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Guest Post: The IMF Goes To War In Ukraine

Tyler Durden's picture


Authored by Pepe Escobar, originally posted at OpEd News,

The IMF has approved a $17 billion loan to Ukraine. The first $3.2 billion tranche has arrived on Wednesday.

It's essential to identify the conditions attached to this Mafia-style "loan." Nothing remotely similar to reviving the Ukrainian economy is in play. The scheme is inextricably linked to the IMF's notorious, one-size-fits-all "structural adjustment" policy, known to hundreds of millions from Latin America and Southeast Asia to Southern Europe.

The regime changers in Kiev have duly complied, launching the inevitable austerity package -- from tax hikes and frozen pensions to a stiff, over 50 percent rise on the price of natural gas heating Ukrainian homes. The "Ukrainian people" won't be able to pay their utility bills this coming winter.

Predictably, the massive loan is not for the benefit of "the Ukrainian people." Kiev is essentially bankrupt. Creditors range from Western banks to Gazprom -- which is owed no less than $2.7 billion. The "loan" will pay back these creditors; not to mention that $5 billion of the total is earmarked for payments of -- what else -- previous IMF loans. It goes without saying that a lot of the funds will be duly pocketed -- Afghanistan-style -- by the current bunch of oligarchs aligned with the "Yats" government in Kiev.

The IMF has already warned that Ukraine is in recession and may need an extension of the $17 billion loan. IMF newspeak qualifies it as "a significant recalibration of the program." This will happen, according to the IMF, if Kiev loses control of Eastern and Southern Ukraine -- something already in progress.

Eastern Ukraine is the country's industrial heartland -- with the highest GDP per capita and home of key factories and mines, mostly in the Donetsk region, which happens to be largely mobilized against the neo-fascist/neo-nazi-aligned regime changers in Kiev. If the current conflagration persists, this means both industrial exports and tax revenues will go down.

So here's the IMF prescription for the oligarch bunch -- some of them actively financing Right Sector militias: As long as you're facing a popular rebellion in Eastern and Southern Ukraine, relax; you will get additional IMF cash further on down the road. Talk about a crash course in disaster capitalism.

We want you to invade

Meanwhile, the Obama administration's juvenile delinquent school of diplomacy remains on track: the plan is to entice Moscow to "invade." Benefits would be immense. Washington would destroy once and for all the emerging strategic partnership between the EU, especially Germany, and Russia, part of a more organic interaction between Europe and Asia; keep Europe perennially under America's thumb; and boost Robocop NATO after its Afghan humiliation.

Well, they are not juvenile delinquents for nothing. Yet this brilliant plan forgets a key component: enough competent troops willing to apply Kiev's designs. The regime changers dissolved the Berkut federal riot police. Big mistake -- because they are pros; they are unemployed; and now, holding a monster grudge, amply supporting Ukrainians in favor of federalization.

What the Ministry of Truth script imposed on all Western corporate media insists on labeling "pro-Russian separatists" are in fact Ukrainian federalists. They don't want to split. They don't want to join the Russian Federation. What they want is a federalized Ukraine with strong, autonomous provinces.

Meanwhile, in Pipelineistan...

Washington is actively praying that the confrontation between the EU and Russia on the gas front spirals out of control. Natural gas will amount to 25 percent of the EU's needs up to 2050. Since 2011 Russia is the number one supplier, ahead of Norway and Algeria.

The bureaucrat-infested European Commission (EC) is now concentrating its attacks on Gazprom on the South Stream pipeline -- whose construction starts in June. The EC insists that the agreements already struck between Russia and seven EU countries infringe the laws of the EU (how come they didn't find that out earlier?). The EC would like South Stream to become a "European," not a Gazprom project.

Well, that depends on a lot of serious diplomacy and the internal politics of various EU member states. For instance, Estonia and Lithuania depend 100 percent on Gazprom. Some countries, such as Italy, import over 80 percent of their energy; others, such as the UK, only 40 percent.

It's like the EC suddenly woke up from its usual torpor and decided that South Stream is a political football. Günther Oettinger, the EU's energy commissioner, has been blaring the horn of EU competition laws called "the third energy package" -- which would essentially require Gazprom to open South Stream to other suppliers. Moscow filed a complaint to the World Trade Organization (WTO).

Rigorous application of recently unearthed EU law is one thing. Facts on the ground are another. South Stream may cost up to 16 billion euros -- but it will be built, even if financed by Russia's state budget.

Moreover Gazprom, in 2014 alone, has already signed extra deals with German, Italian, Austrian and Swiss partners. Italy's ENI and France's EDF are partners from the start. Germany, Italy, Bulgaria, Hungary and Austria are deeply involved in South Stream. No wonder none of them are in favor of more sanctions on Russia.

As for any substantial move by the EU to find new supply sources, that's a process that should take years -- and should involve the best possible alternative source, Iran, assuming a nuclear deal with the P5+1 is struck this year. Another possible source, Kazakhstan, exports less than it could, and that will remain the case because of infrastructure problems.

So we're back to the Ukrainian tragedy. Moscow won't "invade." What for? The IMF's structural adjustment will devastate Ukraine more than a war; most Ukrainians may even end up begging Russia for help. Berlin won't antagonize Moscow. So Washington's rhetoric of "isolating" Russia is just revealed for what it is: juvenile delinquency.

