PrincessDiana:
Get it right.
Russia is not banking with the US. The US technically owes Russia money through US bonds.
It's like me owing you money and them you say because I beat my wife, you are not going to pay me.
Meanwhile I have given a bank cheque (draft) to my debtors and you are the MD of my bank.
I will just tell my debtors to still cash the cheque I have them shikena.

Now it is between you and my debtors, no longer my concern.

olodo diana

jcross19:
America facing the worst economy traumatic condition in their history...

Focus on Nigeria, the average America isn't feeling it like your guys

helpee:
I am typing this from los Angeles and I was in Russia for the world cup. I love both countries. It is 3.57 am here in LA so I have a balanced view of the world unlike you

Oh shut up!

OMENKAismad:
this one is bigger than me I am not a financial expats

Lol... My broda na so e b o... Ekere olu eke!

torqque7:


Isn't that Stupidity of the highest order?it just means he is only causing more problems for himself and Russia because this will discourage anyone from ever giving Russia financial aid in the future if they manage to survive this suicide mission Putin put them into.

China should take lessons from this singular act of Putin because if they give him money,he will NEVER pay back because he thinks he has nukes so nobody can checkmate him. What a bastard

Russia have no money to pay or what do you want them to do?

djon78:


You see the Chinese are so much smarter than we envisage them

When I did some trip to Asia my world view completely changed

Oh that Africa should learn from these folks. We have so much to learn.

Facebook, Twitter and many social media are banned in China
They have there own version and there founders are also big billionaires
Look at how tiktok has entered the global social media. It's from China

Wonder why Trump went after Huawei, they have become massive.

See the black man is the worst hit and he needs to get Sense or else colonialism 2.0 will continue. While our intellectuals and ideologists are licking the butt of the West, no creativity, no outside the box thinking. Only buffoonery

Trump don finish Huawei pata pata

ecolime:

They are simply telling all their creditors they have more than enough money to service their debts. But US has frozen the money, so dont disturb us. Tell the US to unfreeze it

Russia is right on this one IMO. It's an artificial default.. lol

This guy's level of madness na grade 1.

BTW, Ukraine has accepted to be a neutral state so why prolong the war again?

Don't sound ignorant. Na only one demand Russia tabled before dem? No joining NATO is just one...

America...


Lol...

Na dem be problem of the world....

they just cant sit at home.

Frankiss44:


Focus on Nigeria, the average America isn't feeling it like your guys

stop disturbing us with American sanctions...

jcross19:
stop disturbing us with American sanctions...

I be like Seun to you

GlobalWay:
China is bankrolling Russia. Like if you know you know. Share if not.

Anti-semite.

Jeromejnr:


You didn't read the post. It's obvious.


Back to the topic: Putin really prepare for these guys o

how?
It's like a debtor instructing the person that lent him/her money to go and claim his/her debt from a third party he/she has no business with.

Eagba:
olodo diana

na big olodo.
it's like say I know I owe you o, but you see that guy over there? Go and claim your money from him because he's owing me; main while, he has no business with that person.

NGArmyTerrorist:
My love for Putin! They have the money in their foreign account which is in US and they want to use that money to pay, they are not spending shi shi from Russia paying for those bonds. Since the bond had matured, US should unfreeze the account so that creditors can get their money back simple. Russia had messed up US.. The ball had been shifted to the court of US; let's hear their reasons and defence on why they will not unfreeze the account so that creditors can their their money back. Russia not owing anybody. US is becoming useless day by day! Holding US in the scrotum!

Are you catching cruise or what?
You mean Mr. A is owing you and it's time to pay. Instead of Mr. A to pay you, he's now telling you to go and meet Mr. B because Mr. B is owing him.
Shay you get business with Mr. B?

Your a fool. At least do your research before spewing rubbish...

American treasury already said the payment will go through.


https://www.google.com/amp/s/amp.cnn.com/cnn/2022/03/16/investing/russian-debt-payments/index.html

sosanova:




.



Putin is a real confused comedian, him and his team know nothing about Economics.
The sanctions has affected their sense of reasoning.
US really fucckked Russia up economically , psychologically and financially

https://www.reuters.com/business/finance/russia-rouble-payment-usd-coupons-would-be-sovereign-default-fitch-2022-03-15/

USA treasury already said they will pay using the frozen funds
https://www.google.com/amp/s/amp.cnn.com/cnn/2022/03/16/investing/russian-debt-payments/index.html

RiceProducers:
The bond holders get nothing. They are expecting nothing. Russia is just trying to make a lame point. This is an insurance issue sef.

