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Ukraine Just Issued $1 Billion Bonds Backed By The US Taxpayer
The bailout floodgates are open and the US taxpayer is footing the bill once again - whether through IMF loans or more directly. Today saw Ukraine issue $1 Billion 5-Year Notes at a stunningly low risk of only 28bps above US Treasuries and dramatically cheaper than the cost of capital in the public markets (and from the IMF) which yield over 10%. The reason for the 1) low cost, and 2) actual ability to raise debt... the bond is guaranteed by the US Agency for International Development and "assures full repayment of principal and interest" based on the full faith and credit of the US (Taxpayer). We assume Gazprom will be happy...
- *UKRAINE $1B 5Y NOTES LAUNCH AT +28
So why not pile into these bonds? 28 extra basis points for no apparent additional credit risk... some liquidity risk but we are sure your friendly local central bank will enable you to swap them for infinitely rehypothecatable cash with no haircut...
They're gonna need moar... (and this does not include Gazprom)
Oh and Ukraine says "thanks America"... (as WSJ reports)
"The $1 billion loan guarantee that (U.S. Agency for International Development) will implement will help the government of Ukraine access capital at reasonable rates and manage the transition to a prosperous democracy," Mark Feierstein, assistant administrator at USAID, said in April.
"The guarantee assures investors of full repayment of principal and interest."
The deal follows similar guarantees provided for bonds issued by Tunisia in 2012 and Jordan last year.
But - there is a catch...
Bank of America Merrill Lynch said Tuesday that Ukraine's bondholders could face losses if separatists in the country's southeastern regions successfully gain independence.
The bank said a breakup of the country could potentially force the International Monetary Fund to tear up Ukraine's current $17 billion aid package and trigger a debt restructuring program that would hit private investors. An IMF spokesperson said the fund is monitoring the situation.
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i'm not interested in cock a maimy bond program on the other hand Barry is interested in cock...
Our Leaders !! How wonderful; we just got to countersign a loan for a bankrupt basket case of a fractured wanna-be country. Sieg Heil !!
Is this what's called taxation without representation ?
The catch is that they buyer of these bonds is probably one or more bailed-out US megabanks.
So this is why they hired young Biden
Wow...what an incredibly swift return on their investment.......it must almost be embarrassing to Joe.
Have any "reporters" actually presented this news to the public????
Hilarious...
Not..
Let's review the score:
Ukraine 1 (billion dollars) ... Detroit 0 (cents)
When you can create these digi-dollars for free, and at will, why do they have any yield?
What does it matter whether they are conjured into existence from the Fed's black magician hat in America, or in Ukraine?
Course under the blazing scrutiny of actual accounting, their value will melt away faster than Frosty.
"Taxpayer" is a fucking misnomer. Nobody pays taxes anymore, not even those who do. The money is COMING FROM THE FEDERAL RESERVE POMO to the tune of $1bn - $3bn per day.
Anyone here ever heard of Novorossiya:)?
Backed by the full faith and credit of the US government. Where have I heard that phrase before?
Oh yeh, Fannie Mae preferred. So the suckers buying these bonds will be in line right after them....
Pot's right.
$2.5B from IMF, and $1B from bonds.
Isn't that what Ukraine owes Gazprom on May 15th?
It will be like a high divident trust fund. for every dollar you invest you get a x% return as a dividend but your initial investment has declined by 2x%. You end up, not only paying your own dividend, but paying the high management fees.
The US Dollar won't buy shit in 5 years.
The USSA has already spent $5 billion of your money to destabilze Ukraine in the first place.
What's another $1 billion just to light it up?
----
Also the article speaks of "Profitable Democracies." Please show me one democracy that is actually profitable. Most of the ones I know are in debt up tp their skull caps and would be unable to service that debt if rates return to thier nominal average.
...Tlhe first step by the USSA in taking over Western Ukraine thru an eventual "Foreclosure from Debt"
... that'd be way too clever for Barry to figure out.
