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Leaked Document: Ukraine's Government Set To Eliminate... Everything

Tyler Durden's picture




 

Submitted by Simon Black via Sovereign Man blog,

As the holiday season approaches you might have mistletoe on your mind for cheery, romantic reasons.

 

What you might not have known however is that the festive flora and its relatives are all actually parasites.

 

Unable to photosynthesize to feed itself, mistletoe latches on to a host plant and steals away its nutrients and water.

 

From the mistletoe’s point of view this may seem like a great idea… for a while.

 

Depleted of nutrients, the host’s growth is stunted. Branches fall off. And eventually if the mistletoe grows large enough, the entire host plant just dies.

 

Thus, mistletoe can quite literally eat its own self out of house and home. This isn’t exactly a solid long-term strategy.

Given their behavior it seems that most governments belong to the same genus.

The public sector has no ability to support itself. In theory, they’re supposed to survive by taking a modest portion of people’s earnings through taxation, and then providing valuable services in exchange.

Nature calls this ‘symbiosis’. But life rarely follows theory.

In reality, bureaucrats and politicians who produce nothing of value parasitically choke off the productive class through onerous taxation and regulation.

This cannot last forever, because at some point they will have no hosts left to feed off of.

Ukraine is the perfect example of this right now.

In a leaked version of a new budget proposal (in Ukrainian), we are seeing the drastic extent to which bankrupt governments feed on their hosts.

The proposal includes measures to cut public education in Ukraine from 11 to 9 years. And more importantly, education will no longer be funded by the state.

 

There will be no more free food for children in school or for patients in hospitals, and healthcare will no longer be completely state-funded.

 

The government is also proposing to drastically reduce pension benefits.

 

Women will have to work 10 more years in order to qualify for a pension, and men an additional 5.

 

They’re also proposing to FREEZE pension benefits, i.e. no longer adjusting them to the rampant inflation that’s unfolding in Ukraine.

 

They’d also like to do away with a number of other public services; they’ve proposed slashing the number of judges, prosecutors, and police.

 

They’ve even proposed reducing the number of members of parliament from 450 to 150.

Now, I happen to quite like the idea that a government is pulling itself out of the business of education, healthcare, security, etc.

But it begs the question—if the government is no longer going to provide these services… then why the hell should anyone have to pay tax?

Of course, taxes are still obligatory.

So on one hand the government is defaulting on all the obligations it has made to its citizens… essentially breaking the social contract.

Yet on the other hand they’re still going to throw people in jail for not paying taxes.

Just like mistletoe, this is a highly parasitic relationship. And it’s precisely what happens when a country goes bankrupt.

Ukraine is in this position for a number of reasons; certainly the war has been very costly and has wrecked havoc on the economy.

But Ukraine’s government has had a long history of pitifully bad decisions, corruption, and fiscal mismanagement. [stop me when this sounds familiar]

At this point they’ve managed to blow the vast majority of their foreign reserves (i.e. the country’s US dollar cash savings).

In fact, as of this morning, Ukraine’s total foreign reserves amount to just 0.34% of its enormous debt level.

This is barely enough to pay interest on the debt for the next six weeks! Astounding.

Oh… wait a minute. Hang on. I got my data wrong. I’m actually talking about the United States.

Fact is, Ukraine has $10 billion in foreign reserves on $70 billion in debt. That’s 14.2%.

The United States, on the other hand, has $61 billion in cash in its operating account [less than Apple], which equals 0.34% of its $18 TRILLION debt.

Nothing to worry about, though.

I’m sure that the rest of the world will continue to give the Land of the Free a pass.

It makes total sense that Ukraine is in the midst of an epic financial crisis, even though the US government is in far worse financial condition.

Because there are absolutely zero problems whatsoever with the US government being admittedly insolvent, highly illiquid, warmongering, and deceitful to even its own allies.

This is a consequence-free environment. Nothing to see here, people; you should have zero concerns about having 100% of your savings and assets tied to a bankrupt government that’s in worse shape than Ukraine’s. What could go wrong?

