This page has been archived and commenting is disabled.

US Backs Egyptian Bond Issuance, Gives New $1 Billion Issue "Sovereign Guarantee"

Tyler Durden's picture




 

Just because the US is having so much success convincing the world its debt is money good (but don't anyone dare count the $6+ trillion in GSE debt to the total US debt), the good old US of A has now decided to backstop the debt of... Egypt. Bloomberg reports: "Egypt plans to raise $1 billion by selling Eurobonds this year to diversify borrowing and finance a widening budget deficit after its economy was rocked by the worst political crisis in 30 years. The five-year bonds will be backed by a U.S. “sovereign guarantee,” Finance Minister Samir Radwan said by telephone from Cairo today...President Barack Obama promised last week $2 billion in loan guarantees and debt forgiveness." And when it comes to Uncle Sam giving his assurances to the developing world, size does not matter: "The size is not significant but the backing from the U.S. will help raise the money at a relatively inexpensive cost." Uh, should Congress perhaps have something to say about the fact that America is now somehow the guarantor of recently revolutionary African countries? Because if, heaven forbid, should the extremely stable and economically viable, but otherwise revolutionary Egyptian country suffer default and bondholders demand to be made whole, guess out of whose pocket the deficiency claims will have to be funded...

Says Bloomberg:

Egypt’s budget gap may widen to the highest level in more than a decade in 2012 after a popular revolt ended the three- decade rule of President Hosni Mubarak, according to the Ministry of Finance. The turmoil prompted tourists to flee, lowered the country’s credit ratings and raised borrowing costs.

The yield on Egypt’s 5.75 percent dollar bond due April 2020 rose 2 basis points, or 0.02 percentage point, to 5.89 percent at 2:01 p.m. in Cairo. The rate plunged 33 basis points on May 19, the day of Obama’s aid announcement. The cost of insuring the country’s debt against default climbed 7 basis points to 332 today, according to data provider CMA, which is owned by CME Group Inc. and compiles prices quoted by dealers in the privately negotiated market.

Luckily, since the domestic bond ponzi in Egypt has not been set up yet and no Primary Dealers operate in the country, the only option is the global banking cartel:

The planned Eurobond sale “may satisfy short-term financing needs but the American backing limits the ability of Egypt as an independent entity to ask for funds in the international market in the long term,” said Moustafa Assal, head of fixed income at Beltone Financial, a Cairo-based investment bank. “At the moment the aid is welcome because Egypt has no choice but to go to the international market to get the economy back on its feet.”

But, but, can't the wonderful Japanese model (which by the way no longer works) of excess savings reinvested be transplanted to Egypt?

In the meantime, the US is merely backstopping paper by another government, which will soon be very much insolvent, and probably also need an ECB bail out for good measure. Because, you know, M.A.D...

The North African country had $35 billion in external debt at the end of 2010, according to data on the central bank’s website, making up 14.7 percent of gross domestic product. The government depends on the sale of treasury bills to finance the deficit, which may reach 11 percent of GDP in the fiscal year ending June 2012, according to finance ministry data.

The ministry has struggled to raise its targeted amounts at weekly auctions of t-bills since the uprising as yields soared.

Yesterday it raised 2.825 billion pounds ($474 million) of the 5.5 billion pounds sought by selling three-month and nine-month notes. The average yield on the 252-day notes climbed to 12.869 percent, the highest since November 2008.

Lastly, all of this may be moot. As we observed last week, May 27 may be the day when the second Egyptian revolution hits. And confirming this, below is a copy of a poster put up on Tahrir square highlighting the specific demands that already disillusioned revolutionaries are having with the current system. Note that US bond guarantees are not among the demands.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 05/23/2011 - 12:47 | 1302230 HamyWanger
HamyWanger's picture

That's what I've always said. There won't be any sovereign, or even muni default during the coming years. Too many powerful interests are at stake.

Mon, 05/23/2011 - 12:52 | 1302246 SheepDog-One
SheepDog-One's picture

Youre in for a rude awakening soon fucktard.

Mon, 05/23/2011 - 12:53 | 1302248 Internet Tough Guy
Internet Tough Guy's picture

If I can't trust an anonymous internet troll, who can I trust? Hamy, sell me bonds.

Mon, 05/23/2011 - 12:52 | 1302261 HamyWanger
HamyWanger's picture

I honestly believe now is the time to buy muni bonds, especially Illinois and California bonds. They have been way oversold during the last months, and have yet to cope with the incredible economic recovery in those States.

Ignore my advice at your own peril. 

