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U.S. stops Russian bond payments, raising risk of default
Reuters ^ | 4/5/2022 | Megan Davies

Posted on 04/05/2022 10:22:44 AM PDT by marcusmaximus

The United States stopped the Russian government on Monday from paying holders of its sovereign debt more than $600 million from reserves held at U.S. banks, in a move meant to ratchet up pressure on Moscow and eat into its holdings of dollars.

Under sanctions put in place after Russia invaded Ukraine on Feb. 24, foreign currency reserves held by the Russian central bank at U.S. financial institutions were frozen.

But the Treasury Department had been allowing the Russian government to use those funds to make coupon payments on dollar-denominated sovereign debt on a case-by-case basis.

On Monday, as the largest of the payments came due, including a $552.4 million principal payment on a maturing bond, the U.S. government decided to cut off Moscow's access to the frozen funds, according to a U.S. Treasury spokesperson.

An $84 million coupon payment was also due on Monday on a 2042 sovereign dollar bond .

The move was meant to force Moscow to make the difficult decision of whether it would use dollars that it has access to for payments on its debt or for other purposes, including supporting its war effort, the spokesperson said.

Russia faces a historic default if it chooses to not do so.

"Russia must choose between draining remaining valuable dollar reserves or new revenue coming in, or default," the spokesperson said.

JPMorgan Chase & Co (JPM.N), which had been processing payments as a correspondent bank so far, was stopped by the Treasury, a source familiar with the matter said.

(Excerpt) Read more at reuters.com ...


TOPICS: News/Current Events
KEYWORDS: bondpayments; bonds; clownworld; default; humblebumpkin; humbledoucher; humbledummer; humblepest; humblestalker; humbletarder; russia; russiandefault; ukrainewar; undeclaredwar
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To: Ancesthntr
What you describe there is pretty much what happened in 1973.

One of the great myths of history from that era was that the Arab countries imposed an embargo on oil sales to the U.S. over our meddling in Middle Eastern affairs.

The real story is that they were no longer willing to sell oil for U.S. dollars because they knew the U.S. dollar was a bad investment due to Nixon's removal of the gold standard and the soon-to-become-reality day of reckoning when the bill came due for the destructive decision by the U.S. to fight the Vietnam War while simultaneously incurring massive entitlement spending obligations through the "Great Society" programs.

61 posted on 04/05/2022 10:55:34 AM PDT by Alberta's Child ("Mr. Potato Head ... Mr. Potato Head! Back doors are not secrets.")
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To: Drew68

“We’re going to sanction Russia into our own economic grave.”

Yes. And we’re going to fight Russia until every last Ukrainian dies.

Because our corrupt as hell POTUS and IC are scared.


62 posted on 04/05/2022 10:56:08 AM PDT by Basket_of_Deplorables (Putin is behaving rationally.The war is on Biden and Obama. )
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To: stuck_in_new_orleans

Why ? Because the tv told you and they aired made up propaganda . If Biden and the rest of the globohomos are for it I’m against it.


63 posted on 04/05/2022 10:56:14 AM PDT by BillyCuccio (MAGA)
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To: marcusmaximus

This is an act of war by the evil, corrupt, illegitimate Biden regime.

Russia MUST respond in kind!


64 posted on 04/05/2022 10:57:26 AM PDT by Flavious_Maximus (Fauci is a murderer)
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To: marcusmaximus

These “popular,” sanctions are arguably acts of war. Old Puddin Head is going to F around and get us nuked.


65 posted on 04/05/2022 10:57:55 AM PDT by Lion Den Dan
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To: srmanuel

And if you remember 2008, the credit default swaps, insurance etc... all the derivatives were gigantic compared to the mere
actual value of the mortgages in question.


66 posted on 04/05/2022 10:58:03 AM PDT by DesertRhino (Dogs are called man's best friend. Moslems hate dogs. Add it up..)
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To: Flavious_Maximus

The US is shooting itself in the foot at the same time.


