The wheels are falling off the clown cars which are the EU and Ukraine. Their arses are hanging out of their clown suits and their clown horns are sounding increasingly squeaky.
I can’t quite understand how the IMF can justify extending fresh credit to a country that has no reasonable prospect of repaying even its existing debts.
Is the United States or the EU guaranteeing these loans or is there perhaps some other secret or confidential agreement in place?
The IMF is fairly smart about this. They haven't actually committed to issuing the new loans yet, and if they do, the Ukrainians will only be given something like $1 billion at a time. They have unlimited justifications to cut the program if the Ukrainians don't do precisely what they want in terms of governance, taxation, accountability measures, debt agreements with other entities, etc. The IMF is also a "preferred creditor" for Ukraine, which means that they'll be the first to be paid off in the event of a default or debt restructuring. This is all standard IMF procedure, and they have an excellent track record of both being repaid and exercising significant control over their debtors.
That clarifies things a bit, although to me it still seems a bit like buying Confederate bonds in 1863, or investing in Austro-Hungarian war loans in 1918.
I suspect that they’re under a bit of pressure.
Thanks once again - I greatly appreciate your generosity in sharing your insights and expertise with your readers.
The UK and Japan guaranteed One of the IMF loans at least. That was admited publicly. Wouldn't be surprised if it was the case for all of them. See Alex Krainer's Coming Collapse of Britain. 😉🤑🤪
Also UkroNam Ukraine has destroyed the American economy, for most people, if folks lives weren't already destroyed before it, they we are certainly blown financially to smithereens now...
So procedurally they're toast. I think, though, the ECB's protestations are intended mainly to get the US to chip in. If and when this happens, they'll set aside principles, declare systemic threat to the banking system, Raison d'Etat, or simply invent new and never-before-heard legal arguments, and cut a check to the IMF. I can see tho how EU politicians want to avoid being blamed for willfully handing the klepto's in Kiev another year's worth of what could've been investment in the continent's own future.
As far as the war, Washington is almost certainly just stalling for time rather than seriously trying to settle the conflict - can be expected to send Ukraine weapons even if not paid for, provided whoever takes over for team Zelensky keeps them dying at a controlled enough rate that they can make it thru 2028.
The wheels are falling off the clown cars which are the EU and Ukraine. Their arses are hanging out of their clown suits and their clown horns are sounding increasingly squeaky.
Best circus clown show ever.
Thanks for sharing these insights.
I can’t quite understand how the IMF can justify extending fresh credit to a country that has no reasonable prospect of repaying even its existing debts.
Is the United States or the EU guaranteeing these loans or is there perhaps some other secret or confidential agreement in place?
The IMF is fairly smart about this. They haven't actually committed to issuing the new loans yet, and if they do, the Ukrainians will only be given something like $1 billion at a time. They have unlimited justifications to cut the program if the Ukrainians don't do precisely what they want in terms of governance, taxation, accountability measures, debt agreements with other entities, etc. The IMF is also a "preferred creditor" for Ukraine, which means that they'll be the first to be paid off in the event of a default or debt restructuring. This is all standard IMF procedure, and they have an excellent track record of both being repaid and exercising significant control over their debtors.
Thank you.
That clarifies things a bit, although to me it still seems a bit like buying Confederate bonds in 1863, or investing in Austro-Hungarian war loans in 1918.
I suspect that they’re under a bit of pressure.
Thanks once again - I greatly appreciate your generosity in sharing your insights and expertise with your readers.
The UK and Japan guaranteed One of the IMF loans at least. That was admited publicly. Wouldn't be surprised if it was the case for all of them. See Alex Krainer's Coming Collapse of Britain. 😉🤑🤪
Also UkroNam Ukraine has destroyed the American economy, for most people, if folks lives weren't already destroyed before it, they we are certainly blown financially to smithereens now...
So procedurally they're toast. I think, though, the ECB's protestations are intended mainly to get the US to chip in. If and when this happens, they'll set aside principles, declare systemic threat to the banking system, Raison d'Etat, or simply invent new and never-before-heard legal arguments, and cut a check to the IMF. I can see tho how EU politicians want to avoid being blamed for willfully handing the klepto's in Kiev another year's worth of what could've been investment in the continent's own future.
As far as the war, Washington is almost certainly just stalling for time rather than seriously trying to settle the conflict - can be expected to send Ukraine weapons even if not paid for, provided whoever takes over for team Zelensky keeps them dying at a controlled enough rate that they can make it thru 2028.