What's left for the Empire of Chaos is to pray for chaos to keep spreading across Ukraine, thus sapping Moscow's energy. And all this because the Washington establishment is absolutely terrified of an emerging power in Eurasia. Not one, but two -- Russia and China. Worse: strategically aligned. Worse still: bent on integrating Asia and Europe. So feel free to picture a bunch of Washington angry old men hissing like juvenile delinquents: "I don't like you. I don't want to talk to you. I want you to die."



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Thu, 05/08/2014 - 17:33 | 4741214 Itchy and Scratchy
Itchy and Scratchy's picture

Return of the N.I.N.J.A.'s!

Thu, 05/08/2014 - 17:43 | 4741248 Manthong
Manthong's picture

Advice to level headed, industrious Ukranians..

To paraphrase Horace Greeley, “Go east, young man”.

It does not seem the prejudice of the west is prevalent in the east.


Thu, 05/08/2014 - 17:52 | 4741279 StacksOnStacks
StacksOnStacks's picture

Cover your butts!

Thu, 05/08/2014 - 18:28 | 4741403 Ignatius
Ignatius's picture

Hang the bankers.

Thu, 05/08/2014 - 18:57 | 4741515 Runs-With_Toast
Runs-With_Toast's picture

And the priests

Thu, 05/08/2014 - 19:08 | 4741529 strannick
strannick's picture

America and England perpetuating their tired empire and keeping the Eurasian heartland from integrating and so marginalizing them with their financial schemes, with Germany and Japan as their proxy bitches.

Thu, 05/08/2014 - 21:24 | 4741976 TwoShortPlanks
TwoShortPlanks's picture

The Rabbit Hole

Another shameless blog by TwoShortPlanks

Thu, 05/08/2014 - 22:50 | 4742181 ZerOhead
ZerOhead's picture

I know I'm not the sharpest tool in the shed but if Russia and China are the major threats to ongoing global domination perhaps the CIA would have been wiser to create a major False Flag event between them rather than the Ukraine?

Just askin'...

Fri, 05/09/2014 - 08:37 | 4742880 tonyw
tonyw's picture

I'm sure if they thought they could get away with it they would have done.

Plan is probably to destroy russia first then go for china whilst keeping eu from working out where its best interests really are.

Thu, 05/08/2014 - 17:43 | 4741249 knukles
knukles's picture

What kind of ball were you playing, Goldfinger?
A Slazenger 4, Mr Bond.
And all along I've had it in my pocket.

No, Mr. Bond.  I don't want you to talk.  I want you to die.

Thu, 05/08/2014 - 18:46 | 4741479 Wahooo
Wahooo's picture

Slazenger for goldfinger, eh? Wonder what kind of balls Obama favors?

Fri, 05/09/2014 - 01:01 | 4742455 BolanosGhost
BolanosGhost's picture

I would guess he plays with a Noodle.

Thu, 05/08/2014 - 17:46 | 4741258 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Moscow won't "invade." 

Disagree. Putin is waiting for the right time to insert Russia's influence. Until then, the IMF appears to be Ukraine's worst enemy next to their own gov't.

Thu, 05/08/2014 - 18:12 | 4741336 Winston Churchill
Winston Churchill's picture

Russia has made in plain from the start, they want a federalized ,independent,neutral, Ukraine.
Any other result will be caused by the US/EU axis of evil.
Even if Putin is forced to invade I expect a quick withdrawl after removing the oligarchs, and the neo nazi's from power in Kiev.The death toll will have to rise to the thousands before he does intervene.
Putin is batting (89) BRIICSaA to USA 0, right now.
He is not going to do anything that sets that back.

Thu, 05/08/2014 - 19:04 | 4741530 gatorengineer
gatorengineer's picture

that may be reasonable and what Putin wants, but dont you think you will see a ukraine in Nato very shortly?  Also perhaps a low cost manufacturing center for the EU?

Thu, 05/08/2014 - 19:22 | 4741578 Winston Churchill
Winston Churchill's picture

Russia will go to war over NATO in Ukraine, make no mistake
over that.
Our 'leaders' are being reckless if they don't realize that this is non negotiable. That war will quickly become nuclear
because if its a choice over a wasteland ,or NATO, in Ukraine,
a wasteland it will become.NATO has no non nuclear military
options in Ukraine.

Fri, 05/09/2014 - 06:14 | 4742715 BigJim
BigJim's picture

Russia's recent 'massive nuclear attack' drills do seem like they're trying to send a message.

Thu, 05/08/2014 - 18:44 | 4741474 Poundsand
Poundsand's picture

"next to the US imposed government"  there... fixed it for you.

Fri, 05/09/2014 - 01:17 | 4742488 Joe A
Joe A's picture

Eastern Ukraine is more useful for Putin as a pawn than to be part of Russia.

Fri, 05/09/2014 - 01:27 | 4742507 StychoKiller
StychoKiller's picture

Some jackwagon in the Ukraine wanted to align with the West and the EU -- truly, thou shouldest be extremely careful what ye wisheth for!

Thu, 05/08/2014 - 17:33 | 4741215 Cattender
Cattender's picture

War is good for the Economy.. just look at how Iraq has helped us here in the u.s. (right?)

Thu, 05/08/2014 - 17:44 | 4741256 Buckaroo Banzai
Buckaroo Banzai's picture

Well it's been good for somebody. Business inside the beltway has exploded over the last dozen years.

The rest of the country-- not so much.

Thu, 05/08/2014 - 18:59 | 4741514 Seek_Truth
Seek_Truth's picture

Biden invested in Ukraine. Now we are beginning to understand one of many reasons for the overthrow of an elected government and the installation, by coup, of a neo-Nazi regime:

Joe musta heard it was a good investment from OGolfa's handlers.

