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The Honeymoon Is Over: Ukraine To Stun Citizens With 40% Gas Price Hike

Tyler Durden's picture




 

Back in 2011, when as part of the Arab Spring one after another regime were toppled in North Africa following violent coups, not without substantial support by the US foreign service and the CIA, the local population was delighted - after all there is nothing quite like the specter of Hope and Change to lift one's mood, and murder the reigning dictator. Unfortunately, what is usually not discussed, is that within a very brief period of time, usually within a year or two, the post-coup nations promptly reverted to violence and kicked out the ascendent coupy rulers themselves. Hardly new, this is process has been observed in history throughout time, most notably with the French revolution, where the concept of the Thermidorian Reaction was first penned. Most recently, this was best captured by events in Egypt in the past year, when the Hillary Clinton-blessed regime of Morsi was toppled last summer with even more violent witchhunts organized against its Muslim Brotherhood supporters. No wonder one hardly hears a peep about this particular US success story.

So where should we look for the next such process? Why in Ukraine of course. Only right now the general population is still in its euphoric Hope and Change phase. Understandable - the evil regime has been toppled and the new and pure (even though in reality they are just as corrupt as the old ones) politicians are in charge, so why not look to the future with rose-colored sunglasses?

Alas, Ukraine's honeymoon period with its new rulers may end far sooner that most expect, and it will be certainly accelerated with news such as this. A few hours ago, Interfax reported that Ukraine expects to increase domestic gas prices by 40% once discounted import prices from Russia expire, the country’s Energy Minister Yury Prodan told journalists in the European Parliament on Thursday.

Just as we warned a few weeks ago when we were discussing the creeping capital controls gripping the crisis-riddled country with the foundering currency and its rapidly depleting reserves, the first thing that usually happens, with or without foreign aid, is runaway inflation. And a 40% jump in one of the core staples will certainly dent much of the quite brief and tenuous hope and change the population may have had as a result of recent events. Because once the downstream effects of nat gas funnel through the economy, we wouldn't be surprised if Ukraine ends up with hyperinflation of all goods and services within the year.

What is certain, is that the struggling population, most of whom never wanted the recent political overhaul and were quite happy with life as it was, will suddenly demand a return to the living standards under the old, if "horrible" regime, and demand an even quicker overhaul of the current administration.

Something Putin knows all too well.

Why does he know it? Because current events are a carbon copy of what happened in 2007 that led to the infamous 2008 Ukrainian political crisis.

What happened in 2007? This:

Ukraine agreed to pay close to $180 for every thousand cubic meters of natural gas it gets next year from Russia, Russia's state-run gas monopoly said, marking a nearly 40% increase over current prices.

 

The deal, which comes after months of negotiations between Moscow and Kiev, is part of what Russia describes as an effort to stop giving energy supplies to former Soviet republics at cut-rate prices.

 

That effort escalated into a full-blown dispute two years ago, when Russia cut supplies to Ukraine. The dispute affected some European countries, raising concerns about Russia's reliability as Europe's main energy supplier.

 

OAO Gazprom said Ukraine agreed in a deal signed by Ukrainian Energy Minister Yury Boiko to pay $179.50 for every thousand cubic meters it buys from Russia next year. Gazprom said transit prices would be set at $1.70, the price for gas shipping across Russia.

 

Ukraine currently pays $130 for every thousand cubic meters of gas from Russia.

 

In October, Russia urged Ukraine to make good on what it said was a $1.3 billion debt for gas shipments, a demand described by some Ukrainian officials as an effort to influence Ukrainian politics after September's parliamentary elections.

 

The deal comes a week after Gazprom said it would pay as much as 50% more next year for natural gas from Turkmenistan. Russia controls nearly all gas exports from the Central Asian nation.

Funny how history not only rhymes, but sometimes repeats itself. Verbatim.

 

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Thu, 03/20/2014 - 15:33 | 4573955 fightthepower
fightthepower's picture

Suck it Nazi's!

Thu, 03/20/2014 - 15:35 | 4573962 Divided States ...
Divided States of America's picture

I think more Ukranians may wish to go back to Russia after today's headlines.

Thu, 03/20/2014 - 15:39 | 4574001 fightthepower
fightthepower's picture

Lets see, Bank tax...Check, Gold Stolen...Check, Fuel Price increase...Check

 

Next, anything useful will be sold to Goldman Sachs.

 

Good Job dipshits...

Thu, 03/20/2014 - 15:41 | 4574015 BlackChicken
BlackChicken's picture

Freedom was never free.

Thu, 03/20/2014 - 15:47 | 4574053 Thought Processor
Thought Processor's picture

 

 

'Free' Market (Crony) Capitalism Baby.

 

Got a love it.

Thu, 03/20/2014 - 15:55 | 4574089 Dr. Richard Head
Dr. Richard Head's picture

I guess those fiat worshippers will be happy since price inflation mesans growth!!!! 

Thu, 03/20/2014 - 16:53 | 4574342 0b1knob
0b1knob's picture

What honeymoon?  I don't see how the analogy works, except for the fact that the USSA got fucked.

Thu, 03/20/2014 - 17:03 | 4574375 Latina Lover
Latina Lover's picture

Just the beginning of the IMF/Nuland fuck job.  I guess those Crimeans weren't so stupid for joining Russia.

