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With Ukraine Default Risk At 6 Year Highs, US Taxpayers "Volunteer" To Guarantee Its Debt
Just two days ago we detailed the possibility that Russia could accelerate debt repayment on a $3 billion loan it granted to Ukraine that has broken its covenants. While there is no word yet from Russia on a decision whether to demand the payment, it appears, as Reuters reports, the US taxpayer - just as we warned - is quite willing to step up (thanks to their leaders in Washington) and guarantee $2 billion in loans to the world's 2nd most credit risky nation (after Venezuela).
Ukraine is the 2nd most risky sovereign nation in the world (beaten only by socialist utopia Venezuela) based on CDS premia...
As Reuters reports, The US Treasury seems more than happy to put $2 billion of US taxpayer money at risk...
The United States plans to provide up to $2 billion in loan guarantees to Ukraine this year, the U.S. Treasury said on Tuesday, as part of a broader international package to stave off bankruptcy.
Like other major donors to the country, Treasury said the guarantees would be contingent on the former Soviet republic remaining on track to meet the conditions of its loan program from the International Monetary Fund.
Treasury said it would provide a $1 billion loan guarantee to Kiev in the first half of this year, and work with the U.S. Congress to provide an additional $1 billion guarantee, but only if Kiev sticks with its reform agenda.
So where does the nation stand?
The cost of insuring exposure to Ukrainian debt rose to a new 5-1/2 year high on Tuesday, according to data from Markit, a financial information provider, amid fears the country may have to restructure its debt.
Ukraine's foreign currency reserves were down to just over $7.5 billion at the start of the year, the lowest in 10 years and barely enough to cover five weeks of imports.
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How ironic it is that, should Russia decide to demand early repayment (not a controversial decision), then - despite all the sanctions and economic warfare - it would be the US taxpayer's cash that 'bails' them out indirectly...
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But that's not all:
- *YATSENYUK SAYS UKRAINE MUST MAKE $11B OF DEBT PAYMENTS THIS YR
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Well, the us dollar is free and costs nothing to produce. So it's not a bad deal.
Barry be makin' it rain, bitchez!
I'm pretty sure that he's really peeing on your back and telling you something different. Trickle down bitchez! Feeling wealthy yet?
The 2 billion loan guarantee will be for arms purchases by the Ukraine from the USSA MIC, with some of the money siphoned off by Ukie Oligarchs.
The people of the Ukraine get nothing and instead will be sent to fight and die on the ' new russian' front. This is how things work in a crony capitalist aka fascist society.
YAY! Does this mean we finally have our own Greece!
FUCK the EU - We're exceptional once again!
d'titz, and d'brain...dats da compleet package...
+1 that would have been my guess. Pol Pot Shenko goes to the MIC candy store, loads up the shopping cart and get Uncle Obomber to whip out his Credit card
The US/German funding of arms purchases from Ukraine in past years armed Syrian rebels and assorted terror groups with Soviet-provenance weapons - H&K had a contract to modify and improve light weapons shipped from Ukraine by the German BND en-route to Syria
http://www.spiegel.de/politik/deutschland/ukraine-liefert-waffen-an-deut...
http://www.aufschrei-waffenhandel.de/Syrien.513.0.html
A bankrupt guaranteeing for a bankrupt. Beyond Ponzi.
You got it, and as long as you can exchange the worthless dollar for yuan at the Chinese peg, you can buy everything of substance.
The Chinese holds all the cards, they just don't know it yet.
Didn't that peg export the ponzi to China at multiples of the peg rate?
Looking around, I'd say that Chinese cards are all tied up in the global real estate market.
I used to think that perhaps China could weather the upcoming financial storm, but it seems they are just as corrupt as any other banksters.
They could, someone will just have to show them the way.
it's the least we can do
for the Russians.
Bravo! Short, sweet and all too True!
Warranty Costs are pretty high though even if they are off-sheet
The more I know, the angrier I get.
Anger over something you have no control over is just wasted energy. Focus on your sphere of influence and let the chips fall where they may. Now if you choose to act on your anger please take a few bankers out with you.
Upper management, not a local teller.
Just write that out of my checking account. The money is there, I promise.
This makes me want to go back and get a real job so I can contribute more
Boy, for a nation that is fuck-loaded in debt we sure seem to be generous with money we don't have.
pods
What are you talking about? We can print as much dollar as we want at no cost. And as long as the Chinese peg is there, the dollar will have it's value backed by the center of human civilization.
The Fed prints it to buy treasuries which the US taxpayer is on the hook for when Ukraine defaults on this "loan." Bankers love this shit.
What a coincidence. The Fed is also loading up on Uke CDS under the table.
Now if Russia was smart...
Not quite sure if you are sarcastic or not, as I have seen you post this "free" twice.
The FED creates digital FRNs for nothing.
The US government (US Treasury), not so much.
pods
Debt is money, silly.
We're RICH!
Yep, and if we pay off (actually discharge) that debt, where would the money go?
*poof*
Brings a whole new meaning to the word *poofer.*
Poofter's Froth Wyoming Prints Ahead
...Plus we'll hand them all free college educations and tell them how to think- they'll be model Democrats
Lock in that vote, Barry.
a measly $2B? Pffftttt.
