It seems that the Russians are willingly digging their own grave economically. How can they be trusted by international investors after this, if this is their response to the current situation? They MUST know how this, yet they seem dead set on continuing down this path.
This is an interesting conundrum, because if Russians believe your position, then they can create a temporary economic boost by simply not paying back any of their debt and by eliminating all equity claims from foreign owners.
Normally this would create a death spiral, but investors have short memories and will come back for Russian bonds in the future (just like every other sovereign default). If done in coordination with China for future financing, could be an unprecedented geopolitical realignment.
Just the opposite is happening short term. Russia has about $478 billion in foreign debt and about $630 billion in foreign reserves. e.g. on balance, they are a net saver.
But almost 2/3 of those foreign assets have been frozen, possibly for decades. They effectively went from net surplus to net deficit overnight. By disavowing their debt, at best they would be getting back to neutral. China may happily loan money, but ask Sri Lanka what kind of terms to expect.
This was actually an enormous unforced error by the US government. What is the point of central bank foreign reserves if they vanish at the whim of the US? Every single central bank in the world should be considering severely reducing their purchases of US treasuries.
It isn't just US dollars. Every major goverment has frozen Russian central bank assets. If Russia has zero dollars and all Euros (or Pounds or Yen) they would have the same problem.
The only major currency holding not being frozen is Chinese Yuan. So yeah those are your choices:
a) don't be such an aggressive sociopath and danger to the world that you are subject to unprecedented step of freezing your central bank assets
b) hold all of it in Chinese Yuan the most manipulated major currency in the world
I think the US takes our status as the world's reserve currency for granted. There is a serious risk to losing the currency war and the Yuan becoming the world's reserve currency. This cannot be overstated.
The loss of access to central bank reserves is a global watershed moment for central banks.
Just agree to the demands. Don't adhere to them but definitely agree to them. This will either free the hostaged satellites or shine an even brighter light on Russia's Russia-ness. (I'm guessing the latter.)
Russia and what army is going to do that?Why isn't OneWeb just "agreeing" to these terms and then tell Russia to get f... err that there has been a change of plans late,r once the starts are done?
I mean, it doesn't sound as if there is any base of trust anyway, and these demands are probably a breach of contract too... soo... might as well burn the last bridges too to get these satellite into the air. It's not as if OneWeb will ask Russia for launches ever again after this.
If you break agreement with Russia, that gives them pretext to engage in a whole new round of military hostilities. Like firing rockets at all your satellites. Didn't Russia just, like 2 months ago or 3, do a "demonstration" of destroying one of their own satellites with an anti-satellite rocket?
They demonstrated anti-satellite capability. They didn’t demonstrate that they have a large number of them.
It seems that the Russians are willingly digging their own grave economically. How can they be trusted by international investors after this, if this is their response to the current situation? They MUST know how this, yet they seem dead set on continuing down this path.
This is an interesting conundrum, because if Russians believe your position, then they can create a temporary economic boost by simply not paying back any of their debt and by eliminating all equity claims from foreign owners.
Normally this would create a death spiral, but investors have short memories and will come back for Russian bonds in the future (just like every other sovereign default). If done in coordination with China for future financing, could be an unprecedented geopolitical realignment.
Just the opposite is happening short term. Russia has about $478 billion in foreign debt and about $630 billion in foreign reserves. e.g. on balance, they are a net saver.
But almost 2/3 of those foreign assets have been frozen, possibly for decades. They effectively went from net surplus to net deficit overnight. By disavowing their debt, at best they would be getting back to neutral. China may happily loan money, but ask Sri Lanka what kind of terms to expect.
This was actually an enormous unforced error by the US government. What is the point of central bank foreign reserves if they vanish at the whim of the US? Every single central bank in the world should be considering severely reducing their purchases of US treasuries.
It isn't just US dollars. Every major goverment has frozen Russian central bank assets. If Russia has zero dollars and all Euros (or Pounds or Yen) they would have the same problem.
The only major currency holding not being frozen is Chinese Yuan. So yeah those are your choices:
a) don't be such an aggressive sociopath and danger to the world that you are subject to unprecedented step of freezing your central bank assets
b) hold all of it in Chinese Yuan the most manipulated major currency in the world
I think the US takes our status as the world's reserve currency for granted. There is a serious risk to losing the currency war and the Yuan becoming the world's reserve currency. This cannot be overstated.
The loss of access to central bank reserves is a global watershed moment for central banks.
Question is if even THEY can sustain the increase in cadence. If you consider, before taking on any orphan payloads, they were already approaching about 40+ in their yearly manifest, the orphan payloads could push that closer to 60,Do business with corrupt oligarchs, get fucked.