Thu, 03/20/2014 - 17:17 | 4574419 PT
PT's picture

Whew!  Crimea got out just in time ...

Thu, 03/20/2014 - 17:19 | 4574424 ZerOhead
ZerOhead's picture

The real Ukrainian shitstorm hasn't even started yet...

Wait until those eastern factories that produce most of the nations exports (to Russia mainly) shut down. Lots of jobs will be lost and trade imbalance will kill the currency.

Then while the bankers suck the remnants of the carcass dry... the fertile farmland in the west will be auctioned off to German and US agroindustry.

Totally fucked. Good luck.

Thu, 03/20/2014 - 17:51 | 4574524 Freddie
Freddie's picture

All the US and western media is silent about the Nuland NWO ZATO Neo Con Nazi thugs running the coup.  Even places like National Review will delete any posts within seconds.   It is all eveil Putin. 

Thu, 03/20/2014 - 17:57 | 4574544 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Eastern Ukraine, exit stage right.... I meant to the Russian stage.

Thu, 03/20/2014 - 18:29 | 4574652 ZerOhead
ZerOhead's picture

< East Ukraine will leave

< East Ukraine will stay

As conditions are primed to deteriorate that is exactly what those in the East will soon be thinking... even the Ukrainian speaking ones.

Could you imagine Putin saying 'No' ?

Could you imagine Obama saying 'OK' ?

Thu, 03/20/2014 - 19:21 | 4574830 ptolemy_newit
ptolemy_newit's picture

repost:

Cruise Russia and Ukraine

Crimea should and is deciding its future based on security!  Russia should and is supporting the east of Ukraine to protect is notational security.  It will never back down from this.

Russia will end up with the industrial east, from Chernihivs’ka , taking Kiev airport (missile batteries and transportation)  and downstream to east of Ukrainka (artillery). 

Continue down the central river systems  to Kremenchuk and Uvileine (more airports goe to Russia).  Follow the water flow to complete control over Zapariz’ka and all the way to taking Kherson, complete the new(old) western Russia.

 

2/3 of Ukraine aligned with Russia, some by election, some by the USUK sanctions that will lead to civil war.  The eventual invasion forced by israeli acts of war.

Thu, 03/20/2014 - 21:05 | 4575196 Ifigenia
Ifigenia's picture

so the bread distribute to ukrainians by jewish Victoria Nulland in Maidan Square was poisened.

Thu, 03/20/2014 - 16:17 | 4574201 Lewshine
Lewshine's picture

40%?...That's a peach of a price! That should send the Dow to 20,000 in a hurry...In a faster hurry I mean.

 

All news is good news! To the MOON Alice!!!

 


Thu, 03/20/2014 - 15:45 | 4574036 SWRichmond
SWRichmond's picture

Lets see, Bank tax...Check, Gold Stolen...Check, Fuel Price increase...Check

Exactly.  Welcome to the EU, citizens!  Give us your money!

Thu, 03/20/2014 - 15:52 | 4574080 McMolotov
McMolotov's picture

The mafia is intellectually honest about what they do, which is more than I can say for these kleptocrats.

Thu, 03/20/2014 - 17:00 | 4574355 Divided States ...
Divided States of America's picture

Looks to me like the 'West' which brags about operating under the principles of democracy....BUT in reality only cares about money (tax levies, gas price hikes, stolen gold like fighty above mentioned)

while Russia (Putin), which the 'West' has labeled as a rogue evil empire, spent so much money in mobilizing its troops to protect his people, which depicts more of a democracy than what we find in the US.

The word 'Democracy' is just a load of baloney.

Thu, 03/20/2014 - 18:52 | 4574731 Againstthelie
Againstthelie's picture

 

When i came to power, i took over a nation which was a democracy. Indeed, as long as Germany was a democracy we saw that everyone in the world came to their help and aid. Yes, the German people used to live in a democracy, and had been plundered and squeezed dry. No, what does democracy or authoritarian state mean for those INTERNATIONAL HYENAS? They're not interested in either!

They are only interested in one thing: Is anyone willing to let themselfes be plundered, yes or no? Is anyone stupid enough to keep quiet in the process, yes or no? And when a democracy is stupid enough to keep quiet, then it is good! And when a authoritarian government declares: "You do not plunder our people any longer neither from the inside or outside, " then that is bad. (today: think about all the authoritarian states in the arabic world, that are alliies of the west)

 

If we, as a so called "authoritarian state", which differs from the democracies by having the people behind them -  (applause) If we as an authoritarian state had also complied with all the sacrifices that the INTERNATIONAL PLUTOCRATS burdened us with; if I had said in 1933, "Esteemed Sirs in Geneva what would you have me to do?" "Aha! We will immediately write on the slate: 6 billions for 1933, 1934, 1935, excellent, we will deliver! Is there anything else you would like? Yes, ofcourse, Sir, we will also deliver that!" Then they would have said: "At last a sensible regime in Germany."

 Adolf Hitler, Nov. 8th 1940, Munich

 

Putin will NEVER get a good Jewish press - as long as he stays the old Putin.