Hey look over there! It’s Kim Kardashian’s buttocks!

 

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Wed, 12/10/2014 - 18:09 | 5538164 Tracerfan
Tracerfan's picture

Ukraine's gold has already been taken, now what's left of that "nation" will be picked clean.

Wed, 12/10/2014 - 18:21 | 5538206 Ahoy Polloi
Ahoy Polloi's picture

If I were a rich man ~ Yadda da da dadda dah.

 

Looks like Tevye didn't have it so hard after all.

Wed, 12/10/2014 - 18:37 | 5538278 TruthInSunshine
TruthInSunshine's picture

Ukrainians are about to get the Special Nuland(nee Noodleman)-Kagan Treatment!

Wed, 12/10/2014 - 18:47 | 5538324 cossack55
cossack55's picture

I tried to look over there but my screen is not large enough to fit KKs buttocks.

Wed, 12/10/2014 - 19:01 | 5538370 Latina Lover
Latina Lover's picture

Hey Ukies, look on the positive side of things, sex is still tax free.  

On the other hand, your USSA sponsored government is going to give you the fucking of your lives.  

Wed, 12/10/2014 - 19:07 | 5538413 cnmcdee
cnmcdee's picture

GOOD JOB CIA AND CFR..   Now the people of Ukraine know what a Color Revolution brings..

Wed, 12/10/2014 - 19:10 | 5538419 Manthong
Manthong's picture

I guess the Nazis will have the gaping-est sphincters in the EU sphere.

..one of the unanticipated features of alignment with the broke-dick west.

Wed, 12/10/2014 - 19:13 | 5538433 cnmcdee
cnmcdee's picture

Wait till the Spring of 2015 when Ayatollah Obama and the KillMax crew detonates a Dirty nuke in Chicago and blames Iran.

 - Iran gets nuked.

 - Whole muslim world goes to war with Israel

 - Canada is blamed for allowing the terrorists across the border so Canada gets annexed (people and resource rape)

 - 401k's and bank accounts inside CONUS are frozen and seized. Thanks 'Obama Freeze.'

 - Stock market collapses but it doesn't matter you cant get your money out anyways.

 - International trade with the US eventually freezes, causing Interest rates to skyrocket.  Housing prices collapse

The *only* escapees will be those who put their money into physical gold. 

Wed, 12/10/2014 - 20:25 | 5538734 PT
PT's picture

... and are never so hungry that they swap all their gold for the last loaf of bread.

Wed, 12/10/2014 - 20:50 | 5538787 847328_3527
847328_3527's picture

Some Ukie Folks got IMF'd.

Wed, 12/10/2014 - 20:55 | 5538803 TheFourthStooge-ing
TheFourthStooge-ing's picture

.

Some Ukie Folks got IMF'd...

...right in the 'a'.

Thu, 12/11/2014 - 01:22 | 5539469 Leraconteur
Leraconteur's picture

The *only* escapees will be those who put their money into physical gold. 

 

Re-read your 1930's history. You actually think they won't come for your PM by force, by fiat, by taxation, by paperwork, by neighbours snitching you out, by spies, by banks reporting ''suspicious'' transactions?

You are far more naive than you should be... 

Fri, 12/12/2014 - 11:51 | 5544390 PT
PT's picture

They don't even have to come for it.  They can just starve it outta ya.

Wed, 12/10/2014 - 20:07 | 5538679 White Owl
White Owl's picture

It’s Kim Kardashian’s buttocks!

OMG.... they cover my entire screen... I'm blinded from seeing the next faux Bloom-berg-me breaking news report :-(

Wed, 12/10/2014 - 20:05 | 5538667 Freddie
Freddie's picture

The USSA and Ukraine = dual citizens in control.

Wed, 12/10/2014 - 18:12 | 5538174 kaiserhoff
kaiserhoff's picture

The United States, on the other hand, has $61 billion in cash in its operating account [less than Apple], which equals 0.34% of its $18 TRILLION debt.