Its not Barry's plan... he is just an affable stooge
I'm eagerly awaiting Biden to be videotaped washing his firebird bare belly commenting that Hunter's gonna make it rain in ukraine then give his usual smirk while goosing the reporter.
http://o.onionstatic.com/images/12/12266/2x1/1200.jpg?0885
The power of the dark side is strong in this young padwan.
a Billion? it's a rounding error. Stupid USSA taxpayer won't notice.
People in Detroit would love that rounding error right about now.
But they won't get it!
Pensioners making the city average of $19,000 per year are being asked to take a cut ... so the Ukraine can flush it down the toilet.
Professionalism is dead and all our institutions are failing.
"...all our institutions are failing." You can only believe that if you believe that these institutions were set up to serve you. I would argue that they have been achieving wonderful success ... for the elites.
If it's a rounding error , then why is Uncle Sam using a combination of accounting gimmicks (off balance sheet/contingent liabilities of a subsidiary) for the transaction?
Uh, because they knew you were on the case?
make the check payable to gazprom.
Same as with US loans to developing countries for infrastructure. The catch is contracts have to go to American contractors, not contractors in the debtor country.
Why is it that wherever you see death and destruction you see the greedy little IMF fuckers floating around?
Bankers are worse than lawyers.
Makes me sick to see this shit. Foment war, who cares if someone had their face burned off. Then stand back in that banana dress and feign support all the while knowing it was your money buying the mercenaries who were doing the killing.
This government has become a cancer on the planet.
Goddamn bankers.
pods
I agree with all except WTF is a "bananna dress" and how does it tie into Young Biden Jr??
That soulless one from the State Dept took that selfie while in that God awful banana dress (Jen Psaki ).
pods
I miss so many interesting things while keeping tabs on the Turdashians
A viral near-selfie of Psaki, the State Dept spokesclown. http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2...
Wait, isn't that dress racist? Off with psaki's head!
Off with her clothes! Bath her and then bring her to me....
Ah Ha! The renowned Banana dress. Cute too!
"My eyes! They burn! THEY BURN!"
:)
House of Tards
Bonzai should change that sign to say "I like Black Men"
Frustrating as hell to see them get away with this shit day in and day out.
...this shit day in and day out...
and year in and year out..
and decade in and decade out...
and century in and century out...
Powerless...
A lot of these bankers are lawyers, just like our 'representatives' in Sodom on the Potomac.
Was Bill Shakespeare right or what ?
"Become a cancer"?!
Is, always has been.
@SAT
Not in this instance
Hunter Biden is our new representitive there, as not one Ukrainian could match his expertise
Biden's other spawn were otherwise occupied
....that is just another antiquated term....no longer of any concern....only a terrorist would bring it up....
"Is this what's called taxation without representation ?"
Spending without a brain seems more like it.
*thanks unborn grandkids for loan
A quote from Putin no doubt as all funds will flow to him eventually....
I didn't "coutnersign" shit!
My guillotine concurs.
Got to keep Europe happy and humming. Can't let them go down due to high energy prices and volitility or else their banks call in markers to our banks.....and, well.....you know.
"If we don't inject some money into the system.......THIS SUCKER COULD GO DOWN" G.W.
I'm still wiping coffee of my monitor. ROLMAO
odious debt
When this whole system crashes down the citizenry will need to know what this means and hwo to act on it.
Then, we'll hunt down every last living contributor to this debt and throw them in to our own new debtors prison.
Usa taxpayers. Now there is an oxymoron.
A catch!? That's no catch, that's a guaranteed deldo up their Ukrainian asses.
How do you say muppets in Ukrainian?
muppetski
#winning
Exacly how did we get from no taxation without representation to this?
They have ways around
Read a book called 'The Creature From Jekyll Island' and it will answer your question.
I would gladly sacrifice YOUR future for my Ukraine
I'm a Putin and European
But only if they win a civil war. Otherwise, FU!
All wars are bankster wars
Yup. The war on women comes to mind
So one week there are nuclear holocaust drills right outside your border, the next week you are borrowing at 10 bps over a 5 year US Treasury....
