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It Cost Ukraine's Government $4 Billion To Get Re-Elected

Tyler Durden's picture




 

As the world grows used to hearing of reserve depletion among less-developed nations defending their currencies from collapse, we thought the following chart might open a few eyes as to the real driver of attempting to create 'stability' by intervention. In the run-up to October's parliamentary election in Ukraine, the Hryvnia became oddly stable - signaling to the world that the current government had everything under control and should be re-elected. Since the re-election, the Ukrainian currency has re-collapsed to record lows. How did the Ukrainian government 'ensure' re-election via 'stability'? By blowing almost $4bn (a record 23% of reserves) in one month to maintain the currency's level...

 

 

Money well spent we are sure...

 

Charts: Bloomberg

 

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Sat, 12/20/2014 - 14:14 | 5575655 JustObserving
JustObserving's picture
When Elephants Fight, It's the Grass That Suffers


Ukraine is getting trampled in the full spectrum fight to control Russia being waged by US/NATO.  No one expected Russia to make a comeback after it was destroyed so completely in the collapse of the USSR.  And Russia was the only country standing in the way of complete world domination by the United States. The economic war against Russia intensifies:

European Union ramps up sanctions against Russia amid ruble crisis

 

By Alex Lantier 
20 December 2014

 

Despite sharpening divisions within the European Union over the implications of the collapse of the Russian currency, the two-day EU summit in Brussels stepped up Europe’s confrontation with Russia, imposing new EU sanctions to keep businesses from operating in Crimea.

On Thursday, as the EU summit opened, US President Obama signed new legislation that allows Washington to impose a raft of new punitive sanctions on Russia. The impact of the sanctions that have already been enacted, cutting off credit to the Russian economy, has been crippling. The Russian currency has lost roughly half of its value against the US dollar this year, and economists say Russia’s economy could contract by 5 percent next year.

http://www.wsws.org/en/articles/2014/12/20/euro-d20.html

Sat, 12/20/2014 - 14:30 | 5575704 JohnnyHenriksen
JohnnyHenriksen's picture

And now that they've been re-elected, how much will it cost them to keep their power? Maybe they can pay with their gold reserves.....oh wait....

https://www.youtube.com/watch?v=V0GDcA-gqY4

 

Sat, 12/20/2014 - 14:45 | 5575728 Latina Lover
Latina Lover's picture

Re 4 billion in currency reserves spent to get re elected:

What else would you expect from a pack of criminals beholden to their USSA bosses? The USSA will DESTROY the Ukraine to take down Russia. 

Sat, 12/20/2014 - 16:00 | 5575889 Sam Clemons
Sam Clemons's picture

Maybe the USSA can take notes. It costs us $85 billion a month to maintain the status quo.

Sat, 12/20/2014 - 16:27 | 5575943 0b1knob
0b1knob's picture

So by the same logic it cost Obama's government $4 TRILLION dollars to get re-elected?  That plus the constitution got shredded?  

Sat, 12/20/2014 - 17:32 | 5576047 sun tzu
sun tzu's picture

$8 trillion debt added to the US Treasury

$4 trillion added to the Fed's balance sheet

 

That's $12 trillion in 6 years...a cost of only $2 trillion per year. 

Sat, 12/20/2014 - 14:34 | 5575717 kchrisc
kchrisc's picture

In an interesting twist, Jim Willie has it that Germany isn't, can't, go along with the EU.

He supposes that Germany has already made the decision not to gut their economy for this Zionist [my word, not his] insanity. He thinks that they will bail on the EU, Euro and ZATO [NATO]. Seems the key, is whether Merkel stays or goes in the next few months.

Going to be interesting to watch.

The banksters need to repay us.

Sat, 12/20/2014 - 14:41 | 5575723 Renfield
Renfield's picture

He's said that consistently for years. I think this will be a correct prediction.

Sat, 12/20/2014 - 17:34 | 5576050 sun tzu
sun tzu's picture

USSA/NATO will declare the German elections invalid and invade. 

