i think they are capable of recovering, its not good but not the worst.

“Shoot, coward, you are only going to kill a man.” -

i wouldn’t put any trust in these ratings agencies, they’ve downgraded Japanese and U.S. debt and nothing happened, Japan was able to keep interest rate where it wanted it.

they rate junk CDOs as AAA and sovereign bonds with no default risk at less than AAA, they are completely paid off and don’t know what they are doing. its not a question of whether Israel will be able to meet its shekel debt but whether shekel will be worth anything (exchange rate risk). so if a foreigner buys Shekel Sovereign debt at $1=4 ILS, the exchange rate depreciates to $1=5 ILS, if the interest rate isn’t high enough they’ll lose money when they sell, thats the only risk.

but given that the US has always been with Israel, a crash in the value of Shekel won’t happen.

another example would be Icelandic Krona where the Government was able to pay off Krona debt, but they forced the foreigners to only be able to sell Krona at a fixed lower than market exchange rate, you get your Krona but you can’t get all your Dollars.

this isn’t to say Israel isn’t in trouble, it is but not with its own debt.

Is Lebanon actually using its full military capabilities against Israel? Ik it has been trying to avoid war for economic reasons but Israeli attacks isn’t helping the economy either.

There are already fiber optic lines connecting India and Europe through Suez, Bibi. What are you talking about?

And how tf will you get a rail line through the ocean?

Also I want to murder everyone cheering and clapping for Bibi

He wouldn’t have been arrested otherwise.

It by definition cannot work, you are taking money away from the people.

It used to be that austerity was necessary because the country was “broke” and employment was too high, that was the neoliberal rhetoric. Now, go akshually it improves the economy somehow. How? No one knows

Anyone got the pdf?

Edit https://www.kenklippenstein.com/p/read-the-jd-vance-dossier

he isn’t wrong, look at the disaster that is the Eurozone. all the BRICS countries have different ideologies.

Jaishankar points out that bi-lateral currency deals work well enough and appear satisfactory to most BRICS members. That does leave unsolved the point that your humble blogger and Michael Hudson have raise: that absent mechanisms to encourage balanced trade such as the ones that were part of Keynes’ Bancor, many countries are likely to wind up with sustained trade deficits relative to particular trade partners. What happens when those countries wind up with a lot more of that currency than they want? They can use it to buy assets in the chronic trade deficit country, but a lot of nations do or would place restrictions.

I read this article recently and thought it was interesting

“What happens when those countries wind up with a lot more of that currency than they want?”

I mean the currency itself is an asset for the trade surplus country, it can sell it for other currencies too depending on the liquidity of forex markets. i don’t think unbalanced trade is that bad either, smaller countries with less resources will run trade deficits when being helped out by larger allies. (Like Cuba and USSR). Of course, under capitalism the purpose of trade is for the exporting country to earn foreign currencies and dump excess supply, but that doesn’t have to be the case.

The current cycle for global south countries is a cycle of external debt. Look at the UK, country is a shell of what it was and is only alive because the rest of the world wants to hold Pounds. If UK were a developing country, it would’ve seen a much worse collapse in living standards and probably a revolt.

Another example would be Gaza. Should Gaza be trying to run a trade surplus once Israel stops the genocide? Of course not, everyone else should be providing Gaza with the stuff it needs to get itself back up while providing for its people. This will show up as a current/trade deficit but it is a good thing.

Also, Indian oligarchs have been accumulating a shit ton of Dollar and Euro debt from Western banks, it’s really bad.

Milei’s deep cuts won support from investors and the markets, seen by many as necessary after years of fiscal deficits, rising inflation and economic instability.

“by many” doing a lot there.

this is the problem with ‘tax’ arguments, you don’t look at how much land and water is being wasted.

🦙

😑

The solution is simple : state owned alternative with zero fees.

India can’t do manufacturing so they come up with this shit.

Nah. Your “landlording” is irrelevant.

Poland yuck