[Dargo]

Originally Posted by Skybird

There is a big difference between Russia "defaulting", and defaulting ciandate sin the past, say Argentine. Argentine back then was bancrupt. Russia is anything but bancrupt: is has a national debt rate of only 20% (swallow that, Europe, US...), has big reserves in gold., and finds many willing parezner sint he world despite the West's urgent effort to isolate it. But it isn't isolated. And it doe sbusiness - by its terms and conditions, in roubels. The ro9uble was brought under ocntorl, but having had a spike of inetrest rates up to 20% to bring inflaiton unde rcontrol, and then it was dripped again. So fra trh eRussian centrla bansk has had a good and effective return and answer to anything the West threw at it.

So the "defualting"now hardly is a defaulting at all.The west is just getting more and more clueless on what else it could do to mount pressure on Russia. while the sanctions had so far do more damage to Europe than they do to Russia, apparently.

Thats the problem with sanctionising someobdy, in order of that working, that somebody must be dependent. Sanckjtons must be dishe dout not form a posiiton of mutual dpeendency aor equality, but from a position of unilateral strength. This is not the case regarding the EU and Russia. Russia is not dependanet, in its key areas of selfmaintenance, it is autark. To do damage by sanctions against such a tough rock you need to either go All in and have utmost maximum sanctions from day one on and without any compromise (and even then you are not sure to get what you want if you are not stronger than the other) - or you must not even care to get started. The half-baked compromises and long delays in Western sanctions do more pain to us then to them!

In other words: we messed it up once again.

Either you do it right and fully determined, or you do not even need to get started. Russia has adapted - and now can outsit us for the duration of this war.

It seems India sells now oil it bought cheap from Russia, to Europe, at much higher price. First they tried to dismiss this as a fake news over here, but apparently its true.

I would favor to have the financial situation of Russia over that of France Italy, Greece and some others every time I get asked.

Russia's failure to pay this interest now may also affect the other debts Russia has, On some of them there is a condition of early repayment if there is a default on another debt then you get a kind of snowball effect. In the longer term, this will make it harder and more expensive for Russia to borrow money. If Russia does not pay the interest, you think ten times before you lend money to Russia, and you only want to do that if you get a very high interest rate for it. And if borrowing becomes more expensive again that will also push up prices in the country further sanctions never work in the short term, it always takes time. This default does happen as a result of the sanctions. It is now becoming increasingly difficult for Putin to move in the financial markets. Ultimately, it becomes more likely that Russia will fall into a deep recession Russia will continue to function, but at a lower rate.