Sat, 12/20/2014 - 15:10 | 5575778 Stumpy4516
Stumpy4516's picture

Germany is too week to even protest that their gold has been stolen.  Simply asking for what belongs to them is too difificult and avoided because it might upset the Zionists.

How can Germany leave the EU while it's gold is stolen?  When will Germany shut down access to NATO bases as a response.  Which brings up the point, if Germany leaves the EU it needs to leave NATO as it becomes the greater threat.  Germany is going to be sacked and the looting completed at a later date - all through very cleaver means I am sure.

How can Germany call out the Zionist when it is a serious crime to even criticize any part of the holocaust and Germany gives Israel nuclear capacity subs as a gift?

The jmafia has control of Germany.  Germany may make noises to try to improve it's lot while remaining compliant to it's masters but that is all.

Sat, 12/20/2014 - 17:00 | 5575989 Abitdodgie
Abitdodgie's picture

Germany is part of America they will not do shit inless the US tells them to.

Sat, 12/20/2014 - 19:04 | 5576237 Jack Burton
Jack Burton's picture

“The United States considers the most dangerous potential alliance to be between Russia and Germany. This would be an alliance of German technology and capital with Russian natural and human resources.” So: the U.S. is trying to antagonize Germans against Russia. This will weaken both of them."

A part of the story is found in the above quote. There is much more, but the above is ONE important part of it.

"George Friedman, who is the Founder and CEO of Stratfor, the ‘Shadow CIA’ firm, says of the overthrow of Ukraine’s President Viktor Yanukovych that occurred on February 22nd of 2014: “It really was the most blatant coup in history.”

Econmically Ukraine is seeing the real cracks in society beginning to open. Students are preparing to protest eduaction cuts and cuts to student aid. Workers in indstry threaten serious strikes against collaspe of employment and loss of Russian markets, where their products mainly went. In rural Ukraine, some small towns have orgainized road closures to protest daily power black outs by Kiev, lasting 8-9 hours each day. This due to coal shortages.

Lots of other public anger growing, I could refer to, but I think the point is made. The Junta in Kiev has yet to confront the public reaction to economic collapse. Ukraine's coal came from Donbass, most industry was in Donbass and Ukraine's large military industrial economy was supplying the Russian Federation Army though joint contracts. ALL this is now gone, Ukraine was an intregal part of the Russian economy, In a moment it's whole economic system has been expunged. The west is doing nothing to make up for this collapse. In fact, the EU has refused further cash for Kiev, and asked individual EU nations to make their own cash contributions to the Junta in Kiev. So far, only Britain has ponied up, a few millions dollars. The IMF has held up payment to the Junta, as they fear Kiev has no economic future.

Only America stands between Kiev and total collaspe. Under the table, the USA funds the entire Civil War, several billions of dollars so far, with a steadt flow of cash to the Army and Nazi Battalion. Further arms deliveries are arriving to Kiev, all paid for by the US tax payer. Direct payments to the Junta also allow many bribes to be paid to keep the Junta supporters taken care of and loyal, again all American Tax Payer money. But even the USA refuses to fund the tens of billions of dollars Kiev needs "yesterday" to keep the economy alive.

LOOK for PUBILC reaction as the economy really feels the collapse set in. When even the IMF holds up payments, and the EU cancels it's payments, you know how deep the collaspe is. Wht will the Junta do, go out and shoot the old ladies blocking roads to protest power cuts? Shoot students angered at loss of education funding and student fee support?

Right now Kiev and America are at the High Point of their revolution. It will not get better than NOW. What I mean is, a down hill trend line awaits the Kiev Junta. How can it be otherwise.

Military morale is low in the Army. Morale is High in the Nazi battalions being fed American cash, but their military abilites are pathetic, and they regularly are defeated by rebels. Rebel morale is reported, by all sources who really know the rebelarmy, to be very high, determined and prepared, though war fatigue is showing up after months of heavy fighting. But rebels have won the big battles, and that keeps morale high. Plus new weapons in their arsenal are helping their morale.

