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After Rescuing Ukraine, US Taxpayers To Bail Out Iraq Next

Tyler Durden's picture




 

Having generously (if not obliviously) stepped up to the plate to bail out Ukraine (with open-ended bond guarantees), US taxpayers are opening their wallets again - this time for Iraq. As Reuters reports, cheap oil has ravage Iraq's state finances just as the government faces rising military spending from the war it is waging against ISIS; and so it has decided to issue $5 billion in international bonds. However, Iraq is considering other ways to cover its budget deficit, including asking the IMF (i.e. US taxpayers) for relief funding and also requesting the controversial U.S. Export-Import Bank (US Taxpayers) finance the purchase of 10 planes from Boeing Co, which cost the government $500 million.

 

Cheap oil is ravaging Iraq's state finances, just as the government faces rising military spending from the war it is waging against Islamic State militants. As Reuters reports, Iraqi Finance Minister Hoshyar Zebari said the government was facing a budget deficit of $25 billion, out of a budget of approximately $100 billion. Iraq's 2015 budget is based on an oil price of $56 per barrel, he said.

Iraq has decided to issue $5 billion in international bonds and is negotiating the terms as one of several measures as it seeks to relieve the pressure of low oil prices on its finances.

 

Iraq is considering a number of other measures to cover its budget deficit, including asking the International Monetary Fund for relief funding of between $400 million and $700 million, Zebari said.

 

"We haven't made a decision, but I think they (the IMF) are willing to provide that support, but they need the government to do more cuts on the public spending," he said. "Not as a precondition, but really they have advised that is the way to release these funds."

 

Iraq is also requesting the U.S. Export-Import Bank finance the purchase of 10 planes from Boeing Co, which cost the government $500 million, Zebari said.

 

"We are seeking to finance those planes ... through the Ex-Im Bank, and they (Boeing) will pay us back the money we have paid already," Zebari said.

 

Iraq has also been building up debts to the companies developing its oilfields. Zebari said Iraq had started paying back its debts to the international oil companies, but declined to say how much.

 

"We are paying them actually, not according to their expectation but at least we started paying them," he said.

 

The government has also managed to borrow some $7 billion from semi-state-owned Iraqi banks to cover its shortfall, Zebari said.

What is perhaps even more worrying, for a nation in such chaos already, is the Iraqi people's dependence on government handouts...

Though Iraq's finances are no longer in a panic state, Zebari said, fundamental changes are needed to ensure Iraq's economic health in the future, including reforming a bloated government bureaucracy that he said employs some four million Iraqis at a cost of $3.5 billion per month for wages.

 

"This rentier state government has been overburdened by this social commitment ... to a large section of the population," he said.

And what that means should the money dry up...

We wonder how struggling Shale Oil producers will feel as they approach bankruptcy when US taxpayer funds are bailing out Iraqis suffering from low oil prices.

 

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Thu, 04/16/2015 - 15:10 | 5999869 BrosephStiglitz
BrosephStiglitz's picture

So I guess there are marginal returns on Empire building too huh?  Color me surprised.

Thu, 04/16/2015 - 15:15 | 5999905 knukles
knukles's picture

Wait a minute.  Haven't we already bailed these guys out before?

Thu, 04/16/2015 - 15:22 | 5999940 Harbanger
Harbanger's picture

Warren Buffet puts his 2 cents in.  Charlie Rangel and Maxine Waters filed for 50 year extensions.

Thu, 04/16/2015 - 15:32 | 5999981 pelican
pelican's picture

Hmmmm, who will bail out the US taxpayer?

Thu, 04/16/2015 - 16:08 | 6000050 Things that go bump
Things that go bump's picture

You think this is ever going to be repaid? This is counterfeiting just like the last time. Have you forgotten the pallets of money they put on a plane and sent there some years back? Much of it disappeared, so there is no accounting. We can bail out anybody. I'm surprised they haven't bailed out Greece. It must have something to do with displeasing the EU. They can print as much as they want and just give it away. For the moment it will buy real things, but how long do you think that's going to last? I hope my 83-year-old mother passes before she has to see her life savings disappear.  

Thu, 04/16/2015 - 16:16 | 6000124 Harbanger
Harbanger's picture

Why don't you support your mother and hope she lives to 120?  You may find good fortune.

Thu, 04/16/2015 - 16:25 | 6000163 Things that go bump
Things that go bump's picture

I would, but I make less on my Social Security than she does. We are thinking of combining households as she is growing more frail all the time.