Great stuff.  Negative cash flow is a bitch with bells on.

Wed, 12/10/2014 - 18:30 | 5538247 darteaus
darteaus's picture

Vote for me!!

Moar benefits for everyone!!

http://en.wikipedia.org/wiki/Cloward–Piven_strategy

Wed, 12/10/2014 - 19:34 | 5538515 cnmcdee
cnmcdee's picture

Meanwhile at the Federal Reserve...

https://www.youtube.com/watch?v=YcE0dUAMcBw

Wed, 12/10/2014 - 20:34 | 5538756 kaiserhoff
kaiserhoff's picture

That is fucking hysterical,

and I'm not even sure why;)

Wed, 12/10/2014 - 23:06 | 5539199 blindman
blindman's picture

it has a simplistic beat that
is infinitely fanciable and
dance -able?

Wed, 12/10/2014 - 18:25 | 5538176 JustObserving
JustObserving's picture

The moment that the Nobel Prize Winner spent $5 billion destabilizing Ukraine, it became a failed state.  Not unlike the 7 Muslim countries that the Nobel Prize Winner has bombed - Libya, Syria, Iraq, Afghanistan, Pakistan, Yemen and Somalia.

Ukraine will be a failed state for decades and the West will blame the depraved mass-murderer Putin even as the Nobel Prize Winner routinely drones women and children and wedding parties and the CIA routinely carries out horrific torture with impunity. 

Scaling new heights of Orwellian doublespeak, President Obama Praises "Patriotic" Torturers, Says USA "Greatest Force For Human Dignity The World Has Ever Seen." Let's see if he can find any Ukrainian who will agree.


SYRIA BECOMES THE 7TH PREDOMINANTLY MUSLIM COUNTRY BOMBED BY 2009 NOBEL PEACE LAUREATE

The utter lack of interest in what possible legal authority Obama has to bomb Syria is telling indeed: Empires bomb who they want, when they want, for whatever reason (indeed, recall that Obama bombed Libya even after Congress explicitly voted against authorization to use force, and very few people seemed to mind that abject act of lawlessness; constitutional constraints are not for warriors and emperors).

https://firstlook.org/theintercept/2014/09/23/nobel-peace-prize-fact-day...

Since the beginning of the week, the three most influential mass circulation newsmagazines of the United States, Britain, and Germany—Time, The Economist, and Der Spiegel—have published cover stories that combine wild accusations against Vladimir Putin with demands for a showdown with Russia.

The most striking and obvious characteristic of these cover stories is that they are virtually identical. The CIA has scripted them all. The stories employ the same insults and the same fabrications. They denounce Putin’s “web of lies.” The Russian president is portrayed as a “depraved” mass murderer.

https://www.wsws.org/en/articles/2014/07/30/pers-j30.html?view=article_m...

Thu, 12/11/2014 - 00:09 | 5539347 not dead yet
not dead yet's picture

When the head of state visits another country it's announced in advance, the welcome wagon is out, the red carpet is laid, and the leaders hold talks at the seat of government. A few days ago Hollande of France made an unannounced stop in Moscow on his way back from Kazakhstan and met with Putin at the AIRPORT. Story is confirmed by a couple of news outlets claiming they met to discuss resolving the Ukraine mess. One website claims Hollande got some disturbing news from his intelligence agencies, possibly a false flag, and hustled to Moscow to inform Putin. After all the problems with France over the sanctions and the Mistral helicopter carriers the last thing Putin would do is run to the airport like some lapdog to have a meet. He would have sent a limo and bodyguards to bring Hollande to the Kremlin, if he met with him at all. Something is up. The website claims, and there is no verification, that extra anti aircraft units were ordered up for Moscow.

Wed, 12/10/2014 - 18:13 | 5538178 pcrs
pcrs's picture

Why still pay taxes? 

Because there is a gun on  your head if you don't. 

Goverment, like the maffia is a racket. The services are an excuse. 

Wed, 12/10/2014 - 18:29 | 5538243 Stuck on Zero
Stuck on Zero's picture

The gun is pointed at you by an employee of the government.  He is paid by the taxes you pay.

Wed, 12/10/2014 - 19:04 | 5538391 Latina Lover
Latina Lover's picture

If the Ukies were smart, instead of pointing their guns at the Russians, they would point them at their real enemy, noted above.

Wed, 12/10/2014 - 19:49 | 5538586 Urtica ferox
Urtica ferox's picture

Following on from that line of thought - What if the Russian advisors reportedly working with the Ukie armed forces to de-escalate tensions suggest to the Ukie brass that their army turn around and indulge in a little "regime change" in Kiev? (with no Russian support of course --wink wink--). Could be an interesting outcome.

Wed, 12/10/2014 - 20:14 | 5538693 White Owl
White Owl's picture

Can you say "Dneiper River"? I knew you could. Mr. Rogers was never wrong ;-)

Wed, 12/10/2014 - 18:38 | 5538288 kchrisc
kchrisc's picture

"Why still pay taxes? Because there is a gun on  your head if you don't. Goverment, like the maffia is a racket. The services are an excuse."

So true.

Funny thing is, we paid for that gun.

"They need to keep a gun to each of our heads to fund their guns. That is why they so badly want our guns."

An American, not US subject.

Wed, 12/10/2014 - 18:14 | 5538180 ebworthen
ebworthen's picture

Courtesy of the Wall Street Warlocks and Brussels Bandits.

And some Ukranians thought the Russian Oligarchs were bad...

Wed, 12/10/2014 - 18:32 | 5538259 angel_of_joy
angel_of_joy's picture

Yeah, that's gonna fly... NOT ! If these guys try to implement at least half the measures called here by Simon, the Ukie population will turn back to mother Russia so quickly that the heads of their American advisors will spin like you won't believe it...

Wed, 12/10/2014 - 18:46 | 5538314 COSMOS
COSMOS's picture

This may be their ploy.  Drive down oil prices, put Russia on the brink then dump a fucked up Ukraine on their lap hoping it will destroy Russia.  Would be interesting if the Chinese come in instead and buy the place up

Thu, 12/11/2014 - 01:17 | 5539462 Leraconteur
Leraconteur's picture

Already buying up land in Uk and other places, but the unstable environment has them holding off for now.

It will happen.

Wed, 12/10/2014 - 19:38 | 5538541 Volkodav
Volkodav's picture

Nyet, You underestimate the stupidity available in Ukraine western regions.

Otherwise, majority Ukrainian are very against Kyiv illegal government

Turning back will likely result in split country...

Then South and East can live normal neighbor to Russia

while ignore the losers

Wed, 12/10/2014 - 19:52 | 5538603 Latina Lover
Latina Lover's picture

Moscow should have taken over the south east of the Ukraine, to Dnieper River border, just after the coup while the Kiev criminals were still unorganized.

Wed, 12/10/2014 - 19:32 | 5538509 Volkodav
Volkodav's picture

In Russia life is normal..

Ukraine not so much..it is always the same. only worse...

Wed, 12/10/2014 - 18:20 | 5538191 kchrisc
kchrisc's picture

Government are cockroaches: Live off of you, shit on you, and scurry from the light.

An American, not US subject.

Wed, 12/10/2014 - 18:19 | 5538198 Drummond
Drummond's picture

Yeah but they've still got 6 tonnes of gold haven't they?

Wed, 12/10/2014 - 18:19 | 5538201 SilverIsMoney
SilverIsMoney's picture

So on one hand the government is defaulting on all the obligations it has made to its citizens… essentially breaking the social contract.

Yet on the other hand they’re still going to throw people in jail for not paying taxes.

 

This is key... and it will happen here in the good ole USA.

Wed, 12/10/2014 - 19:14 | 5538448 cnmcdee
cnmcdee's picture

You sir are completely correct.  Get out of your 401K's because I do not believe you will be able to by even Spring 2015.  Buy physical gold.  The Digit manipulators are going to cyprus everyone's asses, and when the riots come, people will be *shocked* to see police open fire on US citizens.