Sat, 12/20/2014 - 19:17 | 5576282 Jorgen
Jorgen's picture

Imho, Greece, Italy, France, Hungary, Austria, Slovakia and Czechia (in that order) might break E.U. ranks first before Germany does as far as the anti-Russian sanctions are concerned . Germany has been a U.S. occupied territory for the last 69+ years.

Sat, 12/20/2014 - 16:24 | 5575937 midtowng
midtowng's picture

Funny how everyone is focused on Russia's economic problems and have forgotten that Ukraine is headed for a world of hurt much, much sooner

Sat, 12/20/2014 - 14:09 | 5575657 breadonwaters
breadonwaters's picture

....and who really cares?

Sat, 12/20/2014 - 14:18 | 5575678 Crabshacker
Crabshacker's picture

I do...I played it (fuck you Noodle)

Sat, 12/20/2014 - 14:24 | 5575690 Wolferl
Wolferl's picture

The Anglo-American empire goes for total world domination and we Europeans are supposed to pay for it. Disgusting.

Sat, 12/20/2014 - 15:59 | 5575745 Crabshacker
Crabshacker's picture

I meant payed... Although played is probably "appropro".....

Sat, 12/20/2014 - 14:28 | 5575696 Sudden Debt
Sudden Debt's picture

It shows who's the smarter one in the room.

Like Putin said: WE HAVE 460 BILLION IN RESERVES BUT WE WON'T BLOW THAT MONEY AWAY ON CURRENCY CONTROL.

 

And than it seems they've bought 18 tons of gold in november and it made me think... that's only 700 million dollars...

and they've got 460 billion in reserves for strategical use... what if... they bought the gold market with it and back the rubble with gold?

That would turn the rubble into THE safe heaven.

And Ukraine is the typical US vasal state, it has some money left and throws it all on the fire just to buy some time making sure to upset nobody.

 

Sat, 12/20/2014 - 17:04 | 5575990 Dame Ednas Possum
Dame Ednas Possum's picture

Or...what if they bought an appropriate amount of 'paper gold' and insisted upon physical delivery?

Sat, 12/20/2014 - 17:36 | 5576054 Sudden Debt
Sudden Debt's picture

Why go though the official channels? Just buy the commodity's from the miners like the chinese do, and those numbers don't show up in their import numbers either!

Estimates are that the Chinese are buying 10% of global supply directly, and the rest on the paper market.

Sat, 12/20/2014 - 14:09 | 5575658 agent default
agent default's picture

So that's what happened to their gold.

 

Sat, 12/20/2014 - 14:09 | 5575659 ben_bernanke
ben_bernanke's picture

Gartman is now suddenly not as bearish on crude after calling for $30 just last week. This guy is a total joke. No word from ZH yet on this flip flop.

http://finance.yahoo.com/video/think-crude-stabilized-gartman-211800362....

Sat, 12/20/2014 - 14:15 | 5575668 Eyeroller
Eyeroller's picture

If ZH reported on every Fartman flip, then there would be no space to cover anything else.

 

Sat, 12/20/2014 - 14:19 | 5575682 Crabshacker
Crabshacker's picture

I call a steep rise in price after the disastrous Christmas buying season.

 In other words..it didn't work

Sat, 12/20/2014 - 14:15 | 5575670 alexcojones
alexcojones's picture

Ukie gold got rescued, my friend.

CIA saved it from some future, unfortunate boating accidents.

Sat, 12/20/2014 - 14:19 | 5575681 knukles
knukles's picture

Has anybody anywhere seen or heard where that gold is at this very moment?
Vaporized, Corzined.
Just like the WTC gold.

Damn, that shit has a habit of disappearing.  Kinda interesting, no?  There's one hell of a lot of interest in the stuff for a barbarous traditional worthless relic, no?