Thu, 04/16/2015 - 16:27 | 6000182 Harbanger
Harbanger's picture

You're a baby boomer.  Your mother is my grandmothers age.  It's your duty to take care of her. This is the problem with our culture right now.  Don't get me started.

Thu, 04/16/2015 - 16:31 | 6000195 Xibalba
Xibalba's picture

Empower the guy to sell his grandkids and what do you get?  Baby Boomers....

Fri, 04/17/2015 - 16:10 | 6004184 Mountainview
Mountainview's picture

US troops just arrived in Ukraine.

Fri, 04/17/2015 - 16:15 | 6004206 Mountainview
Mountainview's picture

? ??????? ???????? ????? ??? ? ??????? ??????? ?????? ??????? ? ???????? ? ????????????? ???????? ?????? ???????????? ???????????. ?????????? 173 ??????? ??? ??????? ??? ???????? ?????????? ???????. or translated

In social networks Twitter United States Ambassador in Ukraine Jeffrey Payette said on arrival at the international airport of the city of Lviv of American paratroopers. Paratroopers brigade 173 of United States arrived for  training the Ukrainian military.

 

Thu, 04/16/2015 - 15:42 | 6000019 angel_of_joy
angel_of_joy's picture

It's just part of that "mission accomplished" thing... New mission (under Obozo) requires new support.

Thu, 04/16/2015 - 17:06 | 6000314 unicorn
unicorn's picture

wait a second minute:

On 11 July 2014, Zaberi was replaced as foreign minister by Hussain al-Shahristani, Iraq's deputy prime minister, who assumed the position in an acting capacity, after Kurdish politicians withdrew from the government of Prime Minister Nouri al-Maliki.[2] (wiki)

 

Thu, 04/16/2015 - 15:31 | 5999979 SethDealer
SethDealer's picture

fuck iraq

Thu, 04/16/2015 - 15:39 | 6000004 Abitdodgie
Abitdodgie's picture

The question is who in America is still dumb enough to still be paying taxes, go ahead give them 50 billion it is not my money , as they say you cannot fix stupid.

Thu, 04/16/2015 - 15:43 | 6000020 McMolotov
McMolotov's picture

Did you miss the past decade or so? We already fucked Iraq. Up the ass. Repeatedly.

Bailing out Iraq is the financial equivalent of gonorrhea. We should have known what to expect going in.

Thu, 04/16/2015 - 16:01 | 6000067 gcjohns1971
gcjohns1971's picture

I think he said 'Fuck Iraq' with the thought that the US should STOP Fucking Iraq...  because there are others in line to Fuck Iraq.

 

Thu, 04/16/2015 - 17:19 | 6000364 golden torch
golden torch's picture

I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.globe-report.com

Thu, 04/16/2015 - 19:31 | 6000884 BrosephStiglitz
BrosephStiglitz's picture

Yes, yes, $7k a month, but the real question is...

Do you pay your taxes? ;) 

Thu, 04/16/2015 - 15:10 | 5999870 lizzy36
lizzy36's picture

I guess the first trillion the Yanks spent there didn't take, so time to up the ante.

 

Thu, 04/16/2015 - 15:35 | 5999993 Kaiser Sousa
Kaiser Sousa's picture

u know how they do it...

"when at first u fail...

next time fail spectacularly....!"

Thu, 04/16/2015 - 16:36 | 6000212 Steaming_Wookie_Doo
Steaming_Wookie_Doo's picture

Someone's going to make money on the bond issue, and it certainly isn't some schmuck Iraqi.

I've got to ask: what the hell does Iraq need with 10 Boeing planes? Gonna make your own airline? Hell, if any carrier wants to fly there, go ahead. I can't imagine there's a ton of domestic demand (apart from mercs, NGOs and US soldiers--fuck em, let them figure how to get out of there).

As for deficits being the result of 'generous' social spending--what is that covering? Clearing minefields from schoolyards?? I'm sure spending on small arms is the top budget line item...of course that's from having to defend from the US-funded ISIS squads. Geez, what a shit show.

Thu, 04/16/2015 - 15:10 | 5999874 MFL8240
MFL8240's picture

When money comes for free you can bail out the world short term but, in the end, the game has to end when reality sets in. 

Thu, 04/16/2015 - 15:12 | 5999886 Osmium
Osmium's picture

Mission Accomplished?

Thu, 04/16/2015 - 15:12 | 5999887 neptune-klm
neptune-klm's picture

all I can say is "what the fuck, enough bailouts already!!"