Thu, 03/20/2014 - 21:10 | 4575211 Ifigenia
Ifigenia's picture

Just like Michael Corleone and Hyman Roth

Thu, 03/20/2014 - 15:51 | 4574070 e_goldstein
e_goldstein's picture

Next, anything useful will be sold to Goldman Sachs

Expect to see a huge influx of Ukranian "massage therapists" on backpage.com in the coming weeks.

Thu, 03/20/2014 - 17:27 | 4574449 hairball48
hairball48's picture

If there's a massage therapist that's tall, lanky, and blonde, a sort of Ukranian version Taylor Swift, send her to me please!

:)

Thu, 03/20/2014 - 19:04 | 4574770 e_goldstein
e_goldstein's picture

Contact Blankfein, he's the pimp.

Thu, 03/20/2014 - 15:55 | 4574088 duo
duo's picture

Now if Russia goes to Latvia, Moldova, etc., and says "become part of Russia and we'll "cancel" your debt to the EU and Western banks", what do you think they would do?

global debt holiday coming.

Thu, 03/20/2014 - 16:11 | 4574168 hungarianboy
hungarianboy's picture

I smell the EU will step in and pay for the 40% what will cost the europe taxpayer.

 

Thu, 03/20/2014 - 16:50 | 4574325 KickIce
KickIce's picture

Welcome to America!!!

Thu, 03/20/2014 - 15:41 | 4574016 NYPoke
NYPoke's picture

Like the poor guy in the picture, not only is he about to get his head lopped off, he is going to get buggered at the same time.

 

Welcome to the European Central Bank Hell.  Comes at you from both directions.

Thu, 03/20/2014 - 15:47 | 4574048 Stoploss
Stoploss's picture

Now you know why he kept the tanks rolling..

He knew this was coming.

After today, i would expect every break away country in the region, to raise both hands and start waving.

This is how the EU comes apart.

Thu, 03/20/2014 - 15:44 | 4574033 Canadian Dirtlump
Canadian Dirtlump's picture

Doubtlessly when the people revolt, it will be Putin and his evil cadre of neo imperial demons who were busy sowing foment. how dare putin question deposing a legitimately elected government and installing billionaire oligarchs and neo nazis illegally.

 

Auterity is good for the soul and the waist line hey comrade?

Thu, 03/20/2014 - 15:33 | 4573956 McMolotov
McMolotov's picture

"Coups have consequences."

Thu, 03/20/2014 - 15:34 | 4573965 john39
john39's picture

this is one of those 'cost' things that the obama puppet is always going on about... 

Thu, 03/20/2014 - 15:42 | 4574022 BlackChicken
BlackChicken's picture

Barry, Barry, you're quite the fairy,
Look at how well you lie...

Thu, 03/20/2014 - 16:03 | 4574121 krispkritter
krispkritter's picture

 ...fairy, and your wife is SO damn hairy!  

Thu, 03/20/2014 - 15:39 | 4574005 prains
prains's picture

it's hard to make demands when your beholden to another nation for something as socially structural as your source of fuel for heat......the entire episode seems ludicrous...... Why antagonize your provider when you have no other alternative. Create an alternative then deal with your oppressor. It's all ass backward and could eventually lead the US to be able to manufacture their ultimate end game.....start a war involving Iran and engulf the entire globe in a killing field so they can reset their economy.

Thu, 03/20/2014 - 15:44 | 4574032 McMolotov
McMolotov's picture

It makes perfect sense when you realize Ukraine is unwittingly just a pawn to be sacrificed.

Thu, 03/20/2014 - 15:49 | 4574063 prains
prains's picture

politically yes but man on the street ukranian I'd say, no. they're not so unwittingly going to be sacrificed. Maybe they didn't run the entire end game through their heads when they ousted their resident gangster but I'd be surprised if they hadn't started to wise up to what the russian and american wise guys are up to now.

Thu, 03/20/2014 - 15:55 | 4574090 McMolotov
McMolotov's picture

I would hope so, but never underestimate the gullibility of most human beings. Propaganda is a hell of a drug.

Thu, 03/20/2014 - 16:00 | 4574116 prains
prains's picture

Eastern Europeans have been living under the jackboot of one gangster or another for all of modern history. Pretty sure at this point they've worked up an immunity to the propoganda drug. Less sure they have the real means to actually do anything substantial. We can take heed in the west and watch to see what the people can come up with as a real solution, if any.

Thu, 03/20/2014 - 15:34 | 4573957 Gene Parmesan
Gene Parmesan's picture

Ouch.

Thu, 03/20/2014 - 15:47 | 4574038 CrashisOptimistic
CrashisOptimistic's picture

Wait a minute. This article has a problem. There are two factors in play.

1) The IMF has DEMANDED that countries stop subsidizing energy costs for their citizens, if they want bailouts.  This was done in Egypt.  It was done to a small extent in Greece.  Subsidized fuel gets burned.  Period.  If the price is high, consumption falls -- and if you're not an oil or gas exporter, consumption kills.  Ask Japan.  So the undoing of those subsidies are going to jack up price and that's probably what this 40% is about.

2) GAZPROM cut the price of gas to the Ukraine in November by 1/2, as reward for embracing the Russian option and rejecting the EU option.  That choice of who to join is what set off the riots.  But the point is, Ukraine has broken the deal.  GAZPROM has to double their current price to get them back up to Europe prices.  They reneged so they have to lose that price cut.