Womp womp.
"And while SpaceX may agree to launch a competitor's satellites, the price would not be cheap. Nor would OneWeb likely want to enrich the company trying to better its own satellite network."
I doubt SpaceX would gouge them - they'd probably charge the same they charge everyone else.
Russia and what army is going to do that?Why isn't OneWeb just "agreeing" to these terms and then tell Russia to get f... err that there has been a change of plans late,r once the starts are done?
I mean, it doesn't sound as if there is any base of trust anyway, and these demands are probably a breach of contract too... soo... might as well burn the last bridges too to get these satellite into the air. It's not as if OneWeb will ask Russia for launches ever again after this.
If you break agreement with Russia, that gives them pretext to engage in a whole new round of military hostilities. Like firing rockets at all your satellites. Didn't Russia just, like 2 months ago or 3, do a "demonstration" of destroying one of their own satellites with an anti-satellite rocket?
They demonstrated anti-satellite capability. They didn’t demonstrate that they have a large number of them.
Russia and what army is going to do that?Why isn't OneWeb just "agreeing" to these terms and then tell Russia to get f... err that there has been a change of plans late,r once the starts are done?
I mean, it doesn't sound as if there is any base of trust anyway, and these demands are probably a breach of contract too... soo... might as well burn the last bridges too to get these satellite into the air. It's not as if OneWeb will ask Russia for launches ever again after this.
If you break agreement with Russia, that gives them pretext to engage in a whole new round of military hostilities. Like firing rockets at all your satellites. Didn't Russia just, like 2 months ago or 3, do a "demonstration" of destroying one of their own satellites with an anti-satellite rocket?
They demonstrated anti-satellite capability. They didn’t demonstrate that they have a large number of them.
Agreed, Russia's ability to deploy their resources / the amount they have is SERIOUSLY in question now.
What we've seen so far indicates that Russia's ability to wield their weapons has been shockingly poor. Their troops are short on food, they do amphibious landings 40km from their target seemingly out of fear of any kind of confrontation... Vehicles running out of food, convoys operating alone without support ... LOTS of old equipment. No air superiority.
There's plenty of reason to doubt Russia's capabilities of all kinds outside massing large numbers of hungry / demoralized conscripts.
Well, if they dont want to use SpaceX then it looks like OneWeb may have to rebrand to 0.68Web
Dunno how likely it is, but would love to see SpaceX just take this on as though it were just any other cargo. I realize Starlink is competition, but right now we could all use a little cooperative forward thinking.
One web is truly in a tough position. They need lots of launches at a low price per kg.
Ariane launches are way too expensive even if they would be available. And with OneWeb being owned by the UK - there ought to be very litte political interest from the EU side to help them out.
SpaceX is a direct competitor and is unlikely willing to launch any satellites for OneWeb. Same goes for BlueOrigin if they ever fly. ULA is too expensive and does not have the Rockets available.
All other (private) small launchers should be significantly too expensive as well. And Rocket Lab's Neutron rocket is still far away.
One web is truly in a tough position. They need lots of launches at a low price per kg.
Ariane launches are way too expensive even if they would be available. And with OneWeb being owned by the UK - there ought to be very litte political interest from the EU side to help them out.
SpaceX is a direct competitor and is unlikely willing to launch any satellites for OneWeb. Same goes for BlueOrigin if they ever fly. ULA is too expensive and does not have the Rockets available.
All other (private) small launchers should be significantly too expensive as well. And Rocket Lab's Neutron rocket is still far away.
Musk has stated that he's willing to launch competitor's satellites. So it's unlikely that SpaceX would refuse to launch OnrWeb -- Shotwell has been very good at keeping Musk to his commitments. They might have to pay list price instead of getting the unlisted bulk discount, and SpaceX might not rearrange schedules to expedite the launch, but I'm confident that SpaceX would launch OneWeb if asked.
American politics of the past decade have been heavily influenced by exactly this approach. Whether it's "vaccines cause autisim" or "stop the steal"... the "make big lies and repeat them" approach is surpisingly effective.I love it, "aggressive policy of the West" - like illegally invading a sovereign nation isn't aggressive. Shit may fly in the motherland, but not in the rest of the world
[BULLSHIT REDACTED]
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I think from a numbers perspective Musk is more or less correct here.
The primary problem with Musk is that he's a fairly prolific shitposter and that muddies the waters quite a bit.