Thu, 04/16/2015 - 15:40 | 6000012 pelican
pelican's picture

My home is in foreclosure, I own nothing except debt and the IRS says I need to spit out 10k.

 

Nice to know the next years of my life paying off the 10k will be going to that shit hole in the desert.

 

 

Thu, 04/16/2015 - 15:13 | 5999896 Vullsain
Vullsain's picture

The US tax payer has been ass raped so many times it does not even hurt anymore.

Thu, 04/16/2015 - 15:30 | 5999970 SilvertonguedAngel
SilvertonguedAngel's picture

We'll be ok unless it starts to feel good.

Thu, 04/16/2015 - 15:13 | 5999898 Winston Churchill
Winston Churchill's picture

Suckers.

Thu, 04/16/2015 - 15:17 | 5999912 Dr. Engali
Dr. Engali's picture

Maybe Rummy can fly a couple more planes full of fiat over to drop the Iraq central bankers and more freedumb bombs for the unruly citizens.

Thu, 04/16/2015 - 15:17 | 5999917 buzzsaw99
buzzsaw99's picture

it's only clownbux

Thu, 04/16/2015 - 15:26 | 5999953 pods
pods's picture

Joo ain't kiddin buzz.

Thu, 04/16/2015 - 15:20 | 5999928 COSMOS
COSMOS's picture

http://news.yahoo.com/pro-russia-ukrainian-journalist-shot-dead-kiev-142...

This is how Ukraine gets 'rescued' by the USA.  How many Ukes dead since team USSA took over?

Thu, 04/16/2015 - 15:24 | 5999942 lester1
lester1's picture

ANYONE ELSE NOTICE EVERYDAY IT SEEMS THE WORLD NEWS GETS MORE AND MORE GRIM ??

Thu, 04/16/2015 - 15:29 | 5999969 Dr. Engali
Dr. Engali's picture

Like a fairy tail.

Thu, 04/16/2015 - 16:52 | 6000270 Main_Sequence
Main_Sequence's picture

...going according to script

Thu, 04/16/2015 - 15:25 | 5999949 SmittyinLA
SmittyinLA's picture

Make no mistake, US taxpayers bailed out Venezuela about a month ago,  we could have let them go under in a socialist default clusterfuck that would end up with the Venezuelan regime officials strung up like Mussolini but no the US financiers decided to keep the Venezuelan regime around for moar looting.

Bankers have no better friends than a socialist government.

Thu, 04/16/2015 - 15:28 | 5999959 Equality 7-25-1
Equality 7-25-1's picture

Your president, supreme court justices, senators, congressmen, attorney general, the FBI, the CIA, the NSA, the DIA, governor, mayor, chief of police, judges and lawyers are all in the know, dumping all these refugees, deportees and convicted felons in your community, on your dime, without telling you. For decades.

Thu, 04/16/2015 - 15:37 | 5999963 Renfield
Renfield's picture

God almighty, when do we get past this SSDD rhetoric? Sick of that stupid "US taxpayers" lie. Tyler, why do you insist on playing along with this fucking MSM newspeak?

"US taxpayers" don't bail out shit. They can't even "bail out" their own bankrupt country for God's sake. I don't think taxes have paid for anything since -- geez, when was the last time the US had a balanced budget? When did the US default? Was it 1933? "Taxes" are nothing but a central bank confidence scam and deadbeat US tax donkeys haven't even paid their own expenses, let alone anyone else's, for at least three generations.

This is nothing but the latest excuse for more empty issuance of worthless Fed debt paper, to keep their fake 'system' crawling along for one more day. These 'bailouts' are simply an excuse to loot, and that only lasts as long as counterparties are stupid enough to play along. 'US taxpayer bails out' my ruby-red ass. Nobody is getting bailed out here, except maybe the Fed who is lining up the next victim in their counterfeit game, and the USG who adds yet another bomb-and-loot lifelong enemy to their long terr'ist list. Meanwhile the clock on this scam is ticking pretty fast these days.

A better headline: "Iraq next in line as IMF laundering front."

PS: Ukraine isn't 'rescued', either. Best 'rescue' for Ukraine would be the breakup of NATO and the criminal trials of its heads.