As Paul Harvey would say: "Now we know the rest of the story."

Thu, 05/08/2014 - 17:34 | 4741218 unrulian
unrulian's picture

Do what must be done. Do not hesitate; show no mercy.

Thu, 05/08/2014 - 17:37 | 4741232 McMolotov
McMolotov's picture

What is best in life? To crush your enemies, see them driven before you, and to hear the lamentations of their women. Even better if you can use debt to get others to do the fighting.

Thu, 05/08/2014 - 17:56 | 4741290 free_lunch
free_lunch's picture

Your statement triggered this interview popping up by association:

Thu, 05/08/2014 - 19:51 | 4741660 Al Gorerhythm
Al Gorerhythm's picture

The psychopath's credo.

Thu, 05/08/2014 - 17:35 | 4741223 10mm
10mm's picture

Iraq was an invasion.

Thu, 05/08/2014 - 17:35 | 4741227 Itchy and Scratchy
Itchy and Scratchy's picture

Welcome to debt prison my friend. - The American Taxpayer

Thu, 05/08/2014 - 17:37 | 4741229 Sudden Debt
Sudden Debt's picture

Tyler, there's something not mentioned anywhere.

The US is going to buy rocket engines from Russia for it's space programm ignoring the sanctions.

Those engines are strategic so that means there's a open phoneline to the whitehouse and the Kremlin. The engines would never be sold by Russia if there was actually something going to happen.

My 50 cents so to speak :)

Thu, 05/08/2014 - 17:46 | 4741259 Quus Ant
Quus Ant's picture

Makes me think of the Soviet/Nazi non-aggression pact; divy up the world while preparing for the inevitable, ultimate showdown. 

The Soviets lead 1-0, but the Nazis are back and hungry to even up the series.  Get ready for round two of this timeless grudgematch!

Thu, 05/08/2014 - 19:20 | 4741571 Matt
Matt's picture

Has there been any word regarding America halting the plutonium shipments from decommissioned Soviet nuclear weapons, going into long term storage?

Thu, 05/08/2014 - 17:46 | 4741261 Buckaroo Banzai
Buckaroo Banzai's picture

Wait. Are you saying that this is all theater, and Putin and Obama might actually be on the same side?

Thu, 05/08/2014 - 17:47 | 4741264 Sudden Debt
Sudden Debt's picture

after my second election, I'll have more room to maneuver...

Thu, 05/08/2014 - 17:47 | 4741269 Quus Ant
Quus Ant's picture

Were Hitler and Stalin on the same side in 1939?

Thu, 05/08/2014 - 17:49 | 4741275 Sudden Debt
Sudden Debt's picture

yep, the germans where nearly in Moskow before Stalin got to grips with the fact that H man was out to kill him.

Thu, 05/08/2014 - 18:38 | 4741278 Quus Ant
Quus Ant's picture

Nope.  Stalin knew the score(heck, Hitler layed it out plainly in Mein Kampf), but he couldn't prevent the inevitable- he could only hope to delay it a few years and prepare.  Perhaps what Vlad has been doing the last ten years....... hmmmm...........

"War with Germany is inevitable. If comrade Molotov can manage to postpone the war for two or three years that will be our good fortune, but you yourselves must go off and take measures to raise the combat readiness of our forces"  Joseph Stalin  5th of May, 1941

Thu, 05/08/2014 - 18:09 | 4741265 free_lunch
free_lunch's picture

Ever heard of a thing called Hegelian Dialectic? I think you should watch this short introduction:

Assuming you watched the short introduction video, I have a question: What do East and West share* ?

The matrix we are living in is a messy chaos, it is nearly impossible to determine what is real and what is staged..
Therefore one should be careful to idolize particular players, you could end up supporting some unwanted hidden agenda.

That's why George Carlin decided to become just an observer:




*Hint: Heads of state from around the world, including Putin, as well as international bankers and IMF representatives have all publicly called for the IMF to take charge of the global economic system through its Special Drawing Rights currency program.

Thu, 05/08/2014 - 18:19 | 4741362 GreatUncle
GreatUncle's picture

It is rather simple.

No country US,Russia, China .... UK, France, Germany ... Spain Italy ... Portugal Greece ...

or even the  most indebted Japan are allowed ot go bust  now. TBTF!

If any nation goes bust with such interconnected finance the whole global system gpes down because there is not enough real value in the world to support the central banker inflated debt. Basically Obama and Putin slag each other off for kudos with their own populations to keep power but it is a show.

It is all or nothing.

Thu, 05/08/2014 - 18:41 | 4741459 whstlblwr
whstlblwr's picture

Putin advocates multiple reserve currencies
Vladimir Radyuhin

Russia’s President Vladimir Putin has called for creating a system of multiple reserve currencies to strengthen global financial stability and reduce dependence on the U.S. dollar.

“If we are to slash the excessive number of derivatives, enhance discipline and stabilise global finances, we should promote multiple reserve currencies,” Mr. Putin said at a summit of the Asia-Pacific Economic Cooperation (APEC) forum in Vladivostok on Saturday.

He slammed the position of the U.S. dollar as the single reserve currency of the world. “If there is only one global reserve currency, the issuing country will always be tempted to use it in its selfish interests, which in the long run harms the issuer and violates the fundamental principles of the functioning of the world financial system.”

He said the rouble has the potential of becoming a regional reserve currency in the former Soviet Union. “Rouble can claim for the role of reserve currency . “The rouble is used more and more frequently in the settlements in the former Soviet republics”.