Wed, 12/10/2014 - 21:54 | 5538970 layman_please
layman_please's picture

i have signed no fucking social contract. where the fuck should i move to on this planet to not be under some fucking 'contract'?

 

yes, the whole planet is a fucking plantation where we are born into bondage and there is no escape.

Wed, 12/10/2014 - 23:49 | 5539303 Idaho potato head
Idaho potato head's picture

Until the fear of the threat of jail no longer works,

Wed, 12/10/2014 - 18:20 | 5538202 darteaus
darteaus's picture

"Government Parasite" is redundant

Wed, 12/10/2014 - 18:22 | 5538210 Son of Captain Nemo
Son of Captain Nemo's picture

From the U.S. State Department to the Kremlin...

Bail out the Country that just happens to be your neighbor and has your countrymen in it for generations that we set up for rape, murder and pillaging or else we will go to war with you?...

Now that sounds like one intriguing proposition -don't it???...

Yeah! I think this has a strong probability of going nuke!

Wed, 12/10/2014 - 18:30 | 5538220 Miketheterrible
Miketheterrible's picture

Ukraines latest Economics development minister stated that Ukraine is bankrupt: http://itar-tass.com/en/economy/766305

This comes as no surprise since they are having a tough time paying back Gazprom and Medvedev stated they will take Ukraine to international courts if they don't pay it back.  Even if the international court will favour Ukraine (because it is western backed), they will end up shutting off the gas anyway.  Miller (CEO of Gazprom) went on record to state that Ukraine being used as a transport country for gas is soon over and Europe will either have to get gas through the Nord Stream through Germany (from Russia) or from Greek/Turkish borders when the new gas pipeline to Turkey is built.  All the while, Bulgaria is getting full blame for the failure of South Stream pipeline: http://www.euractiv.com/sections/energy/russia-confirms-decision-abandon....

For the rest here on zerohedge, I would like to turn your attention to this: http://www.awarablogs.com/putin-midterm-interim-results/

These guys deal with Russian interest groups in other countries.  They have long term interests in Russia and did a very good report on Russia's economic standings from the late 90's till now and where its GDP stands on commodities.  In other words, Russia is qutie safe compared to many countries, and will not face the same issue as Ukraine.  I feel ashamed really though, since I shouldn't be hating on my former land.  But, they did it.  If this is the will of the western Ukrainians, then so be it.  What is the english saying?  You reap what you sow?  Fitting really.

Wed, 12/10/2014 - 19:22 | 5538468 Volkodav
Volkodav's picture

good post

Wed, 12/10/2014 - 18:25 | 5538224 darteaus
darteaus's picture

Too bad they gave up their nukes in exchange for a "promise"

Peace in our time!

Foreign policy "coup" for BJ and the NY intellectual set.  Then they move on to throw another country into the globalist maw.

http://www.nytimes.com/1994/01/11/world/ukraine-gives-in-on-surrendering...

Wed, 12/10/2014 - 19:06 | 5538409 Latina Lover
Latina Lover's picture

Be happy that the Ukraine does not have nukes. Otherwise, the USSA would have already directed their Kiev puppets to target Russia, starting the WW3 that they think will save their financial system.  Remember, the USSA always profits from European wars.

Wed, 12/10/2014 - 21:45 | 5538936 darteaus
darteaus's picture

Right, because nothing says "Kick Me!" like a country with nukes - NOT!

You have it compeltely backwards my friend!

For example: Name one country with nukes that's getting treated like the Ukraine...One even close to being treated like that...

[Hint List:  US?, USSR?, France?, UK?, Israel? China?, India?, Pakiarn?]

...Yup...Nobody.

Wed, 12/10/2014 - 21:49 | 5538957 Stumpy4516
Stumpy4516's picture

If not for the nukes the Paki's would have been taken down long ago.

Wed, 12/10/2014 - 23:39 | 5539292 COSMOS
COSMOS's picture

China is their protector, I dont think that would of happened.  China has too much at stake with Pakistan.