Mon, 05/23/2011 - 13:07 | 1302297 camaro68ss
camaro68ss's picture

dude your crazy, i live in california and no one is buying california bonds in fear of defult. Every year for the past 3 years california has been finding new ways in explaining to people why they get IOU's instead of checks in the mail at the end of every budgit year.

Mon, 05/23/2011 - 13:57 | 1302447 Hedgetard55
Hedgetard55's picture

You got hamyed, dude.

Mon, 05/23/2011 - 16:29 | 1302947 LowProfile
LowProfile's picture

Harry's been away too long, so people aren't getting the soo-nami of sarcasm that is Hamy.

Mon, 05/23/2011 - 16:33 | 1302948 LowProfile
LowProfile's picture

Harry's been away too long, so people aren't getting the soo-nami of sarcasm that is Hamy.

Mon, 05/23/2011 - 15:45 | 1302791 Fox Moulder
Fox Moulder's picture

Not sure about Illinois but it would take a change to the state Constitution to default on GO bonds in California.

 

Not that the fuckers wouldn't try it.

Mon, 05/23/2011 - 18:19 | 1303214 Rainman
Rainman's picture

In CA the Constitution validates and " guarantees "many ponzis. Education, public pensions, GO bonded debt. They are all up front tied together in a sinking life boat.

Mon, 05/23/2011 - 13:19 | 1302345 Hdawg
Hdawg's picture

Illinois and California are two of the most unstable land masses in America

Nothing like a decent bit natural disaster to blame hyperinflation on.

Mon, 05/23/2011 - 14:18 | 1302499 Sancho Ponzi
Sancho Ponzi's picture

Don't forget NV bonds, Hamy. lmao

Mon, 05/23/2011 - 14:20 | 1302503 ClassicalLib17
ClassicalLib17's picture

@HamyWanger

You can't be serious. I just got elected as one of nine alderman in Illinois' ninth largest city.  My city is broke and the state is much worse off.  Our fucking governor is talking about reducing or eliminating municipal revenue sharing(the state giving back what they take from the municipalities) which would mean a 2 million dollar budget hole for us in 2012. The state raised income taxes only to give it back to our corporations who are now threatening to leave the state. If you compare workmans compensation costs with our great lakes neighbors, Illinois IS number one by a factor of 7 to 10 times.  So fuck off you idiot.

Mon, 05/23/2011 - 14:55 | 1302617 Sancho Ponzi
Sancho Ponzi's picture

Hamy is a clever Zerohedge contrarian, so don't take anything he says seriously.

Mon, 05/23/2011 - 15:57 | 1302839 The Laughing Man
The Laughing Man's picture

You're kidding right? I don't know about Illinois, but California is quite possibly the worst state to be buying that stuff right now.

Mon, 05/23/2011 - 20:20 | 1303601 Hulk
Hulk's picture

You are killing me Hamy!

Mon, 05/23/2011 - 13:34 | 1302384 bbq on whitehou...
bbq on whitehouse lawn's picture

So your a buyer of anonymous internet troll bonds, bunds, treasuries and other labor asset backed goodness.

Well then I have a debt instrument for you :)

I have a .9999 gold and .999 silver lettered labor backed and future tech backed device that is sure to please.

: please note actual lettering and backing may be equal or less then what is stated. All complaints may be ignored or referred to the IMF, world bank or a namless hobo, junky or maid in the area of our choosing.

Mon, 05/23/2011 - 13:07 | 1302298 OldPhart
OldPhart's picture

Off Topic, but an alert to Tyler

 

Supreme Court Orders California to release up to 45,000 Prisoners

 

This is bad juju for California Citizens.

Mon, 05/23/2011 - 13:37 | 1302389 astartes09
astartes09's picture

Oh no, they let a couple thousand marijuana users out of jail!  What will we ever do!?!

Mon, 05/23/2011 - 13:58 | 1302444 espirit
espirit's picture

More minimum wage earners to supplement the work force that has the illegals running back across the border.

Can't cut out cops and ff's now with all the crooks and pyro's running about. 

Mon, 05/23/2011 - 14:03 | 1302454 Rodent Freikorps
Rodent Freikorps's picture

Surely these people have paid their debt to society and will return to their old neighbor-hoods to become valuable, contributing members to Californian society.

A great day, indeed.

Mon, 05/23/2011 - 15:10 | 1302690 oogs66
oogs66's picture

You know when you fish and you catch and release that you often catch the same fish multiple times. That's what this is. Catch and release for cops

Mon, 05/23/2011 - 22:25 | 1303932 Harlequin001
Harlequin001's picture

Hang 'em...

Mon, 05/23/2011 - 17:06 | 1303037 downwiththebanks
downwiththebanks's picture

Why don't we have MORE Black and Brown people locked up?

