Announcement of Russia defaulting on debts an attempt to divert attention away from the West’s endless money printing

06/28/2022 / By Arsenio Toledo

The announcement that Russia has defaulted on its debt is an attempt by Western central banks to hide the fact that it is destroying the global financial system by flooding it with more newly printed money.

Russia has supposedly defaulted on its external sovereign bonds for the first time since 1918. This is the culmination of severe Western economic sanctions preventing Russia from accessing its regular payment routes for its overseas creditors.

The country defaulted on about $100 million of interest payments despite having the resources to pay its bills because Moscow was blocked from accessing international financial transaction systems by the sanctions.

“With Russia benefiting from the high price of its energy exports, it clearly has both the means and the desire to pay its foreign debt,” said Giles Coghlan, chief analyst for financial company HYCM Group. “It’s a default in a technical sense, so many investors may be prepared to wait it out.”

Russia itself has already rejected claims that it has defaulted on its debts. On Monday, June 27, the Kremlin called an external label placed on the country’s debts to be unlawful. Russian Finance Minister Anton Siluanov has also been saying for weeks now that any default declaration by the West would be artificially manufactured by the economic sanctions placed upon the country.

The Kremlin claims the country has enough money to fulfill its obligations to its foreign creditors and has been trying to make regular payments since the beginning of the war with Ukraine. Siluanov noted that Russian payments have made their way to their creditors and it was up to them to claim their money. (Related: HOW AMERICA ENDS: Putin announces new BRICS global reserve currency project to REPLACE the petrodollar.)

Europe and the United States are arguing that Russia has the power to end economic sanctions by the West and restore financial stability. All the country has to do is end its war in Ukraine.

Russia defaulting on debts doesn’t really matter

Financial expert Gregory Mannarino noted that it doesn’t actually matter whether or not Russia actually did default on its debts because the global debt market, which he said is completely controlled by the European Central Bank (ECB) and the Federal Reserve, is trying to draw attention to Russia to keep people ignorant of what it is doing to the global financial system.

“Spiking 10-year yields, emergency monetary policy by the ECB and the Federal Reserve managing the yield curve. This is quantitative easing on steroids,” said Mannarino. “And this is working. It’s pushing cash back into the stock market, just as it’s meant to do.”

“What we have here, clearly – central banks managing the yield curve, pumping untold amounts of cash back again into the debt market, this Federal Reserve repo program that has gone absolutely ballistic … you know that’s behind this. They’re trying to fake the illusion of liquidity here in the market,” continued Mannarino, who noted that the market is actually very illiquid.

This means that central banks are unable to sell or exchange their investments without incurring substantial losses.

Mannarino warned that the end result of this developing financial crisis is a central bank-enforced credit freeze.

Regular people will be afraid of keeping their money in the hands of central banks and therefore will want to take them all out as soon as possible. The ECB, the Fed and many other central banks will try to prevent this by locking up personal accounts.

“It’s just a matter of time before the entire system locks up,” said Mannarino. “That’s what’s going to happen because it’s being done by design here.”

Watch this video from financial expert Gregory Mannarino of Traders Choice as he explains how it doesn’t actually matter if Russia defaulted on its debt.

This video is from the What Is Happening channel on Brighteon.com.