Russia denied it was in default, saying the payments had been made, in dollars and euros, on May 27 and the money was stuck with Euroclear, a settlement house based in Belgium.
Russian Finance Minister Siluanov was quoted by state-owned news agency Ria Novosti as saying last week that the sanctions meant Moscow had no "other method left to get funds to investors, except to make payments in Russian rubles."
So yeah, they are not in default, this is all a sham and soon the countries around the world will have to decide whether to accept Rubles or not. Just like they had to choose whether to pay rubles to get Russian gas or not.
It will be interesting to see if creditors take action against OFAC for being the cause of this. If I had to guess, I'd say no.. they will roll their eyes at the continuing degradation of the USD as a medium for trade, and go to rubles instead. Which you understand will suit Russia just fine.
More self-inflicted harm thanks to the treasury dept.
Imagine if you owed money to a bank and the terms were to had to pay $100 per month. When you go to pay, the bank says: "Thanks. But you are on our list of bad people, so we aren't going to allocate this money toward your obligation since it would violate this new policy we made up."
That's basically what is happening. Russia is flush with cash and they are experiencing DEFLATION. Prices going down for stuff in their country.
The plan is sheer genius. We stop selling our crap to the russians, losing a big export market, but keep importing whatever they are willing to sell us. To punish them harder we stop them from paying their debt. Who are we trying to hurt again?
So yeah, they are not in default, this is all a sham and soon the countries around the world will have to decide whether to accept Rubles or not. Just like they had to choose whether to pay rubles to get Russian gas or not.
Fun stuff.
It will be interesting to see if creditors take action against OFAC for being the cause of this. If I had to guess, I'd say no.. they will roll their eyes at the continuing degradation of the USD as a medium for trade, and go to rubles instead. Which you understand will suit Russia just fine.
More self-inflicted harm thanks to the treasury dept.
Exactly, systematic destruction of the federal reserve currency. Controlled demolition
I suspect you may be right.... after all, The Guardian is a well-known left-of-center publication and always has been. Their agenda is not our agenda.
Imagine if you owed money to a bank and the terms were to had to pay $100 per month. When you go to pay, the bank says: "Thanks. But you are on our list of bad people, so we aren't going to allocate this money toward your obligation since it would violate this new policy we made up."
That's basically what is happening. Russia is flush with cash and they are experiencing DEFLATION. Prices going down for stuff in their country.
The plan is sheer genius. We stop selling our crap to the russians, losing a big export market, but keep importing whatever they are willing to sell us. To punish them harder we stop them from paying their debt. Who are we trying to hurt again?
Hot diggity, did the excitement factor just get bumped a notch or two?!
So many fronts ready to come to a head, come on Great Awakening!
If the US government forced them into default, who really defaulted?