defaults on debt. It is a fait accompli. By the time you read this, it will have happened.
Russia is poised to default on its international debts for the first time in a century this Sunday [yesterday], after time runs out for Moscow to make about $100m of overdue payments.
I guess that as a Leftist you DO eventually run out of other people’s money! Whoda thunk? Oh yeah…
BASIC economics tells you that it simply is not sustainable to keep spending more than you earn. The USA needs to learn from that!
A default has looked inevitable for weeks after the US Office of Foreign Asset Control removed an exemption allowing US bondholders to receive payments from Russia – leaving the Kremlin out of options.
It would likely stop Russia from raising money on Western markets, a situation that could become more damaging if the contagion spreads to corporate bonds.