Congress wasted no time in extending billions in low interest loans to Ukraine since the Russian annexation of Crimea. Of course no such help went to U.S. homeowners when they were getting foreclosed on left and right at the peak of the housing crisis (and it continues for many). Nor have the jobless or hungry kids gotten any sympathy as Congress recently cut unemployment insurance benefits and foods stamps.
Nothing for Americans, but our government is tripping over itself to help Ukrainians.
Now for the best part. You know how the Obama Administration has been talking tough with respect to economic sanctions on Russia? So we find out that the U.S. is paying half of Ukraine's gas bill that is in arrears to Russia.
Not only is this another slap in the face for Americans who have seen their own heating subsidies cut, but the U.S. is now subsidizing Russia by paying Ukraine's gas bills. That equates to profits to Russian gas companies. These are Obama's tough sanctions? What a joke. Does anybody in this Administration have a brain?
It's the Keystone Cops running the show.
Sanctions only harm the little people.
ReplyDeleteRussia made it pretty clear they expected their gas bills to be paid (crazy capitalists) and even gratuitously suggested the EU cut the check.
However, if the EU cut a check it wouldn't go over very well wth the tens of millions being punished with austerity for their own good?
Russia earlier made a publicly reported offer to the Ukraine, a much richer financial offer including their continued gas discount. The gas discount amounted to billions in real aid over the last 20 years. Russia also purchased a $3 billion Ukrainian bond in the recent past.
The US which sponsored the coup d' etat in Keiv cannot have Russia publicly point out the obvious, when GAZprom turns the gas off. That is among other things, --- some friends you have in the EU/US who would allow you to freeze rather than help you out with an overdue bill?
The US either with/through the EU or the IMF has to fix what they broke.
Setting all that aside, Obama and his foreign policy team are failures at every turn it seems.
Seve I was looking into this and iirc the previous Admin in Ukraine (the guy who got poisoned but didnt die?) was backed by the US and borrowed like $140B after he won the election and now he is in semi-retirement and they are having trouble paying back the loan under the new admin...
ReplyDeleteSo if Ukraine went over to the "Russian side" now, probably kiss whatever is left on that $140B note goodbye...
It would be interesting to see who is on the hook for the 140B... they may have had the IMF broker it but it is probably the US govt ultimately... perhaps some private banks with govt guarantees....
rsp
read Michael Hudson:
ReplyDeletehttp://michael-hudson.com/2014/03/ukraines-boomerang-aid/