Russia could default on its debt within days

[Chomsky]

Russia could default on its debt within days

Russia has sent the clearest signal yet that it will soon default — the first time it will have failed to meet its foreign debt obligations since the Bolshevik revolution more than a century ago.

www.cnn.com

London (CNN Business)Russia has sent the clearest signal yet that it will soon default — the first time it will have failed to meet its foreign debt obligations since the Bolshevik revolution more than a century ago.

Half of the country's foreign reserves — roughly $315 billion — have been frozen by Western sanctions imposed after the invasion of Ukraine, Russian finance minister Anton Siluanov said on Sunday. As a result, Moscow will repay creditors from "countries that are unfriendly" in rubles until the sanctions are lifted, he said.

The default could come as early as Wednesday, when Moscow needs to hand over $117 million in interest payments on dollar-denominated government bonds, according to JPMorgan Chase.

A default could drive the few remaining foreign investors out of Russia and further isolate the country's crumbling economy.

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So, who's going to shed a tear?

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I will say I'm starting to get a greater appreciation of the depth & ramifications of the sanctions levied.

 

[phoenix2020]

What are the specific repercussions of Russia defaulting on certain debts? Other than the creditor losing out on money, and Russia less likely to be loaned money going forward, does this change anything in the near term in a meaningful way?

 

[Grand Mal]

Russia could default on its debt within days

Russia has sent the clearest signal yet that it will soon default — the first time it will have failed to meet its foreign debt obligations since the Bolshevik revolution more than a century ago.

www.cnn.com

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So, who's going to shed a tear?

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I will say I'm starting to get a greater appreciation of the depth & ramifications of the sanctions levied.

I will say that when rightists say, "Biden ain't doin' nuttin'!" they need to be reminded that they don't know what Biden is or isn't doing.

 

[MaryP]

Russia could default on its debt within days

Russia has sent the clearest signal yet that it will soon default — the first time it will have failed to meet its foreign debt obligations since the Bolshevik revolution more than a century ago.

www.cnn.com

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So, who's going to shed a tear?

--

I will say I'm starting to get a greater appreciation of the depth & ramifications of the sanctions levied.

Maybe we will, if we end up with 117 mil in rubles that no one wants to exchange for real money.

 

[yankintx]

Russia could default on its debt within days

Russia has sent the clearest signal yet that it will soon default — the first time it will have failed to meet its foreign debt obligations since the Bolshevik revolution more than a century ago.

www.cnn.com

--

So, who's going to shed a tear?

--

I will say I'm starting to get a greater appreciation of the depth & ramifications of the sanctions levied.

Let's hope this will put additional pressure on Putin and those around him. Putin has put his folks in the poor house for years, the Oligarchs will continue to build even larger yachts.

 

[Chomsky]

What are the specific repercussions of Russia defaulting on certain debts? Other than the creditor losing out on money, and Russia less likely to be loaned money going forward, does this change anything in the near term in a meaningful way?

I excerpted this in my OP; apparently, this will chase out remaining foreign investors.

 

[Chomsky]

Maybe we will, if we end up with 117 mil in rubles that no one wants to exchange for real money.

Hah! The Ruble won't be worth the electronic funds transfer fee!

 

[Chomsky]

I will say that when rightists say, "Biden ain't doin' nuttin'!" they need to be reminded that they don't know what Biden is or isn't doing.

Yeah, as I stated in my OP, I'm getting a greater appreciation of the depth & impact of the sanctions.

 

[MTAtech]

The question is who do they owe money to?
The ramifications are that can’t fund their war machine, can’t buy replacement parts and munitions. Although, they may have a huge stockpile, when it’s gone it’s gone.

 

[Gateman_Wen]

Russia could default on its debt within days

Russia has sent the clearest signal yet that it will soon default — the first time it will have failed to meet its foreign debt obligations since the Bolshevik revolution more than a century ago.

www.cnn.com

--

So, who's going to shed a tear?

--

I will say I'm starting to get a greater appreciation of the depth & ramifications of the sanctions levied.

How many railcars will be needed to move $117 million worth of nearly worthless rubles?

 

[Chomsky]

The question is who do they owe money to?
The ramifications are that can’t fund their war machine, can’t buy replacement parts and munitions. Although, they may have a huge stockpile, when it’s gone it’s gone.

They'll need to figure-out a way to borrow monies in Western currencies, if they want to buy western products, but who's going to lend a defaulter?

Perhaps they can use the foreign currencies they receive for their oil? Rupees? Yuan?

 

[trouble13]

I will say that when rightists say, "Biden ain't doin' nuttin'!" they need to be reminded that they don't know what Biden is or isn't doing.

I'll bite. What is he doing?

 

[Carjosse]

I will say that when rightists say, "Biden ain't doin' nuttin'!" they need to be reminded that they don't know what Biden is or isn't doing.