The original poster of this tweet is fascist troll who seems to have missed the point of the tweet.
to an extent, generally it takes about a couple years on a new rocket to get through the teething pains and support a regular cadence*. So if Vulcan was ready to do its demo flight today, it still wouldn't be able to pick up the slack for a while.A lot of these issues could be ameliorated greatly by Blue Origin solving its production issues with BE-4. That would bring Vulcan into play, and with engines, perhaps even New Glenn.
Tory Bruno of ULA seems publicly optimistic about his company getting their first flight copies of the engine. What he's not commented on is the second set and beyond. Given the apparent work rate of BO, it is difficult to say when that might happen.
So, yeah, that leaves OneWeb in the position of having to pay SpaceX a premium price for the foreseeable future. That's got to leave a very sour taste in the mouths of their executives.
That probably only leaves SpaceX and its Falcon 9 rocket as a viable option. The problem with this, of course, is that SpaceX has its own satellite Internet network, Starlink. And while SpaceX may agree to launch a competitor's satellites, the price would not be cheap.
BRICS countries which represent 48% of the world population all declined to suppor the UN resolution condemning Russia. Doesn't seem like a united world....OneWeb was founded to bring the world closer together, but that is hard to do when the world is falling apart
Eric, I'd say at this point in time, the world is fairly united.
Which they have with the Ariane family of rockets.And that is why Europe needs independent access to space.
I think what you need to be saying is "that is why Europe needs independent and affordable access to space." OneWeb wouldn't have been launching with Roscosmos if the wait time and cost to launch on an Ariane weren't so bad.
Honestly I’m disappointed that Ukraine hasn’t enlisted the Ram Ranchers to help with communication jamming.Russia and what army is going to do that?Why isn't OneWeb just "agreeing" to these terms and then tell Russia to get f... err that there has been a change of plans late,r once the starts are done?
I mean, it doesn't sound as if there is any base of trust anyway, and these demands are probably a breach of contract too... soo... might as well burn the last bridges too to get these satellite into the air. It's not as if OneWeb will ask Russia for launches ever again after this.
If you break agreement with Russia, that gives them pretext to engage in a whole new round of military hostilities. Like firing rockets at all your satellites. Didn't Russia just, like 2 months ago or 3, do a "demonstration" of destroying one of their own satellites with an anti-satellite rocket?
They demonstrated anti-satellite capability. They didn’t demonstrate that they have a large number of them.
Agreed, Russia's ability to deploy their resources / the amount they have is SERIOUSLY in question now.
What we've seen so far indicates that Russia's ability to wield their weapons has been shockingly poor. Their troops are short on food, they do amphibious landings 40km from their target seemingly out of fear of any kind of confrontation... Vehicles running out of food, convoys operating alone without support ... LOTS of old equipment. No air superiority.
There's plenty of reason to doubt Russia's capabilities of all kinds outside massing large numbers of hungry / demoralized conscripts.
Communicating in the clear (no encryption or frequency hopping). Unable to secure air dominance after a week. Leaving logistical convoys unsecured. Has used a relatively small number of long range precision missiles (don't have them? don't work? can't afford more?)
Outside of brutal war crime level tactics and nuclear weapons Russia is turning out to be a paper bear.
That probably only leaves SpaceX and its Falcon 9 rocket as a viable option. The problem with this, of course, is that SpaceX has its own satellite Internet network, Starlink. And while SpaceX may agree to launch a competitor's satellites, the price would not be cheap.
Would that even be legal ?, it would be a monopolistic practice if I ever saw one.
@statistical
"Once again it wasn't just dollars. Russia wasn't holding dollars and only dollars out of some magical respect for dollar as the reseve currency. They were holding foreign currency reserves OBTAINED THROUGH TRADE. All of them have been frozen with the exception of the Yuan. My understanding is their largest foreign currency holding was euros not dollars.
I do find the huge amount of concern trolling about sanctions in the last few days somewhat suspicious.
It is happening as evidence mounts that sanctions are having a catastrophic impact on the Russian economy. For once globalization is working in our favor. In turns out Russia is rather dependant on the world economy and thus if the world has the resolve to act the world has quite a bit of leverage over Russia.
"Sanctions will never do anything we shouldn't try that" Also "Sanctions may be too powerful we shouldn't do that."
Also as far as I understood, they have gold in certificate-certified paper, but not in physical form, which were also frozen out.
Many people heard the news about Russia buying gold in recent years, and took it as a preventive action from future sactions, but it was done in a matter that couldn´t escape the grip of sactions either.
A bit of bad planning mixed with a bit of overconfidence.
American politics of the past decade have been heavily influenced by exactly this approach. Whether it's "vaccines cause autisim" or "stop the steal"... the "make big lies and repeat them" approach is surpisingly effective.I love it, "aggressive policy of the West" - like illegally invading a sovereign nation isn't aggressive. Shit may fly in the motherland, but not in the rest of the world
Indeed, last I heard, one living ex-president of the US was still vocally supporting Putin.