Sweet ain't it? And there's 1 point/bond in it for the sales force to boot
Yes, that's why Biden Jr. was named a director over there, to protect the U.S. taxpayer's interests and earn for him some money, from that gas... Gas... ??? That sounds weird, no? it's all just gas... Life is a gas... Who was singing that, T.Rex? I am getting too old for this s*it...
Ukraine will one day much regret having bedded Uncle Sam.
More than letting Uncle Joe starve them to death?
Stalin was not a Russian
Soviet was not a Russian construct.
Soviet is defunct.
Get over it.
Another basic fact that Ukrainian Yatzi Junta Citizenist posters on this site can barely handled.
Yes basic and very tiresome Not hard to appreciate Russian top educated, better spoken and more capable than endure any this type posting out of ignorance.
You guys should type some comments in Russian. I'm curious what the others would think. I don't believe the use of Russian would build support on this site.
Ukrainian Yatzi Junta Citizenism at work, whining, mouth piecing and all.
Such mode would not have charm, as I am American of simple mind, lacking capacity to pour speechings in Russian. This reminded, funny how American of simple mind can recall Stalin was Georgian and that USSR does not exist now for decades.
And somehow your tepid propaganda will sway? Made me laugh.
... You miss me yet?
Why I keep hearing of births of "Peoples Republics" so soviet is just hiding until it might be safe to come out.
U.STD's are the gift that keeps on giving....
Most real citizen of Ukraine failed state already regret and want alien Kyiv kicked,
Fact is real facts are hardly told even by alternate media.
Every family I know in Kyiv and area been there long time, speak Russian and even more business is done in Russian.
But these are people that produce, not like those fooled they will get access to eu and freepay
The outside financed propaganda pushes lies about this.
Strong buy signals, who cna't fall in love with a guaranteed return.
Biden Bonds
As was noted above, an astoundingly swift return delivered by the new hire.
Giving cheaper than market debt in exchange for a politically connected appointment of the Vice President's son, yes this is definitely a government that represents the will of the United States people. /sarc.
BUY, BUY, BUY!!!!!!
fucking farce....
DEATH TO THE MONEYCHANGERS....
Same old shit, different day...nothing changes until the guillotines are rolled the fuck out.
A loan guarantee isn't the same as a loan... how much, for realsies, have we given I$rael since 2008? "Surplus" weapons, grants, and "loans" that will be forgiven shortly after the next AIPAc meeting>? Far, ar more than 18 billion.
Anyhoo - where does the IMF get its money?
http://www.imf.org/external/np/exr/facts/finfac.htm
Well okay... how much of the currency {to include SDRs} is fiat issued by a privately owned central bank which creates the currency out of thin air? Just about all of it?
Any such debt is a complete sham, and therefore any conditions designed to elevate the level of violence amount to war crimes by proxy, premised on fraud.
These mothafuckas....
Do you get a Superman towel with each purchase?...
What a CLUSTERFUCK.... And guess who is fucking Who (Lew)?
remember the song... "Rasputin"?
How about we just give them our kidneys?
You been watching too much Charlie the Unicorn.
https://www.youtube.com/watch?v=CsGYh8AacgY
oy fucking vey
You probably meant: backed by the Fed’s Money-PrintingMoney for war. Debt for paying for civil war. Fuck. Just like from the war primer.
Now dems sum TRue War bonds, only payable if you keep killing your own citizens
Netanyahoooooooooooooo !!!
As an American tax payer, I look forward to pillaging your natural resources!!! Thanx! (Ukrainians are dumb asses)
So, the global debt / derivitives just keeps on bloating..
I remember when I first heard Trillion referred to..
(Ya, I know, getting 'up there'..)
Now, in financial discussions, it is sometimes mentioned:
Quadrillion...
With all the advancement of 'technology' ..
I'm not too sure the human race will survive to see:
Quintrillion...
Did anybody vote to have me help co-sign a note for a bunch of assholes?
They just got an old JPMorgan robosigner for it.
