America’s economic war against Russia invalidates Western credit institutions

Greetings,

Economic war is being executed. Have you noticed that anytime a nation such as Venezuela, Zimbabwe, Iran, or Russia exert a policy independent from that of the West, they get sanctioned or Western economic institutions attack them financially? This is how they play the geopolitical game.

Let us examine this a little. Here you have America that has to borrow money just to pay the interests on the debt she already has. Here you have America, a nation that lives on the gratuity of others creating budget deficit after budget deficit.

She is suffering a currency decline which means all of these trillions that she printed up will find there way back to her shores eventually creating hyper inflation. She is in the midst of city, county,state, and federal budget austerity.

America is in economic decline. Her trade is cut off. Her future is bleak. She is suffering from spreading poverty. She is suffering high unemployment.

There is a growing level of bankruptcy around the nation. She is suffering an explosion in homelessness. This is on top of suffering from massive bank failures and corporations going belly up. You add that with being the largest debtor nation in the history of the world….

Now we look at Russia. She has low external debt. She is apart of the rising nations of BRICS. She has unlimited resources of gold, silver, diamonds, uranium, natural gas, liquified gas, oil, and a host of other natural resources. She has a huge currency reserve. In fact she has several large currency reserves for which she can use during and economic rainy day.

Now tell me…who’s credit rating should be considered as junk? Russia or America? Now that we have examined these issues we can see that the latest credit ratings are political as well as geopolitical trying to put pressure on Russia. It also comes on the heels of a major military offensive by the People’s Republic of Donetsk & Luhansk against the Western installed and backed tools in Kiev.

S&P downgrades Russia’s rating to ‘junk’

Standard and Poor’s international rating agency on Monday downgraded Russia’s credit grade to junk status.

The agency has cut Russia’s rating by one notch to BB+ from BBB- on grounds that the country’s economy has weakened. All ratings below BBB- are considered “junk” as they are below the lowest investment grade rating.

“The downgrade reflects our view that Russia’s monetary policy flexibility has become more limited and its economic growth prospects have weakened,” it said in a statement.

“We also see a heightened risk that external and fiscal buffers will deteriorate due to rising external pressures and increased government support to the economy.”

Standard and Poor’s is the first to move Russia down into the speculative or “junk” territory.

Moody’s earlier this month cut Moscow’s rating to ‘Baa3’, one level above junk, as did Fitch, which moved it to ‘BBB-‘.

Russia’s economy has been hit hard by the double impact of weaker prices for its energy exports as well as Western sanctions.

S&P added that it anticipates the asset quality in Russian financial system to deteriorate given the weaker ruble, restricted access of key areas of the economy to international capital markets due to sanctions and economic recession in 2015.

“We do not currently expect that the government will be able to effectively tackle the long-standing structural obstacles to stronger economic growth over our 2015-2018 forecast horizon,” it said.

Those obstacles include perceived corruption, the weak rule of law, the state’s pervasive role in the economy, and the challenging business and investment climate, according to the ratings agency.

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