After all, more people imprisoned than any civilization at any time in the course of human history is such an achievement.  Just look around at all the the shit we have to protect!

Prisons rank right up there with all the landfills as the real gifts given to us by 5 centuries of glorious Capitalism.

Mon, 05/23/2011 - 13:21 | 1302338 IBelieveInMagic
IBelieveInMagic's picture

This is the American generosity we have grown to expect and love...

Mon, 05/23/2011 - 12:47 | 1302231 TheTmfreak
TheTmfreak's picture

Now if only we can get the money back that we loaned to Haiti... Oh wait that was forgiven.

Hope the chinese have it in their hearts to forgive our bad investments too.

Mon, 05/23/2011 - 13:10 | 1302301 Azannoth
Azannoth's picture

If I lent you toilet paper I would forgive it too, lest you give it back used

Mon, 05/23/2011 - 12:47 | 1302233 DosZap
DosZap's picture

The House of Saud, has also dumped 2B into the Egyptian hole.

Mon, 05/23/2011 - 12:47 | 1302238 Raynja
Raynja's picture

No moral hazard here

Mon, 05/23/2011 - 12:53 | 1302266 Bam_Man
Bam_Man's picture

We are WAY beyond moral hazard here.

This is Moral Vacuum.

 

Mon, 05/23/2011 - 13:53 | 1302440 NotApplicable
NotApplicable's picture

Well, that sucks.

Mon, 05/23/2011 - 12:51 | 1302240 oogs66
oogs66's picture

Fortunately a guarantee doesn't count as against the debt ceiling.  All good, just get more debt out there.  Can the Fed buy it if it is guaranteed by the treasury dept?  What a virtuous circle.

Mon, 05/23/2011 - 14:24 | 1302504 NotApplicable
NotApplicable's picture

Who's going to stop them?

Mon, 05/23/2011 - 12:48 | 1302241 SheepDog-One
SheepDog-One's picture

$1 billion? Chump change, hardly a few seconds worth of The Bernank POMO'ing stock and bonds.

Mon, 05/23/2011 - 13:13 | 1302309 Arius
Arius's picture

exactly...in the meantime, not sure what is going on w/markets down and gold up...

i keep checking to see if any yachting accident happened Sunday but nada...wonder if the boys made it to work today... any clue anyone?

Mon, 05/23/2011 - 12:48 | 1302242 silvertrain
silvertrain's picture

I wonder where the Gold is that Mubarak fled the country with ended up?

Mon, 05/23/2011 - 12:50 | 1302247 b_thunder
b_thunder's picture

After the (chief financier and donations gatherer) bin Laden's death,  Obama simply has no choice but to backstop the incoming Muslim Brotherhood's government.  It's sort-of a law in the middle east: if a married brother dies, the other brother who's single has to marry the wife of the deceased. 

 

Mon, 05/23/2011 - 12:50 | 1302250 poydras
poydras's picture

I shook my head when reading this yesterday.  I suppose an extra two billion is a rounding error in the context of a$1.5T fiscal deficit.  "No worries Egypt, my friend.  Just charge it to my tab."

Mon, 05/23/2011 - 13:20 | 1302346 Thisson
Thisson's picture

Just like in the movie Barfly: "Drinks for all my frieeeends!"

Mon, 05/23/2011 - 13:05 | 1302251 hedgeless_horseman
hedgeless_horseman's picture

Co-Signer-In-Chief Barack Obama promised last week $2 billion in loan guarantees...

So S&P will have them at AAA?

Mon, 05/23/2011 - 12:54 | 1302252 Alienated Serf
Alienated Serf's picture

How can we order the new regime around without controlling their money?

Now you guys be good boys and we will make sure the bills get paid, but if you are bad, no dollars for you.

 

Mon, 05/23/2011 - 12:51 | 1302253 tip e. canoe
tip e. canoe's picture

gotta keep the coffers of the SCAF flowin in dough

Mon, 05/23/2011 - 12:54 | 1302255 Re-Discovery
Re-Discovery's picture

Ok has eveybody got their giveaways done now?  No?  Ben wants to do QE3?  OK Ben.  Not Yet?  Tim wants $2 trillion debt ceiling raise?  OK Tim.  Barry?  Aid package to Europe?  Ok we'll wait on that one.

What a cirlce jerk.

And people think the States won't get bailed out.  What a laugh

Mon, 05/23/2011 - 13:03 | 1302288 Joe Davola
Joe Davola's picture

Unless they're red states.

Mon, 05/23/2011 - 12:51 | 1302256 youngman
youngman's picture

We better hope Obama doesn´t get to drunk in Ireland and offer them a few Trillion while under the "influence"..

