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The IMF Just Entered The Cold War, Forgives Ukraine's Debt To Russia
Authored by Michael Hudson, originally posted by The Saker, author of The Essential Saker: from the trenches of the emerging multipolar world,
On December 8, the IMF’s Chief Spokesman Gerry Rice sent a note saying:
“The IMF’s Executive Board met today and agreed to change the current policy on non-toleration of arrears to official creditors. We will provide details on the scope and rationale for this policy change in the next day or so.”
Since 1947 when it really started operations, the World Bank has acted as a branch of the U.S. Defense Department, from its first major chairman John J. McCloy through Robert McNamara to Robert Zoellick and neocon Paul Wolfowitz. From the outset, it has promoted U.S. exports – especially farm exports – by steering Third World countries to produce plantation crops rather than feeding their own populations. (They are to import U.S. grain.) But it has felt obliged to wrap its U.S. export promotion and support for the dollar area in an ostensibly internationalist rhetoric, as if what’s good for the United States is good for the world.
The IMF has now been drawn into the U.S. Cold War orbit. On Tuesday it made a radical decision to dismantle the condition that had integrated the global financial system for the past half century. In the past, it has been able to take the lead in organizing bailout packages for governments by getting other creditor nations – headed by the United States, Germany and Japan – to participate. The creditor leverage that the IMF has used is that if a nation is in financial arrears to any government, it cannot qualify for an IMF loan – and hence, for packages involving other governments.
This has been the system by which the dollarized global financial system has worked for half a century. The beneficiaries have been creditors in US dollars.
But on Tuesday, the IMF joined the New Cold War. It has been lending money to Ukraine despite the Fund’s rules blocking it from lending to countries with no visible chance of paying (the “No More Argentinas” rule from 2001). When IMF head Christine Lagarde made the last IMF loan to Ukraine in the spring, she expressed the hope that there would be peace. But President Porochenko immediately announced that he would use the proceeds to step up his nation’s civil war with the Russian-speaking population in the East – the Donbass.
That is the region where most IMF exports have been made – mainly to Russia. This market is now lost for the foreseeable future. It may be a long break, because the country is run by the U.S.-backed junta put in place after the right-wing coup of winter 2014. Ukraine has refused to pay not only private-sector bondholders, but the Russian Government as well.
This should have blocked Ukraine from receiving further IMF aid. Refusal to pay for Ukrainian military belligerence in its New Cold War against Russia would have been a major step forcing peace, and also forcing a clean-up of the country’s endemic corruption.
Instead, the IMF is backing Ukrainian policy, its kleptocracy and its Right Sector leading the attacks that recently cut off Crimea’s electricity. The only condition on which the IMF insists is continued austerity. Ukraine’s currency, the hryvnia, has fallen by a third this years, pensions have been slashed (largely as a result of being inflated away), while corruption continues unabated.
Despite this the IMF announced its intention to extend new loans to finance Ukraine’s dependency and payoffs to the oligarchs who are in control of its parliament and justice departments to block any real cleanup of corruption.
For over half a year there was a semi-public discussion with U.S. Treasury advisors and Cold Warriors about how to stiff Russia on the $3 billion owed by Ukraine to Russia’s Sovereign Wealth Fund. There was some talk of declaring this an “odious debt,” but it was decided that this ploy might backfire against U.S. supported dictatorships.
In the end, the IMF simply lent Ukraine the money.
By doing so, it announced its new policy: “We only enforce debts owed in US dollars to US allies.” This means that what was simmering as a Cold War against Russia has now turned into a full-blown division of the world into the Dollar Bloc (with its satellite Euro and other pro-U.S. currencies) and the BRICS or other countries not in the U.S. financial and military orbit.
What should Russia do? For that matter, what should China and other BRICS countries do? The IMF and U.S. neocons have sent the world a message: you don’t have to honor debts to countries outside of the dollar area and its satellites.
