Robert Kahn, Council on Foreign Relation's Counter to Sergei Glazyev, Screams: "Deleverage Russia!"
April 27, 2014 • 11:59AM

Council on Foreign Relations (CFR) Senior Fellow Robert Kahn expressed joy today about still-unconfirmed reports that the Obama Administration and Treasury Department Office of Foreign Asset Controls (OFAC) will impose new sanctions on April 28 against Russian government-owned Gazprombank and Vnesheconombank. Kahn has emerged as the leading finance expert for brutal financial sanctions, which he called for in an April 10 article titled "Putin's Lehman Moment: A Sharp, Rapid, Deleveraging with Major Consequences for Russia's Ability To Trade and Invest."

Ironically, Mr. Kahn came to the CFR direct from a hedge fund, and prior to that from the World Bank, IMF, and U.S. Treasury as a debt-restructuring expert. In 2008-2009 Kahn was the World Bank's liaison to the misnamed Financial Stability Forum, the cartel of central bankers and financial authorities that since 2007-08, have coordinated the multi-trillion-dollar, if not quadrillion-dollar, bailout and coming bail-in of the London imperial megabanks. Kahn blindly ignores his London and Wall Street masters' own, ongoing potential for a "sharp, deleveraging," meltdown.

The leveraged side of Russia's finances is largely based on the legacy of the 1990s Western-imposed, offshore, oligarch system. Oligarch cash flow is run offshore, and whatever is brought back to Russia, is channeled into government funds largely used to "stabilize the ruble" in order to attract, again, hot money from the London-centered "financial markets." Putin's policy has been de-offshorization, and as of this week, his economic advisor Sergei Glazyev has brought to the Kremlin renewed proposals for domestic credit generation as an answer to being cut off from financial markets. A transition would be difficult, but the deleveraging issue is actually the vulnerability of the London-Wall Street system. During the Ibero-American debt crisis of 1981, it was only the failure of other nations to support Mexico's implementation of Lyndon LaRouche's Operation Juárez which led to their defeat, as Wall Street and other banks were desperately vulnerable to the famous "debt bomb." Now, the LaRouche-led measures for Glass-Steagall and sovereign credit generation are the key to pulling the plug on the London-Wall Street-CFR War Party.