Mon, 05/23/2011 - 12:55 | 1302272 Magnix
Magnix's picture

LOL!

Mon, 05/23/2011 - 13:14 | 1302324 Mariposa de Oro
Mariposa de Oro's picture

No worries, Mate.  The Imperial Wookie will have her evil eye trained on his lips, assessing everything that enters his pie hole.

Mon, 05/23/2011 - 16:43 | 1302983 S.N.A.F.U.
S.N.A.F.U.'s picture

There's been another sighting -- and they managed to get a picture!

http://lunchtime-leftovers.blogspot.com/2011/05/imperial-wookie.html

Mon, 05/23/2011 - 17:57 | 1303133 Mariposa de Oro
Mariposa de Oro's picture

ROTFLMFAO!!!!

I'm keeping that picture!  You made my day!

Cheers!

Tue, 05/24/2011 - 10:29 | 1304890 Eyes on the World
Eyes on the World's picture

Thanks for the plug!!!!

Eyes On The World

http://lunchtime-leftovers.blogspot.com/

 

 

Mon, 05/23/2011 - 12:55 | 1302258 Hondo
Hondo's picture

This is insane!!! Can turbo Timmy do this without an act of Congress?????

Mon, 05/23/2011 - 13:00 | 1302278 HamyWanger
HamyWanger's picture

Law doesn't matter.

What matters is preventing at all cost any big-scale default. 

Mon, 05/23/2011 - 13:16 | 1302295 Clampit
Clampit's picture

"Sovereign Guarantee" - if you loose your sovereign monopoly we're guaranteed to loose ours.

Mon, 05/23/2011 - 13:12 | 1302305 Segestan
Segestan's picture

<< Law doesn't matter. >>

 Perhaps that is why they are now trying to save at all cost?

 They thought they where above the law.

Mon, 05/23/2011 - 14:25 | 1302523 NotApplicable
NotApplicable's picture

You know, it's rational posts like this one that really detract from your ability to troll coherently. ;-)

Mon, 05/23/2011 - 13:06 | 1302290 Steaming_Wookie_Doo
Steaming_Wookie_Doo's picture

Indeed Congress has completely lapsed in all its responsibilities. Why aren't the Repubs all over this like stink on shit?! 

From my viewpoint, I don't have a problem with debt forgiveness per se, but guaranteeing new bonds seems crazy. Of course, I think all the IMF bloodletting, er, loans should be canceled anyway. I can't think of a nicer bunch of vampires to be unemployed.

Mon, 05/23/2011 - 13:19 | 1302344 francis_sawyer
francis_sawyer's picture

Who said anything about "responsibilities"???

I thought I was just doing this for the free perks & cavalcade of hookers!

Mon, 05/23/2011 - 12:56 | 1302267 ninja-ish
ninja-ish's picture

that's a Jewish law, from the Bible. not an Arab law. idiot.

Mon, 05/23/2011 - 13:59 | 1302452 NotApplicable
NotApplicable's picture

Protip: Before calling someone an idiot, it's best to make sure you're replying to them. Otherwise...

Mon, 05/23/2011 - 12:58 | 1302269 LRC Fan
LRC Fan's picture

Markets are "off the lowz" especially oil. USO has bounced furiously off the same level, 38.03, that it did on Friday.  Closed Friday about 4% off the lows, wonder what today holds...

Mon, 05/23/2011 - 12:54 | 1302270 Magnix
Magnix's picture

LOL!!

Mon, 05/23/2011 - 12:56 | 1302276 suldog
suldog's picture

Aaaaahhh, never mind all that.

How about a Guinness?!-

Mon, 05/23/2011 - 13:00 | 1302279 espirit
espirit's picture

Hope Egypt games the system and buys gold.  That's what I would do, borrow against the inevitable fiatsco collapse.

Debt forgiveness? I could use some of that, but then again I don't got oil...  Hmmm, does Egypt?  hehe.

Mon, 05/23/2011 - 13:03 | 1302287 oogs66
oogs66's picture

egypt should use the money to buy oil futures, then increase the tensions in MENA, and cash out with a huge profit

Mon, 05/23/2011 - 13:06 | 1302291 DosZap
DosZap's picture

 I don't got oil...  Hmmm, does Egypt?  hehe.

 

NOPE

Mon, 05/23/2011 - 13:44 | 1302411 espirit
espirit's picture

I recall not being allowed to dip their toe into the Saudi oil pool.

U.S. insurance?

Mon, 05/23/2011 - 13:06 | 1302296 Mariposa de Oro
Mariposa de Oro's picture

Note that US bond guarantees are not among the demands. ~ Ummm? I can't read that.
:-( Translation please?

Mon, 05/23/2011 - 13:07 | 1302300 ZombieHuntclub
ZombieHuntclub's picture

We are writing IOU's on other lousy bets backed with our previous crappy IOU's! What could possibly go wrong? Who's dumber - the US for backing or anyone that believes we're good for it?

 

I swear I can see Premier Wen laughing from my house.

Mon, 05/23/2011 - 13:12 | 1302315 Bam_Man
Bam_Man's picture

I don't think he's laughing. He's sitting on $2 trillion+ of the same IOU's that are being handed out like penny candy now. 

Mon, 05/23/2011 - 13:11 | 1302312 SilverIsKing
SilverIsKing's picture

Your tax dollars at work!

????? ???????? ?????? ?? ?? ?????!

Mon, 05/23/2011 - 13:20 | 1302334 DosZap
DosZap's picture

Who's working?

Mon, 05/23/2011 - 14:10 | 1302473 SilverIsKing
SilverIsKing's picture

I am.  I want to make sure I can generate enough tax dollars so I can pay my fair share to ensure Egypt bondholders get paid when Egypt defaults.  I wouldn't have it any other way.

Mon, 05/23/2011 - 14:28 | 1302537 NotApplicable
NotApplicable's picture

God bless patriotic Americans like you.

I'd like to help out, but I try and consume taxes instead of pay them. I like to think of it as a form of tough love.

Mon, 05/23/2011 - 15:28 | 1302737 SilverIsKing
SilverIsKing's picture

You're not a government employee, are you?

Mon, 05/23/2011 - 13:15 | 1302314 Azannoth
Azannoth's picture

I have decided to upstage the US of A and will lend Egypt 100 Trillion dollars !!! And to offset transaction costs it will be delivered in 1 single bill (http://cdn4.creditwritedowns.com/wp-content/uploads/2009/01/Zimbabwe-100...) via air mail

Mon, 05/23/2011 - 13:12 | 1302317 youngman
youngman's picture

I hope we get the Pyramids as collateral....they will look good in Lake Havasu...next to the London Bridge...

Mon, 05/23/2011 - 14:34 | 1302547 NotApplicable
NotApplicable's picture

Nah, we just need the keys to the Suez Canal.

Mon, 05/23/2011 - 13:15 | 1302318 rubearish10
rubearish10's picture

Haven't felt too much anger about this entire fiasco, until now.

Mon, 05/23/2011 - 13:13 | 1302323 moonstears
moonstears's picture

bond "diworseification", bitchez.

Mon, 05/23/2011 - 13:19 | 1302328 baby_BLYTHE
baby_BLYTHE's picture

the Bernank better hope the glass is thick on his armored car.

When Hyper-Inflation comes, there will be a ton of people upset and will DEMAND those accountable  for the destruction of everything they ever worked for.

Enter Mises

There is no means of avoiding a final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion or later as a final and total catastrophe of the currency system involved

Mon, 05/23/2011 - 13:36 | 1302396 espirit
espirit's picture

Fat Cats look pretty tasty from a starving persons point of view. 

Mon, 05/23/2011 - 14:04 | 1302457 NotApplicable
NotApplicable's picture

Bankster Foie Gras?

Mon, 05/23/2011 - 14:26 | 1302524 espirit
espirit's picture

+1 , but sounds alot like a$$. lol

Mon, 05/23/2011 - 13:19 | 1302329 Raymond Reason
Raymond Reason's picture

We all need to stop paying taxes, default on all bank loans and raise chickens.  Every con needs a patsy.  We need to stop being the victim. 

Mon, 05/23/2011 - 13:57 | 1302448 Mariposa de Oro
Mariposa de Oro's picture

Chickens?  Well, okay, just make sure it's not those wascally wabbits....

http://www.prisonplanet.com/usda-fines-family-four-million-dollars-for-selling-bunny-rabbits.html

Mon, 05/23/2011 - 14:04 | 1302464 NotApplicable
NotApplicable's picture

Until you stop Benron and Turbo Timmah (and all of their trading partners), every other attempt at fiscal warfare is moot.

Mon, 05/23/2011 - 14:10 | 1302479 Abitdodgie
Abitdodgie's picture

Most people will talk tough , but when it comes time to do something like not paying taxes , well very few will step up to the plate

Mon, 05/23/2011 - 16:00 | 1302855 Ace Ventura
Ace Ventura's picture

May have something to do with seeing what happened to those that did:

-Ed & Elain Brown

-Wesley Snipes

-Sherry Jackson

etc, etc, etc. Individually stepping up to the plate is virtual insanity. Only once critical mass is achieved (15-20% of the entire population) can such a thing be put into practice without paying the heaviest of prices.

Mon, 05/23/2011 - 20:57 | 1303714 GreenSideUp
GreenSideUp's picture

Why is everything an all or nothing proposition?  And besides, income tax is only one tax we're forced to pay.  

Use a little imagination, think outside the box and think small.  There are numerous ways to very legally pay less in taxes (some of these affect only state/local taxes but in my state, they're criminal enterprises too) such as: maximize your withholding, lower your income/tax bracket, drive less, buy used as much as possible, stop buying chinese junque and dustables, reduce energy usage, ask for cash discounts, grow your own, and the list goes on and on.  

Mon, 05/23/2011 - 13:20 | 1302335 Bam_Man
Bam_Man's picture

Further evidence that the USD is still "the fastest horse at the glue factory".

Mon, 05/23/2011 - 13:33 | 1302350 Azannoth
Azannoth's picture

'US Backs Egyptian Bond Issuance, Gives New $1 Billion Issue "Sovereign Guarantee"' - this should be added to the definition of insanitiy in all psychology books

'US Backs Egyptian Bond Issuance, Gives New $1 Billion Issue "Sovereign Guarantee"' - this would not pass for a sub-title in a science-fiction book 10 years ago

'US Backs Egyptian Bond Issuance, Gives New $1 Billion Issue "Sovereign Guarantee"' - was the title of Paul Krugmans Noble Prise disseration

'US Backs Egyptian Bond Issuance, Gives New $1 Billion Issue "Sovereign Guarantee"' - says it all about the value of the dollar these days, you smell like those whom you sleep with

Mon, 05/23/2011 - 13:22 | 1302352 Urban Redneck
Urban Redneck's picture

So the assclown who pontificated about "profit and earnings ratios" is now a master of F/X risk.
Next up, Renminbi-denominated US Treasuries, right before China actually "lets" its currency appreciate.
Barry must either be envious of Krugman's Nobel Price for Stupidity or he is trying to one-up Gordon Brown for "Dumbest Sovereign Trade of the Last Century".

Mon, 05/23/2011 - 13:51 | 1302434 francis_sawyer
francis_sawyer's picture

He just wanted them all to feel like Peggy Joseph...

http://www.youtube.com/watch?v=P36x8rTb3jI

Mon, 05/23/2011 - 13:23 | 1302355 bugs_
bugs_'s picture

menafta

Mon, 05/23/2011 - 13:30 | 1302364 slewie the pi-rat
slewie the pi-rat's picture

The Obama Doctrine.  we'll pay you to end your revo on our terms, ok?

so, now, here's a few $ Bil for the military and the new guy.  we're just trying to be fair, in a pro-democracy, human rights kinda kinder, gentler way.  now, about  that "revo" on the 27th?

MENA, BiCheZ!

Note that US bond guarantees are not among the demands.  actually, i think if you re-check line 17,...

Mon, 05/23/2011 - 13:30 | 1302372 Dolemite
Dolemite's picture


Euro and SnP near strong support

 

http://deadcatbouncing.blogspot.com/

Mon, 05/23/2011 - 13:40 | 1302403 espirit
espirit's picture

NoMoMo Pomo.  Perhaps a reverse repo might work as well if we're drawing straws for the next move.

Remove some excess liquidity from the markets...3...2...1  Wha? No need, move along.

Mon, 05/23/2011 - 13:32 | 1302379 lsbumblebee
lsbumblebee's picture

Not surprising. That's the new regime's reward for collaborating with the Zionists.

http://desertpeace.wordpress.com/2011/05/15/the-new-egypt-continues-to-s...

Mon, 05/23/2011 - 14:28 | 1302540 espirit
espirit's picture

Yeah, and my ex stole my thunder long ago.

Mon, 05/23/2011 - 13:36 | 1302395 wombats
wombats's picture

Why?

Mon, 05/23/2011 - 13:41 | 1302408 Rodent Freikorps
Rodent Freikorps's picture

The government needs it to buy food. We want the stability.

Mon, 05/23/2011 - 13:40 | 1302400 Downtoolong
Downtoolong's picture

Wait until the Egyptians find out their "Sovereign Guarantee" is only worth the paper that the money they borrowed is printed on. But who cares; when the relative market value of their debt goes to zero they will really have reason to go dancing in the streets.

 

Mon, 05/23/2011 - 13:49 | 1302419 djsmps
djsmps's picture

How the fuck can Obama forgive $1 billion in debt, give $1 billion in loans and offer sovereign guarantee to $1 billion dollars of bonds for a military dictatorship without having the approval of Congress? I am outraged by this, enough so that I just wrote all my congress people. I doubt they'll do anything.