"I attest that the following financial information about Ukraine is a verified evaluation of ..."
I thought they were cheap at +28 for full faith and credit. Hell, the bonds were 5x oversubscribed.
This is all due to Nuland and her Neo-Nazi allies in Kiev. No doubt Ms. Nuland was promising her allies this type of US taxpayer guarantee if they stayed on the battle lines in Maidan and overthrew the government. Nuland selected Yats to rule for the Maidan mob, and now he rules, despite never getting one vote in any election. Now, as expected, the US taxpayer, you and me, are on the hook to investors for full payment plus interest. I suspect that this billion is all flowing into Ukraine's military, as they are unfunded at this point, all the Ukrainian tax money earmarked for the military having been stolen by politicians.
As usual, Americans sit back and accept this sort of use of their tax money. We are so passive a people that unemployment, student debt, bankruptcy, pay cuts, sky high health insurance costs, government debt, streets and roads falling apart, rampant crime and a gulag prison system, none of this can move us. Even while billions are poured down Neo-Con rat holes like. Iraq, Libya, Afghanistan, Yemen, Syria and now the latest sink hole for our money, the West Republic of Ukraine. A rump state built on Neo-Nazi gangs and a bankrupt Ukrainian army. Never fear, the USA has money for you.
Wait till the full force of these new debts are piled onto West Ukrainians, IMF loan servicing costs are piled on, with many billions in debt service costs anually, IMF austerity will savage wages, jobs, pensions, health care and any investments in civil society will end. For many decades to come the only wealth extracted from Ukraine's people and economy will all go to western banks and the rich bankers who will enjoy the fruits of Ukraine's debt slavery. Wait to Ukraine's people look for the western wealth and German lifestyle they were promised by Nuland. Oh, what a let down they are in for!
In the "outside" world, events are moving in a predictable direction. The end result is your message is viewed by many as "stale" dated. I realize you are concerned about the world, but you need to revamp your message to "try" to get the rest of the world to listen to you. You should look to put forward some "concrete" alternatives.
By now, anyone worth influencing would have checked what happened in Georgia with South Ossetia. That event was a precursor to what will unfold. South Ossetia is a basketcase. I suspect even the Russian Ukrainians don't want their lands to become an economic wasteland. Ukraine needs to move forward.
A Billion Dollars helps.
Truth and Ukrainian Yatzi Junta Citizenism. Like matter and anti-matter.
Yeah, well you know what? Ms. Nuland can go fuck herself. Let HER tax dollars pay for it. THIS taxpayer did NOT sign anything, and I no longer contribute to the tax base in any meaningful way, so I won't be paying for anything.
There are a LOT of us who are pulling out of this system as much as we can. And TPTB are gonna go after the ones that are left, until THEY get disgusted and follow us.
Maybe little folk like me can't fight the power directly, but we sure can fuck things up for TPTB by refusing to play. Keep watching, govt. stooges, as your tax reciepts keep going down...how are you assholes gonna PAY for your little adventures?
I'm sure that Mr. Putin knows more about the mood in America than the mentally-challenged like Nuland do. That's why he is very comfortable doing what he is doing, and is in no hurry to take the bait the West keeps dangling. He has no reason to make any big moves, all he has to do is wait until our idiots realize they aren't going to be able to 'sell' their war to the American people, and that they are too broke to pay for it themselves.
Flowing to the Ukranian Military... LMAO.. Its flowing through Ukraine to the USSA MIC and its flowing through a sieve of corruption - Biden, Jr. looks to have gotten a signing bonus? Where it is not flowing to to the people. Loan guarantees are free, until they aren't. On the borrowers side, these loans are not likely to be covenant-light.
It's very sickening that people have to endure crushing hardships to pay back money created out of thin air; it's even more sickening that they have been conditioned to beiieve that is the honorable thing to do for their "benefactors."
Another disgusting example of the elite pissing on the taxpayers.
