Larry S wrote: The Soviets lost largely because they ran up excessive debt. I understand that we can thank the BIS for making sure that they could borrow as much as they wanted.
A wee correction, Larry, but an important one...it was the IMF, NOT the BIS who lent the Russians what they needed to get back on their feet.
Yes, the very same IMF which is authorized in the Bretton Woods Currency Accord of 1942--as the result of a US initiative and 56 sovereign signatories--to help rebuild Europe after WWII's end.
IMF lent Russia gold at $42 p/to, which they then sold into the market, capturing the contango, and applying those resulting profits into rebuilding infrastructure, including Railroads to their vast mining resources.
They repaid the IMF BEFORE the priorly agreed payback date, a startling development indeed, and quite QUITE unusual in the scheme of IMF historical gold lending annals. Russia also starting rebuiling their gold reserves, all in one fell swoop.
It is the demonstrated fact that they continue to add gold reserves that has made Russia a "credit worthy" nation again, a reality they press diligently to increase, and is quarterly reported on news sites like Bullion Desk and elsewhere.
I think of this US led IMF lending to rebuild our enemies saga everytime KGB Putin punches us in the stomach or the jaw or the eye, over IRAN, the European Missle Shield, the Artic Oil Shelf, etc.
P.S. Larry, I'm not of the opinion that the coming dollar crisis and its effects upon our progeny is considered any way to be "off topic." It seems quite pertinent to this Grandmother.
G_T |
