maybe providing services to just rich people is not a very good idea.
https://www.cnbc.com/2023/03/16/credit-suisse-to-borrow-up-to-about-54-billion-from-swiss-national-bank.html
54 billion in "loan" for CS. It is a secured loan but the problem is if the bank were to go under, the Government will likely prioritize depositors (as they should imo) and creditors instead.
There is a sovereign debt crisis on the horizon. Remember when Sri Lanka defaulted in 2022 and the government collapsed? Shits gettin fucky
I'm not sure, Sri Lanka is an import dependant global south nation. When it runs out of dollars, it can't import anything from outside forcing them to take loans from IMF.
This years crisis has been so far been limited to Western capitalist countries. Of course, this will still be exported to global South as was 2008.
I wrote out a long response about the maturing of periphery markets and therefore their falling profit rates now that the entire globe is incorporated into the capitalist system coupled with the crashing out of speculative investment vehicles in the core propped up by previously cheap debt but then I realized I was talking too much out of my ass and hadn’t read enough tk really back those assertions up. That’s where my vibe-dar is at tho. The Russo-Ukrainian war shooting the belt and road initiative in the foot has certainly added a lot of instability to global south nations in that region. It really doesn’t seem like there are a lot of places left for capitalists to invest in and still expect to make a reasonable return. If profit rates are falling everywhere that means nations with the most aggressive debt obligations will have to default
They should pull a Nixon moment and declare that all dollars will now be backed by oil :very-smart: