Since we’re a bit “in our feelings” when it comes to the current state of presidential politics, we’re eschewing President’s Day in favor of commemorating something — anything — else. 

Take your pick on February 19: National Arabian Horse Day… National Chocolate Mint Day (not for everyone)... Or even Tug of War Day. 

But since we’re in the writing biz, we thought preventing plagiarism is as good as anything else. And so we won’t… 

Instead, we’re featuring an underreported story from Paradigm’s macro expert Jim Rickards: 

“Ukraine is practically broke,” he says. 

“In the face of this, Biden came up with a harebrained scheme to steal $300 billion of Russian reserves (in the form of Treasury securities) now frozen in U.S. and European banks.

“Biden has some buy-in on this from GOP senators.” On Jan. 23, the Senate Foreign Relations Committee voted 20-1 in favor of the unprecedented Rebuilding Economic Prosperity and Opportunity (REPO) for Ukrainians Act. The lone holdout, by the way, was Sen. Rand Paul (R-KY).

“If it were to pass the full Senate and House of Representatives and be signed into law by President Joe Biden, as expected, the act would pave the way for Washington's first-ever seizure of central bank assets from a country with which it is not at war,” Reuters notes. 

“Freezing assets happens with some frequency,” says Jim, “but actually stealing them is tantamount to a default by the Treasury.” 

“If Biden gives the stolen $300 billion to Ukraine, this would destroy confidence in the U.S. Treasury securities market, hike interest rates, downgrade the U.S. credit rating and more.” 

Send your opinions to, feedback@newsyoucanacton.com

Your Rundown for Friday, August 18, 2024...

“Is This the Dumbest Plan Ever?” 

“Some genius dreamed up a way for Ukraine to issue ‘reparation bonds,’” Jim says.

“Kyiv could raise money by selling bonds backed by future claims for war damages against Moscow,” says British journalist Hugo Dixon at Reuters.

“It would be better if Ukraine’s backers just gave it more cash” — yes, Dixon actually wrote these words — “as the United Kingdom did [last month],” he says. 

“But elsewhere fatigue is setting in.”

Hmm, are you tired of the latest U.S. giveaway? A $95 billion foreign aid package for Ukraine, Israel and “other allies” — which passed the U.S. Senate, but House Speaker Kevin Johnson allegedly says the House won’t be “rushed” into passing the bill.

“Issuing ‘reparation bonds’ would circumvent these problems,” Dixon says glibly. “Ukraine would sell securities which pay out if — and only if — it receives reparations from Russia for the damage done by the war. Interest payments could also roll up and only become payable if Kyiv gets compensation.”

Jim clarifies: “The reparation bonds would be secured by the $300 billion of frozen Russian assets. If Russia wins the war (they will) and no reparations are actually paid, the $300 billion would be used to pay off the bonds.

“It’s like a deferred steal instead of an immediate steal,” Jim says “Wait, it gets better…

“Who would actually buy these bonds? The Wall Street eggheads would structure them in tranches with some [debt] more senior in payment” (or debt that ranks highest in the order of repayment).

“The senior tranches (probably AAA-rated just like subprime mortgages in 2006) could be sold to institutions and the lower-rated tranches would be sold to … wait for it … central banks!

“These central banks would buy the reparation bonds with printed money,” Jim adds. “That printing causes inflation. So you end up paying the price since your money is worth less.

“This idea has everything,” he closes, “stolen collateral… inflation… and the destruction of confidence in the U.S. dollar.”

You tell me, reader: “Is this the dumbest plan ever?” Has Ukraine fatigue set in for you? 

Send your comments and questions to, feedback@newsyoucanacton.com

The market’s closed today for, ahem, the day I shall not name. 

Happy National Prevent Plagiarism Day!