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Ukraine Just Issued $1 Billion Bonds Backed By The US Taxpayer

Tyler Durden's picture


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...


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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Wed, 05/14/2014 - 15:14 | 4760061 stinkhammer
stinkhammer's picture

i'm not interested in cock a maimy bond program   on the other hand Barry is interested in cock...

Wed, 05/14/2014 - 15:16 | 4760084 SAT 800
SAT 800's picture

Our Leaders !! How wonderful; we just got to countersign a loan for a bankrupt basket case of a fractured wanna-be country. Sieg Heil !!

Wed, 05/14/2014 - 15:17 | 4760088 SAT 800
SAT 800's picture

Is this what's called taxation without representation ?

Wed, 05/14/2014 - 15:21 | 4760112 icanhasbailout
icanhasbailout's picture

The catch is that they buyer of these bonds is probably one or more bailed-out US megabanks.

Wed, 05/14/2014 - 15:23 | 4760120 power steering
power steering's picture

So this is why they hired young Biden

Wed, 05/14/2014 - 15:30 | 4760159 rosiescenario
rosiescenario's picture

Wow...what an incredibly swift return on their must almost be embarrassing to Joe.


Have any "reporters" actually presented this news to the public????

Wed, 05/14/2014 - 15:43 | 4760236 Mesquite
Mesquite's picture



Wed, 05/14/2014 - 16:01 | 4760311 crazzziecanuck
crazzziecanuck's picture

Let's review the score:



Ukraine 1 (billion dollars) ... Detroit 0 (cents)

Wed, 05/14/2014 - 16:37 | 4760398 strannick
strannick's picture

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.

Wed, 05/14/2014 - 16:50 | 4760460 flacon
flacon's picture

"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. 

Wed, 05/14/2014 - 17:05 | 4760555 Sashko89
Sashko89's picture

Anyone here ever heard of Novorossiya:)? 

Wed, 05/14/2014 - 17:38 | 4760678 0b1knob
0b1knob's picture

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....

Wed, 05/14/2014 - 17:46 | 4760699 espirit
espirit's picture

Pot's right.

$2.5B from IMF, and $1B from bonds.

Isn't that what Ukraine owes Gazprom on May 15th?

Wed, 05/14/2014 - 18:09 | 4760776 onthesquare
onthesquare's picture

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.

Wed, 05/14/2014 - 18:24 | 4760813 sushi
sushi's picture

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.



Wed, 05/14/2014 - 15:32 | 4760172 y3maxx
y3maxx's picture

...Tlhe first step by the USSA in taking over Western Ukraine thru an eventual "Foreclosure from Debt"

Wed, 05/14/2014 - 16:42 | 4760449 Rainman
Rainman's picture

... that'd be way too clever for Barry to figure out.

Wed, 05/14/2014 - 18:46 | 4760889 QQQBall
QQQBall's picture

Its not Barry's plan... he is just an affable stooge

Wed, 05/14/2014 - 18:06 | 4760762 Canadian Dirtlump
Canadian Dirtlump's picture

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.

Wed, 05/14/2014 - 22:50 | 4761498 NickVegas
NickVegas's picture

The power of the dark side is strong in this young padwan.

Wed, 05/14/2014 - 15:30 | 4760160 Chief Wonder Bread
Chief Wonder Bread's picture

a Billion? it's a rounding error. Stupid USSA taxpayer won't notice.

Wed, 05/14/2014 - 16:02 | 4760316 crazzziecanuck
crazzziecanuck's picture

People in Detroit would love that rounding error right about now.

Wed, 05/14/2014 - 16:08 | 4760328 PontifexMaximus
PontifexMaximus's picture

But they won't get it!

Wed, 05/14/2014 - 16:24 | 4760376 crazzziecanuck
crazzziecanuck's picture

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.

Thu, 05/15/2014 - 00:55 | 4761666 EscapingProgress
EscapingProgress's picture

"...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.

Wed, 05/14/2014 - 16:51 | 4760484 Urban Redneck
Urban Redneck's picture

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?

