Posted on 03/15/2022 7:27:49 PM PDT by marcusmaximus
LONDON- The economic cost of Russia's assault on Ukraine was fully exposed on Wednesday as Vladimir Putin's sanctions-ravaged government teetered on the brink of its first international debt default since the Bolshevik revolution.
Moscow was due to pay $117 million in interest on two dollar-denominated sovereign bonds it had sold back in 2013. But the limits it now faces making payments, and talk from the Kremlin that it might pay in roubles - triggering a default anyway - meant even veteran investors were left guessing at what might happen.
One described it as the most closely watched government debt payment since Greece's default at the height of the euro zone crisis. Others said an emergency 'grace period' that allows Russia another 30 days to make the payment could drag the saga out.
"The thing about defaults is that they are never clear cut and this is no exception," said Pictet emerging market portfolio manager Guido Chamorro.
"There is a grace period, so we are not really going to know whether this is a default or not until April 15," he said referring to the situation if no coupon payment is made. "Anything could happen in the grace period."
A Russian government debt default was unthinkable until what Putin called a "special military operation" in Ukraine began in late February.
(Excerpt) Read more at money.usnews.com ...
Putin will pay with an IOU.
Besides, why pay a debt when he can spend it (if he had it) on funding the war? Killing kids and women and destroying Ukraine are of the utmost priority.
Great Ukraine feeds!
“When P and Z ultimately come to terms with each other will either of them let B save some face?”
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Interesting question, B - the US govt, actually - has been using Ukraine as it’s proxy to try to take down Russia, otherwise the US doesn’t care about Z. We’ve used these types before - installing ‘em and dumping ‘em when we were done with ‘em. Part of the game.
Z’s just a tool and he must know that - and if he stays on in Ukraine he might not be too happy B left him swinging in the wind. P would let B save face as he realizes it’s best when the US & Russia work together to both their advantage.
Z may be getting his ducks in a row while in the US, in case he flees to here. He would be under even more B control, so it works out for B, also.
“Turn him over to a collection agency”
And give his phone number to car warranty services.
Yes, indeed! Although it occurred to me that P might strike a more cordial deal with Z and B would be irrelevant to both in their new order of things.
B is nearly irrelevant to everyone else.
However, if Z does take Escape Plan “B” he could conceivably be the one in control in that relationship if he brings the right documents with him and secures them properly.
As the saying goes “Son of a B! He fired the prosecutor.”
Wow! You really live up to your FReep name. :)
“Great Ukraine feeds!”
—
One nice thing about Youtube is you can change the quality of the live streams.
If someone’s on a plan that’s metered and they have to watch how much bandwidth they use, they can kick the quality way down.
Also helpful for devices that are older or have trouble reliable streaming video streams at higher settings.
Such stupidity. This is going to backfire.
I am laughing because Russia’s “default” negatively impacts the morons who have caused it.
Any country with the natural resources held by Russia cannot be destroyed economically.
They can easily feed themselves. They have all the oil and natural gas they could ever use. They possess strategic minerals.
When the top secret SR-71 spy plane started being built by Lockheed in the late 1950’s, the Soviet Union was the only place on Earth to get titanium needed to build the bullet of a plane and keep it from melting in sustained supersonic flight at Mach 3 plus. The U.S. government deceived the Soviets by creating fake companies to buy titanium from the “Russkies.”
This economic “blockade” against Russia could cause worldwide starvation as Russia exports a good third of the world’s fertilizer needed for growing good crops.
Apparently, Putin has been stockpiling gold reserves for a long time. Meanwhile, America has just been printing currency by the ton.
The unintended consequences of this economic lockdown of Russia could catastrophically backfire like nothing seen before in world history.
How much did they spend going from Stalingrad to Berlin?
It has concerned me too. We really are in no position to play this financial game of chicken.
Nobody cares because the “default” is purely technical based on the transaction ban. Investors need to sue the bodies which slapped sanctions on Russia.
I think it was an option 10 days ago. Now only unconditional surrender is on the table.
Titanium is the ninth-most abundant element in Earth's crust (0.63% by mass) [...] Significant titanium-bearing ilmenite deposits exist in western Australia, Canada, China, India, Mozambique, New Zealand, Norway, Sierra Leone, South Africa, and Ukraine.
- Wikipedia
The U.S. buyers probably saved a couple of bucks, and had a good laugh, to boot!
Regards,
We are actually in an economic world war now involving most countries as a result of sanctions in one form or another - and an information world war.
Our social media giants are locked in with US Military objectives as we’ve noted. And basically US is actually now blinded from any independent information....especially regarding people on the ground in Ukraine if it doesn’t suite Washingtons narative.
Meanwhile Biden cries about Putins control of information in his country when we’re actually be banned and strongarmed in our own media. What hypoctites! While claiming we are a Free country!
Europes looking to the Saudi’s for energy currently.
It’s an economic war - plain and simply put.
So the common sentiment that Russia is a glorified gas station is one hundred and eighty degrees off?
“Europe cannot survive without Russian commodities.”
Yes they can. They’ve done it before, just going to have to rip the band-aid off and get on with it. Time to start being self-sufficient again. The Cold War never ended…it just took a vacation.
bfl
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