Posted on 07/22/2022 3:29:20 PM PDT by delta7
Western governments have allocated well over $100 billion to prop up Ukraine in its war against Russia, with countless billions more flooding into the country at an increasing pace. Yet as each day passes, it’s becoming more and more clear that all of the money awarded and assigned to Ukraine continues to dissolve into a black hole of secrecy, corruption, deceit, and now, default.
On Wednesday, Ukraine finance ministry asked foreign creditors to accept a delay in its debt repayments, requesting a two year freeze on billions of dollars in Eurobonds. Per the Financial Times, “a rescheduling would amount to a Ukrainian default” on Kiev’s tens of billions in foreign debt.
The news comes just one day after the EU ambassador to Kiev insisted that Ukraine would not default on its foreign debt.
The junk-rated sovereign has a balance of about $25 billion of foreign debt, Bloomberg reports.
Despite all of the money coming in from around the world, Ukraine’s budget deficit has spiraled out of control. Zelensky’s office now claims to have a $9 billion monthly budget deficit, up 80% from just last month.
“Ukraine’s dollar bonds due in 2033 are trading around 18 cents on the dollar, down from about 25 cents at the end of last month and more than 80 cents before Russia’s invasion in February,” the Bloomberg report adds, highlighting the continuing decline of creditor confidence.
Ukraine estimates a 35 to 45 percent crash in its GDP this year. The government in Kiev is hoping to finalize the debt deferral by August 9, Reuters reports.
As we’ve covered in depth at The Dossier, Ukraine is losing both the economic war and the war on the physical battlefield, but the Zelensky government continues to dismiss the prospect of an armistice or peace deal with Moscow.
In addition to the government as a whole, Ukraine’s state-owned infrastructure and national energy companies have also announced their intent to default on international bonds. Earlier this week, Kiev announced that it has sold some $12+ billion in gold reserves since the start of the war.
The Western government creditors of Ukraine released a joint statement in support of Ukraine’s debt freeze, adding that they “will continue to closely coordinate and assess the situation with the support of the IMF and the World Bank.”
Translation: Western governments will continue to print huge amounts of cash and launch it in the direction of the Ukraine operation.
While this default will not stop the West’s perpetual Ukrainian money train operation, it sends a very loud $25+ billion signal to greater credit markets. What if other countries follow suit, citing other "national emergencies" and the like? Is the “Climate Emergency” now grounds for default?
They all got a piece of the action.
If anyone believes the Biden Crime Family left behind $85bn dollars worth of military equipment because they are inept, they're delirious.
Well, that was most informative.
And by "global economy", they mean Japan, most of Europe, the United States, Canada, and the majority of the British Commonwealth nations.
Meanwhile, Russia continues to do business with countries that comprise over half of the global population.
Can’t bring on the Great Reset and NWO until all Western economies fail. Between covid, climate actions and the black hole of Ukraine, it won’t be too much longer.
So true! It has surprised me how fast the rest of the world is making adaptions to the new multi-polar world.
Some unexpected truth about our new geopolitical reality:
Things we were never told by the media concerning Putin’s trip to Iran. I posted this the other day, no one even commented. But, it sure surprised me. I thought they were going to discuss buying Iranian drones, not negotiating a stunner like this. “Actually, if these plans are destined to come true, we can talk about creating the most powerful gas monopoly in the world under the Russian roof.”
_______________________
Why oh why did our Deep State fools have to instigate this conflict with Russia. Trump did everything he could to keep Russia in our orbit and out of the hands of China, et al to the degree he could even in the face of them trying to destroy Trump and Putin. And now the demented mummy (or whoever has been directing him) has gotten us to this point...:-(((
NEZYGAR
Expert opinion. Expert Yulia Yuzik, author of the telegram channel Yuzik-Iranian Power, on the significance of Vladimir Putin’s visit to Iran.