Gazprom is not going to get any of that money. Kiev still has to buy more gold and pay off Biden et al and buy gas from Europe in their reverse-flow scheme and buy petrol for those tanks tearing up streets in East Ukraine. Kiev won't pay Gazprom for the old debt until the Russians agree to sell gas at half-price like they did years ago. If Kiev sends a check at all it will be only a few million and marked "payment in full" and Gazprom will reject it.
Just MHO.
Ukraine borrowing costs less than Russia. wtf? Fucked up, manipulated world we live in to pass on to our kids. Thanks mother fuckers.
Ukrainian Yatzi Junta in Kyiv got discount rate by signing over their souls as collateral.
And what are American citizens gonna do about this outrageous misuse of their currency? Let me see...uhm...nothing. Some shouting, some muttering, and then regression to apathy.
No doubt there's a term attached stating the funds must be used to purchase military equipment from some US corporation. Of course it'll be a corporation with some politician's son sitting on the board.
I would bet that "Belgium" was the only buyer and snapped them all up.
Of course anyone that understands that the fraudulent-reserve banksters MUST create more debt each year to keep the whole skyscraper of cards upright, will get a laugh off of this maleficence"They towed my guillotine, and now it's exactly where it needs to be."
While I understand that it is trendy to say that the US taxpayer guarantees this or that ... but it is not true. As long as the world is a slave to US dollars and the Federal Reserve Bank can print as many of them as they want and distribute them in any way they want, the US taxpayer is not on the hook to repay anything. The US taxpayer will simply be amongst the rest of the world's people in suffering through the eventual fiat fiscal crisis... caused by the Fed and the rest of the interlocked central banks and their parasitic owners.
now Kiev can rent some more UN helicopters for their black ops
This money will evaporate in short order. Then new puppet governments will surface and more money will be given to evaporate. Just like Egypt.
And no one is paying attention.
Fuck you ________ (insert name here) !!!!!!
...based on the full faith and credit of the US...
In other words, they are screwed mightily.
Do not worry, it's just paper.
It 's all that paper will be downloaded globally.
Why do we the tax payers never have a say how they spend our money? This loan will fund Putin's war machine. He must just laugh at the West.
#defundUSStateDept #defundDNCnGOP #KerrysHeadonaPlate
Sovereign debt (sort of) - no reserves required... Triple AAA rated with USSA guarantee - the peeps of DEEEtroit do not mind paying their fair share. Everyone has to pitch in!
ALRIGHT! Now Ukraine is added to the "too big to fail" list.
Corporations, too big to fail.
Welfare recipients, too big to fail.
Middle class = fail
I agree "we are still failing to solve the ongoing crisis in the USA here."
Not disagreeing with the move but Ukraine cannot reinvest those dollars back into the USA to start generating growth.
I say recession dead ahead...and a collapse of something more than just a bank this time.
"Too big to Fail" is not a policy for generating a recovery...let alone growth.
We don't need a 1937-38 to get a collapse here. The Numbers are large enough that a simple "mild slowdown" appears sufficient to me.
Apparently Yahoo news can't deal with comments on kitty litter!
http://news.yahoo.com/kitty-litter-eyed-possible-culprit-mexico-radiatio...
http://news.yahoo.com/did-kitty-litter-cause-radiation-leak-182222995.ht...
http://news.yahoo.com/kitty-litter-eyed-possible-culprit-mexico-radiatio...
http://news.yahoo.com/did-kitty-litter-cause-radiation-leak-182222995.ht...
Sorry about the very off topic.
The US-backed stooges and criminals should be tried for treason against Ukraine someday. The IMF is pulling its usual M.O. on these idiots. They are dumber than some tribal leaders in Africa.
Got to give it the thugs at the IMF: if the illegitimate stooges can pull it off, IMF wins; if they fail, the IMF wins. Either way, the Ukrainians get screwed.
The only question I still have is can I use this donation to Putin on my tax return?
Double yoo tee eff?
As a young lad, I used to watch cartoons on television. As an old fart, I read ZH. I think that I'll start watching cartoons again. Reality is far more unbelievable.
It is not possible to 'transition to a prosperous democracy' by lending money to some government.