Mon, 05/23/2011 - 14:16 | 1302485 NotApplicable
NotApplicable's picture

Do anything? If you keep empowering them, they can, and will stay drunk longer. That's about all you'll get for your trouble. Well, with enough pressure, they may be forced to rationalize Obummer's actions in order to present a unified, bi-partisan foreign policy (because we all know how important that is).

I'll be intersted in seeing how the Google conspirator guy reacts to a real revolution, instead of his astroturf sponsored, military coup.

Mon, 05/23/2011 - 13:52 | 1302421 Byronio
Byronio's picture

Egypt is one of the Arab countries where the price of wheat, a staple in their food, is skyrocketing, so the US taxpayer is now going to give $$$ to Arabs in Egypt, Tunisia et al so they can outbid us for food.

I like that, ¡SI SE PUEDE!

Mon, 05/23/2011 - 14:16 | 1302491 NotApplicable
NotApplicable's picture

But they have to do something to counter the counter-revolution. Isn't that worth a little tightness in your belly?

Mon, 05/23/2011 - 13:49 | 1302424 john39
john39's picture

big surprise, today Egypt forced an aid ship bound for Gaza (which it had earlier blocked) back into international order. quid pro quo. not really hard to see whose interests are being served here.

Mon, 05/23/2011 - 13:50 | 1302431 Byronio
Byronio's picture

AIPAC, Dems and Repubs all alike make obeisance. Watching Obama and Cantor Sunday was very telling about who runs .gov

Mon, 05/23/2011 - 14:05 | 1302467 john39
john39's picture

i can't fathom how people in the U.S. are so easily fooled into equating israeli interests with U.S. interests. worlds biggest scam.

Mon, 05/23/2011 - 14:19 | 1302497 Byronio
Byronio's picture

john,

Just ask yourself who owns Hollyweird and the newspapers and magazines, radio stations, overwhelmingly, well like Mortimer Zuckerman owns the New York Daily News, US News & World Report and and and, Canadian fellow who is a real estate magnate.

Between 2001 and 2003, Zuckerman was the chairman of the Conference of Presidents of Major American Jewish Organizations. Now just multiply Mort by a few hundred and you have your answer.

 

 

 

Mon, 05/23/2011 - 14:21 | 1302500 NotApplicable
NotApplicable's picture

What makes you think anyone is fooled? They are criminals, and thus, are expected to act as such. The foolishness arises by those who falsely believe there is such a thing as "national interests" to begin with, instead of recognizing they are just means to an end for the criminals in power.

Mon, 05/23/2011 - 14:45 | 1302577 Rodent Freikorps
Rodent Freikorps's picture

Did this piss you off?

Palestinians get $400 million in U.S. aid

http://www.washingtontimes.com/news/2010/jun/9/palestinians-get-400-million-in-us-aid/

 

Mon, 05/23/2011 - 14:58 | 1302638 lsbumblebee
lsbumblebee's picture

If it didn't piss you off it should have. This was blood money paid to Abbas for betraying the Palestinian people.

http://mondoweiss.net/2011/01/palestine-papers-reveal-pa-collaboration-w...

Mon, 05/23/2011 - 16:46 | 1302992 Laddie
Laddie's picture

Americans have no idea what goes on, not a clue, and that is DELIBERATE

War on Iraq how much did that cost--and WHY?

$3 Trillion, boy what a bargain!

Our ally, who needs enemies?

Mon, 05/23/2011 - 16:58 | 1303016 downwiththebanks
downwiththebanks's picture

Don't forget the failed coup in Gaza, with their lackey Dahlan.

What would it mean, exactly, for them to pay us back?  In what currency?

Mon, 05/23/2011 - 13:55 | 1302442 Rodent Freikorps
Rodent Freikorps's picture

It is good that, we, the American people, can reach out and aid our friends in Egypt in their time of need.

All of us are brothers in the eyes of God.

 

Mon, 05/23/2011 - 16:57 | 1303022 downwiththebanks
downwiththebanks's picture

If there's a junta somewhere - anywhere - NaziRat wants a piece of the action.

Mon, 05/23/2011 - 17:13 | 1303058 Rodent Freikorps
Rodent Freikorps's picture

Lighten up, Mahmoud.

I'm not the one stealing your rain.

Mon, 05/23/2011 - 17:29 | 1303088 downwiththebanks
downwiththebanks's picture

It's all good, NaziRat.  You rule because you support any junta, unconditionally.

That's why you're my pet rat.

Mon, 05/23/2011 - 17:40 | 1303112 Rodent Freikorps
Rodent Freikorps's picture

It is good you learned a new word today. Knowledge is good.