Wed, 12/10/2014 - 18:29 | 5538242 kchrisc
kchrisc's picture

They steal it from the people. They parasitically live off of the people, while also "rebating" some of the people's wealth back to them in the form of "services" and welfare.

When their parasitic ways collapses the host, the people, they pull the plug on the "services" and welfare, leaving the people to be smashed in the collapse and the fall.

Sort of like "pulling" the basement supports so the people trapped in the building collapse fall into the hole.

An American, not US subject.

Wed, 12/10/2014 - 18:28 | 5538246 Peter Pan
Peter Pan's picture

By the time this is over, Ukraine will reconcile itself to Russia and the US sponsored Nazis will be sent on holiday (if they are lucky to survive) to Siberia.

The US has made a gross miscalculation on this one and has not done its standing any favours.

Then again, others who may have thought of following  Ukraine's example might now think twice.

Wed, 12/10/2014 - 19:17 | 5538450 Volkodav
Volkodav's picture

Wrong...not Siberia 

Russia will not do that

Siberia do not want

Siberians are good people

Wed, 12/10/2014 - 20:04 | 5538665 Urtica ferox
Urtica ferox's picture

Send the Nazis to a "Holiday in Cambodia" - actual location unimportant, it's the process that counts. DK reference for those who are old enough ;-)

Wed, 12/10/2014 - 20:36 | 5538763 TheFourthStooge-ing
TheFourthStooge-ing's picture

It's a holiday in Pindostania
Where the cops kill whom they like
A holiday in Pindostania
If you don't love it then take a hike

Wed, 12/10/2014 - 21:11 | 5538840 Hobo Sapien
Hobo Sapien's picture

Pol...

POT!

Thu, 12/11/2014 - 01:39 | 5539487 savagegoose
savagegoose's picture

send them  to sleep with the choucescues<sp>

 

Wed, 12/10/2014 - 22:39 | 5539115 TheReplacement
TheReplacement's picture

We got the gold.  If we can't get the oil/gas then let the Russian have the ruins.  That's real politic in this world, like it or not.  Too bad it is our side being the douches.

Wed, 12/10/2014 - 18:29 | 5538248 blindman
blindman's picture

Two Docs Got $80 Million to Develop Torture Tactics

" The United States government paid two military psychologists $80 million to develop torture tactics that were used against suspected terrorists in the wake of the September 11 attacks on the Pentagon and the World Trade Center.

In 2002, two former Air Force psychologists, James Mitchell and Bruce Jessen, became the masterminds of the CIA’s torture program, according to a new report released by the Senate Select Committee on Intelligence. The two men, identified in the report under the pseudonyms Grayson Swigert and Hammond Dunbar, devised and performed torture tactics--including waterboarding and mock burial on some of the CIA’s most significant detainees." ..
.
http://www.msn.com/en-us/money/markets/two-docs-got-dollar80-million-to-...
.
comment: yes, there is a difference between the usa and ukraine.

Wed, 12/10/2014 - 18:44 | 5538304 Cthonic
Cthonic's picture

Where are the fuckers now?

Wed, 12/10/2014 - 18:57 | 5538366 blindman
blindman's picture

i don't know but they have plenty o money to hire
lawyers to defend their non-guilty status. they could
buy the supreme court with that payout.
.
someone should be looking for them and prosecuting but
there is so much else that needs prosecuting. probably
no one will get around to it. also, the entire thing
was likely a cia inside scam anyway, so, there is that ....
ongoing.
.
"where are they now"? special assignment? ipo
somewhere? sardinia?

Wed, 12/10/2014 - 21:01 | 5538821 calltoaccount
calltoaccount's picture

and i believe i heard today that they are actually indemnified against all legal costs by corrupt gov who lays off the burden on taxpayers, same as they do re the nuclear and other toxic industries.