Why then should these non-dollarized countries remain in the IMF – or the World Bank, for that matter. The IMF move effectively splits the global system in half,between the BRICS and the US-European neoliberalized financial system.
Should Russia withdraw from the IMF? Should other countries?
The mirror-image response would be for the new Asian Development Bank to announce that countries that joined the ruble-yuan area did not have to pay US dollar or euro-denominated debts. That is implicitly where the IMF’s break is leading.
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How exactly do you forgive someone else's debt to anyone other than yourself? .... oh, yes, every upvote means your debt is forgiven!! Did the IMF forgive Russia's debt to the IMF in lieu of Ukraine's debt to the IMF? Surely the IMF have absolutely no authority to declare a debt forgiven between sovereign nations? This is outlandishly ridiculous.
You got it, The IMF didn't suddenly sell their cars so they could personally pay off the debt of the Ukraine. It means that a deal was negotiated behind the scenes. A Player, or a Group of Players, decided to pay off those Ukrainian loans - without revealing their real intentions. So the IMF makes this blanket statement ... loans forgiven. This was all about reducing the "economic leverage" that Russia has on the Ukraine. The economic war goes on.
But put yourself in the shoes of the bankrs at the IMF. You are extremely worried that there could be a major meltdown in EM loans, especially in South America and Central America. And yet - here you are today writing off the loans to the Ukraine. I would think that the IMF people have got a bad case of migraine headaches this week.
When the situation is desperate, you have to lie.
Funny thing is Russia is complaining about the screw job COMING TO AMERICANS....Russia will get paid with IMF funds, the IMF isn't changing the rules to screw Russians, their debts are secured debts.
The IMF rules are to protect the governments of IMF members, NOT Russia, changing the rules is an act of treason not against Russia, EU taxpayers are also getting screwed.
Russia will be laughing all the way to the world bank who always pays, even NAZIs-during wartime, ask the Jew.
This is just another example of the Golden Rule
Those who have the gold make the rules.
Another stage of the preparation to the WWIII, just read any book about WWI or WWII to see how banksters instigate financial crises to prop up desperate population for war. The western financial system switch to directly funding the coming war i.e. funding allies and financially destroying the enemies, a behavior that historically was a direct cause of the wars since it threats elites’ wealth most.
The propaganda led Western escalation of the Syrian conflict beyond the regional reach in financial, political, economic and military dimension is obvious now to everyone who cares to open eyes.
The state terror is raging in Europe like never before, thousands independent bloggers, journalists, activists are being arrested without warrant, harassed or intimidated and I am not talking about Muslims but anyone against national governments or EU policies an implementation of the 9/11 blueprint of destruction of civil liberties in the US.
The global economy is dying in global deflationary spiral of income and demand collapse and will never recover unless a war is fought, (MIC boom, manufactured jobs, people killed, less job competition, opposition destroyed, liberties denied) The war is a wonderful extortion racket for those psychotics in Washington D.C. and one way or another they will make sure that war happens.
The US financial/economic crisis is coming as a pretext to open global nuclear conflict that will follow soon unless insane US neocons are stopped. What a chance of that?
More on that can be found at:
https://syrianwarupdate.wordpress.com/
What a sick & twisted bunch of tribal sack sucking EU/IMF/WorldBank commie/marxist/socialist/facsist pyschopaths they are! The rank sulphur odor of death, misery & suffering hovers over their evil prescence and very being!
It's another blow for the US dollar imperial circle.
Now they'll have lost Russia and China for sure.
Also: CHINA MUST FUCKING BE ANGRY ASS HELL!!!!! Because they realize that the IMF could do the same with them!
Sorta like using the Cyprus solution as a template. Huh?
Winter is coming, Russia hold the card and should act mercilessly. Also against Europe. If they lose this opportunity they will regret it after winter. If they can pull all this AND secure Iraq and Syria, whole west will be on limited gas sources. And that isnt sustainable.
