Comment by nradov
2 days ago
Come on, be serious. The IMF doesn't break anyone's legs. The worst they can do is refuse to loan you any more money. Any sovereign state is free to balance their own budget and tell the IMF to GTFO.
2 days ago
Come on, be serious. The IMF doesn't break anyone's legs. The worst they can do is refuse to loan you any more money. Any sovereign state is free to balance their own budget and tell the IMF to GTFO.
This is currently more or less true, but historically speaking, sovereign default has often been used as a casus belli for invasion; that's where the Monroe doctrine comes from, after all. The collapsing Pax Americana is arguably the reason we haven't seen it happen in decades, so it would be unsurprising to see it start to happen again.
And of course financial considerations are often a first-order consideration in military conflict even today.
That most counties need to import oil and gas to keep the lights on and industry functioning means you don't need to send gunboats of yore. See Smedley Butler's rant. Now when they get in a pickle they need foreign currency. And that's how they get ya.
Renewables however flips things back.
That's an excellent point, and one I hadn't really internalized. Thank you.
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