Wed, 12/10/2014 - 21:27 | 5538886 in4mayshun
in4mayshun's picture

The two Docs accepted jobs writing music for One Direction

Wed, 12/10/2014 - 18:50 | 5538339 kchrisc
kchrisc's picture

"In 2002, two former Air Force psychologists, James Mitchell and Bruce Jessen, became the masterminds of the CIA’s torture program,"

My treason list just got longer.

An American, not US subject.

 

The American people should be compiling a list, call it the Crimes Against the American People List (CAAPL)?? A list of known pol, crat, functionaries (funcs) and bankster criminals in their sphere of influence.

Oath violating and treasonous gun and badge thugs, corrupt pols and crats, thieving banksters, etc. should be placed on it. Their names, crimes, and positions should be, at a minimum, kept for future reference for accountability, trial and punishment..?

When the DC US finally collapses, these lists can then be used to root out the known criminals that will think that they can hide among their victims-- no "Truth and Reconciliation," no quarter, only "Trial and Retribution."

 

Wed, 12/10/2014 - 19:03 | 5538389 blindman
blindman's picture

i, also, am all for justice, it is essential
and inevitable.

Wed, 12/10/2014 - 19:04 | 5538394 Armed Resistance
Armed Resistance's picture

Agreed, put them on the CRAAPL!

For $50 you can learn my secret torture plan where we choke a sick psychologist with his own ballsack.  Dang it, I've done it again!  OK, you get that one for free...

Wed, 12/10/2014 - 18:30 | 5538252 Max Steel
Max Steel's picture

Ukrainians needs to regroup themselves and march towards kiev with your arms and eliminate those traitor paid maidan scum and us putsch joish oligarchs before they flee to US or europe

Wed, 12/10/2014 - 20:00 | 5538637 Urtica ferox
Urtica ferox's picture

... maybe the Russians are already training volunteers militarily for just such an eventuality? (I know I would be). After all, a million-odd Ukie refugees have fled to Russia, and I'm sure some of them would like a bit of payback.

Wed, 12/10/2014 - 18:34 | 5538273 bankonzhongguo
bankonzhongguo's picture

We are lucky things like Cyprus and Ukraine go down.

That way you can see what is heading everyone's way in the good ol' U S of A.

I don't expect it any time soon, but I do expect this addled Millennial generation to cut everything to the bone on their parents and grand parents once they begin to inherit the current mess the Chinese are no longer eager to finance.

Wed, 12/10/2014 - 18:37 | 5538282 MrTouchdown
MrTouchdown's picture

Here's an appropriate song for this post:

https://www.youtube.com/watch?v=doxPd-fcZw0

"Know I'm making my way inside. Know I'm feeding myself with you. The more I grow, the more you decline, so we'll die."

Wed, 12/10/2014 - 18:40 | 5538284 uistbhoy
uistbhoy's picture

USA doesn't need foreign reserves when has the dollar and the dollar printing press, but I'm sure that was half your point

Wed, 12/10/2014 - 21:47 | 5538946 zerohedgejjxxzz12
zerohedgejjxxzz12's picture

All printing presses will brakedown from over usage and stresses without propper maintainence and repairs!

Wed, 12/10/2014 - 18:50 | 5538302 Spungo
Spungo's picture

Is it ok if I refer to Kim as K-Dog? Gonna watch me some K-Dog porn.

Wed, 12/10/2014 - 22:42 | 5539128 TheReplacement
TheReplacement's picture

Gross dude.  Just gross.

Wed, 12/10/2014 - 18:47 | 5538320 HowdyDoody
HowdyDoody's picture

So the usual cuts to public expenditure, but no explicit cuts to the budget for killing Ukrainian citizens who speak Russia and live in the east of the country. Sounds about right.

Wed, 12/10/2014 - 18:49 | 5538325 kowalli
kowalli's picture

Sad thing that ukrainians so stupid that until they completely destroy their country - they don't understand a fcking thing

Wed, 12/10/2014 - 18:49 | 5538336 atomicwasted
atomicwasted's picture

Coming soon to a USSA near you!