So the price increase coming to consumers should be FAR more than 40%.

Thu, 03/20/2014 - 15:52 | 4574079 Thought Processor
Thought Processor's picture

 

 

Funny.   The countries in question were not subsidizing their energy, they were simply selling it to their own citizens at cost (you know, maybe because their leaders thought their countries energy was their peoples to begin with).

Guess that's a no no.

 

Though I notice that Saudi Arabia has been doing this forever and yet we hear little about the IMF having any problem with it.

Hmmmmm............

 

 

Thu, 03/20/2014 - 15:58 | 4574105 CrashisOptimistic
CrashisOptimistic's picture

The Saudis don't import oil.  Nor do they borrow from the IMF.

The issue is consumption.  Iraq this summer will have Honda generators out on street corners burning gasoline to make electricity for the city block and power air conditioning.  Why?  Because they domestically subsidize gasoline.  If it's cheap, it becomes the solution for problems -- and up goes consumption.

If you're an oil exporter, you can subsidize for your people and the only thing it costs you is export revenue -- and if you have enough of that you don't care, because you have saved oil for your people's future.

ZH is sloooowly evolving to realize that money and debt don't matter.  Only oil does.

Thu, 03/20/2014 - 17:14 | 4574389 weburke
weburke's picture

.

Thu, 03/20/2014 - 19:32 | 4574877 Poor Grogman
Poor Grogman's picture

"Money and debt don't matter eh"

Crap!

Tell that to a farmer who has been forced to take on more and more debt due to being further down the inflation chain I.e (further from the source of the new money).

Due to the lag between production decisions and the sale of farm produce, which often run to several years. Higher monetary inflation means higher land value therefore higher taxes, also requiring increased farm production

"Get big or get out" is the rallying cry. Which translated means "take on debt and become a Banksters slave"

The sad day often arrives when the sale sign goes up out the front.

Money and debt DO matter, just as chains and shackles matter to the
prisoner. Looking at the prisoner you could argue that food and water is their main requirement, but remove the shackles and free them and they could simply feed themselves.

Energy is a much greater problem than it otherwise should be, in part because the purchaser demands to pay only with colored confetti printed out of nothing...

Thu, 03/20/2014 - 16:20 | 4574206 No Euros please...
No Euros please we&#039;re British's picture

I beg to differ. It was NOT done in Egypt, ask BG Group about that one.

Thu, 03/20/2014 - 16:54 | 4574345 emersonreturn
emersonreturn's picture

thank you CIO, as always your comments clear some of fog.

Thu, 03/20/2014 - 15:34 | 4573958 TruthInSunshine
TruthInSunshine's picture

Bullish!

OT: Reporter: WH Press Secretary Gets Questions from Reporters Before Press Briefing

It's just a show.

8:43 AM, MAR 20, 2014 • BY DANIEL HALPER

http://www.weeklystandard.com/blogs/reporter-wh-press-secretary-gets-que...

Thu, 03/20/2014 - 15:35 | 4573969 john39
john39's picture

total shock.

Thu, 03/20/2014 - 15:43 | 4574025 TruthInSunshine
TruthInSunshine's picture

about wait, there's now more (sounds like she's being threatened):

http://www.dailymail.co.uk/news/article-2585306/White-House-Press-Secret...

"My mistake and I own up to it": Phoenix reporter reverses course, says White House Press Secretary Jay Carney DOESN'T get daily briefing questions in advance

Catherine Anaya of KPHO-TV in Phoenix claimed Carney told reporters that White House correspondents often tell him their questions ahead of time

'If only this were true,' Carney told MailOnline

Anaya later walked back her story, but said that she was asked to submit a local-news question in writing before Wednesday's White House briefing

She conceded Thursday that she shouldn't have said the practice is common

Anaya also broke protocol by telling viewers about an 'off the record' meeting with Carney

**She said in a statement that she was mistaken about that also, but the statement disappeared from KPHO-TV's website in less than 30 minutes**

By DAVID MARTOSKO, U.S. POLITICAL EDITOR

PUBLISHED: 10:16 EST, 20 March 2014 | UPDATED: 14:21 EST,
20 March 2014

Thu, 03/20/2014 - 15:46 | 4574044 SWRichmond
SWRichmond's picture

Theatre for the masses.

Thu, 03/20/2014 - 15:49 | 4574061 TruthInSunshine
TruthInSunshine's picture

The "Press Conferences?"

Indeed. And well scripted theater.

Thu, 03/20/2014 - 15:34 | 4573959 PlusTic
PlusTic's picture

Shulda gone with Putin guys...it still isn't too late!

Thu, 03/20/2014 - 15:35 | 4573971 Bastiat
Bastiat's picture

 

Actually they did.  But the US/IMF sponsored "uprising" took care of that.

Thu, 03/20/2014 - 15:36 | 4573973 ebworthen
ebworthen's picture

I'm sure the Brussels Bandits and the Wall Street Warlocks can help them out.

NatGas Default Swaps (NDS's) or Gas Backed Securities (GBS's) tied to pension funds and individual account deposits.

If things don't work out too well the IMF will be there to enforce austerity, bail-ins, and Gold confiscation.

Welcome to the West.