Sat, 12/20/2014 - 14:50 | 5575743 ChiangMai
ChiangMai's picture

I'm not certain, but I believe I recall reading that it was the exact amount (or nearly so) of gold returned — in record time, very much unlike the response to Germany and others — to the Dutch government (from NY? London?) at their request.

Which of course has resulted in speculation that the unique speedy response to the Dutch request was payback for their complicity in the MH17 Boeing lies and cover-ups.

 

Sat, 12/20/2014 - 14:14 | 5575671 americanspirit
americanspirit's picture

In addition to blowing $4 Billion they had Victoria Nuland on her knees inside key polling booths blowing the voters until they jizzed in the appropriate box on the ballot. Word is that she managed to sway over 10,000 votes with her tongue alone. What a gal!

Sat, 12/20/2014 - 14:22 | 5575685 MrButtoMcFarty
MrButtoMcFarty's picture

Blankfein refers to Victoria's lack of a gag reflex as a "Gift from God."

Sat, 12/20/2014 - 14:16 | 5575675 knukles
knukles's picture

That bazillion spent on their "reelection" was US and EU taxpayer money.
Duh

 

But what the fuck, it keeps Joe Biden's cokehead son in a job.

Sat, 12/20/2014 - 14:19 | 5575680 Lumberjack
Lumberjack's picture

Putin says Russia won't be intimidated over Crimea

http://in.reuters.com/article/2014/12/20/russia-putin-security-idINKBN0J...

 

...Speaking at a concert honouring past and present security service staff, Putin said he had heard people calling for Russia to "pay dearly for its independent position backing compatriots and Crimea... (and) just for the mere fact that we exist".

 

"Obviously, no one will succeed in intimidating us, to deter, to isolate Russia," he said in comments that were shown by state-run Rossiya 24 TV.

 

Separately, the Russian Foreign Ministry said on Saturday that new Western sanctions against Ukraine's Crimea region represented a "collective punishment" against residents who had voted overwhelmingly in a referendum last March to join Russia.

 

"It is sad that the countries which call themselves democratic resort to such methods in the 21st century," the ministry said in a statement.

 

Foreign Ministry spokesman Alexander Lukashevich said the sanctions undermined political efforts to resolve the conflict in eastern Ukraine.

 

"We advise Washington and Ottawa to think about the consequences of such actions. Meanwhile, we will work on retaliatory measures," he said in comments published on the ministry web site.

 

Russia retaliated to earlier sanctions by limiting food imports from a range of Western countries.

 

Kiev and its Western backers accuse Moscow of fanning violence in Ukraine and arming the rebels. Moscow denies the accusations and says it annexed Crimea only after the referendum showed most residents wanted it to become part of Russia.

 

Earlier on Saturday, in a letter published by the Kremlin, Putin called for Russia's secret services to be improved to tackle "modern challenges and threats and the emergence of new destabilising factors".

 

The key tasks for Russia's secret operatives were to fight international terrorism and "any attempts of foreign special services to deal a blow to Russia (and) her political and economic interests," said Putin, himself a former KGB agent.

Sat, 12/20/2014 - 14:31 | 5575711 Winston Churchill
Winston Churchill's picture

The Phoney War was the period from Sept.1939 declaration of war ,until May 1940

when Germany overan France and the Low countries.It was named that because apart

from the war at sea, nothing really  happened on the land fronts.

Welcome to the Phoney War 2.0

Sat, 12/20/2014 - 14:21 | 5575684 pashley1411
pashley1411's picture

Little did we know that "globalization" meant every government acts like a banana-republic, even where banana's aren't grown.    Is there an elite anywhere that doesn't work on the theory of grabbing the loot and heading to London?     

Sat, 12/20/2014 - 14:26 | 5575693 Karaio
Karaio's picture

Off-topic, awesome article:

http://investcafe.ru/blogs/mbcy/posts/46245

:-)

Sat, 12/20/2014 - 15:49 | 5575867 Karaio
Karaio's picture

Negatives do not bother, only reveal that most do not realize the extent of it let alone read the article.

