Russia responded to the threat of sanctions the United States. The sanctions against Russia would also lead to the “collapse of the U.S. financial system” and end the dominance of the U.S. in global financial markets. Russia could continue to carry out its international transactions in other currencies and refrain entirely on the dollar. While Russia’s reserves of dollars is tiny and this threat is more like an ant threatening an elephant, there is a trend growing ever since the NSA that the US has been the evil empire that terrorizes the world, disregards international law, and assumes it is the new Rome. With respect the US constant attempt to impose sanction on nations and then to abuse any bank OUTSIDE the USA who dares to refuse the USA demands, the resentment is growing in leaps and bounds. As in a memo surfacing from Standard Charter bank in the UK reveals – “You f—ing Americans. Who are you to tell us, the rest of the world, that we’re not going to deal with Iranians.”
Putin’s economic adviser said “We would not only find a way to reduce our economic dependence on the United States to zero, but pull for us a great advantage of it.”
The more realistic threat would be for Russia to decree that all foreign debts would be suspended. Preventing loan repayments to US banks would result in almost $500 billion in losses. Russia’s economic outlook is impacted by the global economic slowdown with the fall in commodity prices. Russia lacks the depth in its economy to really get off the ground. Everything is suppressed by its Oligarchy. Russia needs to unleash its people setting them free from the Oligarchy to create innovation. It is far too dependent upon commodities.
The USA has to seriously reform the power elite in Washington. These morons are pissing off the entire world and the danger they are exposing everyone to is precisely what resulted in the collapse of Athens and the victory of Sparta in 404BC. Piss-off your allies and you suddenly find everyone turns against you. Beware the price of arrogance.