US Treasuries and buy oil, gold, silver -all currencies would probably be hit as all major sovereigns hold treasury bonds, so other than maybe the Norwegian Krone all currencies would take a hit at first BUT if a new dominant currency emerged like the Chinese Yuan that would be a good longer term play.

Let's make the hypothetical trade and see how it goes.

Blurtman says

It's pretty unlikely at this point- the US would have to get involved in a real or close to real war with Russia for them to start dumping treasuries and convince others
More likely they will slowly wean themselves off US t-bonds

bgamall4 says

Blurtman says

How to go long on that unlikely possibility?

Find a cave.

or a desk to duck and cover under