Eurobond Medicine for Ukraine

Weimar Republic Economics

Shortly after the Russian Army crossed into Ukraine  on February 24, 2022, the United States, NATO, and the European Union brought massive financial sanctions against the Russian Federation and froze approximately $300 billion in Russian financial assets held in allied banks around the world. Most of these assets are held in Euroclear, a major Belgian based clearing bank in Brussels, but smaller amounts are being held in Japan, Canada, the UK and the U.S.

The interest on these frozen financial assets is already being used to help Ukraine, but this has been opposed by many EU members, especially Hungary. Furthermore, the interest is only a drop in the bucket compared to Ukraine’s needs. The United States is now funding the Ukrainian government at close to $50 billion per year. Military costs run at least that much more. At this point, Ukraine is almost totally dependent on the United States, NATO, and the European Union.

The European Union and NATO were hoping to confiscate or use whatever subterfuge  necessary to use all the Russian assets to fund Ukrainian war costs against the Russians. But many bankers rightly saw that confiscating sovereign national assets was a precedent that could destroy confidence in national and international banking systems. Nations, businesses, families, and individuals want their assets to be safe and that includes safe from political issues, politicians, and schemers.  Past coercive actions by the European Union have been unsettling to its members. Moreover, the Ukraine War is becoming increasingly unpopular with the European public.  The prime ministers of Hungary (Viktor Orban).  Slovakia (Robert Fico), and now the Czech Republic ( Andrej Babis) seem to be forming a growing coalition of opposition.

Furthermore, the pro-war  leaders of France, Germany, and the UK have devastatingly low public approval ratings. According to Statista, France’s Macron has only 13 percent approval and 79 percent disapproval. Germany’s Merz has 24 percent approval and 70 percent disapproval.  Britain’s Starmer has 24 percent approval and 67 percent disapproval.  

In contrast, Belgium’s new (since February 2025) and conservative  Prime Minster, former leader of the New Flemish Alliance Party, Bart De Wever, has strongly opposed any scheme that threated Belgium’s fiscal and financial integrity or might subject Belgium to unfavorable legal complications and consequences.   

However, German Prime Minister Friedrich Merz and EU Commission President  Ursula von der Leyen have pushed hard to keep the Ukraine War going.

On December 19, 2025,  the European Council approved a loan of 90 billion euros to Ukraine to conduct war against the Russian Federation and conduct Ukrainian government for the years 2026 and 2027. This is approximately $106 billion in US dollars. The loan will be funded by the European Union issuing bonds on the capital markets. The capital will be interest-free to Ukraine. The funds will be backed by the European Union Budget. The bonds will theoretically be paid off with Russian financial assets now frozen in Euroclear, a Belgian Clearing Bank, when Russia agrees to pay war damage reparations to Ukraine—estimated by Ukraine to be about $700 billion.

But who outside of delusional  liberal la-la land expects Russia to pay reparations to Ukraine?  The Russians are now clearly winning the war, and they blame the war on American, British, and NATO plans to weaken and destroy Russia. Russia is now much stronger than in 2022. The Russian Army now with 1.5 million soldiers is three times the size of the combined manpower of the U.S. Army and Marine Corp ground forces. The Russian armed forces have also advanced in technology and are at least at qualitative parity with the U.S.  In some areas—industrial weapons production, air defense, and hypersonic missile development—they have clear technological leads.

In order to get Hungary, Slovakia, and the Czech Republic to vote for this bond issue, the EU had to agree that these nations would not be held responsible for any debt or legal consequences. They also had to override previous European Union governing rules protecting the rights of individual member countries.

When do we expect Russia to agree to pay war reparations to Ukraine? Despite billions of NATO and EU propaganda dollars spent to make it seem like Ukraine is winning the war or can win the war, the Russians are now clearly winning on the ground, on the Black Sea, in the air, and in the stratosphere.

The new Merz and von der Leyen loan is essentially a fraud. It is using frozen Russian assets as indirect collateral for a loan that has very little possibility of repayment. The new Europeans rules for these assets is that the “freeze” does not have to be renewed by vote every sixth months but is permanent until a majority vote occurs.

The European Union Council surely knows full-well that these funds will probably not last through half of 2026, and more fraudulent financial schemes will be necessary.  The resolution included this sentence: “The Union reserves its right to make use of [Russia’s immobilized reserves] to repay the loan.” This has made more European leaders nervous. Italian Prime Minister Giorgia Maloni has now declared she is against the loan.

Russian lightning soon struck. Vladimir Putin and the Russians acted swiftly and powerfully, seizing entire European industries within Russian borders including German automobile manufacturing (BMW, Volkswagen and Mercedes worth $36 billion) and all pharmaceutical factories along with their patents. According to the Richardson Post (Harry Richardson 12-24-2025), the total European loss to Russian seizures of EU businesses is already at $153 billion. Russian Foreign Minister Sergey Lavrov is also in the process of suing the European Union for its role in destroying the Nordstream II gas pipeline. (Total cost $10 billion).