Parroting it a dozen times kind of seems ridiculous though.

Do you get paid by the word?

I'll be standing by to find out what tomorrow's word will be.

Mon, 05/23/2011 - 18:03 | 1303175 downwiththebanks
downwiththebanks's picture

You'n'dem be boyz, NaziRat, as always.

Holder, too.

Mon, 05/23/2011 - 13:53 | 1302429 tahoebumsmith
tahoebumsmith's picture

Need to rephrase the title of this article to... America backs Egyptian Bonds with money from the Federal Pension Fund...Hahaha, they are not only using the furture funds to pay bills, now they are backstopping the world with it...

Mon, 05/23/2011 - 13:53 | 1302430 citrine
citrine's picture

I wonder if this guarantee is somehow taking into consideration Egypt's policy towards Israel?

Mon, 05/23/2011 - 14:03 | 1302461 john39
john39's picture

egyptian people are on to the fact that the military government is right back to supporting immoral U.S./Israeli policies. another day of rage is set for next week. U.S./Israel scheming in over-drive at this point, doomed to failure it appears.

Mon, 05/23/2011 - 14:15 | 1302481 Rodent Freikorps
Rodent Freikorps's picture

I've always found wheat fills the belly much better than rage.

Your mileage may vary, of course.

Mon, 05/23/2011 - 13:52 | 1302436 Zymurguy
Zymurguy's picture

No worries, it's all just funny money anyway - fiat, fractional reserve, unbacked junk.  I say just give 'em $10 Billion.  Then, just print up about another $5 Trillion or so for the U.S. and we can use that to pay off a few things, heck, just make it an even $10 Trillion.

Mon, 05/23/2011 - 14:21 | 1302508 shushup
shushup's picture

Fuck Obama!

Mon, 05/23/2011 - 14:31 | 1302548 espirit
espirit's picture

You first.

Mon, 05/23/2011 - 14:52 | 1302606 Jim B
Jim B's picture

+1

 

Why don't we cut out the middle man and have China guarantee it

Mon, 05/23/2011 - 16:55 | 1303011 downwiththebanks
downwiththebanks's picture

Do you really think it's Obama's call?  

Really?  

For real?

Mon, 05/23/2011 - 17:10 | 1303042 I Told YOU So
I Told YOU So's picture

get in line

Mon, 05/23/2011 - 14:25 | 1302519 sbenard
sbenard's picture

This is an absolute outrage! We're buried in a sea of debt, and the Teleprompter Tyrant offers our credit rating as a guarantee to a revolutionary government?

Impeachment NOW!

Mon, 05/23/2011 - 16:53 | 1303003 downwiththebanks
downwiththebanks's picture

To a junta.  Don't misrepresent what's going on here.

Mon, 05/23/2011 - 15:13 | 1302691 PulauHantu29
PulauHantu29's picture

Are these Cleopatra Bonds backed by ...the pyramids?

...or the "good faith of the Egyptian gubberment?"

In any case, it's good to see we have so much money to throw around..."What Recession?"....that's what The Bernank wants to  know

Mon, 05/23/2011 - 15:26 | 1302728 Agent P
Agent P's picture

I promise to by a block if they title them:

"Muslim Brotherhood Bonds Insured by Barack Obama"

 

Mon, 05/23/2011 - 16:52 | 1302999 downwiththebanks
downwiththebanks's picture

And insured by Barak's Uncle Sam for 6 DECADES.

Whoa!

That's longer than alCIAda's been running drugs!

Mon, 05/23/2011 - 15:32 | 1302748 espirit
espirit's picture

If you hold the Arabic letter to a mirror and squint real hard, you can read what it says.

"Thank you Allah (Allah Akbar) for this renewable SNAP card from the U.S. Government, as we know well that any guarantee to repay infidel debt is invalidated in advance".

Mon, 05/23/2011 - 16:46 | 1302981 S.N.A.F.U.
S.N.A.F.U.'s picture

(moved)

Mon, 05/23/2011 - 16:47 | 1302995 downwiththebanks
downwiththebanks's picture

Great work, TD.

Mon, 05/23/2011 - 21:40 | 1303825 franzpick
franzpick's picture

"Too many powerful interests are at stake."

I hope I last long enough to see the ultimate failure of such unauthorized guarantee attempts by U.S. executive and administrative forces.

And the powerful, downfallen interests impaled on the stake for all to see.  

 

Tue, 05/24/2011 - 08:39 | 1304564 Reliantmedia
Reliantmedia's picture

So.... We put "Soverign status" on their debt.... But we can't pay our own.... Who guarantees our debt????? Er..... Eh..... Never mind....

Do NOT follow this link or you will be banned from the site!