Russia in recent years has also signed agreements with India and China to use national currencies in bilateral trade deals. At their summit in New Delhi in March, the BRICS group of Brazil, Russia, India, China and South Africa signed two accords to promote intra-BRICS trade in local currencies.

Thu, 05/08/2014 - 18:53 | 4741509 klockwerks
klockwerks's picture

You sir are 100% correct. I have followed this since last June and the whole mess ends up with a world wide currency revaluation.  This has all been set up by the PTB and all is set to reset any day. Watch closely as it will not be a huge news event. Interesting stuff and sad for the US. If someone wanted to take our country down so everyone was "even" this plan would be a very good start. Sad part is everyone is onboard.

Thu, 05/08/2014 - 17:48 | 4741271 knukles
knukles's picture

Most Astute, SD
Nice Catch

Thu, 05/08/2014 - 19:53 | 4741666 Bazza McKenzie
Bazza McKenzie's picture

Your conclusion doesn't follow.

Russia is still selling gas to Europe but can and will turn it off if real conflict starts.

Businesses keep trying to do business even when hostilities loom, because the hostilities may not occur.  If overt conflict between the US and Russia does occur, then the contracts will be aborted.

The rocket engines are not for military purposes, or in military volume, so why wouldn't Russia sell them while it is taking control of eastern Ukraine after an independence referendum there?  It is a mark of US desperation and incompetence governance that it has to buy them under these circumstances.

And I'm pretty sure that Russia taking de facto control of eastern Ukraine would amount to "something happening" in your terms, but most unlikely to have any overt US military involvement because the US knows it would get its arse kicked in that situation.

Fri, 05/09/2014 - 01:26 | 4742505 TeraByte
TeraByte's picture

Neither can any Western non military satellite reach the orbit without the cold war era workhorse,  Russian Proton launcher. Remarkably today´s sophisticated techniques fail to match with reliability of this sound engineering design from the sixties.

Thu, 05/08/2014 - 17:38 | 4741235 Luckhasit
Luckhasit's picture

Russia is laughing. Not only do they expand their territory, but they also get paid the past debts of Ukraine.

In Russia, invasion invades you!

Thu, 05/08/2014 - 19:17 | 4741564 CrashisOptimistic
CrashisOptimistic's picture

17 Billion is the loan.

5 billion goes to past IMF loans

GAZPROM is owed about 4 billion AND it's COD as of 1 June at pre November pricing.  Is that $1 billion/month?

The people lose their govt subsidy of gas and have to fund most of that 1 billion per month, but . . . it would not seem that they can with all the austerity cuts.

Anyway 17B - 5 - 4 is 8B over 2 years?  They are going to kill all the pensioners like this.

Thu, 05/08/2014 - 17:38 | 4741237 ebworthen
ebworthen's picture

Juvenile narcissistic delinquency.

Thu, 05/08/2014 - 17:39 | 4741239 pods
pods's picture

The need for energy trumps all those other reasons when stacked up.

You cannot do much without BTUs.  

So basically, the US is going to keep instigating in Ukraine, Russia is eventually going to go IMF on the EU.
Stop the attacks or YOU get no gas.

And the EU will whimper and whine right up until the pilot light goes out on the stove and the machines stop.

Just sucks that the Ukraine is in the middle.


Thu, 05/08/2014 - 17:45 | 4741253 Luckhasit
Luckhasit's picture

Agreed.  Which is why Germany has Merkel saying one thing while it's industries are saying another.

When push comes to shove, how many people think the EU will back up the US in a real conflict with Russia?  Not no Vietnam or Korea type BS, I mean flat out war?

Looking through the annuals of history, most noticeably WW1 and WW2, we are lucky none of the wars of that scale occured on US soil.  Just imagine if something like that did?

Thu, 05/08/2014 - 17:41 | 4741241 Squid-puppets a...
Squid-puppets a-go-go's picture

over to you, Victoria Nuworldorder

Thu, 05/08/2014 - 17:41 | 4741244 yogibear
yogibear's picture

The US and IMF banksters vs the globalist agenda renegade, Putin.

Global Central Bansters: Putin, either you do what we say  or we will destroy you in the world media.



Thu, 05/08/2014 - 17:50 | 4741277 free_lunch
free_lunch's picture

Pause the cheering and take a look at my post above..

Thu, 05/08/2014 - 17:48 | 4741268 davidalan1
davidalan1's picture

WE cannot be touched as a nation. Dont be fooled by the drama within our shores and afar.. there is no money, only human weakness i.e. ego attempting to protect itself. Our value resides in our unquenchable spirit. EMP, nuke, ? who gives a frig...we need an enema as a nation.

We grow weary of comfort with no challenge...

Im thinking sod huts and home steaders, donner party stuff.. God Bless AMERICA...even in its current sinful state...

Thu, 05/08/2014 - 17:49 | 4741273 smacker
smacker's picture

Interesting article. Nice read.

Thu, 05/08/2014 - 18:31 | 4741414 TheFourthStooge-ing
TheFourthStooge-ing's picture

Pepe Escobar is one of today's best writers on international issues and events. The guy is an honest-to-goodness globetrotter, inclined to go into the danger zone to witness events firsthand. I have found that he has an uncanny ability to peel away the bullshit, not only exposing the truth in the process but illuminating the motivations of the players.

He writes regularly at Asia Times Online.

BTW, a hat tip to the intelligent Tyler that posted this article here.

