Where are the old Soviet traders?
The analysis without regards to politics is correct. However, it is nothing new. In the Cold War days there was a time that Marxist regimes could not use American banks, stock or commodity exchanges. The Eurodollar was created because the Soviets were buying so much European currency the free world feared a currency dump and thus the collapse of European economies. Then came co-existence, detente, glasnost and peristroika. The Soviets had always been cash customers until the "collapse of Communism" and credit was extended. Fortunes made by ex-KGB types turned capitalist is legendary. They may have been good spies, but capitalist and political planners they are not. In days of old, the old Soviet traders would have paid the debt in gold, silver, titanium, etc., opened a shadow bank that didn't deal in US Dollars in another country for the purposes of selling military hardware to countries like India and then suspended oil sales to countries using US Dollars for purchases and blamed the American embargo for the suspension. Gold prices would drop, energy prices would rise and in this day, who knows what would happen to the dollar. If Western Banks no longer held Russian debt, it wouldn't be good. And for what? Someone the West didn't like won an election, so a revolutionary overthrow was fomented. Why? How is the U.S. paying for trips to the ISS without violating their own embargo? The old Soviets would have had a field day with this group of novices. President Eisenhower had it right early in his Presidency when he said, "let's not throw sand in the other guy's gears, let's concentrate on outdistancing them". By the time he left office and realized he had been "snookered" by the military-industrial complex it was too late and the stage for 60 years of conflicts was set. The leaders of today have forgotten the ravages of all out war and frankly don't have the intellectual capacity to keep it from spinning out of control in their lust for money and power.