{"id":8996,"date":"2015-06-11T06:30:36","date_gmt":"2015-06-11T11:30:36","guid":{"rendered":"http:\/\/olduvai.ca\/?p=8996"},"modified":"2015-06-11T06:30:36","modified_gmt":"2015-06-11T11:30:36","slug":"russia-china-and-the-battle-against-dollar-hegemony","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=8996","title":{"rendered":"Russia, China and the Battle Against Dollar Hegemony"},"content":{"rendered":"

Russia, China and the Battle Against Dollar Hegemony<\/a><\/h3>\n
The Internal Contradictions of US Foreign Policy<\/strong><\/div>\n
<\/div>\n
The Saker<\/strong>: We hear that the Ukraine will have to declare a default, but that it will probably be a \u201ctechnical\u201d default as opposed to an official one. Some say that the decision of the Rada to allow Iatseniuk to chose whom to pay is already such a \u201ctechnical default\u201d. Is there such thing as a \u201ctechnical default\u201d and, if yes, how would it be different in terms of consequences for the Ukraine for a \u201cregular\u201d default?<\/em><\/div>\n
\n

Michael Hudson<\/strong>: A default is a default. The attempted euphemism of \u201ctechnical\u201d default came up with regard to the Greek debt in 2012 at the G8 meetings. Geithner and Obama lobbied the IMF and ECB shamelessly to bail out Greece, simply so that it could pay bondholders, because U.S. banks had issued credit default insurance (CDS) against Greek bonds and were on the hook for a big loss if a default occurred. The ECB suggested euphemizing default as a \u201cvoluntary renegotiation,\u201d asking banks and other bondholders to agree to write down the debt.<\/p>\n

But according to the international bondholders\u2019 organization \u2013 the International Swaps and Derivatives Association (ISDA) \u2013 credit defaults can be triggered if a debt restructuring is agreed between \u201ca governmental authority and a sufficient number of holders of such obligation to bind all holders,\u201d making it mandatory. According to the ISDA\u2019s definitions: \u201cThe listed events are: reduction in the rate of interest or amount of principal payable (which would include a \u2018haircut\u2019); deferral of payment of interest or principal (which would include an extension of maturity of an outstanding obligation); subordination of the obligation; and change in the currency of payment to a currency that is not legal tender in a G7 country or a AAA-rated OECD country.\u201d[1]<\/a><\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Russia, China and the Battle Against Dollar Hegemony The Internal Contradictions of US Foreign Policy The Saker: We hear that the Ukraine will have to declare a default, but that it will probably be a \u201ctechnical\u201d default as opposed to an official one. Some say that the decision of the Rada to allow Iatseniuk to […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,5],"tags":[124,130,5493,195,200,233,282,1167,6281,6280,6279,694,4373,821,6278,1174],"class_list":["post-8996","post","type-post","status-publish","format-standard","hentry","category-economics","category-geopolitics","tag-central-banks","tag-china","tag-counterpunch","tag-debt","tag-default","tag-ecb","tag-european-central-bank","tag-greece","tag-international-swaps-and-derivatives-association","tag-isda","tag-michael-hudson","tag-russia","tag-the-saker","tag-ukraine","tag-us-dollar-hegemony","tag-us-foreign-policy"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8996","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8996"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8996\/revisions"}],"predecessor-version":[{"id":8997,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8996\/revisions\/8997"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8996"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8996"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8996"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}