Wed, 05/14/2014 - 17:49 | 4760625 Chief Wonder Bread
Chief Wonder Bread's picture

Uh, because they knew you were on the case?

Wed, 05/14/2014 - 18:06 | 4760765 Canadian Dirtlump
Canadian Dirtlump's picture

make the check payable to gazprom.



Wed, 05/14/2014 - 16:55 | 4760512 TheSecondLaw
TheSecondLaw's picture

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.

Wed, 05/14/2014 - 15:22 | 4760113 pods
pods's picture

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.


Wed, 05/14/2014 - 15:27 | 4760135 power steering
power steering's picture

I agree with all except WTF is a "bananna dress" and how does it tie into Young Biden Jr??

Wed, 05/14/2014 - 15:33 | 4760178 pods
pods's picture

That soulless one from the State Dept took that selfie while in that God awful banana dress (Jen Psaki ).



Wed, 05/14/2014 - 15:35 | 4760193 power steering
power steering's picture

I miss so many interesting things while keeping tabs on the Turdashians

Wed, 05/14/2014 - 15:37 | 4760203 Bastiat
Bastiat's picture

A viral near-selfie of Psaki, the State Dept spokesclown.

Wed, 05/14/2014 - 15:45 | 4760250 Nadine of Tyrol
Nadine of Tyrol's picture

Wait, isn't that dress racist?  Off with psaki's head!

Wed, 05/14/2014 - 16:26 | 4760387 gafgroocK
gafgroocK's picture




Off with her clothes! Bath her and then bring her to me....

Wed, 05/14/2014 - 15:49 | 4760269 power steering
power steering's picture

Ah Ha! The renowned Banana dress. Cute too!

Wed, 05/14/2014 - 16:07 | 4760322 crazzziecanuck
crazzziecanuck's picture

"My eyes!  They burn!  THEY BURN!"



Wed, 05/14/2014 - 16:22 | 4760370 vulcanraven
vulcanraven's picture

House of Tards

Wed, 05/14/2014 - 18:47 | 4760896 QQQBall
QQQBall's picture

Bonzai should change that sign to say "I like Black Men"

Wed, 05/14/2014 - 15:26 | 4760137 Dr. Engali
Dr. Engali's picture

Frustrating as hell to see them get away with this shit day in and day out.

Wed, 05/14/2014 - 15:47 | 4760258 Mesquite
Mesquite's picture

...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...


Wed, 05/14/2014 - 15:27 | 4760141 Winston Churchill
Winston Churchill's picture

A lot of these bankers are lawyers, just like our 'representatives' in Sodom on the Potomac.
Was Bill Shakespeare right or what ?

Wed, 05/14/2014 - 17:06 | 4760559 kchrisc
kchrisc's picture

"Become a cancer"?!

Is, always has been.

Wed, 05/14/2014 - 15:29 | 4760145 Theta_Burn
Theta_Burn's picture


Not in this instance

Hunter Biden is our new representitive there, as not one Ukrainian could match his expertise


Wed, 05/14/2014 - 15:52 | 4760279 power steering
power steering's picture

Biden's other spawn were otherwise occupied

Wed, 05/14/2014 - 15:33 | 4760176 rosiescenario
rosiescenario's picture

....that is just another antiquated longer of any concern....only a terrorist would bring it up....

Wed, 05/14/2014 - 15:34 | 4760191 BlindMonkey
BlindMonkey's picture

"Is this what's called taxation without representation ?"


Spending without a brain seems more like it.

Wed, 05/14/2014 - 15:18 | 4760092 Xibalba
Xibalba's picture

*thanks unborn grandkids for loan

Wed, 05/14/2014 - 15:23 | 4760118 The Most Intere...
The Most Interesting Frog in the World's picture

A quote from Putin no doubt as all funds will flow to him eventually....  

Wed, 05/14/2014 - 17:04 | 4760549 kchrisc
kchrisc's picture

I didn't "coutnersign" shit!