As for IMF, China can make it obsolete, they only have to want it regardless of costs. Problem is China is a leech feeding on opportunities. If they leave Russia in this alone, I wish them to enjoy being next US policy target - fools.
I think it was the Russian bond default that triggered the LTCM collapse.
These hedgefund hotshots were levered to the moon,and had not laid off the risk.
So,latenight crisis meeting with all the Wall Street biggies,and bingo! The taxpayer
was not touched for a BAILOUT.
Merikan exceptionalism hard at work!
Absolutely YES Russia, China and every moderately productive region should ESCAPE the dollar completely and transact exclusively in... grams of gold.
The time has come for Russia, China and other highly productive individuals and entities everywhere to say "from now on, we will transact ONLY in grams of physical gold".
What the IMF did is an egregious assault and act of war. I would never suggest a military response, especially since switching to real money is much more effective, and will make life for producers everywhere much better.
To hell with fiat, fake, fraud, fiction, fantasy, fractional-reserve scams.
Time to get real.
I agree in principal, but the wholesale destruction of all world fiat in a short period of time would result in world riots you wouldn't believe possible as cash owners, 401K owners, etc. would be wiped out overnight.
Think Greece worldwide and add WWIII....
Also, there isn't enough gold to fund all people and governments, especially the infrastructure via pork barrel projects. Gold would have to be worth a million dollars an ounce at least....
Of course with no fiat left you couldn't even set a price for PM's. Central banksters would kill anyone who tried...just ask Muammar Gaddafi.
No, I expect the USSA and allies will keep transacting with their fiat... internally and between each other.
The only change for them in the short run is... they'll have to pay for imports from Russia, China and other adopters of the new policy with "grams of gold". Of course, when they sell anything to Russia, China and other adopters, they will receive "grams of gold" too.
To be sure, the change will be a splash of cold water in the face for fiat westerners. But a change like this is necessary to prevent the neo-con-jobs from utterly, totally, completely dominating the entire planet... and then destroying it (which they'll probably do anyway).
Perhaps the most important reason for Russia, China and others to adopt this policy is to...
... STOP FEEDING THE BEAST.
-----
BTW, it will be fun to watch when fiat governments like Russia and China finally give up on the current scam system, then realize they can create enough fiat rubles and yuan at zero cost to buy up 1000x the quantity of gold and silver in existence on the COMEX and LBM... then demand delivery. Wheeee!!! In fact, at the same time they could buy futures contracts on their own fiat to momentarily boost their own currencies to afford even more contracts.
FIAT is such a farse. It would be so fun to watch someone prove that in spades.
http://blogs.reuters.com/talesfromthetrail/2015/12/08/abedin-to-trump-im...
The bipartisan blowback against Donald Trump’s call for a shutdown on Muslims entering the United States has come hard and fast.
In the hours after Trump’s controversial call, Huma Abedin, longtime Hillary Clinton aide and vice chair of Hillary for America, sent an email blast, touting her own Muslim faith and condemning Trump’s remarks as damaging and Islamaphobic.
=========
Huma is also an accessory to crimes committed by Hillary Clinton......
pssssssst (abedin is married to a jew)
psssssst (abedin and weiner are both engaged to be brides of satan, the fountainhead of their lives)
come on tarabel there is nothing to be ashamed of to be married to a jew or a muslim
both of them are a beautiful and respectful pair
she is well educated honorable muslim with an college degree, who is open to marry different man and he is a smart good looking high rank politician with hair on his head
i know the is a lot of jealousness from your side, but only can support abedins decision
The monopartisan blowback...
Down here in the bowels of Metropolis, the viewpoint is far different than that espoused by the glittering ornaments of peace, culture, and stability at their "holiday" parties.
If Huma Mahmood Abedin is such a proud mudslime, why doesn't she use her middle name very much?
If she was a real Muslim she would STFU or be stoned to death.