Thu, 05/08/2014 - 21:05 | 4741918 Variance Doc
Variance Doc's picture

Yep, took the words right out of my mouth.  Asia Times is a great source to find out what is going on.  Pepe rocks!

Fri, 05/09/2014 - 01:36 | 4742519 StychoKiller
StychoKiller's picture

Yeah, I was gonna link to that very article myself!

Thu, 05/08/2014 - 17:58 | 4741294 rsnoble
rsnoble's picture

It's really hard telling what the fuck is going on.  You'd have to really be connected to really know.  The only thing us peons will know for sure is that we're fucked when bombs start dropping.

Thu, 05/08/2014 - 18:00 | 4741297 gann1212
gann1212's picture

the dissolving of the police kind of reminiscent of when we went into iraq and dissolved the army and got a lot of pissed off soldiers who vowed to get even. who says history doesnt repeat itself and it no longer even takes 15 years to do so

Thu, 05/08/2014 - 18:11 | 4741331 GreatUncle
GreatUncle's picture

TBH laughed my socks off ...

The IMF lending 17 billion to pay creditors.

Those creditors are the likes of wall street that you could have just handed then 17 billion of freshly created money.

The reason they are shit scared, is if the debts go bad anywhere in the known world the defaulting of debts will spread and it will cascade into other debts as people scramble to cash in.

Too the princely sum of 300 trillion becoming worthless ... so we got to keep the party going.

Thu, 05/08/2014 - 19:34 | 4741610 klockwerks
klockwerks's picture

Not cash, only SDR's

Thu, 05/08/2014 - 18:12 | 4741334 blindman
blindman's picture

False Flag in Odessa: The Pathetic U.S. Media Coverage
By Mike Whitney
Global Research, May 08, 2014
..."So while the death toll mounts, the slide to war continues to gain momentum. Odessa was supposed to be the tipping point, the “catalyzing event” that would draw Putin into the fighting. But it hasn’t worked out that way. Putin has stayed on the sidelines and refused to take the bait. That means there’ll be more provocations to come; more false flags, more bloodshed, more stage-managed terror disguised as civil unrest. Eventually, people will see who’s behind all the trouble. But how many will have died by then?" .... m.w.
RT News - May 05, 2014 (17:00 MSK)
Ukraine Crisis Today Democracy caught on camera this will never be shown on mainstream media

Thu, 05/08/2014 - 20:58 | 4741877 JR
JR's picture

Blindman, this is nothing less than Lord of the Flies, the killing and gore and blood and the chanting, and the only hope at the end the arrival of a bloodthirsty, satanic John McCain.

 Yats is nothing less than another Hungary’s Jewish Bela Kun.

Victoria Nuland’s $5 billion in blood money and CIA Director John Brennan’s advice to Kiev's murderous illegal gang rulers has wrought pure evil in Ukraine as blood runs in the streets under America’s AIPAC foreign policy instituted by the US, NATO, the EU and the IDF.

It’s horror footage, of Ukrainian nationalists shouting and running and killing, forcing a busload of peaceful demonstrators to lie down on the ground in the twilight, then beating them and killing them and dancing and shouting “death to the enemies…” amd burning alive of trapped pro-Russian protesters at the behest of US-paid killers.

Thanks, blindman, for putting on this video from Today Democracy.

Thu, 05/08/2014 - 21:26 | 4741985 blindman
blindman's picture

i appreciate your posts and information
as well, thank you.

Thu, 05/08/2014 - 18:21 | 4741375 fiddy pence haf...
fiddy pence haff pound's picture

Putin says "we won't invade. we want peace"

and the East Ukr protesters say "we don't care".

It's as if Vlad knew what they'd say.

Cunning bastard


Kerry's got some work to do, to stir up enough hatred against Russia

Thu, 05/08/2014 - 18:23 | 4741382 viator
viator's picture

The Russians and Chinese are natural opponents as they share a border and the Chinese would like to expand westward. That said, if Russia diverts it's natural resources westward they would make quite a combo and that may be what's in the cards. Together as allies they would make a powerful counterweight to western cultural Marxism, financial hegemony, and decline. Not long ago Russia itself was in decline. Now Russia's birthrate exceeds that of the US.

Thu, 05/08/2014 - 18:40 | 4741419 Son of Captain Nemo
Son of Captain Nemo's picture

"Yet this brilliant plan forgets a key component: enough competent troops willing to apply Kiev's designs. The regime changers dissolved the Berkut federal riot police. Big mistake -- because they are pros; they are unemployed; and now, holding a monster grudge, amply supporting Ukrainians in favor of federalization."...

"Jesus F. Christ"! But we have to be run by the most stupid and incompetent motherfuckers in the executive, legislative, judicial and all the other subordinate/insubordinate "motherfuckers" underneath that include the "intelligence community" x___________ (laugh here) when you see that we actually did the exact same thing with the Republican Guard in Iraq which lost the U.S. military EVERYTHING!!!!

I posted this elsewhere on ZH earlier today and it's a petition of sorts signed by some ex "intelligence" operatives like Larry Johnson and Ray McGovern under the organization called VIPS.

While I applaud what they are doing now, I am also begging to ask the question -Where the fuck were they two months ago on February 21, 2014 when they knew the old playbook was being used again and didn't make the memorandum available then considering who they are deciding to take on now?

Could it be possible these VIP old-timers were waiting to see if it was going to succeed???

The hubris and the pathological lies that come with these people both past and present is self-evident.  Even the ones that try to do good, never try hard enough and because of the nature of their business you can never tolerate and believe in them even when they end up telling the truth!

