Author Topic: US to work on $1B Ukraine loan package  (Read 320 times)

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Offline mystery-ak

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US to work on $1B Ukraine loan package
« on: March 04, 2014, 10:06:40 AM »

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Online Oceander

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Re: US to work on $1B Ukraine loan package
« Reply #1 on: March 04, 2014, 10:44:44 AM »
They skimp on the money where it counts - from what I've read in the WSJ today, providing Ukraine with about $15b in funding (via loans) to replace the bonds they recently sold to Russia, would go a long way to turning the tables on Russia economically by removing the economic hammer they currently have over Ukraine and instead raising our own hammer over Russia because (a) the funding would allow Ukraine to freeze/reduce the natural gas it currently buys from Russia, which would put a serious hamper on Russia's hard currency earnings if the rest of Western Europe froze their imports of natural gas as well, and (b) would leave Russian banks with massive exposure to those Ukrainian bonds, which Ukraine would have little incentive to repay at full face value; that approach would also put serious pressure on the Ruble, further damaging Russia economically.

Of course, when it comes to giving vigorish and payola to their own socialist fellow travellers in this country - unions - there is no expense they won't spare.

Offline Gazoo

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Re: US to work on $1B Ukraine loan package
« Reply #2 on: March 04, 2014, 10:54:45 AM »
They skimp on the money where it counts - from what I've read in the WSJ today, providing Ukraine with about $15b in funding (via loans) to replace the bonds they recently sold to Russia, would go a long way to turning the tables on Russia economically by removing the economic hammer they currently have over Ukraine and instead raising our own hammer over Russia because (a) the funding would allow Ukraine to freeze/reduce the natural gas it currently buys from Russia, which would put a serious hamper on Russia's hard currency earnings if the rest of Western Europe froze their imports of natural gas as well, and (b) would leave Russian banks with massive exposure to those Ukrainian bonds, which Ukraine would have little incentive to repay at full face value; that approach would also put serious pressure on the Ruble, further damaging Russia economically.

Of course, when it comes to giving vigorish and payola to their own socialist fellow travellers in this country - unions - there is no expense they won't spare.

While this all sounds good. China should just give them the money so we are not borrowing from Peter to pay Paul.
"The Tea Party has a right to feel cheated.

When does the Republican Party, put in the majority by the Tea Party, plan to honor its commitment to halt the growth of the Federal monolith and bring the budget back into balance"?

Online Oceander

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Re: US to work on $1B Ukraine loan package
« Reply #3 on: March 04, 2014, 11:11:47 AM »
While this all sounds good. China should just give them the money so we are not borrowing from Peter to pay Paul.

I don't think anyone wants China buying itself a vassal country in the heart of Europe.  The Russians most assuredly do not want it and something like that would result in a "hot" response by Russia.  And the Europeans, no matter what they might say now, do not want something like that either.  Neither does the US because it would be enormously destabilizing.

Offline Gazoo

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Re: US to work on $1B Ukraine loan package
« Reply #4 on: March 04, 2014, 11:14:55 AM »
I don't think anyone wants China buying itself a vassal country in the heart of Europe.  The Russians most assuredly do not want it and something like that would result in a "hot" response by Russia.  And the Europeans, no matter what they might say now, do not want something like that either.  Neither does the US because it would be enormously destabilizing.

I was being a smart-ass. :laugh: What I meant was we do not have the money. We are so indebted to China, they may as well give it to them because we will owe China for it, in the end anyway.
"The Tea Party has a right to feel cheated.

When does the Republican Party, put in the majority by the Tea Party, plan to honor its commitment to halt the growth of the Federal monolith and bring the budget back into balance"?

Online Oceander

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Re: US to work on $1B Ukraine loan package
« Reply #5 on: March 04, 2014, 11:17:33 AM »
I was being a smart-ass. :laugh: What I meant was we do not have the money. We are so indebted to China, they may as well give it to them because we will owe China for it, in the end anyway.

fair enough; however, this is precisely where deficit spending, if necessary, is useful.  Also, provided it's structured as a loan, it won't simply be a give-away, not like the give-aways to the unions.

Offline flowers

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Re: US to work on $1B Ukraine loan package
« Reply #6 on: March 04, 2014, 11:52:24 AM »


Online Oceander

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Re: US to work on $1B Ukraine loan package
« Reply #7 on: March 04, 2014, 11:58:16 AM »
http://cnsnews.com/news/article/us-prepares-1b-aid-package-troubled-ukraine


Hey obama did say it was going to be costly. Why doesn't he just give it right out to Putin? That is where the money will end up going.

Not necessarily.


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