To paraphrase the IMF: "Either you are with US or less equal... "
Somehow I have the feeling that this will backfire really bad though. Good catch Tylers, it's for articles like this that I come to this site. I guess this tidbit of news (/sarc) will be muted out completely by the MSM... Nothing to see here... *Archduke moment for the USDemise*
The slow & painful death of a once great and proud country & peoples by the devil incarnate! Communist cockroaches and paracites feeding off ignorant & defenceless citizenry. Humanity at its worst!
Of the US, of course!
I think some US laws designed to protect US taxpayers have been broken......
too bad we don't have any representatives
Mighty White of you Christine! Or is that Orange?
Boner Orange.
No More Bets: Russia Asks US to 'Show Cards' on Daesh Sites
http://sputniknews.com/middleeast/20151209/1031493423/show-cards-america...
Russia's Defense Ministry has asked the US and its coalition partners to reveal the sites of suspected Daesh terrorist targets in Syria.The Russian Defense Ministry again reminded the US-led coalition about the necessity of "showing cards" in fighting Daesh terrorists, the ministy's official representative Igor Konashenkov said on Wednesday.
"From the very beginning, we have asked the Americans to organize an exchange of information on terrorist targets in Syria several times. Perhaps it is time for our colleagues in the so-called coalition to show their cards?" Konashenkov said.
Maybe it is time for Russia to show more of its cards relating to the 40 individuals dealing Daesh oil?
Russia should declare a gold standard which would get it booted from the IMF. The ruble would have to be extremely cheap as its gold reserves are still small compared to 'printed' rubles. A cheap currency would boost its economy as Russia's exports would be extrememly cheap. But interest rates would skyrocket. Other countries might follow suit and the US might be forced to also.
BS, Thermonuclear War on a grand scale before we ever see any type of Gold Standard.
The Plutonium Standard.
https://www.rt.com/business/319256-russia-zimbabwe-platinum-metal/
The world's second biggest platinum producer Russia is actively developing platinum deposits in Zimbabwe, OilPrice.com reports. Moscow's stake in the third biggest player could lead to Russian dominance of the global platinum market.According to the US Geological Survey, Russia produced 25,000 kilograms of platinum in 2014. Zimbabwe produced 11,000 kilos last year, outpacing the combined production of the US and Canada. The global leader is South Africa with 110,000 kg.
Russia controls about 30 percent of global platinum and palladium output, according to OilPrice.
Russian Deputy Minister of Industry and Trade Georgy Kalamanov told reporters in Harare, Zimbabwe, that a new $3 billion platinum complex is going "according to schedule."
========
All that glitters is not gold.... And the largest producer? BRIC-S (South Africa). And who is doing a shitload of business in Africa in the mining sector among other things? China. Now Alex, I will pick what's behind door number three...
I will cite ZH's own WB7 for breaking the story about Obama mulling over the trillion dollar coin... (I am serious and now we know why)....
https://www.flickr.com/photos/expd/8345898705/
Something strange is happening with the USD right now, and I'd like ZH folks to post their reasons for this below as replies.
The more people believe Yellen will raise rates on 20151216, the more the USD crashes against NON-resource producing countries like the euro and yen.
Why is this?
AND... at the same time the USD dropped again today, gold and silver did not rise. What is the reason for that.
I'm missing something here, and don't know what that is.
Is this a response to the act-of-war against Russia [and China] by IMF?
-----
Also, might the USD drop if and when Yellen raises rates?
If so, then what happens? Is that the start of the super-collapse?