Vladimir Putin’s visit to Iran - the most strategically significant of his entire reign - seems to have borne fruit. But it’s too early to rejoice. There was little ceremony on this trip for Putin: after a short greeting with President Raisi, he went to meet Iran’s de facto head, Ayatollah Khamenei. Most of the negotiations were held behind closed doors.
The spiritual leader (rahbar) paused negotiations on a nuclear deal with the United States, waiting for Putin to arrive to see the final “case from Russia.” This package of proposals was supposed to outweigh the benefits of a deal with the Americans, but until the last moment it was not clear what Putin could offer the pragmatic Khamenei so that he would strategically go into the “Russian” orbit.
Prior to the trip, Putin laid a few cards on the table - he finally launched the North-South corridor, linking Russia with India through Iran. The latter has lobbied for this corridor since the time of Ahmadinejad, but the project has been frozen.
On July 11, it was reported that Russia would buy drones from Iran, and on July 15, Putin signed a law on Iran’s free trade with the Eurasian Economic Union. It was said that Russia would invest $7 billion in the Azadegan field, located on the Iran-Iraq border, and allowing both Iran and the Russian Federation to sell oil as “Iraqi”. All this was not bad, but it was not something that interrupted the American proposal.
And now in Tehran, Putin is seriously raising the stakes in this political casino: on July 19, Gazprom and the National Iranian Oil Company (NIOC) sign a $40 billion memorandum of understanding. Gazprom plans to invest in the Kish, North Pars and South Pars gas fields. The French (Total), Italians (ENI) and Chinese fought hard for the latter. But even the Chinese, with their “deal of the century” for a quarter of a trillion dollars, were not allowed to enter South Pars by the Persians.
Actually, if these plans are destined to come true, we can talk about creating the most powerful gas monopoly in the world under the Russian roof. Not without reason at the Astana summit, under the guise of which the meeting of the heads of Russia, Iran and Turkey took place, was attended by Erdogan.
Formally, he came to resolve issues related to Syria and the Kurds in the north of the country (PKK), which are a serious headache for him. But behind the PKK, smiling and waving, are the Iranian IRGC, or rather, Al-Quds with its network proxy apparatus, and Moscow. So Erdogan will have to reckon with both Tehran and Moscow. Isn’t that why he had a mournful face throughout the summit?
The fact that Putin and Khamenei still agreed on something is also evidenced by the fact that the Iranian leader indirectly supported the actions of the Russian Federation in Ukraine (“if you had not taken the initiative, the other side had unleashed a war on its own initiative”), and through his military General announced his “readiness to export weapons.”
The price of such an alliance - investments, partnerships in oil and gas, Syria and Iraq, arms supplies - is hardly possible without including the S-400 in the bill. For without a Russian nuclear missile shield, Khamenei is hardly ready to make such high stakes against the US and Israel.
Let’s also not forget that Iran’s nuclear program continues outside of the deal, and this is what the Iranian leader sees as the only possible means of sovereignty. Obviously, Khamenei will continue to trade with the West, and the “window of diplomacy” will be open to the last, no matter what. That is, until about the end of the year, he will increase trading with the United States to the maximum and see if the Russian scheme works.
Putin has carte blanche in his hands today, which he can use. “The New World Order” is the headline of the Iranian edition of Mehr today. In it, Putin’s visit is considered precisely in the context of an alternative to Biden’s visit to the Middle East.
The stakes are high, the risks are serious (to the point that Moscow has put everything in Iran on one political force), the game is grandiose, but it is not over yet.
So there you go. “Unexpectedly” plans to default.
Unexpected but exactly who??
Flimsey Grahamnesty doesn’t think we can spend enough money in Ukraine.
They need to push Russia out so they can get their oil fields working again. THen they can make good on their debts.
This potential default is brought to you by Russia along with 8 million homeless people.
So the neocon hat? Does that come with the name or no clue about what BRICS...etc can do to us. I bet you look real good in a bikini you friggin moron. You are selling out our children claiming to be a mom. Idiocracy was not an instruction manual you dolt.