I call it Schrodinger's foreign policy, to the right Biden is somehow simultaneously doing everything and nothing.

 

[Grand Mal]

I'll bite. What is he doing?

Heh!
My point is you don't know and neither do I. There's been some activity internationally around freezing funds and seizing assets, do you think the President of the United States might have been involved in that scheme?

 

[Chomsky]

I call it Schrodinger's foreign policy, to the right Biden is somehow simultaneously doing everything and nothing.

Haha!

 

[Grand Mal]

I call it Schrodinger's foreign policy, to the right Biden is somehow simultaneously doing everything and nothing.

I like one version of his cat better than the other.
There's cat people present so say no more...

 

[Checkerboard Strangler]

So, who's going to shed a tear?

A new wave music group called "Club Adobe" was on tour in Russia back in 1991 when the revolution stranded them for a while.
But they got an idea, stick around and weather the storm and use some of their money to make further inroads.
So they BOUGHT an entire cassette tape manufacturing facility for peanuts, guaranteeing them a Russian distribution network.

So, what does a tape cassette manufacturing plant sell for in 1991 post-collapse Russia?
Try thirty thousand US dollars.

If Russia defaults, and defaults hard, somebody with some smarts would do well to buy the Sovtek vaccuum tube manufacturing plant at fire sale prices.
A lot of musicians depend upon Sovtek vacuum tubes these days. So do a lot of wealthy audiophiles who have a soft spot for vacuum tube sound.
I bet if the Ruble drops down to something like five hundred or a thousand to the dollar that tube manufacturing plant could be had for a hundred grand or even less.

 

[trouble13]

Heh!
My point is you don't know and neither do I. There's been some activity internationally around freezing funds and seizing assets, do you think the President of the United States might have been involved in that scheme?

Maybe? Should he get credit based on a maybe?

What do we know of that he is responsible for, that is worthy of praise?

As far as I know that column in his ledger is blank.

 

[Grand Mal]

Maybe? Should he get credit based on a maybe?

What do we know of that he is responsible for, that is worthy of praise?

As far as I know that column in his ledger is blank.

I don't get it. What do you want?

 

[Arlette]

Russia could default on its debt within days

Russia has sent the clearest signal yet that it will soon default — the first time it will have failed to meet its foreign debt obligations since the Bolshevik revolution more than a century ago.

www.cnn.com

--

So, who's going to shed a tear?

--

I will say I'm starting to get a greater appreciation of the depth & ramifications of the sanctions levied.

Who are the creditors?

 

[Arlette]

What are the specific repercussions of Russia defaulting on certain debts? Other than the creditor losing out on money, and Russia less likely to be loaned money going forward, does this change anything in the near term in a meaningful way?

Wars don't come cheap. Who wants to finance this war if Russia can't?

 

[Chomsky]

A new wave music group called "Club Adobe" was on tour in Russia back in 1991 when the revolution stranded them for a while.
But they got an idea, stick around and weather the storm and use some of their money to make further inroads.
So they BOUGHT an entire cassette tape manufacturing facility for peanuts, guaranteeing them a Russian distribution network.

So, what does a tape cassette manufacturing plant sell for in 1991 post-collapse Russia?
Try thirty thousand US dollars.

If Russia defaults, and defaults hard, somebody with some smarts would do well to buy the Sovtek vaccuum tube manufacturing plant at fire sale prices.
A lot of musicians depend upon Sovtek vacuum tubes these days. So do a lot of wealthy audiophiles who have a soft spot for vacuum tube sound.
I bet if the Ruble drops down to something like five hundred or a thousand to the dollar that tube manufacturing plant could be had for a hundred grand or even less.

View attachment 67380173

That's an awesome observation, CS!

But you overlooked the tube audiophile market, which has exploded in recent years, including for headphones.

Have you priced any original era Mullards lately???

No one is making tubes in the states today, besides several very low volume boutique firms. They all come from Russia & China, with China being really prolific these days. Apparently, they love tube audio! I say, 'they have good taste'!

But, here's the rub: Some of the Chinese tubes are getting to be pretty darn good. I've several that can nearly hold their own against the best NOS stock from the 40's/50's/60's! And that's *really" saying something!

 

[Dayton3]

I will say that when rightists say, "Biden ain't doin' nuttin'!" they need to be reminded that they don't know what Biden is or isn't doing.

Biden hasn't killed any Russians.

 

[phoenix2020]

Wars don't come cheap. Who wants to finance this war if Russia can't?

I imagine China will happily finance it behind the scenes so long as this conflict strengths China and weakens everyone else.

 

[Arlette]

The question is who do they owe money to?
The ramifications are that can’t fund their war machine, can’t buy replacement parts and munitions. Although, they may have a huge stockpile, when it’s gone it’s gone.

All true. But all of Putin's eggs are in one basket. One has to worry about his lobbing a nuke in desperation.