'A record $100 billion in withdrawals of Treasury bills is raising speculation that the Kremlin and Russian oligarchs are yanking their money out of the United States to avoid upcoming sanctions over Ukraine.
'The massive outflow over the past week came as President Obama and other top US officials repeatedly warned Russia would face a “cost” if it didn’t reverse course in Ukraine.
'The total amount of foreign-held US Treasury securities dropped to $2.86 trillion — lowest in more than a year.
'Last year, the most moved out in a week was $32 billion.
'Analysts said that if the switch was made by Russia, it would represent about 80 percent of that nation’s US Treasury holdings.
'“This is only speculation on our part, but it seems likely that the Russian authorities had more than $100 billion of Treasury debt in custody at the Fed, and it doesn’t seem implausible that they moved it to a jurisdiction where it would be less vulnerable to a US asset freeze,” Lou Crandall at Wrightson ICAP LLC told The Wall Street Journal.'
(New York Post | 'Treasury bills hints at Russian move' at 15 March 2014
Perhaps a quote by the Britannica Encyclopaedia is appropriate:
'Jefferson, however, chose to exert economic pressure against Britain and France by pushing Congress in December 1807 to pass the Embargo Act, which forbade all export shipping from U.S. ports and most imports from Britain.)
'The Embargo Act hurt Americans more than the British or French, however, causing many Americans to defy it. Just before Jefferson left office in 1809, Congress replaced the Embargo Act with the Non-Intercourse Act, which exclusively forbade trade with Great Britain and France. This measure also proved ineffective, and it was replaced by Macon's Bill No. 2 (May 1, 1810) that resumed trade with all nations but stipulated that if either Britain or France dropped commercial restrictions, the United States would revive nonintercourse against the other. In August, Napoleon insinuated that he would exempt American shipping from the Berlin and Milan decrees. Although the British demonstrated that French restrictions continued, U.S. Pres. James Madison reinstated nonintercourse against Britain in November 1810, thereby moving one step closer to war.
'Britain's refusal to yield on neutral rights derived from more than the emergency of the European war. British manufacturing and shipping interests demanded that the Royal Navy promote and sustain British trade against Yankee competitors.
'Immediately after the war started, the tsar of Russia offered to mediate.'
("1812, War of." Encyclopædia Britannica. Encyclopædia Britannica Deluxe Edition. Chicago: Encyclopædia Britannica, 2012.