Do not imagine that with this, US $ and Euros likely serve just to light fireplaces.

hehe.

Sat, 12/20/2014 - 16:59 | 5575986 silvermail
silvermail's picture

Karaio,

This is a translation of your amazing article in English:

http://www.silverdoctors.com/checkmate-is-russia-selling-oil-for-gold

Sat, 12/20/2014 - 17:10 | 5576004 Dame Ednas Possum
Dame Ednas Possum's picture

Or, the punch to the solar-plexus would be "niet gas for NATO"

Sat, 12/20/2014 - 17:54 | 5576091 omniversling
omniversling's picture

Blogspot devoted to translating Russian (mostly media) stories and reports into English.

http://fortruss.blogspot.com.au/

H/T Joachim Flores via RedIceRadio (good topic for dreflection and discussion: Political Syncretism - Where Radical Left Meets Traditional Right)

    "Joaquin Flores is an American expat living in Belgrade. He is a full-time analyst at the Center for Syncretic Studies, a public geostrategic think-tank, where his work centers on Eastern European, Eurasian, and Middle East affairs. Flores is particularly adept at analyzing the psychology of the propaganda wars and cutting through the noise of 'information overload.' He also serves as the Europe-wide coordinator for New Resistance, a US based revolutionary movement." His other sites:

openrevolt.info
syncreticstudies.com

Interview (December 19, 2014)http://www.redicemembers.com/secure/radio/program.php?id=930

Sat, 12/20/2014 - 17:57 | 5576099 Karaio
Karaio's picture

Silvermail:

Thank you!

:-)

Sat, 12/20/2014 - 14:33 | 5575713 kaiserhoff
kaiserhoff's picture

OT   Another doctor died in Sierra Leone last week, but this is weird. 

       Diagnosed on Saturday, died on Thursday.  He was older, 67, but makes you wonder if this thing is mutating.

http://www.bbc.com/news/world-africa-30553834

 

Sat, 12/20/2014 - 16:00 | 5575888 GoldSilverBitcoinBug
GoldSilverBitcoinBug's picture

Meanwhile, Russia stacking XAU and trade with East.

The Ukraine reserve is weak and her currency is also collapsing more than Ruble.

She got Goxxed her gold and her USD reserve are melting like snow under the sun.

Sat, 12/20/2014 - 16:02 | 5575893 Circle of DNA
Circle of DNA's picture

How did the Ukrainian government 'ensure' re-election via 'stability'? By blowing almost $4bn (a record 23% of reserves)

 

By blowing almost $4bn of the US taxpayer’s money. Ukraine doesn’t have its own money or its own government for that matter.

Sat, 12/20/2014 - 16:11 | 5575912 Flying Wombat
Flying Wombat's picture

When the West launches colored revolution operations, financial warfare is one of the key tools used.  It should come as no suprirse the agressive, damn the torpeedos attitude carries over in defense of captured spoils.

Speaking of colored revolutions, I highly recommend reading this well researched and well written article because it's speaking to major dynamics we could very well see in 2015: 

 

The “Impending” Russian Maidan – West Targeting Colored Revolution In Russia (click here) 

 

 

Sat, 12/20/2014 - 16:20 | 5575928 Latina Lover
Latina Lover's picture

Good article but I don't think Russia is vulnerable to a color revolution aka Serbia, Georgia etc.   Putin uses the Ukrainian Putsch and subsequent civil war as an example of what happens when you allow the west to control your government.  The Russian fifth columnists have already been flushed out, most of the NGO's shut down or watched closely, and russia's liberal opposition has been discredited and largely demolished.

Sat, 12/20/2014 - 16:36 | 5575959 Flying Wombat
Flying Wombat's picture

Great observations and I pretty much agree. But the thing is, it's possible Russia will not be able to contain much of the economic warfare coming at her and conditions could get bad enough to open a window for successful agitation even though NGO "infrastructure" has been largely shut down and a great many ordinary Russians now understand these dynamics.  Clearly, this is the West's gameplan and even more aggressive salvos are dead ahead.  

