May 25, 2022
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US scares Russia with artificial default

Pictured: US President Joe Biden and US Secretary of the Treasury Janet Yellen.

Pictured: US President Joe Biden and US Secretary of the Treasury Janet Yellen. (Photo: Zuma/TASS)

The American authorities forbade Russia to service its external debt – to pay off bonds denominated in foreign currency. A very correct decision! It will not be able to harm our country, but it will definitely save money. Unless, of course, “liberal” Russian officials find a clever way to send more money to their overseas masters.

The US Treasury did not renew General License No. 9C, which allowed holders of Russian sovereign bonds to receive payments for servicing and redeeming these securities. This was valid until May 25 – it was, as it were, a special deadline. And so it ended.

“If Russia does not find a way to continue these payments and allow a technical default, I do not think that this will somehow significantly change its position, because it is already cut off from the global capital market,” said the US Treasury Secretary, the former head of the Fed. Janet Yellen.

Yes, it will not change, here the representative of the real authorities of America is absolutely right. Russia is not just cut off from capital markets, our country has been robbed in the most brazen way. And in this situation, it’s even strange to talk about some kind of payments there – for any person, at least more or less familiar with the logic. We don’t owe us, we owe a lot. Highly! Therefore, such a “limitation” should be considered rather as a technical point.

And political, of course, too. Not all holders of Russian securities are opposed to Russia. There are those who are completely apolitical. Money doesn’t smell. However, in the case when a capitalist is struck in his personal pocket, he begins to rage. This is the worst blow for him. Reputation, morality, conscience – it’s all superfluous. And money is sacred. The Fed knows exactly where to hit, they are specialists in this matter. Perhaps just a little, but the number of ill-wishers of our country in the West will grow. However, this is their personal problem.

We would like to decide ours. In principle, if we consider a single area of ​​finance, there seems to be no problems here. Yes, they robbed, but not everything was stolen. Money in the state budget in bulk, there are proceeds from the trade in oil and gas. And even more abundant than in other years. Prices have gone up…

But this is only apparent prosperity. The “general people” refused to pay for gas in rubles, and for some reason Russia “swallowed” it. They pay, as before, in euros, but to foreign accounts of Gazprombank. He converts it into rubles and transfers it to his “mother” structure. That is, in a big house on Nametkina Street. Strange scheme.

Although quite understandable. The Westerners refused to pay for gas in rubles, but it seems like decency has been observed. Gazprom receives Russian banknotes. Everything seems to be patriotic, fast and correct. However, this is only an illusion, we were “sent”, and we went. It was there, at the well-known short common people’s address. And the authorities did nothing to protect the national interests of the country. Meanwhile, it was easy. In response to the theft of Russian assets, turn off the taps for at least a few days, everyone in the EU would howl, and immediately everything was returned. And they would pay in rubles like pretty little ones. But what’s done is done…

And now let’s look at the situation with Russia’s debts at the household level. So it is easier, not everyone understands macroeconomics. So, a certain person regularly receives deductions – a lot of money. Which he didn’t earn. Let’s say inheritance payments. And instead of spending them on business, he stores these funds in the bank. Knowingly unreliable, thieves.

At the same time, the cottage in which he lives is in urgent need of repair. It is necessary to change the roof, modernize the heating system and insulate the walls. But nothing of this is being done, the funds are simply lying around in the bank, there are more and more of them.

There is a lot of money, he spends only a small part, and even that is not on business. But not the point. At the same time, this individual also takes a loan in the same place, in this bank. But don’t spend it on something useful! It pays interest on it. The loan is much less than his savings. Nonsense. For such an individual, his relatives and friends would have called an ambulance long ago and she would have taken the “patient” to the hospital named after the good doctor Pyotr Kashchenko.

But for some reason it didn’t. And the clinical case develops. The bank, in the best traditions of the “dashing 90s”, steals all the money it can reach. And at the same time, it still requires a refund (with interest!) On the loan. An insane citizen frantically tries to pay off, but does not stop there. Payments to him continue to go, and he again begins to store them in the same bank. That’s about something like this.

“It seemed strange to me the statement made in early March by the Minister of Finance Anton Siluanovthat Russia will continue to fulfill its obligations under previously received sovereign loans and borrowings, that is, it will pay interest on them and repay them on time. Such exchanges of statements about Russian sovereign debt seem strange to me: the West has declared a war of annihilation on us, and we continue to play by the rules of peacetime and are even going to appeal to international justice, which, as you know, is under the complete control of the collective West, ”says doctor of economic sciences, professor Valentin Katasonov.

Recently, the Ministry of Finance went further, the requirement to sell 80% of foreign exchange earnings was softened to 50%. And where will the second half accumulate? On this account, silence. According to the current legislation, Russian companies are allowed to leave it on foreign accounts. Moreover, what is especially strange, this “relaxation” was introduced just on the eve of the quite expected decision of the American authorities (consider the Fed) to ban Russia from servicing its public debt. Such a coincidence is clearly not accidental …

It is not difficult to predict the further course of events. Russia seems to be unable (through no fault of its own, but nobody cares) to service its public debt. Default, albeit of the strangest kind. When there is money, the desire to pay too, but the “receiving party” does not want to take it. But these are details. Such legal subtleties are not of interest to Westerners who put all the laws on. Default can be declared, a fact. And, in accordance with international laws, present for payment all Russian debt obligations en masse.

We cannot pay them. Again, purely technical. They won’t. That is, even if we want, payments will not be stupidly accepted. What is the point then? And in order to seize, as it were, on legal grounds, all assets, as it were, “arrested” within the framework of “sanctions”. Give your theft a legitimate look. No more.

“The problem is that this situation is unprecedented. On the one hand, the probable full-fledged default of the country. On the other hand, there is a huge amount of assets and resources on which, on quite legal grounds, one can lay a paw. After all, the default is artificial. And the main thing in it is to warn everyone against interaction with Russia. Where is the problem in this situation? Many countries suddenly realize that if this is possible, then it is worth seriously thinking about it,” says HSE professor, investment banker Evgeny Kogan.

Yes, countries are already fully aware, especially China, whose relations with the United States are rapidly deteriorating. The Celestial Empire may become the next country to be robbed by the Yankees, and Beijing is well aware of this. The Chinese will cope, the mind and determination of the local authorities do not hold, one can only envy the citizens of this country. And we would like to solve our problems.

Actually, the problems are not so much in the Americans as in our officials. Westerners let them go with virtual Russian papers (bonds have long been issued in non-documentary form) to the toilet. And they announce as many defaults as they want. The stolen funds cannot be returned, economists have been talking about this from the very beginning.

Question with a friend – what to do next? Now they will put their paw on the foreign accounts of Gazprombank (more than $50 billion in funds from the sale of gas to the EU), this is quite obvious. And not only for them, there are still enough Russian companies that are not under “sanctions”. They will steal them too. In total, we will lose over $100 billion. And again, no one will answer for this?

Something is wrong with us in the Ministry of Finance, and not only there. It’s time, indeed, to call good doctors. And better than unsmiling guys with cold heads, warm hearts and clean hands. Otherwise, we will let the whole of Russia go around the world.

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