re: Update pg 23: Russia,IMO, will default on its sovereign debt within six months

It's happened! The Central Bank of Russia announced today it will stop supporting the ruble and let it freely float.

As the link below says, the ruble has lost half of its value in 2014 in spite of the Central Bank of Russia spending $110 BILLION of its reserves to prop up the Russian currency this year, $30 billion last month alone.

It appears the CBR made its announcement after the currency exchange markets closed on Monday in Moscow meaning the full effect on the ruble won't be known until the markets open on Tuesday in Russia.

The following quote supports my prediction that Russia will default on its debt soon:

quote:

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The ruble is expected to come under more pressure next year, when Russian companies and banks will have to pay back about $100 billon in hard currency debts, he added.

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LINK

There won't be enough rubles owned by borrowers to buy the euros and dollars needed to pay off debts.