Thu, 05/08/2014 - 20:54 | 4741865 TheFourthStooge-ing
TheFourthStooge-ing's picture

I gave you a +1 because you're absolutely right about the gang that's running Vichy DC.

As regards VIPS (Veteran Intelligence Professionals for Sanity), because they are former spooks, I can certainly understand your reluctance to place your trust in what they say without knowing a little more about them. However, you might want to give the matter some additional consideration before making a final judgement.

While I applaud what they are doing now, I am also begging to ask the question -Where the fuck were they two months ago on February 21, 2014 when they knew the old playbook was being used again and didn't make the memorandum available then considering who they are deciding to take on now?

As a group, they don't seem to release memoranda all that often. Nevertheless, as individuals they do. Larry Johnson wrote the two articles below, the first on February 23rd and the second on March 3rd:

Ray McGovern wrote the following article on March 1st:

Could it be possible these VIP old-timers were waiting to see if it was going to succeed???

I don't think so, not with this group anyway. Ray McGovern was the guy who, in 2011 at a speech by Hillary Clinton where she condemned authoritarian regimes that repress dissenters, stood up and turned his back to the stage. For this, he was beaten and arrested by the goon squad that was on hand to repress any dissent.

Just tryin' to help.

Thu, 05/08/2014 - 21:36 | 4741987 Son of Captain Nemo
Son of Captain Nemo's picture


I appreciate the additional information, as I wasn't aware of their contributions from February and March from both sources. 

While I find their efforts commendable to some extent given the severity and obvious dangers of the crisis we now face, I am compelled to raise the most obvious of "jaw dropping" questions -Why wouldn't they be doing this?...  Should they really be getting high accolades given the situation and the fact that they as well as the rest of the American population have been watching this slow motion train wreck culminate now into the most dangerous and unthinkable test we couldn’t have possibly ever imagined even 1 year ago with Syria, or Libya for that matter?

Out of all the ex-Langley people I hold Ray McGovern in higher esteem then the majority of them that have come out to test the waters on occasion.

While I appreciate his profound intellect and sincere demeanor on the surface as I have heard him speak on numerous occasions including as a representative of Code Pink, I still don’t have a clear picture of where most of them are coming from.  I think the thing that gives me pause is an interview he did a number of years back where he separated himself as a “career analyst” from the other guys who were “covert”.  When he spoke to that fact it was almost as if he was saying there was a firewall between them with no bridge and the analysts were the good untainted souls while the covert operations part of the agency are the less reputable and sinister and the two never mix.  Really?...

I also have a problem with the way he portrayed the character and integrity of G.H. Bush (who he worked for) vs. #1 son G.W. Bush and that father was somehow the upstanding consummate professional that was committed to the Rule of Law that dear sonny boy was not. Really again?...  If he was trying to tell us that they were more law abiding in their careers at that infamous agency I have a bridge to sell in Brooklyn.  A leopard don't change his spots...

I also want to know why none of these ex-VIPS Langley pukes have come out en masse to show their undivided support for a new investigation of 9/11 going on 13 years?

Imagine the impact it would have had say around 2004 when I guarantee most of them already knew who the hell did it?  Even the retired ones!

As always I appreciate your input and history lessons.  After all you were the one that pointed me to "Gruesome Harvest"!

+1 back at ya!


Thu, 05/08/2014 - 18:38 | 4741445 Atomizer
Atomizer's picture

The IMF is re-monetizing their SDR shell game to attract new membership goals.

Fri, 05/09/2014 - 04:27 | 4742649 Setarcos
Setarcos's picture

Can't see anything offensive myself, considering what the Washington cabal calls others.

For a different perspective on N Korea see:

Thu, 05/08/2014 - 18:53 | 4741508 JR
JR's picture

Yes, the bureaucrat-infested European Commission (EC)-- with its EU Commission president, Communist Jose Manuel Barroso, who made the No. 1 spot onPeople With Money's top 10

 highest-paid politicians for 2014 with an estimated $58 million in combined earnings… pulling in an astonishing $58 million between March 2013 and March 2014, a nearly $30 million lead over his closest competition.”

Corruption has a face (many faces in fact):

Pres. of the European Council Van Rompuy: If the public doesn’t want EU expansion, "We Do It Anyway" | Red Ice

2014 05 07

From: Against Crony Capitalism

The EU is a nasty organization. It keeps consolidating its power even though in many places the public is adamantly opposed to EU membership and the actions of the EU parliament.


In an interview with De Standaard newspaper, Van Rompuy speaks about his “dreams” that all the Balkan states will join the EU. He calls it an “inspiring thought” that in the long term “the whole of European territory outside Russia” will be tied in some way to the EU.

Thu, 05/08/2014 - 19:16 | 4741558 andrewp111
andrewp111's picture

The EU is an expanding empire like any other. Its purpose is to be the third successor to the Roman Empire, and to exceed Caesar's glory.

Thu, 05/08/2014 - 18:58 | 4741518 kurt
kurt's picture

Duh, Spike, all those twisted up things, look like twisted up tv antennaes, oh, yeah, "words and letters" they just swim around and stuff and don't stick to nothin' in my head box. So Spike, just say the word. Do you want me to pile into them punchin' snortin' toe to toe. 'Cuz THAT I understand.

So do you want me to bust 'em in the chops, Spike? I'd do anything so'z you wouldn't be mad at me like you always are. An I'm afraid you wont pay for my next election into the Congr er Senitt of the United Estates of Amurkia.