Thu, 03/20/2014 - 15:36 | 4573975 Chewybunny
Chewybunny's picture

Looks like a great market for our gas. Let's sell sell sell baby. 

Thu, 03/20/2014 - 15:36 | 4573976 Oldballplayer
Oldballplayer's picture

The half life for the counter revolution seems to be getting shorter and shorter.

Thu, 03/20/2014 - 15:37 | 4573983 Debugas
Debugas's picture

Ukrainian parliament making plans to denounce Nuclear Non Proliferation Treaty

http://translate.google.com/translate?sl=ru&tl=en&js=n&prev=_t&hl=en&ie=...

Thu, 03/20/2014 - 17:58 | 4574546 Independent
Independent's picture

Is Israel going to bomb them, I mean they are neo nazis and hate Jewish people, and they have some nuclear reactors that are operating.  They are further along than Iran, maybe Israel should bomb them first.

Thu, 03/20/2014 - 15:37 | 4573989 krispkritter
krispkritter's picture

Putin's a bitch of a bill collector.  Ukraine's in over their head and they're depending on the 3 Stooges from the US(O'Brownie, McStain, and Ketchup Kerry) to 'help' them out.  Good luck with that.  

Thu, 03/20/2014 - 15:37 | 4573990 Grande Tetons
Grande Tetons's picture

Inflation expectations remain firmly anchored. Yep. 

Thu, 03/20/2014 - 15:38 | 4573994 Philalethian
Philalethian's picture

Hummmm...what goes up...must come down.

The world focuses on the distractions in the Ukraine, while the economy at home declines.

Meh, go figure.

Nationwide Home Sales Collapse: There Is No Recovery and This Chart Proves It:

http://www.shtfplan.com/headline-news/nationwide-home-sales-collapse-the...

 

Thu, 03/20/2014 - 15:38 | 4573996 Seize Mars
Seize Mars's picture

Welcome to USA-style slavery. Welcome to Zionism.

Thu, 03/20/2014 - 15:42 | 4574018 Debugas
Debugas's picture

you mean all this mess around Ukraine was predicted by russians back in 2009 ?

Thu, 03/20/2014 - 15:40 | 4574006 Dr. Engali
Dr. Engali's picture

Whoa... didn't see that one coming from the nazi fucks, now did you?

Thu, 03/20/2014 - 15:40 | 4574008 Mountainview
Mountainview's picture

Ukrainian will pass on the hike to the EU. Timoshenko will soon be back to do the deal.

Thu, 03/20/2014 - 15:50 | 4574011 Kaiser Sousa
Kaiser Sousa's picture

fucking neo-nazi ukranian cro-magnum morons...

as Kool Moe Dee would say -

'How you like me know....?"

enjoy your European Monetary Union honeymoon...

YOU SUCKA'S.....

Thu, 03/20/2014 - 16:12 | 4574169 ThirdWorldDude
ThirdWorldDude's picture

Thursday humor as reported by The Saker:

Ukraine accellerates its national suicide, but then decides to think it over

"First, they passed a law introducing visas with Russia.  Then, somebody realized that the amount of money sent home by Ukrainians working in Russia was roughly equal to 12% of the Ukrainian GDP.  Then, somebody also realized that most of the folks working in Russia are not from the eastern Ukraine, which actually has a semi functional industry and economy, but from the poor western Ukraine and that the only people hurt by the passing of such a visa regime would be the western Ukrainians amongst whom the vast majority of the neo-Nazis from the Right Sector and the "Freedom" Party are recruited.  So they "suspended" that decision."

Thu, 03/20/2014 - 16:36 | 4574282 NOTaREALmerican
NOTaREALmerican's picture

Seems like there are many bizarre forms of national suicide taking place.   

Most of them are so slow that the participants can't even see it.

Thu, 03/20/2014 - 15:41 | 4574014 Black Forest
Black Forest's picture

Let me be perfectly clear that +40 per cent are absolutely necessary to establish a strong western-style democracy.

Thu, 03/20/2014 - 15:43 | 4574027 screw face
screw face's picture

Can they pay in Euros....bitchez..

the Russians operate on a totally different set of algorithms.

 

 

 

Thu, 03/20/2014 - 15:45 | 4574031 starman
starman's picture

Long on dried up horse shit!

Thu, 03/20/2014 - 15:54 | 4574084 Deathrips
Deathrips's picture

Promises...or fuel?

Thu, 03/20/2014 - 18:01 | 4574559 Independent
Independent's picture

LOL you are so close to the truth Starman, back in the days when the Tatars enslaved the people of the Ukraine they would make them walk the steppe and pick up cow and horse dung which would be used for fuel since there are no forests there.  If you go to some places in Turkey they stack the cow dung on the side of the houses to dry.

http://en.wikipedia.org/wiki/Dry_animal_dung_fuel

Thu, 03/20/2014 - 15:47 | 4574047 joak
joak's picture

This is not the first consequence. Don't forget the West put the former central bank president in charge. He already planned to raise retirement age, reduce pensions of 50 % for those who continue to work, end of free care in hospitals... energy prices in general will skyrocket. 

And here is how members of parliament from Svoboda forced the director on Ukrainian national TV to resign : http://www.youtube.com/watch?v=FvcoFvdlwJE

Democracy, right ?

