Posted on 03/12/2022 6:37:12 AM PST by marcusmaximus
The cost of Russia's invasion of Ukraine will become a lot clearer this week, with a previously unthinkable sovereign default looming, more emergency central bank measures likely and a stock market crash guaranteed if it reopens.
Moscow's "special operation" in its former Soviet neighbour has cut Russia off from key parts of the global financial markets by the West, triggering its worst economic crisis since the 1991 fall of the Soviet Union.
Wednesday could mark another low. The government is due to pay $117 million on two of its dollar-denominated bonds. But it has been signalling it will not, or if its does it will be in roubles, tantamount to a default.
Technically it has a 30-day grace period, but that is a minor point. If it happens it would represent its first international default since the Bolshevik revolution over a century ago.
(Excerpt) Read more at money.usnews.com ...
The Russians have plenty of gold, they should just pay-up with that.
Default is a good thing for the entity with the debt—not so good for those who hold the debt.
This lesson will become super obvious in less than a week.
No. They defaulted in 1998. Whoever wrote that is an idiot.
https://en.wikipedia.org/wiki/1998_Russian_financial_crisis
Why should they do that ??
Not trying to be argumentative but asking a question.
The West especially the USA is engaged in economic war with Russia, removing them from Swift, sanctioning their Central Bank, and banning their oil.
Most of the debt Russia has is owned by the West, what better way to say FU to the West by Russia and default on their debts.
The next question is what would Russia do then ?? China is a fountain of money and wants to screw the West as much as Russia.
If I were Russia I would refuse to pay the debts and default and see what happens to Western Banks and other investment companies who have issued large amounts of Credit Default Swaps that could cause the crisis of 2008 to be considered a skirmish.
If I were Russia, I would say FU and give the middle finger to the Western Banks who own the debt.
“that could cause the crisis of 2008 to be considered a skirmish.”
Stop drama queen. The FED and European central bank would step in. Total Russian debt to foreign entities is relatively a small amount, compared to what these banks could monetize in total if needed.
Critical thinking is no longer the strong suit of the deep state globalist neocons bent on ruling the world.
Sure they could, but what happens then ??
We already have the worse inflation in 40 years, monetizing the debts to save the banking system for the 2nd time in less than 15 years is not only going to be wildly unpopular but wildly unpopular, not to mention the impact on inflation.
I enjoy a good debate but I don’t enjoy a debate when the debate starts with insults.
“The Russians have plenty of gold, they should just pay-up with that.”
They also have $600B in hard currency. But why bother, at this point?
The US is the economic basket case. Russia gas oil, gas and minerals they actually mine instead of obsessing over fantasy climate change. They have low debt to GDP ratio, they have gold.
We have biden.
What we don’t know (but will know very soon) is what derivatives have to be unwound due to a Russian default.
It could be anything from a nothingburger to a total worldwide economic collapse where central bank and government intervention is unable to rescue enough counterparties to save the system.
The wackiness of the international financial system is that nobody knows where all the bodies are buried any more.
The way I put it is that the primary US exports are propaganda and inflation.
You can’t feed your family or drive your vehicle or manufacture useful goods with those.
Ah NO. Russian debt is not that big in the grand scheme of things.
Not paying on time is a default. They called it a moratorium, but it was a default.
I dont like debate where the other side engages in absurd wild exaggerations.
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