See my comment above.
still in strong dollar trend - yellen raises rates - real rates go negative - cbs are short paper gold long physical - the new IMF plan to expand the global currency float will kick the can for a long time - the euro was designed for the purpose of preventing further european wars, it will not go away - russia presents an adverserial affect on that security - eastern europe joins the zone - ukraine - turkey leaves nato montenegro joins - china needs regime change - no super collapse just zero growth - cbs will do whatever it takes to raise inflation even stagflation - no fear of hyperinflation - no fear of opec embargo - western industrial nations assume economic control over have not resource countries - brics fall out of the wall one at a time - china defects from brics joins west - us becomes energy exporter, sells LNG to japan, europe - gazprom files ch 11 -canada 51st state - mexico a us territory - puerto rico out - president trump says what have you done for me lately
Wow, thats heavy. I'm going to take out a loan and go to college so I can understand. As for the funny munny I dunno why it does funny things, I just earn it doing real stuff and spend it on real stuff before I have to use it as toilet paper. The bank digits aren't even good for that, so I spend those quicker, Gresham told me to.
Hahaha, that was entertaining. Are you a scriptwriter? I'm not saying your ideas are impossible, but I do find some of them a stretch.
Feel free to expand and give more details... I have a difficult time inferring the causes of many of your predictions.
I will be EXTREMELY annoyed if China and significant others give in and become puppets of the neo-con-job controlled USSA. That really is a nightmare scenario!
I cannot imagine why any moderately productive individual or entity outside the USSA would want to become a puppet of the USSA... just as the predators-DBA-USSA are nearing collapse.
honestann
Don't be to concerned.
The Chinese and Asians in general are a very proud people and will never give in to anyone. The USSA and their partners in crime will destroy themselves first.
And no, I am not Asian. I am a westerner married to the most wonderful Asian woman you could ever imagine.
Despite China being communist, they have more integrity than all other western nations combined.
As for your questions:
Very tough questions. I was going to respond with some ideas, but decided not to.
I have been successfully trading currencies for almost 30 years and yet I still struggle to understand the finer details.
Some of the best currency commentators on the planet are always divided as to why currencies are falling or rising.
Currency movements are the most difficult of all to try and decipher.
Yes, currency price moves can be difficult to understand. But the two large one-day drops recently seem inspired by specific events.
I'm thinking maybe the IMF absurdity this time, but that's just a guess.
No currency moves are generally very easy to understand in a free unmanipulated marketplace! Especially a currency that is actually backed by something other than hope!
OT: A total 0f 15 Akademi (ex Blackwater) mercenaries reported killed in Yemen. One has been named, an Australian, Philip Stitman or Streetman, commanding recently arrived Colombian mercenaries. A couple of Brits, a Frenchie and a Mexican are also mentioned
Mexico - 1 UK - 2 France - 1 Australia - 1 Colombia - 10
http://www.sbs.com.au/news/article/2015/12/09/australian-mercenary-kille...
http://www.russiadefence.net/t3118p915-yemeni-conflict-news#141547
If true, that's a lot of nailgun accidents for the local media to report.
I don't have any tears for Akademi.
A former CIA guy has implicated CRAFT in the California shitshow. There is evidence that they were also involved in the Boston fiasco.
Greek people, do you notice what the IMF did for Ukraine but told you to go take a flying leap?
The IMF, a US totally controlled tool, just told the world the Anglosphere and EU vassals of the US don't have to repay loans to the SCO/BRICS nations to get IMF money.
The fuse has been lit.
Mr. Trudeau.
Get Canada out of the IMF, UN and NATO as fast as You can.
Please.
I would like to say that his father should have told him about the incident when he landed his plane at the former Loring Air Force Base in Maine. He was detained for several hours intentionally after landing there to be cleared by customs. He needed to take on fuel and by landing there, created an inconvienient international snafu. This incident has never been made public until now.
So is the IMF going to pay Russia the 3 Billion that Ukraine owes Russia?
I have not seen that IMF loan to Ukraine announced anywhere.
Russia is heading towards the courts in London to sue Ukraine for the $3B.
Not likely if anyone had given the money to Ukraine to pay off Moscow.
"Not likely if anyone had given the money to Ukraine to pay off Moscow."
Absolut likely, in my opinion, that the Ukies spend such money in other ways as they are told.
There are Swiss accounts to be filled up.