Actually wrong analysis...

US debt is bigger than their income. So yes in your case study you would be richer than dangle if he owed 1 billion while he only brought in 900 million. When debt is more than income you basically broke.

There are 10s of countries that have larger debt than russia and lesser income.... Russia is a very stable economy. One of the most stable economies....2014 their currency dropped in half but they survived with ease. Imagine if naira moved to 1000 naira per dollar do u think nigeria would survive?

Sanchez01:

The US economy is extremely huge and the biggest in the world. Russia's debt is smaller because it doesn't have half the economy of the United States and doesn't exactly spend or use the USD as their currency. Their currency is about N6 max (at its peak).

Besides, a country's external debt does not translate into being poor or wealthy. That Russia's external debt is smaller compared to the United States' does not mean it has better economy than the North American country.

Just because I am debt free or owe a bank N400,000 does not mean I am richer or wealthier than Dangote who owes $1 billion. I hope you understand?

Russia is not even close to being broke. Russia still has 340 billion usd stored in china and 2200 tons of gold stored in china. Olus some billions in germany that germany has stated they wont confiscate. It's a long way before Russia can be broke. That's why Biden said we will only see the effects of the sanction in about 5 years on Russia because they believe by then they will run out of money.

Sanchez01:

Russia's external reserve is hidden away in the United States. The United States sanctioned Russia and froze its external reserve, meaning Russia's $300 billion is not theirs at the moment. In theory, Russia has $300 billion external reserve in the United States. Technically, Russia is semi broke.

The United States does not need to be the IMF or World Bank to sanction a war mongering country.

Full list of countries america owes money.

China
Japan
UK
Ireland
Brazil

Kelvin3476:
NO COUNTRY CN SANCTION U.S IN SUCH MANNER, AND WHO IS US INDEPTED TO ?

Jeromejnr:


You didn't read the post. It's obvious.


Back to the topic: Putin really prepare for these guys o

.

IamAsiri:


You were the one who didn't really read it properly.

Yea right.

If the funds are siezed or frozen then how can you now want to use it to pay your debt. No wonder they invaded Ukraine and allowed a man like Putin be their leader.
Hushpuppi too should have access to his frozen fund right?

I'm no financial expert, but I'll say this: I don't think the west fully understand the man (Putin) they're dealing with. This is a man with a long history in counter-intelligence. What I'm basically trying to get at is that Putin has never been known to be a man who rushes to a decision without taking his time to thoroughly analyze a situation. I'm willing to bet that Putin did his homework before initiating this war. And so far he's played his card close to his chest, and played the world well until 24th February, 2022.

But hey, it's my opinion.

blackboy:
If the funds are siezed or frozen then how can you now want to use it to pay your debt. No wonder they invaded Ukraine and allowed a man like Putin be their leader.
Hushpuppi too should have access to his frozen fund right?

The reality is they have the money and it was illegally frozen. Who are they indebted to? The west. So if at the deadline US does not release the money to the lenders, Russia will pay the Rubble equivalent of the debt using the government exchange rate on the date of the expiry. The lenders must now accept the ruble.

awulio:
USA treasury already said they will pay using the frozen funds
https://www.google.com/amp/s/amp.cnn.com/cnn/2022/03/16/investing/russian-debt-payments/index.html

Nowhere in the article did it state US treasury say the will pay the funds.

Most elaborate reply award goes to 2016easy2017.

Russia deliberately left 300 billion USD in western banks to cover a large portion of the country's total national debt servicing to the bond market for years to come without default.

2016easy2017:

Let me explain or simplify.

Russia made proposed payment for debt funds long before the war( like issuing a postdated cheque) but it was unknown to bond share owners. Russia knew that was gonna happen. So, it got the bond liabilities on the bond share holder countries and individuals of which Westerners Carr the most. So what the US and the west sanctioned is actually the dividends belonging to the bond share holders. Though some portion belongs to Russia but it's negligible

Mynd44, grand chess master learning from President Putin, ex KGB, judo black belt holder and international geo-politics grand chess master.

Mynd44:

Queen to D7; Check!

awulio:
Actually wrong analysis...

US debt is bigger than their income. So yes in your case study you would be richer than dangle if he owed 1 billion while he only brought in 900 million. When debt is more than income you basically broke.