So? Wan't me to bust 'em in the chops? Cuz I wanna make you happy Spike?

Thu, 05/08/2014 - 19:05 | 4741535 davidalan1
davidalan1's picture

shhhh im watching ronan..on msnbc, must focus

Thu, 05/08/2014 - 19:13 | 4741551 andrewp111
andrewp111's picture

"And all this because the Washington establishment is absolutely terrified of an emerging power in Eurasia. Not one, but two -- Russia and China. Worse: strategically aligned. Worse still: bent on integrating Asia and Europe."

Actually 3 Eurasian powers - Russia, China, and the EU. Do you think Washington wants the EU to be a strong and independent empire - or to be dependent on the US under NATO? The Obama Administration's actions in Ukraine are now starting to make sense to me.

Thu, 05/08/2014 - 19:33 | 4741606 earleflorida
earleflorida's picture


Zerohedge & Tyler, and the Roving Eye... the one and only Mr. Pepe Escobar! @


Thu, 05/08/2014 - 19:38 | 4741627 Rogue Economist
Rogue Economist's picture

Financial WWIII

Fictional Wealth & Putin's Billions

Ukraine Re-Redux coming tonight to a Laptop or Iphone near you.



Thu, 05/08/2014 - 19:48 | 4741648 Stuck on Zero
Stuck on Zero's picture

I thought Pravda shut down.


Thu, 05/08/2014 - 19:53 | 4741669 The_Prisoner
The_Prisoner's picture

No. It just changed its name to New York Times.

Thu, 05/08/2014 - 20:12 | 4741723 james.connolly
james.connolly's picture

What's missing here is that this loan was paid in SDR, that PUTIN refused payment in USD.

That's big important point missing.


Pepe is refreshing compared to the abby-normal 'diplo-shit' were fed daily, ... thanks


Here's what the title SHOULD say the TRUTH

. The arrangement amounts to SDR 10.976 billion (about US$17.01 billion, 800 ... with political shocks—have led to a major crisis in Ukraine.

Thu, 05/08/2014 - 21:35 | 4742016 grekko
grekko's picture

Stage 2 of the Big Game is started.  Buckle up boneheads, Stage 3 is really gonna hurt.

Thu, 05/08/2014 - 20:21 | 4741743 james.connolly
james.connolly's picture

The IMF has approved a $11 billion SDR loan to Ukraine. The first $2 billion SDR tranche has arrived on Wednesday.


There fixed it no USD is being used, all PAID in SDR.


. Goldman Sachs has also worked closely with the Ukrainian government ... cheerleaders that Putin and the Kremlin first pushed for the IMF to take control ... Interestingly, the next IMF conference on the SDR just happens to be ...

This is the first that we know of a loan by the IMF, headquartered in Washington, DC, as specifying a loan in SDR (Special Drawing Rights) ...

If this is the start in the use of SDR's, then in return it's also the start in not using the US Dollar for IMF loans, which are essentially US Govt loans ...



The International Monetary Fund (IMF) is an international organization that was initiated in 1944 at the ... Its headquarters are in Washington, D.C., United States.

Right between the CIA Building and NSA building you will find the IMF building ...

Thu, 05/08/2014 - 22:56 | 4742200 FredFlintstone
FredFlintstone's picture

SDR to USD, what is the conversion rate?

Thu, 05/08/2014 - 21:12 | 4741939 darteaus
darteaus's picture

Old Axis: Germany, Japan and Italy.

New Axis: Russia, China and Iran.

Thu, 05/08/2014 - 22:40 | 4742172 james.connolly
james.connolly's picture

You want UKRAINE? You can keep your Ukraine.

Funny that the USA via its IMF is now providing custodial support.

PUTIN can't have too much to bitch about, prior to uncle-sam's COUP, the PUTIN was paying $5 Billion USD/year to support Ukraine, now his cost goes to zero.

The USA now has committed $11 trillion in SDR's ( $17 Billion USD ) to the Urkaine.

So in effect, the USA has taken over support of the nation, and PUTIN gets to keep money in his pocket.

Who is the fucking winner?


A question UNICORN's need to ask about SDR/USD FIAT is backed by what? Where the fuck is the USA or IMF GOLD? Nobody has ever seen this gold, and its never been audited.

The USA wants power, and its power is now quite interesting, yesterday the FED printed FIAT passed it to BELGIUM who bought US Treasury bonds, which creates money for WASH-DC.

Now the IMF gives SDR's to UKRAINE which are sold for US Dollars, which creates a US DOLLAR demand, which keeps the USD strong.

What's not to love?

Thu, 05/08/2014 - 22:45 | 4742182 FredFlintstone
FredFlintstone's picture

Thanks. Unicorn sounds better than hairlip :)

Thu, 05/08/2014 - 22:52 | 4742192 james.connolly
james.connolly's picture

Hairlip is in reference to the USA male demography. Tocqueville asserted this long ago, as well as PT Barnum, and HL Mencken.

Unicorn has always been an endearing term for wannabe Tyler's in the virtual ZH world.

Fri, 05/09/2014 - 09:34 | 4743027 gcjohns1971
gcjohns1971's picture

I would amend that to "The USA wants to keep power,..."

While factually the basis of that long run of power is crumbling visibly - namely the petro-dollar, the Post WWII European Order,  NATO Credibility, and the Reserve Currency Status.

But nations, all the others as well as the USA, rarely resort to benevolent means to support their will.

Thu, 05/08/2014 - 21:13 | 4741943 22winmag
22winmag's picture

Meanwhile, the largest army on earth bides it time, takes notes, and continues to prepare.

