It is only going to get worse for Belarus and Russia. A very hard Winter ahead economically and for Government finances. In Russia, the economic and fiscal wheels have come off, and the engine is on fire, even worse.
Lukashenka says: I Did That?!
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Posted on 10/19/2022 4:43:04 PM PDT by BeauBo
Belarus said on Wednesday it was unable to repay its foreign currency-denominated debt due to sanctions imposed on it by the European Union and the United States.
The World Bank said on Monday it had placed all loans made by its main lending arm to Belarus into "nonperforming" status effective immediately.
(Excerpt) Read more at reuters.com ...
It is only going to get worse for Belarus and Russia. A very hard Winter ahead economically and for Government finances. In Russia, the economic and fiscal wheels have come off, and the engine is on fire, even worse.
Lukashenka says: I Did That?!
Who owns the debts?
What if they just don’t ever pay it, and align with BRICS+?
What? No, ‘Ten Percent for The Big Guy?’ This. Means. War!
Wow, thank goodness winter in NATO Europe and the US is going to be all rainbows and unicorns, just like spring and summer. You want to talk sanctions, how much sanction burden are you eating every time you buy a gallon of gas or a transported loaf of bread? Have you seen the murderous new rates in New England, USA this winter to heat your home? What this means is Belarus will stiff the World Bank and you and I will eat that burden too. The next loans Belarus will get will be from a new BRICS/OPEC+ consortium.
“...were cut from SWIFT back in March.”
What a great signal to the rest of the world.
Your property and investments are political tokens that can be taken away at any time
I think this signal was sent deliberately to destroy the west.
Globalism can’t take hold without everywhere sucking equally.
The new Evil Axis: we’re going to destroy and conquer the West.
The West: We’re not trading with you any more.
The new Evil Axis: that’s not fair! Waaaaa!
...only for those who understand that sanctions, including decreasing debt ratings, are a way to decrease trade with offending nations.
You say this as if the USA doesn’t have a problem with it’s debt.
Then they will never ever be able to get credit again, and their economy collapses.
According to you.
They won’t get loans from the western world.
Russia, China, and India don’t give a damn about going green.
They don’t care about the dying hegemony of the US and the west.
I think you’re being myopic about the future.
The west needs to get its collective “shit together”.
“What if they just don’t ever pay it, and align with BRICS+?”
They are already aligned with the BRICS (the R is for Russia).
So if they don’t pay, they will have greatly reduced ability to borrow additional hard currency on Western financial markets - largely cutoff from credit.
Hard currency is needed for many goods and services they want to purchase from other countries - imports such as technology, components or even many essential basic materials.
Borrowing in general is also normally needed to finance development projects, so there will be a shortage of investment capital, that will slow future development in Belarus. The effect in Belarus (like Russia) is more like a sudden shocking halt in new investment, rather than a gradual or marginal reduction.
They are already short on such hard currencies (dollars, euros, yen, pounds), as demonstrated by their inability to make payment. They are going have to do without a lot of imports, and there is a great lot of stuff they don’t have or make on their own, and many businesses that depend on such imports to continue functioning.
“You say this as if the USA doesn’t have a problem with it’s debt.”
That is irrelevant to the financial crisis in Belarus (and Russia).
I’m of the understanding, possibly incorrectly, that they have the money, but due to “flipping off” SWIFT they can’t pay.
It’s not guaranteed that the dollar will always be the reserve currency.
It seems to me like numerous activities, and situations, are pushing the globe towards a fracture and potentially WWIII.
I guess we’ll all find out. I’d prefer to be incorrect.
Thanks for the reply.
—> people will look for a new system. That’s what we’re seeing in the world right now.
BRICS+
Sanctions for what reason?
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