My guillotine concurs.

Wed, 05/14/2014 - 15:31 | 4760166 Jumbotron
Jumbotron's picture

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, know.

"If we don't inject some money into the system.......THIS SUCKER COULD GO DOWN"  G.W.

Wed, 05/14/2014 - 16:26 | 4760388 Quant Jockey
Quant Jockey's picture

I'm still wiping coffee of my monitor. ROLMAO

Wed, 05/14/2014 - 17:37 | 4760672 Zymurguy
Zymurguy's picture

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.

Wed, 05/14/2014 - 15:13 | 4760069 maskone909
maskone909's picture

Usa taxpayers. Now there is an oxymoron.

Wed, 05/14/2014 - 15:16 | 4760076 Silky Johnson
Silky Johnson's picture

A catch!? That's no catch, that's a guaranteed deldo up their Ukrainian asses.

How do you say muppets in Ukrainian?

Wed, 05/14/2014 - 15:22 | 4760108 FieldingMellish
FieldingMellish's picture


Wed, 05/14/2014 - 15:15 | 4760079 Slave
Slave's picture


Wed, 05/14/2014 - 15:17 | 4760086 ptoemmes
ptoemmes's picture

Exacly how did we get from no taxation without representation to this?

Wed, 05/14/2014 - 15:25 | 4760130 Magnix
Magnix's picture

They have ways around

Wed, 05/14/2014 - 15:35 | 4760199 Vincent Vega
Vincent Vega's picture

Read a book called 'The Creature From Jekyll Island' and it will answer your question.

Wed, 05/14/2014 - 15:17 | 4760087 kliguy38
kliguy38's picture

I would gladly sacrifice YOUR future for my Ukraine

Wed, 05/14/2014 - 15:30 | 4760164 power steering
power steering's picture

I'm a Putin and European

Wed, 05/14/2014 - 16:34 | 4760415 NotApplicable
NotApplicable's picture

But only if they win a civil war. Otherwise, FU!

Wed, 05/14/2014 - 15:20 | 4760105 Skin666
Skin666's picture

All wars are bankster wars

Wed, 05/14/2014 - 16:01 | 4760312 power steering
power steering's picture

Yup. The war on women comes to mind

Wed, 05/14/2014 - 15:24 | 4760106 The Most Intere...
The Most Interesting Frog in the World's picture

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....  

Wed, 05/14/2014 - 15:41 | 4760168 power steering
power steering's picture

Sweet ain't it? And there's 1 point/bond in it for the sales force to boot

Wed, 05/14/2014 - 15:22 | 4760111 jepicza
jepicza's picture

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...

Wed, 05/14/2014 - 15:22 | 4760115 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

Ukraine will one day much regret having bedded Uncle Sam.

Wed, 05/14/2014 - 15:33 | 4760177 Winston of Oceania
Winston of Oceania's picture

More than letting Uncle Joe starve them to death?

Wed, 05/14/2014 - 15:54 | 4760282 Volkodav
Volkodav's picture

Stalin was not a Russian

Soviet was not a Russian construct.

Soviet is defunct.

Get over it.

Wed, 05/14/2014 - 16:07 | 4760326 TheFourthStooge-ing
TheFourthStooge-ing's picture

Another basic fact that Ukrainian Yatzi Junta Citizenist posters on this site can barely handled.

Wed, 05/14/2014 - 16:25 | 4760371 Volkodav
Volkodav's picture

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.

Wed, 05/14/2014 - 16:54 | 4760509 Canucklehead
Canucklehead's picture

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.

Wed, 05/14/2014 - 17:14 | 4760582 TheFourthStooge-ing
TheFourthStooge-ing's picture

Ukrainian Yatzi Junta Citizenism at work, whining, mouth piecing and all.

You guys should type some comments in Russian.

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.

I don't believe the use of Russian would build support on this site.

And somehow your tepid propaganda will sway? Made me laugh.

Wed, 05/14/2014 - 19:52 | 4761098 Canucklehead
Canucklehead's picture

... You miss me yet?

