Patty

Id buy Ukrainian Bonds but they aren't backed by a stable currency.
"Ukraine Just Issued $1 Billion Bonds Backed By The US Taxpayer

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...

•*UKRAINE $1B 5Y NOTES LAUNCH AT +28
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 t***sition 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.

JimMe

Look... I use the USA Treasury's Daily Figures for the TOTAL DEBT & break the figures into Monthly & Yearly Totals...

For FY 2013 (Oct 1st 2012 thru Sept 30th 2013) the USA Debt for the Year was $671.942 Billion & the TOTAL DEBT WAS $16.738 Trillion...

For the First 7 Months of FY 2014 (Oct 1st 2013 thru April 20th 2014) the USA Debt for the Year is $710.254 Billion & the TOTAL DEBT IS $17.508 Trillion...

The USA Debt in FY 2014 - In Its First 7 Months - is ALREADY $98.312 Billion GREATER THAN ALL OF FY 2013...

Don't go Showing Links from July 2013 to try & Prove a Point that Our Yearly Debt is Decreasing When IT'S OBVIOUS - if You Do a Minimum of Research - Proves Our Yearly OverSpending is Once Again INCREASING...

Liberty Tree

Thanks for the info. Facts are a nasty thing for some people, aren't they?

JimMe

Sometimes even I get "Biten" by FACTS... When I Spout using Someone's Post or Blog without Investigating...

I'm an NCIS Fan... They're Constantly Stating... "Trust NO ONE... VERIFY, VERIFY, VERIFY..."

Liberty Tree

That is why when some post a link to some group providing info I always check it out to see who their supporters are.

son of witless

I remember the millions of jobs Obama saved or created. Don't think he saved any dollars, but he sure as hell has created $ Trillions in new dollars.

PoppaGringo Loc: Muslim City, Mexifornia, B.R.

Yep, he created an untold number of jobs in the Federal Government.

Artemis

Republicans stop your gigantic spending spree,

Ba,hahahah, try that in reverse.

jjb2012

There is a difference between budget deficits and our entire Debt.

The Budget deficits are on the decline. Are we running a surplus or reducing our Debt?? NO

And we have not since before Nixon , we were close during Clinton's terms but not before or since

There is a real danger of slowing the economy by using too much austerity. Just look at Europe.

son of witless

Europe is not hurting because of austerity. I have heard that argument on left wing blogs for awhile now. Europe is hurting because they are further down the Socialist sliding board to ruin than we are.

But indeed " Just look at Europe ". On energy and health care you lefties have been scolding the rest of us for a decade. Yeppir, " Just look at Europe ". Why suddenly are you slamming your socialist heroes?

jjb2012

Europe went back into recession the minute they tried austerity and is fighting to get out. What does austerity cause?? A reduction in consumer purchasing power and any economy that is consumer driven, such as ours will be hurt by austerity. Even the CBO says austerity will slow the economy


Now who gets hurt by austerity? Workers , the very same people that have seen stagnate wage growth since you great buddy Reagan.

Here is what happens when austerity is forced on workers.



Healthcare Why have healthcare costs increased dramatically over the last 34 years?? The costs have outpaced inflation why?/

Well lets go back to your good buddy the SOCIALIST Reagan that in 1986 passed a law that forced hospitals to give emergency treatment to anyone including I******s care when they show up at the emergency rooms which has been the single biggest contributor to increased costs.

So please tell me more about how the lefties are the problem.

BigMike Loc: yerington nv

The Twilight Kingdom!

BigMike Loc: yerington nv

What a relief! Eh? :roll:

BigMike Loc: yerington nv

It's only a matter of time, and then all the smarts of the currency monkeys will be worth less than the worthless dollar.

JimMe

What "millions of jobs" has Pres Obama's programs generated?!? There are fewer people working today than when he took office...

And as far as Pres Obama "created $ Trillions in new dollars"...

I took the FY 2009 Revenue Total from the USA Treasury Dept (Pres Bush's last FY Spending) & it was $2.104 Trillion... Pres Obama's FY 2013 (the last complete FY so far for His Admin) was $2.773 Trillion... A Solid Increase of $669 Billion, but nowhere near even $1 Trillion...

I then took Individual Yearly Increases in Revenues during Pres Obama's Admin as a Cross-Check & come-up with an Increase of $669 Billion again...

So, while generating $669 Billion in New Revenues, the Treasury Dept Shows Pres Obama has in His first 4 Years (FY 2010-thru-FY2013) INCREASED OUR USA DEBT BY $4.828 Trillion or a NET LOSE OF $4.159 Trillion...

From 2009 thru 2013, the USA Labor Dept reports an Increase in Employees of 4.052 Million Workers... However, they also report a DECREASE IN THE LABOR FORCE OF 9.631 MILLION WORKERS... That's a NET LOSE OF 5.579 MILLION WORKERS...

At least that's what Pres Obama's Treasury & Labor Depts are Reporting...