Thu, 03/20/2014 - 16:38 | 4574292 NOTaREALmerican
NOTaREALmerican's picture

Re:  end of free care in hospitals

You mean FuzzyEyebrowCare?    They have that there too?   Most people on here don't like that either.

Thu, 03/20/2014 - 16:08 | 4574056 tony wilson
tony wilson's picture

the cabbage is a miracle food.

the leaves can be sown together to make a jacket or blanket.

it can be made into a very nice soup.

can be roasted or braised like steak.

made into a milkless tea or coffee.

made into a yummy cabbage,earth and excrement vienna torte style cake.

it can generate methane in the stomach and bowel to generate gas.

are nazi engineers can build methane capture device backpacks with boston strong pressure cookers inside.

we do not need primitive russian gas when we have a 1000 years of right sector ideas like this..

lovers of the fuhrer rejoice today in this glorious nu land rothschild reich..

 

Thu, 03/20/2014 - 15:50 | 4574065 krispkritter
krispkritter's picture

OT:  APMEX has a 'deal' on bars.  Little cheaper than my normal outfit.  Anyone like them? (no affiliation)

Thu, 03/20/2014 - 15:52 | 4574074 Kaiser Sousa
Kaiser Sousa's picture

every experience delays or problems with shipping??

Thu, 03/20/2014 - 15:57 | 4574099 Grande Tetons
Grande Tetons's picture

No problems to date with Apmex. 

Thu, 03/20/2014 - 16:03 | 4574127 Kaiser Sousa
Kaiser Sousa's picture

thanks for responding.....

Thu, 03/20/2014 - 16:34 | 4574276 krispkritter
krispkritter's picture

Thanks.  My 'new' boat needs ballast...

Thu, 03/20/2014 - 16:56 | 4574350 thelibcentury
thelibcentury's picture

I second that. Nothing but positive experiences with APMEX for me, including delivery which has always been very fast.

Thu, 03/20/2014 - 19:00 | 4574756 Wraith
Wraith's picture

Great service and super-fast shipping.  Definitely recommend them.

Thu, 03/20/2014 - 16:34 | 4574274 Toolshed
Toolshed's picture

I have had quite good experiences with Gainesville Coin and their prices are usually among the lowest. I have no affiliation with them, except as a satisfied customer.

http://www.gainesvillecoins.com/

Thu, 03/20/2014 - 18:31 | 4574661 krispkritter
krispkritter's picture

That's my usual vendor as they are local and pickup is a walk through a virtual orgasm of PM goodness in the cases.  Just thought this was another opportunity. Kudos to GC for excellent delivery and C/S.

Fri, 03/21/2014 - 01:25 | 4575819 JustUsChickensHere
JustUsChickensHere's picture

I dont know if the USA applies the same currency anomoly as the UK ... but in the UK you would be mad to buy anything except gold Britannia's... why? Because the Britiannia is legal tender in the UK.  A 1oz Britannia is a £100 coin.    That makes it VAT and capital gains tax exempt.

So any upside re-pricing (like we are all expecting) is tax free.  Hold Krugerands (for example) would incur a capital gains tax.

Is the American Gold Eagle in the same position tax wise?

Thu, 03/20/2014 - 15:51 | 4574072 John McCloy
John McCloy's picture

  That was a cute revolution..how long until the "NEW UNELECTED" President is putting down rebellions with tear gas, rubber bullets, arrest and eventually murder of citizens? Obviously they are going to attempt to blame Russia but in the independent media world that will only go so far. 

      The moment he starts killing Pro-Russian protestors or simply anti-Ukraine new govt protestors Putin is gonna ride in on T-90's to save the day at that stage he should have most of the Eastern Ukraine anyway. 

Thu, 03/20/2014 - 18:14 | 4574603 ross81
ross81's picture

yeah, it's almost guaranteed that CNN & the BBC will blame Russia when the newly reformed Ukrainian security forces (jam packed with neoNazis) start mowing down protestors in the streets and dragging people out of their homes.

Fri, 03/21/2014 - 04:14 | 4575972 dreadnaught
dreadnaught's picture

its a LOL moment ot hear Kerry, who threw his battle medals away in disgust over Vietnam, supported the illegal and misleading takeover of IRAQ can be seen babbling on about "Russias Tyranny"! ROFL

Thu, 03/20/2014 - 15:52 | 4574076 semperfi
semperfi's picture

Next up: we're going to give them Obamacare

Thu, 03/20/2014 - 15:58 | 4574100 krispkritter
krispkritter's picture

 'Man, that's just MEAN. That's MEAN, man.'

Thu, 03/20/2014 - 16:02 | 4574123 Dr. Engali
Dr. Engali's picture

I would be happy if we just gave them Obama.

Thu, 03/20/2014 - 15:55 | 4574092 JR
JR's picture

Victory has a strange face.

Thu, 03/20/2014 - 16:36 | 4574256 Radical Marijuana
Radical Marijuana's picture

"... usually within a year or two, the post-coup nations promptly reverted to violence and kicked out the ascendent coupy rulers themselves ..."

And that was in still mostly in the "good times," when it was yet possible to discover and develop more natural resources. However, those halcyon days of being able to strip-mine a fresh planet are now gone, having disappeared at an exponential rate, which were hitting various turning or tipping points recently. Therefore, from now on not only will we notice that "Victory has a strange face," but moreover, it will more and more have a grotesque and monstrous face.