Wed, 12/10/2014 - 19:06 | 5538401 Armed Resistance
Armed Resistance's picture

We're gonna need more rope!

Wed, 12/10/2014 - 19:23 | 5538470 SmittyinLA
SmittyinLA's picture

The cuts are the "next step", after that comes mass immigration no, not of German bankers bearing "investments" but Muslims all willing to work for Jewish property owners for less than half of what any stupid UKrianian would work for, after that comes sales tax increases on everything, and a "toll" to the oligarchy to do anything including wipe your ass. (not that sewage services should be free)

 

 

Wed, 12/10/2014 - 19:30 | 5538502 nuubee
nuubee's picture

  • The proposal includes measures to cut public education in Ukraine from 11 to 9 years. And more importantly, education will no longer be funded by the state.
  • There will be no more free food for children in school or for patients in hospitals, and healthcare will no longer be completely state-funded.
  • The government is also proposing to drastically reduce pension benefits.
  • Women will have to work 10 more years in order to qualify for a pension, and men an additional 5.
  • They’re also proposing to FREEZE pension benefits, i.e. no longer adjusting them to the rampant inflation that’s unfolding in Ukraine.
  • They’d also like to do away with a number of other public services; they’ve proposed slashing the number of judges, prosecutors, and police.
  • They’ve even proposed reducing the number of members of parliament from 450 to 150.

The day this happens in California is the day I open all my fine scotch bottles I've been saving.

Wed, 12/10/2014 - 19:34 | 5538528 Hannibal
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The US will never default 'cause unlike the Ukraine, it can "print" money out of thin air (into oblivion).

Wed, 12/10/2014 - 20:14 | 5538699 blindman
blindman's picture

oblivion or default, is there really a choice
with a difference in there?

Wed, 12/10/2014 - 20:54 | 5538801 red1chief
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Those are valid points regarding the warmongering and deceit, thoug hinstead of allies vassals would be a better description.  However, almost by definition those who can print their own money are not insolvent or bankrupt.

Wed, 12/10/2014 - 22:32 | 5539094 acetinker
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THAT was clever, Simon!

Thu, 12/11/2014 - 01:45 | 5539492 EscapingProgress
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"They’d also like to do away with a number of other public services; they’ve proposed slashing the number of judges, prosecutors, and police."

That's great! Now the Ukrainians won't have to pay ANY taxes! This is the type of crazy shit that happens when politicians forget what the government really is - an extortion racket. You can't run an extortion racket without any enforcers. Checkmate - Putin.

Thu, 12/11/2014 - 04:33 | 5539603 Ghordius
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"In fact, as of this morning, Ukraine’s total foreign reserves amount to just 0.34% of its enormous debt level.

This is barely enough to pay interest on the debt for the next six weeks! Astounding.

Oh… wait a minute. Hang on. I got my data wrong. I’m actually talking about the United States."

As I was expecting and writing about it here, two years ago, the words Foreign Reserves are coming back, now here even in Simon's musings

Problem is, Simon, that the public is not used to think about FX reserves, particularly in the US. I can even remember some commentaries complaining about the FED having some

Fri, 12/12/2014 - 06:23 | 5543413 Billy Bob101
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Slavery

Sun, 12/14/2014 - 10:40 | 5550061 Itinerant
Itinerant's picture

In reality, bureaucrats and politicians who produce nothing of value parasitically choke off the productive class through onerous taxation and regulation.

Here is the tired old meme about how the public sector contributes nothing, and how we would be better off without public roads, canals, schools, etc etc. In the nineteenth century only a handful of the pupils went to school, and public education has played a key part in creating a more productive labor force. The thing that distinguishes all wealthy countries from poor countries (which often have incredibly low regulation and little government and no public sector) is public services and public assets: these are the foundation of wealth which lower the cost of doing business for everybody.

Of course it is important to distinguish public sector and social investments from consumption. Low taxation for the rich is what has created this giant assets bubble: the money retained does not go into consumption or extra production and therefore does not drive economic productivity, but is largley recirculated into the financial assets sector.

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