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US Wants to Trigger A Wave of Russian Bankruptcies

Russian economy bread que

Washington expects the EU to cooperate in forcing  the Russian economy to its knees.

US Secretary of State John Kerry met with British Foreign Secretary Philip Hammond to discuss the US plan.

Washington now wants sanctions to have a devastating effect on Russia , who  then must suffer as a result.

Financial Institutions in the West are planning to trigger a wave of bankruptcies in Russia.

They will try using their vantage point in the world of finance to force Russia to comply with her International agreements.

Using technical tricks in loan and credit agreements, excluding Russia from the SWIFT payments system or rating agencies downgrading Russian government bonds  are some of the tactics.

 

rinf.com :

The Americans hope that the next step will have “devastating” impact on the Russian economy. Thus, there could be a wave of bankruptcies among Russian companies, because many companies risk bankruptcy if loans due in dollars during the coming year cannot be rolled over. [Bankruptcy would be expected because the value of the ruble has plunged and many more of them will thus be needed in order to pay the balance due.]
To achieve this goal and take advantage of the plunged ruble, the US government intends to resort to a technical trick to shorten the duration of existing loans and credits, which Russian banks, energy companies and arms companies have in European and American banks. US officials told the EU observer: “If we want, we can make sure that they are really suffering. The inability to raise new capital hurts most — there is no alternative to US and European financial markets.” [Thus, there will be bankruptcy.]

It is believed that Russia intends to create its own Rating Agency with China – An alternative system to “Swift” with Iran – and use their newly formed Economic Partnerships with China and others to create an alternative “Capitalist Market”.

They believe the present World -Financial- Capitalist- Model is corrupted and not viable, and before the masses rise up for their bread in Russia’s back yard ( Note: the masses have already risen for bread in Tunisia, Egypt, Greece…..), to at least give it a try.

We wait to see what lessons we can learn from our Russian and Chinese friends regarding the future of Capitalism.

Edmondo Burr

BA Economics/Statistics
CEO
Assistant Editor
About Edmondo Burr (2833 Articles)
BA Economics/Statistics CEO Assistant Editor