The days when it was possible to win wars in profitable ways have been disappearing faster and faster, throughout the exponential development of the potential of the industrial revolution. Today, although there are still the dominant delusions, due to thousands of years of history, reinforced by the ruling classes at the top of the social pyramids still making fantastic profits from wars and other kinds of social volatility, THE BASIC PROBLEM APPEARING NOW IS THAT EVERYONE OVERALL IS LOSING WHEN THERE ARE WARS AND REVOLUTIONS.

Therefore, indeed, these days "Victory has a strange face!" The reasons are that there are no longer any real "victories." The days of being able to fight for a bigger piece of a bigger pie are over. Now, we are fighting over smaller pieces of smaller pies, and that fight only makes the smaller pie smaller still. The human species has not generally gotten used to that situation. (Perhaps a few of the Pacific Islands were isolated illustrations of that.)

Although the theoretical general energy systems considerations at play here are understandable, they have almost nothing previous in known human history to compare them to. People are NOT adapting to the limits to growth, and therefore, they do not understand why "Victory has a strange face." Although it is quite reasonable to expect criminally insane people will continue to try to wage total wars and armed revolutions, the basic facts that everyone will be overall losing through those conflicts will increasing drive the recognition that "Victory has a strange face!"

As we find ourselves flipping through to the other side of the Bizarro Mirror World Fun House that we have been living in for so long, we are surely going to discover more and more that "Victory" ends up looking like losing. The most obvious symbol of that is that everyone would lose a war fought with atomic bombs. That illustrates the problem that all other kinds of old-fashioned fighting are more and more going to result in everyone overall losing. We have only barely begun to recognize that "Victory has a strange face!" In the foreseeable future, that face is surely going to become stranger and stranger, and more obviously the opposite to what was expected.

Thu, 03/20/2014 - 16:05 | 4574136 agent default
agent default's picture

This Ukraine government will be overthrown the same way it came into power.  There will be riots a (real) revolution, the idiots in charge will be gone and the new government will have to adopt a pro Russian position out on necessity if nothing else.

And now for the LOL part.

The US and EU will refuse to recognize the next Ukrainian government claiming it came to power through a coup, you now like the government they installed.

You cannot make up the shenanigans of these inbred assholes.

 

Thu, 03/20/2014 - 16:11 | 4574165 Ariadne
Ariadne's picture

Ukrainian zionists ftw!

 

Thu, 03/20/2014 - 16:13 | 4574172 Roger Shermanator
Roger Shermanator's picture

If gas went up 40% here in America, the BLS would substitute in the falling price of furniture that nobody could afford but which people already own and are now burning to stay warm... and the CPI would show falling energy prices.

Thu, 03/20/2014 - 16:21 | 4574226 windcatcher
windcatcher's picture

 

Poor Ukraine People, once they are under IMF (Adios Mother Fucker), austerity for the people begins and the resource sacking begins.

 

Chevron/Shell fracking and pipe lines, German outfit coal and steel, Monsanto, farm land

 

The Ukrainian People will be begging Russia to save them from becoming debt slaves!

Thu, 03/20/2014 - 17:21 | 4574432 RafterManFMJ
RafterManFMJ's picture

Don't cry for me much, Argentina; soon the USSA will be under the IMF as well... Time to cut all those pubic pensions by 75%!

I'd laugh if the buyer of UST was actually the IMF; what hilarity would ensue...

Thu, 03/20/2014 - 17:29 | 4574443 Element
Element's picture

 

 

Check it out, this is the IMF's original terms to Yanukovych, which he rejected and was deposed for, being applied anyway:

On 21 November 2013 a Ukrainian government decree suspended preparations for signing of the association agreement. The reason given was that the previous months Ukraine had experienced "a drop in industrial production and our relations with CIS countries". The government also assured "Ukraine will resume preparing the agreement when the drop in industrial production and our relations with CIS countries are compensated by the European market." According to Ukrainian Prime Minister Mykola Azarov "the extremely harsh conditions" of an IMF loan (presented by the IMF on 20 November 2013), which included big budget cuts and a 40% increase in gas bills, had been the last argument in favour of the Ukrainian government's decision to suspend preparations for signing the Association Agreement. On 7 December 2013 the IMF clarified that it was not insisting on a single-stage increase in natural gas tariffs in Ukraine by 40%, but recommended that they be gradually raised to an economically justified level while compensating the poorest segments of the population for the losses from such an increase by strengthening targeted social assistance. The same day IMF Resident Representative in Ukraine Jerome Vacher stated that this particular IMF loan is worth US$4 billion and that it would be linked with "policy, which would remove disproportions and stimulated growth".

 

http://en.wikipedia.org/wiki/Euromaidan

So it was intended to REMOVE GROWTH and generate intense austerity.

 

Welcome to IMF EU freedumb ... suckers! ... just sign down there and we'll free you from your debts.

Thu, 03/20/2014 - 16:30 | 4574257 NoDecaf
NoDecaf's picture

Can't they just heat their homes with Hyrvnas instead?

