By Lowell Ponte
Tremors from the earthshaking Russian-U.S. confrontation over Crimea are now revealing just how vulnerable our banking system and economy are to collapse... and how this far-away crisis has greatly increased the threat to ordinary savers in the United States and worldwide.
While President Obama was threatening to seize Russia's assets in the U.S., Russian President Vladimir Putin, in the past few days, apparently successfully withdrew $105.1 billion in U.S. treasury notes that Russia had deposited with the U.S. Federal Reserve. This may be the biggest 'bank run' ever on America's Central Bank, and it signals that many more bank runs are soon to come. Russia has taken these treasury notes – the bulk of its U.S. holdings – out of the country, and beyond President Obama's power to seize or freeze them as a bargaining chip with Russia. [more...]