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Russia Has Not Yet Defaulted




 One of the purposes of the severe economic sanctions is to make it impossible for Russia to make the interest payments on their outstanding bonds. Once they default, presumably, their ability to borrow dries up quite quickly, and they'd have no source of funding to continue a long war. 

I am in sympathy with that design, and would love to see such a default. Unfortunately, I cannot report it yet. 

Russian sovereign bond payment received by JPMorgan and processed -source | Reuters

Comments

  1. Well, money is crucial to an economy. Countries where there is little of it don't fare so well on the global stage. As a practical matter, their people and prospects are limited. The sanctions approach is better than warfare. If, and only, if it produces a desired result. Not knowing how much wealth is accessible to the Russian autocrat, may be one of the unknown unknowns. If his avowed obliteration of Ukraine goes on, the sanction solution will be pointless. Likewise, I think, should be do something really stupid.

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