67 posted on 04/05/2022 10:58:30 AM PDT by TTFX
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To: marcusmaximus

Come back to your thread and take your beating like a man!


68 posted on 04/05/2022 10:58:51 AM PDT by JonPreston (Q: Never have so many, been so wrong, so often)
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To: JonPreston

69 posted on 04/05/2022 10:59:30 AM PDT by marcusmaximus
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To: Ancesthntr

100% right on!


70 posted on 04/05/2022 11:00:27 AM PDT by DarthVader (Not by speeches & majority decisions will the great issues of the day be decided but by Blood & Iron)
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To: marcusmaximus

No argument? Reduced to gifs?


71 posted on 04/05/2022 11:01:00 AM PDT by JonPreston (Q: Never have so many, been so wrong, so often)
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To: DesertRhino
And Russia is even a minor player in the larger picture here. The bigger question is going to be what happens with other major global players who now have every reason to stop doing business with U.S. dollars.

This whole story brings back a conversation to me that I had with someone in my profession about ten years ago. He had just returned from Singapore, where he had attended a major trade conference for the global shipping industry. He was completely demoralized. I asked him what was wrong. His answer was very illuminating:

"This is an annual conference that is attended by everyone who is a player in global shipping. I've been going there for years, and this is the first time I went through the entire conference without ever hearing a single person talk about doing business with customers in the U.S. It's like the whole world knows that the future of their industries is not here, but in Asia."

72 posted on 04/05/2022 11:01:37 AM PDT by Alberta's Child ("Mr. Potato Head ... Mr. Potato Head! Back doors are not secrets.")
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To: marcusmaximus

I am not supporting Biden to say this is a good idea.

Russian debt is is considered “Emerging Market” debt, and when you look at global sovereign debt they are a very small fish in a very large pond. With few exceptions this won’t rock any markets.

Will Russia default? Almost certainly. Will it hurt them? For sure. Will they turn to their friends in Iran, North Korea and China? Certainly....none of which (yes, including China) are currently flush with cash.

And I don’t care if you think the Ukrainian government was corrupt or not. What is happening to the PEOPLE of Ukraine is unacceptable and deserves worse than this for Russia.


73 posted on 04/05/2022 11:02:49 AM PDT by jdsteel ("A Republic, Madam, if you can keep it." Sorry Ben, looks like we blew it.)
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To: marcusmaximus

This is going to backfire on the US. The US dollar is going to decline more and more. Things are going to get much worse here.


74 posted on 04/05/2022 11:03:23 AM PDT by Revel
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To: JonPreston

Okay, here’s a video:

Ukraine: Insane combat footage shows a single Ukrainian tank engaging a large Russian convoy consisting of several tanks and BTR-82A. Several Russian vehicles destroyed.

https://twitter.com/Arslon_Xudosi/status/1511376081407905793


75 posted on 04/05/2022 11:05:33 AM PDT by marcusmaximus
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To: BenLurkin

Bad move


76 posted on 04/05/2022 11:06:52 AM PDT by nikos1121
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To: DesertRhino

You are one the few here who get it.


77 posted on 04/05/2022 11:07:53 AM PDT by Revel
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To: marcusmaximus

T’ell with em

Write a check and blame the bank that won’t cash it

Or default. What are the bondholders going to do?
Seek sanctions? Seize yachts and property?


78 posted on 04/05/2022 11:08:58 AM PDT by silverleaf (“Freedom ultimately means the right of other people to do things that you disagree with”. T. Sowell )
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To: marcusmaximus
So you post an article you aren't able to defend, and instead bring an unrelated Twitter video to us from someone called Arslon Xudosi?

What's wrong with you?

79 posted on 04/05/2022 11:12:08 AM PDT by JonPreston (Q: Never have so many, been so wrong, so often)
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To: marcusmaximus

Oh no, there goes Putin’s credit rating.

Meanwhile, the funds holding those bonds just took a big hit, eh


80 posted on 04/05/2022 11:12:27 AM PDT by silverleaf (“Freedom ultimately means the right of other people to do things that you disagree with”. T. Sowell )
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