Thu, 05/15/2014 - 16:10 | 4763867 Winston of Oceania
Winston of Oceania's picture

Why I keep hearing of births of "Peoples Republics" so soviet is just hiding until it might be safe to come out.

Wed, 05/14/2014 - 15:42 | 4760229 One of We
One of We's picture

U.STD's are the gift that keeps on giving....

Wed, 05/14/2014 - 16:45 | 4760461 Volkodav
Volkodav's picture

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.


Wed, 05/14/2014 - 15:23 | 4760119 Zirpedge
Zirpedge's picture

Strong buy signals, who cna't fall in love with a guaranteed return.

Wed, 05/14/2014 - 15:25 | 4760123 Gubbmint Cheese
Gubbmint Cheese's picture

Biden Bonds

Wed, 05/14/2014 - 15:37 | 4760207 power steering
power steering's picture

As was noted above, an astoundingly swift return delivered by the new hire.

Wed, 05/14/2014 - 15:26 | 4760133 Roger Shermanator
Roger Shermanator's picture

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.

Wed, 05/14/2014 - 15:26 | 4760136 Kaiser Sousa
Kaiser Sousa's picture

BUY, BUY, BUY!!!!!!

fucking farce....


Wed, 05/14/2014 - 15:31 | 4760156 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

Same old shit, different day...nothing changes until the guillotines are rolled the fuck out.

Wed, 05/14/2014 - 15:33 | 4760182 Mr. Delicious
Mr. Delicious's picture

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?

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....


Wed, 05/14/2014 - 15:33 | 4760183 Fix It Again Timmy
Fix It Again Timmy's picture

Do you get a Superman towel with each purchase?...

Wed, 05/14/2014 - 15:34 | 4760187 Truther
Truther's picture

What a CLUSTERFUCK.... And guess who is fucking Who (Lew)?

remember the song... "Rasputin"?

Wed, 05/14/2014 - 15:37 | 4760205 BullyBearish
BullyBearish's picture

How about we just give them our kidneys?

Wed, 05/14/2014 - 15:39 | 4760216 power steering
power steering's picture

You been watching too much Charlie the Unicorn.

Wed, 05/14/2014 - 15:40 | 4760218 tommylicious
tommylicious's picture

oy fucking vey

Wed, 05/14/2014 - 15:44 | 4760241 cassotto
cassotto's picture
"Backed By The US Taxpayer"?


You probably meant: backed by the Fed’s Money-Printing
Wed, 05/14/2014 - 15:49 | 4760266 Bioscale
Bioscale's picture

Money for war. Debt for paying for civil war. Fuck. Just like from the war primer.

Wed, 05/14/2014 - 16:30 | 4760385 cowdiddly
cowdiddly's picture

Now dems sum TRue War bonds, only payable if you keep killing your own citizens

Wed, 05/14/2014 - 15:51 | 4760276 Seasmoke
Seasmoke's picture

Netanyahoooooooooooooo !!!

Wed, 05/14/2014 - 15:58 | 4760299 f16hoser
f16hoser's picture

As an American tax payer, I look forward to pillaging your natural resources!!! Thanx! (Ukrainians are dumb asses)

Wed, 05/14/2014 - 16:07 | 4760323 Mesquite
Mesquite's picture

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: 


With all the advancement of 'technology' ..

I'm not too sure the human race will survive to see:






Wed, 05/14/2014 - 16:24 | 4760379 ThisIsBob
ThisIsBob's picture

Did anybody vote to have me help co-sign a note for a bunch of assholes?

Wed, 05/14/2014 - 16:27 | 4760394 crazzziecanuck
crazzziecanuck's picture

They just got an old JPMorgan robosigner for it.

"I attest that the following financial information about Ukraine is a verified evaluation of ..."  

Wed, 05/14/2014 - 16:35 | 4760417 Babaloo
Babaloo's picture

I thought they were cheap at +28 for full faith and credit.  Hell, the bonds were 5x oversubscribed.