There are 10s of countries that have larger debt than russia and lesser income.... Russia is a very stable economy. One of the most stable economies....2014 their currency dropped in half but they survived with ease. Imagine if naira moved to 1000 naira per dollar do u think nigeria would survive?

You don't understand the Macroeconomics of USA and Russia as economies and countries.

I'll just simplify it for you to understand.
Macroeconomic factors that indicate US economy is broke would be -
A negative GDP growth.
Drastic fall of the USD and
Huge foreign debt greater than local debt that can't be serviced.

The US economy does not suffer from any of those issues because -
Their GDP growth is positive,
The USD is stable because all debts are serviced and paid as at when due and
Citizens in America and countries overseas are still buying US debts and bonds because they know the US treasury always pay their debt with interest as at when due.

Thede are the Macroeconomics that makes the US economy strong and the largest in the world.

Russia economy, Macroeconomics-
Their GDP growth is racing towards negative due to economic sanctions of export and trade.
The Ruble is undergoing devaluation because the foreign reserve (in USD of about $315 Billion) which is pegged to the Russian currency is frozen. The foreign reserve is what gives the currency monetary value.
The russian central bank can no longer pay investors their debts and interests as at when due because of their frozen reserve (about half of it), this will cause the russian economy to shrink further because future investors will be afraid to invest. Meanwhile Russia still has about $300 billion foreign reserve in China and other countries that they can access but they dare not spend that money. Remember I said that the value of a countries currency is pegged to its foreign reserve. If Russia spends out of those unsanctioned reserve the value of the rumble will crash further unless they are quickly replaced.

I tried to simplify it. I hope you can understand it.

Read articles published by economist Paul Craig Roberts, Dr. Sergey Glazyev and Lyndon LaRouche

Credit to these thinkers
Russia can create all the rubles it wants without a single cent of US dollars. They are created on a keyboard and can only be created on a keyboard, regardless of how many dollars are received or not received from exports. The exchange rate is completely irrelevant to what Russia’s government can spend rubles on in its domestic economy. The only real (as opposed to imagined, or self-imposed) limitation is inflation, which stems from the limited pool of labor, raw materials and energy available in the domestic economy (and which do not magically become greater from more dollars appearing in the Central Bank of Russia’s bank accounts in New York, except if those dollars are used to increase imports into Russia).

The only reason to raise foreign currency through exports is to pay for imports.


Russia has no need for foreign exchange. She does not need to import energy and minerals. Russia is full of engineering and science and can make whatever she needs. The central bank can finance all internal projects.

needanswer:


You don't understand the Macroeconomics of USA and Russia as economies and countries.

I'll just simplify it for you to understand.
Macroeconomic factors that indicate US economy is broke would be -
A negative GDP growth.
Drastic fall of the USD and
Huge foreign debt greater than local debt that can't be serviced.

The US economy does not suffer from any of those issues because -
Their GDP growth is positive,
The USD is stable because all debts are serviced and paid as at when due and
Citizens in America and countries overseas are still buying US debts and bonds because they know the US treasury always pay their debt with interest as at when due.

Thede are the Macroeconomics that makes the US economy strong and the largest in the world.

Russia economy, Macroeconomics-
Their GDP growth is racing towards negative due to economic sanctions of export and trade.
The Ruble is undergoing devaluation because the foreign reserve (in USD of about $315 Billion) which is pegged to the Russian currency is frozen. The foreign reserve is what gives the currency monetary value.
The russian central bank can no longer pay investors their debts and interests as at when due because of their frozen reserve (about half of it), this will cause the russian economy to shrink further because future investors will be afraid to invest. Meanwhile Russia still has about $300 billion foreign reserve in China and other countries that they can access but they dare not spend that money. Remember I said that the value of a countries currency is pegged to its foreign reserve. If Russia spends out of those unsanctioned reserve the value of the rumble will crash further unless they are quickly replaced.

I tried to simplify it. I hope you can understand it.

dommasi:
Read articles published by economist Paul Craig Roberts, Dr. Sergey Glazyev and Lyndon LaRouche

Credit to these thinkers
Russia can create all the rubles it wants without a single cent of US dollars. They are created on a keyboard and can only be created on a keyboard, regardless of how many dollars are received or not received from exports. The exchange rate is completely irrelevant to what Russia’s government can spend rubles on in its domestic economy. The only real (as opposed to imagined, or self-imposed) limitation is inflation, which stems from the limited pool of labor, raw materials and energy available in the domestic economy (and which do not magically become greater from more dollars appearing in the Central Bank of Russia’s bank accounts in New York, except if those dollars are used to increase imports into Russia).