Thu, 04/16/2015 - 16:25 | 6000167 Vullsain
Vullsain's picture

"These 'bailouts' are simply an excuse to loot, and that only lasts as long as counterparties are stupid enough to play along.'US "taxpayer bails out' my ruby-red ass"

And when the counter parties collapse we will pick up the tab via ZIRP, inflation, taxes, bankster usary or whatever new bullshit financial innovation the sociopaths come up with.. Stop the warfare wellfare state and cut taxes.                                                                                   My Fucking Ass We Are Not Paying For It

Thu, 04/16/2015 - 15:31 | 5999974 Kaiser Sousa
Kaiser Sousa's picture

dont forget to vote!

and of course be sure to file them taxes tribute to the Moneychangers!!!

Thu, 04/16/2015 - 15:40 | 6000005 Harbanger
Harbanger's picture

Yes, Vote for moar Gov.!  Did you read the Article about banning cash?  And you thought I had a crystal ball, Lol.  You will be paying taxes like never before.

Thu, 04/16/2015 - 15:34 | 5999986 falak pema
falak pema's picture

Its NOT just the AMerican tax payer, its every citizen of the world held by their nuts by the current financial system. 

That debt based Oligarchy system that transfers money to the 1% Oligarchs is shoveling debt to all people all over the world.

Thu, 04/16/2015 - 15:34 | 5999990 Fix It Again Timmy
Fix It Again Timmy's picture

Take it out of Dick Cheney's bank account, he started this shit....

Fri, 04/17/2015 - 00:07 | 6001779 Vullsain
Vullsain's picture

Good Ole "Dick" Deficets don't matter Cheney..

Thu, 04/16/2015 - 15:39 | 6000009 Uber Vandal
Uber Vandal's picture

Anyone remember this gem?

The bulk of the funds for Iraq's reconstruction will come from Iraqis -- from oil revenues, recovered assets, international trade, direct foreign investment, as well as some contributions we've already received and hope to receive from the international community.

October 2, 2003

http://www.csmonitor.com/World/Backchannels/2011/1222/Iraq-war-Predictio...

Thu, 04/16/2015 - 16:25 | 6000110 gcjohns1971
gcjohns1971's picture

People will never remember that.

It isn't as short, sweet, and to the point as other easily recognizable lies like:

I love you.

I will pull out before finishing.

I won't cum in your mouth.

The check is in the mail.

I did not have sex with that woman.

I didn't know it was stolen.

As a minority (of one) I deserve that money as recompense for Discrimination.

I made those agreements in good faith.

I want Justice (when asking for a hand-out)!

I only want what is fair.

It is for the Children.

It is for the People.

We owe it to ourselves.

It is our responsibility (when setting out to fix someone else's fucked up culture, rather than fix our own).

Yes, we can!

I only drink socially.

No. I have not been drinking.  (False.  If you stopped drinking you would die within 72 hours.)

Our values are... (followed by anything).

All good (insert name of collective here) know/do...

It is an established fact that... (followed by anything).

A recent study concluded... (because a single study is never conclusive of anything).

Scientists believe... (because REAL scientists are by definition skeptics.  They don't believe.  They VERIFY.)

There is consensus... (if there were you wouldn't have to say it).

The only thing needed is... (because no one ever needs only one thing).

We believe... (this one is a doozy)

 

My fingers are tired.

Feel free to add to the list of common sayings that are universally lies.

Everyone knows....

It is your civic duty...

If you are not part of the solution you are part of the problem...

You're either with us, or against us.

That's Racist!

If you're white you can't understand what discrimination is. (a lot of self-contradiction in one sentence)

Thu, 04/16/2015 - 16:26 | 6000171 kchrisc
kchrisc's picture

Normal people might lie to get out of murder.

These people lie to get INTO murder.

The banksters need to repay us.

 

The irony of ironies is that Nazi Germany banned and burned books while persecuting and robbing the Jews, while the Germany of today does so in the so-called defense of the Jews.

Thu, 04/16/2015 - 15:56 | 6000054 gcjohns1971
gcjohns1971's picture

Expropriaaaation, WHAT A SHOW!

Expropriaaaation, DON'T YOU KNOW!

 

What?  You thought the US funding European defense for 75 years benefited the American people???

It protected Lord Rothschild's investments.  Nothing more.

Thu, 04/16/2015 - 16:02 | 6000069 BlussMann
BlussMann's picture

The USSA "rescues" nations like Jack the Ripper resuced Ladies of the Evening.

Thu, 04/16/2015 - 16:19 | 6000144 gcjohns1971
gcjohns1971's picture

Not quite.

Jack the Ripper didn't keep fucking them after he disemboweled them.