Sat, 12/20/2014 - 16:52 | 5575969 Winston Churchill
Winston Churchill's picture

You assume Russia is just going to lie there getting kicked about.

Thats both a naive, and dangerous assumption.

This is not a weak Japan in 1941, and look how they reacted to economic warfare.

Sat, 12/20/2014 - 19:10 | 5576278 Flying Wombat
Flying Wombat's picture

Huh?  I assume nothing of the sort and expect the exact opposite.  

Sat, 12/20/2014 - 20:09 | 5576476 Winston Churchill
Winston Churchill's picture

Reread your post.

Still reads the same to me.

So what are you expecting ?

Sat, 12/20/2014 - 17:14 | 5576009 HowdyDoody
HowdyDoody's picture

The west is also going to try to re-ignite wahabbi terrorism in Chechnya. So there will be more blood on the streets.

Sat, 12/20/2014 - 19:17 | 5576295 Flying Wombat
Flying Wombat's picture

Sorry.  Somehow a double post was generated and I can't delete the second post so I'm editing it away here.

Sat, 12/20/2014 - 19:15 | 5576296 Flying Wombat
Flying Wombat's picture

That's right, and even "deep state" insider Strobe Talbott was forecasting "the outbreak of the third Chechen war" in a recent Reuters article.  The Saker's take:  click here

Sat, 12/20/2014 - 16:10 | 5575915 jmaloy5365
jmaloy5365's picture

"Re-elected"????? Current President was'nt elected in the first place...

Sat, 12/20/2014 - 17:10 | 5576003 HowdyDoody
HowdyDoody's picture

It's just a typo. It should be 're-selected'.

Sat, 12/20/2014 - 17:39 | 5576060 theyjustcantstop
theyjustcantstop's picture

the BIS loves it when a plan comes together.

#1. americans, and eu. (german citizens), paid for ukraines elections, gas supply, neo-nazi community organizers, and oligarch pay-offs, and the gold goes into rothchilds basement.

#2. created the need to pay for strengthening, and updating of the MIC., regional striff, which means more money churning, which ends up more countries cb's end up borrowing, (using their citizens as collateral), from BIS, annnnnnnd yoooooour poorer, annnnd yooooour globalized, welcome to the family.

oh, the $4 billion, keep an eye on the bidens, and your remaining 77% of reserves, keep your eye on the bidens.        

the rubber is going to meet the road 1-1-2015, eukraines gas contracts end with russia.

america will be watching the bubble rise in times square, will russians put a showing of the lever of the gas-lines go down.

putins been waiting for this, hes been out there trying to negociate some way to settle the ukraine issue in several countries, and very publicly, look what he got.

everyone knows the payment for russian gas is going to change, the amount, if any, increases will be interesting, will putin use an increase to make nulands words ring true, (f--k the eu.), or will he use pricing to still try to negociate some settlement.

 

Sat, 12/20/2014 - 17:52 | 5576084 PADRAEG
PADRAEG's picture

OMG, true enough. Not surprizing when one considers Ukraine's crime families are Putin's crime families - lol.

IMAGINE how much Putin has paid to cling desperately to power... $50 Bn. Now how much does each life cost, lost in his silly war with the rest of the world? Ooops, silly question, Putin has actually killed more in his opponents than his war has killed. 

Putin is a very small man, who over-reached from his position of one year ago... when HE controled Ukraine... lol

ANOTHER example of how government corruption intervenes in market place. Ukraine should adopt Euro, as the stable currency that can't be so manipulated!

Russia should do the same - lol

Sat, 12/20/2014 - 19:33 | 5576356 Heavy
Heavy's picture

Looks like they could do better with some sortition too.

Sat, 12/20/2014 - 20:33 | 5576543 jonjon831983
jonjon831983's picture

Wow, pretty expensive election.... per capital a helluva lot more than the escalating cost of US elections.

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