Wed, 05/14/2014 - 16:38 | 4760420 Jack Burton
Jack Burton's picture

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!

Wed, 05/14/2014 - 16:51 | 4760493 Canucklehead
Canucklehead's picture

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.

Wed, 05/14/2014 - 16:57 | 4760521 TheFourthStooge-ing
TheFourthStooge-ing's picture

Truth and Ukrainian Yatzi Junta Citizenism. Like matter and anti-matter.

Wed, 05/14/2014 - 16:53 | 4760502 Bemused Observer
Bemused Observer's picture

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 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.

Wed, 05/14/2014 - 18:56 | 4760933 QQQBall
QQQBall's picture

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.

Wed, 05/14/2014 - 16:42 | 4760450 Fix It Again Timmy
Fix It Again Timmy's picture

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."

Wed, 05/14/2014 - 16:46 | 4760465 Vin
Vin's picture

Another disgusting example of the elite pissing on the taxpayers.

Wed, 05/14/2014 - 16:48 | 4760474 Bankster Kibble
Bankster Kibble's picture

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.

Wed, 05/14/2014 - 16:56 | 4760517 SharkBit
SharkBit's picture

Ukraine borrowing costs less than Russia.  wtf?  Fucked up, manipulated world we live in to pass on to our kids.  Thanks mother fuckers.

Wed, 05/14/2014 - 17:00 | 4760534 TheFourthStooge-ing
TheFourthStooge-ing's picture

Ukrainian Yatzi Junta in Kyiv got discount rate by signing over their souls as collateral.

Wed, 05/14/2014 - 16:58 | 4760527 TheSecondLaw
TheSecondLaw's picture

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.

Wed, 05/14/2014 - 17:00 | 4760530 rodonmeguro
rodonmeguro's picture

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.

Wed, 05/14/2014 - 17:00 | 4760533 kchrisc
kchrisc's picture

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."

Wed, 05/14/2014 - 17:08 | 4760563 Notsobadwlad
Notsobadwlad's picture

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.

Wed, 05/14/2014 - 17:12 | 4760577 rainingFrogs
rainingFrogs's picture

now Kiev can rent some more UN helicopters for their black ops

Wed, 05/14/2014 - 17:24 | 4760624 geotrader
geotrader's picture

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)  !!!!!!

Wed, 05/14/2014 - 17:26 | 4760632 Stinko da Munk
Stinko da Munk's picture

...based on the full faith and credit of the US...

In other words, they are screwed mightily.

Wed, 05/14/2014 - 17:31 | 4760651 Idleproc
Idleproc's picture

Do not worry, it's just paper.
It 's all that paper will be downloaded globally.

Wed, 05/14/2014 - 17:49 | 4760714 ChargingHandle
ChargingHandle's picture

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. 

Wed, 05/14/2014 - 18:37 | 4760860 Sven Sikztu
Sven Sikztu's picture

#defundUSStateDept #defundDNCnGOP #KerrysHeadonaPlate

Wed, 05/14/2014 - 18:59 | 4760941 QQQBall
QQQBall's picture

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!

Wed, 05/14/2014 - 19:44 | 4761078 franciscopendergrass
franciscopendergrass's picture

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

Wed, 05/14/2014 - 22:14 | 4761425 disabledvet
disabledvet's picture

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.

Wed, 05/14/2014 - 22:58 | 4761502 napper
napper's picture

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.

Thu, 05/15/2014 - 00:00 | 4761604 RaceToTheBottom
RaceToTheBottom's picture

The only question I still have is can I use this donation to Putin on my tax return?

Thu, 05/15/2014 - 00:43 | 4761658 the0ther
the0ther's picture

Double yoo tee eff?

Thu, 05/15/2014 - 01:57 | 4761706 cpzimmon
cpzimmon's picture

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.

Thu, 05/15/2014 - 23:43 | 4765341 rex-lacrymarum
rex-lacrymarum's picture

It is not possible to 'transition to a prosperous democracy' by lending money to some government. 

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