Just have the entire Ukraine nation enroll in community college.
Oddly enough, I believe that is what they told the young folks on the Euro Maidan was going to happen after the revolution. The youth would all go to college, sip coffee in the sidewalk cafes and do nothing, while the EU and USA took over handing them free money now that Russia has been kicked out. Overall, Russia subsidized Ukraine, directly and in-directly around 20 billion dollars a year. Cheap oil, cheap gas, cheap electricity and direct cash handouts. The Nazis forgot who was paying Ukraine's bills! Now it is up to the gold old USA to take voer for Russia, and fund a nation of beggars, lay abouts and nazi dress up clowns.
So the youth WILL all be going to college and sipping coffee in the sidewalk cafes. They'll just have to stand in line a little longer because the Nazis cosplay crowd love coffee, too, and needs to keep an eye on the youth for draft dodgers and Russia lovers.
Yats is going to reach Scientology level OT-XII for this win! Porky is just stocking up on coffin liners and body bags for now - they'll be worth more than Uke CDS pretty soon.
This is the same Yats that told German TV how USSR invaded Ukraine and Germany in WW2 presumably deposing Adolf Hitler in Berlin
"Yats is our man!" Victoria Nuland, Bride of Satan and good friend of Jen Pasaki
If Ukraine's economy collapses that will interfere with the Washington MIJC plan of confronting Russia.
Sorry Detroit and California.
US taxpayer ain't got no money bitchez. Dream on bankster M'Fer.
US "TAXPAYERS" Volunteer. Like we have a say in the matter.
Taxes are voluntary
Thats using the Woodrow Wilson definition of "voluntary", as when military conscripts are said to be "national volunteers" representing the national will, expressed through national government.
Woodrow Wilson had been educated in Prussian Germany
You stupid Americans. :-)
FUCK you Obama ! piece of crap
the way i look at it turkey's loss is ukraine's gain /s
Tax evasion in the US, for reasons like this article, is a moral obligation.
+1000
I just hope that gold you lifted out of that country wasn't lead.
Lead isn't worth that much.
Uke bonds... backed by the full faith and credit....
See hiring Janika Merilo is already paying off. Bet old Billy Clinton will head up this project.
Which, quite frankly, I find embarassing.
... "US Taxpayers "Volunteer" To Guarantee Its Debt" ...
... more like ... "Voluntold" ...
America should buy rubles, give them to Ukraine so they can pay Russia.
You get a lot of rubles for a dollar now.
But of course printing dollars is still cheaper.
Of course!
It is the duty of every U.S. taxpayer to bail out neo-Nazi's in Russia's back yard and the Brussels/Wall Street Bankster cabal!
Get back to work serfs! Amurika! Wave that flag!
"Greatest Country in the World!" (at something).
Of course. Obviously, Debt > Cash. And when you can "print" your own money anyway, what better way to "buy" a Country??
Obama wants to buy a 58th state for us!
Actually, it was supposed to become Israel in Europe.
.
$2B isn't even a rounding error at the FED
Pffffff! $2B in fiat, that's nothing for old yeller and your grandchildren.
Fuck You Bernanke
The Zionists want Lebensraum and pipeline routes for their lair on the eastern Med., and more debt created for them to feed off of.
Bingo: Take down the Ukraine, knock oil prices down, and then have more debt printed up to offset the Ukraine's debt. As a bonus, pickup defaulting shale, oil, and gas assets at a "printed" song.
The banksters need to repay us.
Many still cannot see the Zionism for the goy pols and crats.
"Those Ukrainians will be voting Democrat for the next hundred years."
Two billion in worthless debt backed by two billion worthless dollars! My, the world is deluded...
I bet the US wouldn't agree to settle with Russia in gold even if it meant .50 cents on the dollar.
Two billion dollars of US taxpayer money to Banderist Neo-Nazi thugs.
The Corporate-Fascist U.S. Goverment is obliged to supply one of its cohorts.
The FDIC has it covered!
Actually US taxpayers also guaranteed Venezuelan debt, and its going bad too http://www.caribbeannewsnow.com/topstory-Venezuela-may-sell-PetroCaribe-...
Commies never put up their own property money or oil, they find a dupe entity to eat the liability, that would be PetroCaribe, guaranteed by good ol USSA under NAFTA.
Americans financed Hugo Chavez' oil diplomacy program under the traitor Boosh and Obama kept the line o credit open, all good until oil dropped.
http://www.caribbeannewsnow.com/topstory-Venezuela-may-sell-PetroCaribe-...
Soros is currently in the Ukraine. Why can't he give HIS billions to them and get the money back with an interest?
Soros makes the golden calf for you goyim to worship
now how can they do that when i can't even get a small business loan?
geesh, i guess that little cheese eatin rat prick gary gensler was right, finance is sooooooooooooooooooooooooooooooooooooooooooooooo complex and esoteric i guess i will never understand it.
i heard gensler was caught eating swiss cheese with the leader of north korea. sure hope is pals don't find out it wasn't kosher. g-d forbid that little cheese eatin rat gets kick out of the club and finds himself hanging out with a bunch of thugs with nail guns. just sayin
snarky sarc (emphesis added)