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US Sanction Policy Forces Russia to Default. Let's Go Over the Ramifications

The Biden administration is hell bent on making Russia default on its US dollar debt payments that are coming due. This is not a good idea.
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Image from @DiMartinoBooth Tweet

Image from @DiMartinoBooth Tweet

US Pushes Russia to the Brink of Default

Please consider US pushes Russia to the Brink of Default

Russia is in imminent danger of default after the United States cut off the country's ability to pay its debt using frozen dollars sitting in American banks.

Q: Who is Russia defaulting on?

A: Primarily European companies but US companies as well.

Essentially, the US is forcing Russia to not pay its bills which means Russia keeps its Euro and dollar reserves.

How Silly is This?

From a practical standpoint, the US should want Russia to diminish its reserves as quickly as possibly. 

Instead, US policy will force Russia to keep its reserves.

What About Legality?

Assuming Russia defaults, the US will have forced that outcome. How can this possibly be legal?

And if it's not legal, a court of law should rule the US will have to foot the bill for any damages it caused Russia. 

Many people will like the result, assuming the US is not held liable. But we are supposed to be a nation of laws. 

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This is another step down the road of illegally weaponizing dollar to suit political needs. Nothing good can come from it.

Unmistakable Message

Team Biden continues its unmistakable message to China, Saudi Arabia, Russia, well actually everyone

  • We can make your fiat reserves worthless overnight
  • Buy gold
  • Buy base metals.
  • Hoard things you have everyone needs. 

For discussion please see What Does China Do With a Dollar That's No Longer Risk Free? Buy Gold?

This post originated at MishTalk.Com.

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