Thu, 03/20/2014 - 16:30 | 4574260 Fix It Again Timmy
Fix It Again Timmy's picture

The US is clearly the world leader in "Iraqization"...beating the snot out of a society and leaving it braindead and comatose, hey, it's the only thing we know!....Fuck you Barry and fuck you Lurch....

Thu, 03/20/2014 - 16:37 | 4574288 Peter Pan
Peter Pan's picture

The stated 1.5% is a ploy to make it seem harmless, just wait for its actual application when the decimal point is moved.

The funny thing is Putin has taken away the juicy bit and left the Ukraine and the west with a total basket case.

Thu, 03/20/2014 - 16:42 | 4574304 The Count
The Count's picture

The new Ukrainian rulers, which of course were elected by no one but still are totallhy legit according to Obama and Merkel! How freakin nuts has the world become? Welcome to crazy town where we make this shit up on a daily basis.

 

 

Thu, 03/20/2014 - 17:05 | 4574384 windcatcher
windcatcher's picture

 

 In reply to Count: It is surreal how the roles of the USA and Russia have reversed in the 21st Century.

 

The tyranny of the old USSR is gone and now Russia stands for self determination, Freedom and Democracy.

 

The USA Freedom (Free Enterprise System “Competitive Market” and Fair Trade free from monopolies), American Constitution, Sovereignty and Democracy have been overthrown and replaced with a police state of tyranny and the global multinational Empire of warmongering (7 on-going wars) Banksters, Big Oil and Free Trade “Free Market” monopoly (FREE to steal what ever they want legally).

Thu, 03/20/2014 - 17:13 | 4574400 Element
Element's picture

 

 

This is the very reason Yanukovych rejected the IMF loan and EU Association Agreement on Nov 21st 2013!

So here we are. The guy who rejected this IMF condition in the past, got exiled under gunfire, while the freedumb lovers impose the same yoke which Yanukovych would not.

And in crawled the maggots.

Thu, 03/20/2014 - 17:35 | 4574472 The Count
The Count's picture

And any 'popular vote' on anything anti EU in Europe that actually got enough votes is and was redone until the outcome is the desired one. Neither congress/white house nor parlament in the UK is where the actual power is and the actual decisions are made. Look more to the services with a couple of letters in their name...

Thu, 03/20/2014 - 18:21 | 4574625 emersonreturn
emersonreturn's picture

pigeon politics

Thu, 03/20/2014 - 17:14 | 4574411 kurt
kurt's picture

ahem,

THE PETROLEUM GIANTS rose the prices, as they do everywhere in a concerted monopolistic way. The recession in the USA will end when the gasoline price returns to $2.65 per gallon. They started it, they can end it.

These advatage taker pecker-woods make up any excuse to jack up their victim/customer. They have fake fires, rail accidents, scheduled maintenance, ALL BULLSHIT and you have to stop bending over for their drilling sludge encrusted dicks.

Unless you really like that sort of thing.

Thu, 03/20/2014 - 18:10 | 4574588 Notarocketscientist
Notarocketscientist's picture

EXCELLENT!   So I guess the Fed is going to bail out the Ukraine now that this breaks the camel's back.  Of course bail out means enslavement hahaha...  Wonder how that will go down with the rioters who spit on Mr Putin and kissed the ass of the CIA

 

GOOD FOR YOU FUCKERS - I HOPE YOU EAT DOGFOOD because you got what you wanted - RIGHT?

Thu, 03/20/2014 - 18:21 | 4574622 williambanzai7
williambanzai7's picture

Stupid...why don't they go ask Lagarde or Merkel to subsidize their cheap gas entitlement.

Thu, 03/20/2014 - 18:42 | 4574679 ZerOhead
ZerOhead's picture

Average per capita GDP in West Ukraine is around $2,000. In the industrial East it was around $4.000. Industry in the East is now evaporating.

Forget the gas... If I were Ukrainian I would be desperately trying to get out of the Ukraine.

Maybe to Germany or America since they care the most about them.

Thu, 03/20/2014 - 18:51 | 4574729 MeelionDollerBogus
MeelionDollerBogus's picture

Eef you vant your gaz prices you kin keep your gaz prices!

(what's LOL in Russian?)

Thu, 03/20/2014 - 19:10 | 4574789 pashley1411
pashley1411's picture

Its sad that Ukraine, one of the world's great breadbaskets, is a functional 3rd world country.   Guvmint will do that.

Thu, 03/20/2014 - 19:55 | 4574953 nathan1234
nathan1234's picture

 

Now Ukraine will pay for Russian gas routed back through the West and extra 40% more than present.

Of course in the bargain, the banksters make money of them.

That anyone woould wish to join the dying American empire beats me

 

Thu, 03/20/2014 - 19:57 | 4574957 nathan1234
nathan1234's picture

 

For the misery they will be facing soon, the Ukranians need to order Laughing Gas too to tide over that crisis.

Thu, 03/20/2014 - 23:02 | 4575518 undertowed
undertowed's picture

40%? So they have to wait until AFTER the honeymoon to get fucked?

Fri, 03/21/2014 - 07:12 | 4576115 Chuck Knoblauch
Chuck Knoblauch's picture

Didn't I see this movie. It was called Quantum of Solace.

The coup was designed to steal from the people.

Ukrainians aren't very smart.

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