Thu, 04/16/2015 - 16:19 | 6000142 kchrisc
kchrisc's picture

"After Rescuing Ukraine, US Taxpayers To Bail Out Iraq Next"

My bet is that those fiat bucks won't be making anything more than a pitstop in the Ukraine and Iraq before heading off to Zion.

The banksters need to repay us.

 

Bankster motto: "You owe it because we stole it."

Thu, 04/16/2015 - 16:22 | 6000146 BigRedRider
BigRedRider's picture

"After Rescuing Ukraine, US Taxpayers To Bail Out Iraq Next"

 

Really?  You mean Ukraine was rescued like Yemen was a success?  How fucking original.

Thu, 04/16/2015 - 16:23 | 6000151 atthelake
atthelake's picture

Everyone is waiting for someone else to give these crooks an ass wuppin. Seems the only guy with guts is the guy who wupped Harry Reid. Or did Harry wupp Harry?

Thu, 04/16/2015 - 17:42 | 6000447 Bazza McKenzie
Bazza McKenzie's picture

I think it was Mrs Reid who whupped Harry.  He said she was there in the bathroom.

Thu, 04/16/2015 - 18:24 | 6000600 silverer
silverer's picture

It started out with "Put that silly little thing away, Harry!"

Thu, 04/16/2015 - 16:26 | 6000176 BlowsAgainstthe...
BlowsAgainsttheEmpire's picture

"Iraq is also requesting the U.S. Export-Import Bank finance the purchase of 10 planes from Boeing Co, which cost the government $500 million, Zebari said.

 

'We are seeking to finance those planes ... through the Ex-Im Bank, and they (Boeing) will pay us back the money we have paid already,' Zebari said."

 

Ahh, the free market.  It's a beautiful thing.

Thu, 04/16/2015 - 16:37 | 6000216 swass
swass's picture

I've long since stopped trying to make any sense out of our foreign policy, who we're giving money to and why, who we're attacking and why, or both giving money to and attacking.

Thu, 04/16/2015 - 16:50 | 6000240 researchfix
researchfix's picture
After Rescuing Ukraine, US Taxpayers To Bail Out Iraq Next

Too bad for Irak, because rescuing Ukraine may take longer than the voyage of USS Titanic. Maybe they can tow these Walmarts with plumbing problems to Ukraine. Them will have an otherwise unused pipeline system to pump shit in two years from now.

Thu, 04/16/2015 - 17:50 | 6000477 Pendolino
Pendolino's picture

"US taxpayers are opening their wallets again - this time for Iraq" - you get what you vote for. Over and over again.

Thu, 04/16/2015 - 18:34 | 6000573 Dickweed Wang
Dickweed Wang's picture

We haven't made a decision, but I think they (the IMF) are willing to provide that support, but they need the government to do more cuts on the public spending,

Shows those motherfucker's true colors in one simple sentence . . . we'll give you the cash, but only if you agree to make the people suffer (more).

From Veterans Today (http://www.veteranstoday.com/2015/04/16/neo-kiev-commits-energy-hari-kiri/):

Like the Sicilian Mafia, the IMF gives a kind of “protection.” Its loans have strings, called the Washington Consensus or IMF conditionalities. They never vary. That’s because the US Treasury in fact controls IMF policy.

The conditions are invariably that a country getting “loans” must open its economy, privatize state assets, slash health and education and public jobs and balance the state budget, something the USA has failed to do for decades. Foreign multinationals are then free to rape what is left. It’s a modern version of “outsourced imperialism” made to look technocratic and politically neutral. It isn’t.

Thu, 04/16/2015 - 18:26 | 6000595 silverer
silverer's picture

How can they possibly run out of Social Security when they never run out of wars? (For which they always seem to have the money for).

Thu, 04/16/2015 - 19:34 | 6000894 rsnoble
rsnoble's picture

Considering it's the US fault both countries are ruined.........they should pay.  Of course it's not the citizens fault however, the US is so far in debt it makes no difference.  Maybe it will help them some before the digital zero creators finally implode.

Thu, 04/16/2015 - 19:54 | 6000967 Jack Burton
Jack Burton's picture

As long as Washington holds the power to print dollars, and the whole world accepts them as a store of value, Washington will print and spend. Who really are the fools, those who print dollars, or those who accept them in return for commodities, oil, manufactured goods, electronics, services etc.??

Ukraine is building up to a major war this summer. The money is yours dear readers, the Kiev Junta is spending money paid directly by you, of in guaranteed loans by you.

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