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Party today and pay back the dept later, great idea!
Debt to whom exactly?
I’m just paraphrasing the article you linked:
How long can the party last? Mr Putin’s attempts to blunt interest-rate rises will lead inflation to rise higher, and last longer, than it would have otherwise. At some point, people may get angry about the rising cost of living. He also cannot run budget deficits for ever. At current rates, Russia’s financial reserves will be exhausted in five years or so; meanwhile, the government faces high borrowing costs. But for now, Mr Putin has a war to win. And so the party goes on.
Parroting things without actually thinking about them doesn’t generally produce any interesting insights. As long as a country’s debt is denominated in its own currency and it has control over issuing that currency, it can create more of it to cover any outstanding obligations. This means there’s no risk of default because the government can simply print money to pay off its debts. That’s how US is able to have national debt of $34.4 trillion right now. If The Economist thinks that Russia’s financial reserves will be exhausted in five years or so, then they have some explaining to do regarding the US.
