Posted on 03/06/2015 5:40:02 AM PST by elhombrelibre
Translation from libspeak...Russia slashes government spending.
Yeah, in your mind Putin’s a brilliant fiscal conservative and a paladin of the Christian faith. His time in the KGB was just a trick to take over the country and rid it of atheism. And he’s stoic without much wealth because it’s all about the public service. He’s not one of the richest men in the world. That’s a canard. He’s poorer than the Clintons. Ha. Truck, you’re always a hoot.
I assume no one wants to buy bonds or invest in their debt. Doesn’t that make sense? I know Putin has his Putinista fan club on FReeRepublic, but most people are well aware that Russia’s become a junk bond.
What interest rate on a ruble-denominated Russian 10-year treasury bond would make you indifferent between buying it and a U.S. Treasury bond of the same duration? Your answer to that question will go a long way towards an understanding of the difference between our situation and the one in Russia.
Thank you. I wasn’t thinking that all the way through.
The unique status of the US dollar as the world's reserve currency is what allows the US government to greatly expand its monetary base without serious consequences. Other countries must hold US dollars to conduct trade.
Sort of taking advantage of the third world for our continued operation.
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