THE RUSSIAN REICH REJECTS DEBT
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Sanctioned Russia has learned a lesson from Hitler’s Germany and other anti-dollar nations. Denial of credit is intentionally destructive. However, the NATO West has yet to learn that economic warfare doesn’t always claim victims and often backfires.
Worried by Russia’s small foreign debt, international banks are pressuring Russia to borrow more. But, the nation’s Central Bank believes that investments, not loans, are the way to go.
Russia’s $525-billion (half a trillion) foreign debt is a fraction of the $7.5 trillion owed by Britain, $5 trillion in France, $4.8 trillion in Germany and a whopping $21 trillion in the US. The European Union is saddled with a $10.3 trillion debt of which $8.2 trillion is owed by EU nations.
This tell-tale ratio was not lost on International Monetary Fund (IMF) Managing Director Christine Lagarde who at the St. Petersburg International Economic Forum, described Russia’s foreign debt as “considerably small” and whinnied that it should borrow more.
Like Hitler’s Germany, the Russian Central Bank disagrees, arguing that “investments, not debt capital” should be the main source for financing the country’s economic growth.
Foreign debt may become a major problem if market conditions suddenly change for the worse. However, the smaller the debt, the less chance of default. Economists say that with Russia’s foreign debt accounting for just 33 percent of GDP it is the envy of the US, UK and European Union.
Ironically, a prosperous Russia could be the salvation of Europe if sanctions are removed. Sadly, some markets previously open to EU trade may never be recovered after Russia replaced EU products with those of the European Union’s rivals. A spectacular own goal by Brussels and Berlin.
Russia’s entire foreign debt is balanced by its gold and currency reserves of $450 billion. In effect, this means that Russia is not in debt as its financial system can simply buy it back from foreign holders at any time. The downside is that a debt-free nation with massive gold reserves is vulnerable to ‘regime change’; we all remember Libya, Syria and Saddam Hussein’s Iraq and the Workers Reich.
National debt works on the same principles as a family’s domestic budget. If dad borrows too heavily then money that should be spent on the home and family is diverted to the banks as interest-loaded debt. The house then goes without repairs; mother and child go without, as do the peoples of the debt-laden West today.
A balanced budget is another reason why Russia does not need to borrow abroad. This year Russia will have a budget surplus, the first in seven years with the Finance Ministry expecting state revenues to exceed outlays by more than half a trillion rubles ($16 billion).
A small foreign debt is also an indicator that the economy is performing well and the country is paying less interest on borrowed money.
Until January 1933 and the election of Hitler’s NSDAP, the Wiemar Republic was one of Europe’s most impoverished countries. Hitler’s Germany dodged the depression by becoming independent of bank usury. Within 36 months of Adolf Hitler being elected Germany’s economy and standard of living prospered and was second to none. During the 1930’s 7 million Americans and a proportionate number of Britons died of hunger related diseases: Russia today take note of the consequences of globalist usury.
If World War II had really been about German denial of democracy or (alleged) persecution of Jews why then did the Churchill clique and the Roosevelt administration rescue the anti-Christian undemocratic Soviet Union?
Michael Walsh is the author of the beautifully illustrated best-selling LIFE IN THE REICH which in easily understood narrative how debt free Germany prospered.
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