The Demolition of Russia's Economy

LMAO aaaaaaagain.

Economy|International Monetary Fund

Argentina’s central bank raises interest rate to 42.5 percent

By Patrick Gillespie Bloomberg
Published On 17 Feb 202217 Feb 2022
Argentina’s central bank raised its benchmark interest rate by 250 basis points to 42.5% on Thursday, further tightening monetary policy to align with goals set out in the government’s talks with the International Monetary Fund.

blah, bla, blah ....

No problemo for Russia if they get the same treatment. Not at all.
 
SunTrader said:
LMAO aaaaaaagain.

Economy|International Monetary Fund

Argentina’s central bank raises interest rate to 42.5 percent

By Patrick Gillespie Bloomberg
Published On 17 Feb 202217 Feb 2022
Argentina’s central bank raised its benchmark interest rate by 250 basis points to 42.5% on Thursday, further tightening monetary policy to align with goals set out in the government’s talks with the International Monetary Fund.

blah, bla, blah ....

No problemo for Russia if they get the same treatment. Not at all.
More...

Compare Russian exports to Argentina. Russian natural resources to Argentina.

And Argentina still gets lending, don't they. And they defaulted like 9 times in their history, with the most recent restructuring two years ago.
 
Tsing Tao said:
...
But I'm reminded of the old saying "if you owe the bank $100, that's your problem. If you owe the bank a million dollars (or 2.2B) that's the bank's problem."
More...
42.5% is ummm a bit of problem for the borrower, no?

And you claim to be a numbers guy.
 
SunTrader said:
42.5% is ummm a bit of problem for the borrower, no?

And you claim to be a numbers guy.
More...

Of course it is, duh. But you're making a helluva assumption that Russia would have the same financing. Given the circumstances of the supposed default and the extensive differences between the economies of Russia and Argentina (exports, etc), then your assumption Russia would have a lending rate of 42.5% is just stupid. But I don't blame you, you're just bagging at Publix.

What is Turkey's interest rate?
 
Tsing Tao said:
Capital markets won't ignore a default, but they won't starve Russia for the rest of its existance, either.
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The good news for Russia is that they will eventually get back in a better position and making smarter and less ideological "Russian World" type decisions in regard to their economy and their military.

The bad news is that they will smarten up because as a vassal state of China they will be required to do so. Not sure that is what the restoration of Russian glory was supposed to look like.

As I have said before, Putin set out to be Peter the Great but descended to being Ivan the Terrible, and is now just the village idiot in a vassal state of China.

Wayy to go Vlad. Hell of a job Brownie.
 
Tsing Tao said:
Of course it is, duh. But you're making a helluva assumption that Russia would have the same financing. Given the circumstances of the supposed default and the extensive differences between the economies of Russia and Argentina (exports, etc), then your assumption Russia would have a lending rate of 42.5% is just stupid. But I don't blame you, you're just bagging at Publix.

What is Turkey's interest rate?
More...
John McCain said Russia is a Mafia gas station - and I'll add with a subshop aka bread basket of sorts. That's it. Take away those two or at least energy other than a drop in the bucket to places like India and Russia is up chit's creek economically.

As they say markets are forward looking, but it seems Moscow traders are not looking forward to "buying local":
! MCX.png


Turkey's interest rate is .... 6 points lower than Russia currently. 14% vs 20%
 
SunTrader said:
John McCain said Russia is a Mafia gas station - and I'll add with a subshop aka bread basket of sorts. That's it. Take away those two or at least energy other than a drop in the bucket to places like India and Russia is up chit's creek economically.

As they say markets are forward looking, but it seems Moscow traders are not looking forward to "buying local":
View attachment 281928

Turkey's interest rate is .... 6 points lower than Russia currently. 14% vs 20%
More...

And Turkey is more likely a model for what happens to Russia, though Russia is far stronger with exports. And lets not forget this won't be Russia's first default.

https://twitter.com/x/status/1511802994681131010
 
The Party’s Over

This is the subtext to the war in Ukraine. Washington assumed they could destroy the Russian ruble and thus the Russian economy. The ruble took a dive, but the Russians were prepared, and it has fully recovered to its prewar levels. This is an enormous change as it reflects a new reality in the world. Washington can no longer control the global economy by having a monopoly on the currency of the world.

This is why the current inflation is neither transient nor manageable. The Western economic system is based on the dollar, and by extension the euro, operating as the reserve currency of the world. The massive debt loads of Western nations assume that they can create money from thin air, not create inflation and set the interest rates to near zero for government borrowing.

What this means as a practical matter is that the West is about to get much poorer and do so in a highly disorganized way. Not only will the standard of living decline due to inflation, but government spending will have to be radically reduced. The great welfare states and the American military machine were only possible when the cost of these things was subsidized by the world. The world is no longer willing to do that.

Western people are about to learn that those bits of metal and paper we think of as money are more than just a way to buy stuff. They are a store of value, and that value is the cultural strength of the society that issues them. The West has been in decline for a long time, but it was covered over by financial legerdemain. The free-money era concealed the great cultural looting of the West. That era is now over, and Western people will soon have to pay the price for it.

https://www.takimag.com/article/the-partys-over/

Here's a chart of the Russian Ruble compared to the Euro (left) & US Dollar (right). It is now even stronger than when the war started, near yearly highs

chart.jpg


 
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