Russia has had a slew of crippling financial sanctions, and as Russia’s debt is almost at historic levels, they may be about to default on their debt – having major impacts on the global markets.
The Russians currently have a $630 billion reserve stockpile – but because of the sanctions from Western nations, which includes preventing the Central Bank of Russia from selling any of the currencies it currently has, they won’t be able to make the deadline.
Credit rating agencies have downgraded Russia’s long term debt rating to “junk” status, and additional sanctions are still possible, of which Fitch called a “huge shock to Russia’s credit fundamentals.”
Russia raised interest rates to 20 percent to ease the financial blow, after overseas assets were frozen by the West and some Russian banks have been booted from using the SWIFT financial system.
According to JPMorgan Chase, Moscow owes $117 million in interest on dollar-denominated bonds and if the Russians don’t make a payment, this would be the first time in over 100 years since Russia hasn’t paid its debts – the last time being in 1917, when the Bolshevik Revolution happened.
Anton Siluanov, Russia’s Finance Minister, said they will repay debts from “countries that are unfriendly” with rubles until the sanctions are lifted and they may even use Chinese yuan. The ruble has taken a huge hit and has depreciated dramatically – you’d need 107 rubles to buy $1.
Of course they would be left with only these two options to pay their debt, because of the sanctions preventing them from using euros and reserve dollars.
Siluanov said that Russia is forced to pay coupons on its Eurobonds and asked “is that a default?” during an interview with Russian state news, adding, “from Russia’s point of view, we are fulfilling our obligations.”
Siluanov also stated that they have already asked Western banks to go ahead with the transactions, but some are arguing that paying in rubles will constitute a default.Â
The Finance Minister then went on to accuse Western nations of intentionally putting sanctions on Russia to manufacture a default that “has no real economic grounds.”
Head of the International Monetary Fund, Kristalina Georgieva, said that it was inevitable that Russia will default on its debt.
During an interview with CBS News, Georgieva said that “Russia has the money to service the debt, but cannot access it.”
This is just one example of how Globalist bankers are fixing the game in their favor. They want their money on time, but won’t let Russia use its money to pay the debt.
A 30 day grace period will be applied if Russia is unable to pay but any indication that they do not plan to cough up the dough, credit rating agencies could declare Russia in default before the deadline hits.
As the world record holder for putting ouselves into the position of accruing more debt than we will ever be able to pay back in our grandchildren’s lifetimes ( a dubious distinction…) in what fantasy land are we capable of conceiving that we can drag Russia’s economy down, without opening the door to a landslide of our International Creditors demanding payment. The National Debt is not money we owe to ourselves. With the Breton Woods Agreement going up in smoke as Saudi Arabia contemplates accepting Chinese Yuan, our dollars will no longer have the petrodollar backing it, and thereby hold little value on the International market.
Country Debt % 0f GDP Rate of inflation
USA 19.23T 106.7 7.123
China 5.++ T 54.4 1.066
Russia .25T 1948 5.937
A lot of Russian debt is privately held
In the last week we have seen confirmation of every lurid detail about Hunter Biden’s criminal laptop and proof that the “Chicom” virus was in fact invented by pharmaceutical conglomerate Moderna. We are about to see that the whole Russia-Ukraine “war” was a professional wrestling tag-team match, funded by Soros, organized by Gates, agreed to by Putin and Xi during their meeting at the Genocide Games in Beijing and intended to finish the job, begun by the plandemic, of collapsing the West and particularly the United States so that Gates’s dream of global depopulation, institution of the Great Reset and completion of the Great Replacement (Coudenhove-Kalergi Plan) can be brought to fruition. If the fiends of Seattle, Davos and Beijing have their way, those who have not died of starvation or in wars and riots will envy the dead.
The article is a good example why Globalists (including financial bankers) can never be trusted. There is no single government created by man that can work democratically or fairly for mankind. So many people get to die from poor decisions from predatory Globalist thinking governments. This is a very sad time in our World. This is just my opinion.