Thu, 05/08/2014 - 22:07 | 4742084 james.connolly
james.connolly's picture

SDR is a USD DERIVATIVE; Derivates are BAD Unicorn's.

This is all you need to know.

The IMF is ran out of WASH-DC (HQ'd),

From now on the IMF will be paying STATE-WELFARE in SDR's, the IMF can print SDR's to INFINITY, ... get it unicorn's SDR's are also FIAT to INFINITY, Just like the FED can PRINT USD to INFINITY.

But SDR's are not for person to person transaction, you want to buy porn on the NET? YOU need little peoples FIAT, ... aka USD.

The FED will print USD to INFINITY forever.

The IMF will print SDR's to INFINITY forever.

The world's WELFARE States (USA COLONY's) get SDR's where they are sold and/or exchanged for USD's. Thus creating a DEMAND for USD.


In summary, now USA/UK/ISRAEL has two ways to print FIAT to INFINITY, ... are UNICORN's happy?

Is anything back with GOLD? FUCK NO

In Summary CORP/INDIVIDUAL welfare in USA will be paid in USD.

World Kleptocrat Welfare will be PAID in SDR's.

Anybody that want to 'DRAW' SDR out of uncle'sams ARSE, need only get on their knee's and come to WASH-DC and SUCK Uncle-Sam's cock.

Now Banzai, ... there is an image for you,

Two lines, one for people, the other for state, and both in line to suck cock and each shit for free FIAT to Infinity.

Fri, 05/09/2014 - 09:29 | 4743012 gcjohns1971
gcjohns1971's picture

You are right.

It is a sleight of hand trick.

Such tricks, though amazingly simple, fool a huge number of people a great deal of the time.

Dumb as it is, SDRs would buy time.  And in Keynesian ideology, postponing problems until tomorrow, and tomorrow, and tomorrow, is as good as solving them because ..."In the long run we're all dead."

or stated another way,  "apres moi, le deluge."

That this ideology is inherently destructive due to the moral hazard of this position, is totally lost on them.   They are creatures of the eternal present.

Thu, 05/08/2014 - 23:49 | 4742328 AdvancingTime
AdvancingTime's picture

Back in the middle of 2012  Putin pledged to strengthen Russia’s economic and political ties with China after skipping a Group of Eight summit in the U.S. the month before. This unholy alliance between Russia and China may create major problems for America going forward. For more about this meeting and the implications see the article below.



Fri, 05/09/2014 - 03:50 | 4742626 Setarcos
Setarcos's picture

Unholy alliance?  Are you sure?  After all it might wprk out well - albeit not "made in heaven" - if the NWO is thwarted and US$ hegemony is dethroned.

Meanwhile I have no problem recalling the many unholy alliances of Washington ... how about Israel, the Saudis. Pinochet and any number pf S American dictators, Marcos, Pol Pot and Al Qaida, just for starters.

Currently cannibals and other thugs are allied with in Syria and now it's the genocidal neo-Nazis in the Ukraine.

"Russia and China may create major problems for America going forward."

You are probably right there, the Evil Empire will no longer be able to form unholy alliances with the scum of the Earth ... hopefully.


Thu, 05/08/2014 - 23:53 | 4742335 AdvancingTime
AdvancingTime's picture

Whether by design or merely as a byproduct of globalization we have weaved a web of financial transactions that circle the globe. Over the last several years as money was printed by the central Banks it was not contained in the countries where in was printed. This money flowed across borders influencing and distorting markets and prices across the world.

Some people have been calling for a "world currency" for years. the saying "one should never let a good crisis go to waste" means a meltdown with high levels of fear would present a perfect opportunity to advance this agenda down the field. Remember many people with agendas have a lot to gain when a major shift in the currency markets takes place. More on this subject in the article below.

Fri, 05/09/2014 - 09:20 | 4742994 gcjohns1971
gcjohns1971's picture

"It's like the EC suddenly woke up from its usual torpor and decided that South Stream is a political football"



They knew all along.

It is no accident that ALL THE "CIVIL WARS" of the last 10 years are on pipeline routes.

It is no accident that they passed laws for the EU years ago stating that an energy provider cannot also be an energy transporter.  

The US is in Ukraine to keep Europe in orbit.

The EU is in Ukraine because that is the last option for energy diversification, Russia having eliminated the rest over the last decade.

No ones' motives are clean.  And no ones' methods are clean.

Germany's decisive point in both WWI and WWII was the severing of the country from energy sources.  They absolutely will not accede to any deal that does not result in that greater diversification.  

This is a problem for Putin who is deeply allied with GAZPROM and ROSNEFT - as they want leverage against Europe, and as much a monopoly as they can get.

As long as the EU refuses to accede to Russia, there will be invasions and threats of invasions, diplomatic blockades, and where necessary revolutions.

As long as Russia refuses to accede to the EU, there will be Civil Wars and increasing unrest, political upheaval, and ultimately revolution in Russian satellites and allies.

Both, apparently, would rather go to war than to compromise.   Primarily because compromise is nearly impossible in diametrically opposed positions.

I will say this, though:  Russia is insisting that the EU obey its will and construct no pipelines to non-Russian sources while the EU states it should be able to build wherever they can find willing partners. 

The lust for power that implies is among the reasons why the EU will never accede.

Until one or the other backs off, no peace is possible.   But for the EU to back off would be to volunteer for domination., and I doubt even a few million violent deaths would make them more willing.  It is simply a matter of survival for them.

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