“If anyone believes the Biden Crime Family left behind $85bn dollars worth of military equipment because they are inept, they’re delirious.”
I agree.
“This episode of What’s Ahead sounds the alarm over what’s unfolding in the Ukraine war. Despite embarrassing setbacks and enormous casualties, Putin believes he can still win.
Russian forces have been grinding away in the eastern part of Ukraine. The Biden Administration is now supplying some high-tech mobile rocket systems but, AS USUAL, TOO LITTLE AND NEEDLESSLY LATE.
Realizing that Biden won’t supply Kiev with what it needs to win, PUTIN IS COUNTING ON U.S. and European fatigue as well as fear of critical Russian gas supplies to Europe being cut off. This would, in effect, force Ukraine to make concessions, amounting to a victory for Moscow.
Such an outcome would NOT ONLY UNDERMINE European security but also have calamitous repercussions around the world, starting with Beijing and Taiwan.
It may seem PARADOXICAL, but for the SAKE OF WORLD PEACE the U.S. should be giving Ukraine all it needs to repel the invader.”
- Steve Forbes
Steve Forbes is Chairman and Editor-in-Chief of Forbes Media. Steve’s newest project is the podcast “What’s Ahead,” where he engages the world’s top newsmakers, politicians and pioneers..
https://www.forbes.com/sites/steveforbes/2022/07/22/the-moment-of-truth-is-coming-in-the-russia-ukraine-war-steve-forbes-shares-insights-on-putins-attack/?sh=afe609e4a5a5
It’s got some decent humor and Malcolm McDowell in it.
UKRAINE IS A MONEY LAUNDERING SCAM FOR RATS AND THE UNIPARTY
“So the neocon hat? Does that come with the name or no clue about what BRICS...etc can do to us.”
If you are open, this is a great article that can provide insight structure to clarify and expand your politics thoughts. :)
BRICS In The New World Energy Order: Hedging In Oil Geopolitics: BRICS vs. G7
“The acronym BRIC was coined by Goldman Sachs economist Jim O’Neill in 2001 to give an analytical lens to investors for a group of rapidly growing emerging markets (Brazil, Russia, India and China). He believed that the BRICs would come to increasingly challenge the economic dominance of the developed economies of the G7.
The first formal summit of the group was held in 2009, with South Africa joining in 2010 to constitute BRICS. The group accounts for 40% of the world’s population and just over a quarter of global GDP. To put this in context, the G7 countries with a far smaller population base constitute just over 30% of global GDP on purchasing power parity.
It is no surprise that both Moscow and Beijing are working on the creation of an international reserve currency and an integrated inter-bank payments system based on a basket of BRICS currencies to counter Western sanctions. For countries outside the US-led alliance, BRICs membership could serve as a hedge to the threat of secondary sanctions by the G7 or NATO.
China’s invitation last month to thirteen countries including Indonesia, Kazakhstan, Nigeria, Senegal, Thailand and the UAE to apply for BRICS membership no doubt has this motivation between the lines.’
“In times like these it is immature—and incidentally, untrue—for anybody to brag that an unprepared America, single-handed, and with one hand tied behind its back, can hold off the whole world.
No realistic American can expect from a dictator’s peace international generosity, or return of true independence, or world disarmament, or freedom of expression, or freedom of religion -or even good business.
Such a peace would bring no security for us or for our neighbors. “Those, who would give up essential liberty to purchase a little temporary safety, deserve neither liberty nor safety.”
The Zelensky Plan; Gather the money, disperse it via secret bank accounts, collapse the economy, lose the war and get out of town in the middle of the night like this guy (who everyone has already forgotten)
Like “The Producers” of international finance.
Well said, fine analysis- you haven’t bought into the corrupted Western MSM, the vegetable head’s narrative, or the Saint Zelensky agenda. Let me guess, you did basic homework and applied some simple logic.
The good thing is people are starting to wake up, most were fooled by Biden’s Covid vax hoax, ….fool me once, fool me twice….
I think that a forbidden (Getty) image.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.