Stick a fork in this turkey, it is done. Ironically, Vlad the Impaler may be doing the British government a favor, if it prevents more taxpayer money from going down this patently obvious rathole.
That probably only leaves SpaceX and its Falcon 9 rocket as a viable option. The problem with this, of course, is that SpaceX has its own satellite Internet network, Starlink. And while SpaceX may agree to launch a competitor's satellites, the price would not be cheap.
Would that even be legal ?, it would be a monopolistic practice if I ever saw one.
Eventually I think SpaceX will be subject to anti-monopoly provisions. One option would be for them to spin Starlink off and operate it at arms distance. Paying a rate per launch no better or worse than a hypothetical competitor would get.
I would point out due to its size and the fact that volume discounts exist Starlink likely would be the lowest priced customer of SpaceX even if independent at least until someone starts operating on the same scale.
The company presently has 428 satellites in orbit, out of a planned total of 648 for its initial constellation.Well, if they dont want to use SpaceX then it looks like OneWeb may have to rebrand to 0.68Web
Maybe I missed the joke, but why 68% specifically?
BRICS countries which represent 48% of the world population all declined to suppor the UN resolution condemning Russia. Doesn't seem like a united world....OneWeb was founded to bring the world closer together, but that is hard to do when the world is falling apart
Eric, I'd say at this point in time, the world is fairly united.
only if it was over significantly over market value. if you say for example want to expedite the schedule due to a sudden and severe shortage in launch availability, that's a more valuable service than a normal launch. However if reports are accurate and OneWeb already paid for all their launches, then assuming they can't get a refund, even a Bulk Buy discount for replacement launches from SpaceX wouldn't be cheap, because it'd likely be $45-$50m more per launch that they have to pay, and because of how well they pack, they'd probably get about the same number of sats, maybe a couple more inside F9's fairing as they fit in Soyuz.That probably only leaves SpaceX and its Falcon 9 rocket as a viable option. The problem with this, of course, is that SpaceX has its own satellite Internet network, Starlink. And while SpaceX may agree to launch a competitor's satellites, the price would not be cheap.
Would that even be legal ?, it would be a monopolistic practice if I ever saw one.
Japan's launcher should be able to lift some. Hopefully they're all in high-inclination shells.This notes seems to forget that China has some reasonable launch options.
China is a non-starter. They steal ITAR tech leaving the company who gotten stolen from subject to ITAR sanctions. Until recently at least when it came to rocket launches Russia has had a long track record of being trustworthy something China doesn't have.
Translation: The launchers at Baikonur decided that without the flags of some countries, our rocket would look more beautiful.
Looks like they're taking off the flag decals from the fairing. This is so amazingly petty, it's like high school grade drama.
Translation: The launchers at Baikonur decided that without the flags of some countries, our rocket would look more beautiful.
Looks like they're taking off the flag decals from the fairing. This is so amazingly petty, it's like high school grade drama.
I mean, I'm not sure what the current UK government is willing to concede.. BJ is not known for his predictability, or his sanity for that matter.
He's basically trump with a charming accent.
That probably only leaves SpaceX and its Falcon 9 rocket as a viable option. The problem with this, of course, is that SpaceX has its own satellite Internet network, Starlink. And while SpaceX may agree to launch a competitor's satellites, the price would not be cheap.
Would that even be legal ?, it would be a monopolistic practice if I ever saw one.
Eventually I think SpaceX will be subject to anti-monopoly provisions. One option would be for them to spin Starlink off and operate it at arms distance. Paying a rate per launch no better or worse than a hypothetical competitor would get.
I would point out due to its size and the fact that volume discounts exist Starlink likely would be the lowest priced customer of SpaceX even if independent at least until someone starts operating on the same scale.
That’s actually murky. This is complex, but there are laws here, at least, that require companies that buy their own prob]ducts to pay a market rate for them, so that they theoretically couldn’t charge themselves less than the lowest rate they charge anyone else. This would accommodate volume pricing, but it would have to be the same pricing they would charge everyone else for the same number of launches with the same amount of cargo, however that’s measured, by weight and possibly, number.
Maybe electron is where they'll have to go?
If that’s their only option, OneWeb could just as well call it quits. Electron can take a mass of 300 kg to LEO, which is _just_ enough for two OneWeb satellites, and that’s at a cost of 7.5 million dollars, so 127,5 million dollars for a group of 34 which is what now should’ve been launched by Soyuz. No way that is happening.