Richardson believes the European Union may not survive shooting itself in the foot with flagrantly dishonest Ponzi schemes. In my opinion, this will also be because the EU has become so authoritarian, coercive, and destructive to the preservation of national cultures.

Predictably, Eurobonds have already had to add 1.5% to its interest rate to compensate for greater risk. Will 1.5% be enough? Greek economist and former Financial Minister of Greece, Yanis Varoufakis estimates that an additional burden of 1.5% interest over a decade could cost the European Union many times the $300 billion the EU is contemplating stealing from the Russian people.  Meanwhile, the fiat Euro currency is falling dramatically compared to gold-backed currencies.

This kind of fiscal folly and irresponsibility is reminiscent of the German Weimar Republic in 1922-1923. Already overburdened with punitive World War I reparations imposed by the allied victors, the Weimar government continued irresponsible printing of fiat currency to meet social welfare political demands. This created German currency hyperinflation that reached 50% per month in November 2023. A loaf of bread that cost 0.6 marks in 1918 cost 201 billion marks in November 1923. All financial savings and currency became worthless and economic trade collapsed. Fiscal reforms and a new currency backed by hard assets, the Rentenmark, finally restored economic and monetary confidence, but millions of German families were impoverished or suffered devastating economic losses.  

According to the BBC and the Kiel Institute, from January 2022 through August 2025, the United States spent $131 billion on the Ukraine War, European members of NATO, $202 billion, Canada $15 billion, and Japan $16 billion, plus some others for a total of about $366 billion. In December 2025, Congress voted to give another $800 million to Ukraine with a majority of House Republicans voting against it, but a majority of Senate Republicans led by Ukraine War enthusiasts Mitch McConnel and Lindsey Graham voting for it.

These numbers cannot express the tragedy that has befallen Ukraine. Ukrainian military deaths may be somewhere between 1.0 and 1.8 million. Contrary to CIA-MI6-Ukrainian propaganda, Russian military deaths are likely not more than 120,000, which is still tragic. The big lie and coverup is that the ratio is probably at least 10 dead Ukrainians to one dead Russian. This is the obvious consequence of an overwhelming Russian advantage in firepower and air dominance. In addition, Ukraine is economically devasted and dependent, with blighted hopes of immediate recovery.    

Republicans may find that Ukraine and Venezuelan War enthusiasm significantly reduces voting enthusiasm in their better-informed base. This may be enough to hand House and Senate majorities back to the Democrats despite the increasing insanity of Democrat social, cultural, and economic ideologies. This could overturn the progress the Trump administration has achieved in immigration and other domestic social, and economic policies.  

Moreover, the propaganda narrative that the Russians started the war with an “unprovoked invasion” of Ukraine on February 24, 2022, is an enormous lie. The first major step towards war was an American-backed declaration in 2008 to make Ukraine and Georgia NATO members. CIA and MI6 propagandists also launched a disinformation campaign to demonize Russian President Vladimir Putin and Russia. Most important was that the U.S. and UK financed and orchestrated the overthrow of the Ukrainian government in February 2014 to replace its elected pro-neutral president friendly to Russia with a pro-American an anti-Russian government that would become an anti-Russian bulwark prepared to weaken and destroy Russia.

 Following the “Maidan Revolution” and coup, the Ukrainian government immediately started a campaign of cultural genocide against the 38 percent Russian ethnic minority that dominated 11 states in southern and eastern Ukraine. Regional protests were put down brutally by the Ukrainian Army, which began an “anti-terrorist”  civil war against the predominantly Russian regions in 2015. It was temporarily ended by the Minsk agreements and cease-fire in 2015, but these agreements were never intended to be honored by German, French, and Ukrainian signatories, nor their American and British allies. They were eventually obviated by Ukrainian President Zelensky’s vow to reconquer the Donbas regions and Crimea in March 2021.

Two Rand Corporation military-think-tank documents published in April  2019 outlined U.S. plans to draw Russia into a war with Ukraine, enabling US, EU, and NATO economic and financial sanctions against the Russians in order to cause the collapse of the Russian economy, facilitate regime change, and enable the breakup and exploitation of Russian territory and resources. Russia was thus subject to an existential threat orchestrated by the U.S. and UK through using Ukraine as a proxy. Most of what the American and European people and the Legacy Media, including Fox,  know about the Ukraine War is CIA, British MI6, and Ukrainian propaganda. President Trump is being influenced by this same dishonest propaganda, which is reinforced by those whose thinking is dangerously frozen in Cold War doctrines that are 35 years outdated.

These last paragraphs are by necessity only an abbreviated summary of the events and ideology that has led the U.S and much of NATO on a path to war governed by false narratives and unconscionable distortions of truth and reality.

“Fallacies do not cease to be fallacies because they become fashions.”—G . K. Chesterton

“It is not ‘unloving’ to tell the truth. It is not ‘divisive’ to point out error. It is not ‘an option’ to stand against evil, it is a divine command.”—Walter Martin