The only reason to raise foreign currency through exports is to pay for imports.


Russia has no need for foreign exchange. She does not need to import energy and minerals. Russia is full of engineering and science and can make whatever she needs. The central bank can finance all internal projects.

"The exchange rate is completely irrelevant to what Russia’s government can spend rubles on in its DOMESTIC ECONOMY. The only real (as opposed to imagined, or self-imposed) limitation is INFLATION, which stems from the limited pool of labor, raw materials and energy available in the domestic economy"

"except if those DOLLARS are used to INCREASE IMPORTS into Russia".

I just quoted some points from your post. Pay attention to the words capitalized. In Macroeconomics no nation's economy is in isolation from the global economy. That is where IMF, world bank, WTO etc comes in. Russians can spend ruble in Russia which is not a problem but the problem comes due to rubles reduced power of purchase abroad (due to seized foreign reserve, reduce export and trade). This can also affect prices of goods in Russia unless the Russians want to ignore currency pegging which is part of international monetary policy but it will make Russians poorer as there is no equivalent currency to peg their devaluing currency against.


How much will ruble be worth compared to the USD after the sanctions are done with their work? Will Russians be richer or poorer in general? Will the Russian economy be stronger or weaker?

All the answers will be negative.

Frankiss44:


Your hate for America has overshadowed your ability to think critically.. Wallow in your ignorance

Here they are. When they are faced with FAR more superior argument, they turn to sentiments or anger

I live in the USA. 2021 USA almost defaultrd on their debt. Yes it may have been because congress could not agree but they obly paid their debts on the day of... The value of a countries currency used to be determined by the amount of gold reserves but now its based on demand. USA growth rate has significantly decreased over the years. With this year only projected at 2% growth while china is growing at over 6%.

Yes the media says Russia economy is going down but the media also said russia would default today on their debt. Guess what Russia was able to pay their debt using their frozen funds. Russia is also stable because the last time they defaulted on their debt was a 100 years ago.

needanswer:


You don't understand the Macroeconomics of USA and Russia as economies and countries.

I'll just simplify it for you to understand.
Macroeconomic factors that indicate US economy is broke would be -
A negative GDP growth.
Drastic fall of the USD and
Huge foreign debt greater than local debt that can't be serviced.

The US economy does not suffer from any of those issues because -
Their GDP growth is positive,
The USD is stable because all debts are serviced and paid as at when due and
Citizens in America and countries overseas are still buying US debts and bonds because they know the US treasury always pay their debt with interest as at when due.

Also Russia is not going to have any monetary issues any time soon because 1st The EU Is currently paying Russia 600 million euro everyday for oil. While the USA is buying 2 5 million barrels of oil from Russia everyday. As many economist have said if you don't sanction Russia oil and energy then the sanctions will not affect Russia. That's why America and UK are running around looking for alternatives to Russian oil. Plus with Russia signing a multi billion usd oil deal with China and with India. Also russia signing a multi billion dollar deal with Pakistan for grain. Russia is still in a good spot. Also economists also say Russia is actually making more money now than they did before the war. With America paying an extra billion dollars to Russia everyday because of the oil price increase.

Thede are the Macroeconomics that makes the US economy strong and the largest in the world.

Russia economy, Macroeconomics-
Their GDP growth is racing towards negative due to economic sanctions of export and trade.
The Ruble is undergoing devaluation because the foreign reserve (in USD of about $315 Billion) which is pegged to the Russian currency is frozen. The foreign reserve is what gives the currency monetary value.
The russian central bank can no longer pay investors their debts and interests as at when due because of their frozen reserve (about half of it), this will cause the russian economy to shrink further because future investors will be afraid to invest. Meanwhile Russia still has about $300 billion foreign reserve in China and other countries that they can access but they dare not spend that money. Remember I said that the value of a countries currency is pegged to its foreign reserve. If Russia spends out of those unsanctioned reserve the value of the rumble will crash further unless they are quickly replaced.

I tried to simplify it. I hope you can understand it.

Read the article well. They said they will pay.

Either way as of 2 hours ago both Jp morgan chase and citi bank have made statements saying they have received their money. So you too late.

Also the secretary of the treasury already made a statement to the news and public.

needanswer:


Nowhere in the article did it state US treasury say the will pay the funds.