A third party can forgive the debts of another to another?
Shit, then I forgive everyones mortgage in America, guys the fix is in stop paying.
All debts just became null and void by public decree of the public to eachother.
in reality what could they do if everyone stopped paying, foreclose on everyone and thing?
They would go broke and extinct before the first lawsuit hit the docket.
If Americans unified online an enough of them designated a month to stop paying in synchronicity , all the evil banks would go poof overnight.
I am totally advocating it happens.
The trick would have to be that it all happens on one day and be arranged without 'the system' picking it up digitally (or otherwise) beforehand. It is possible to 'overwhelem' systems. But it may be tricky, if it's not criminal now it will be made a crime, although of course it would be difficult to imprison large percentages of the populaton on one day.
I have read (and it is probably true) that Britain learly lost the monarchy after Diana's death. The story goes that about 2 million people were near Buckingham Palace and demanded a flag be there, lowered to half mast. But traditionally there was only a flag when the monarch is in residence. She was in Scotland. At some point police phoned the Prince of Wales and told him they could hold up that number of people from entering the Palace only with the army, but did not want to cause that kind of incident and carnage. So another flag was hoisted, not the Queen's standart, and a new tradition was born. What it means is that 2 million people were there and they changed something. The system will fight back, of course, one way or the other, but determined masses ..... stranger things have happened.
This doesn't make any sense.
It does. They do everything to start WW3 and nothing and no one will stop them.
Totally agree Wolf...another poke in the eye of the bear...
this means that Russia can now feel free to cancel its debts and perhaps Russian corproate debt, if the Russian state should bail this debt out, there by taking it on. Who ever owns Russian debt had better try pawning it off like yesterday. This is all going to end very badly.....
I told you all 3 years ago on here how it would end...if the Greeks ever look like they are about to leave the EU or anyone else they will forgive allllllllll debt...anything to keep the ponzi plates spinning...great job now for the IMF...show Greece all they need do is say....nope...we are exiting
All debt forgiven...template now formed for any other nations to do the same...Euro will die
A blind man could have seen this coming. Up next, sovereign debt owed to nationals, but not to non-nationals, will be preferentially paid. Or maybe in the case of the US, the reverse, or US after Israel.
I just forgave my neighbor for the mortgage he owes the bank. He is so damn happy!
I forgive all your debts too.
... and what about me?? What am I getting?? I have no debt, I have lived responsibly without any debts - and I am missing out?
There will be a special place for you in the afterlife of your choosing.
oh lol
Don't forget me.
this means that Russia can now feel free to cancel its debts and perhaps Russian corproate debt, if the Russian state should bail this debt out, there by taking it on. Who ever owns Russian debt had better try pawning it off like yesterday. This is all going to end very badly.....
just nuke the imf, the bis and all central banks from orbit....it's the only way to be sure
Shit's gettin' real real fast................................
Michael Hudson is the world's greatest economist. He is light years ahead of every other economist on issues of political economy. He is one of the few who predicted the global financial crisis in 2007; his analysis of the role of FIRE economy in neoliberal economy is unparalleled.
For example he points out that Milton Friedman's premise that there is "No Such a Thing as a Free Lunch" is false, "Wall Street is all about Free Lunch" , he says.
Here is a link to his interview on his new book "Killing the Host: How Financial Parasites and Debt Bondage Destroy the Global Economy"
http://store.counterpunch.org/michael-hudson-episode-19-2/
This is a straight-up lie or written by a fool that knows nothing.
Russia wouldn't agree to restucturing with all the other counterparties, thereby accepting no recovery nor restructure. They shot themselves in the face.
The IMF merely agreed to release funds because the Ukraine restructuring process was done with respect to all parties.
Greece now wants the IMF to foregive its debt too.
http://www.ekathimerini.com/204195/article/ekathimerini/news/lenders-foc...
Well, technically Ukraine is just the battlefield between Europe and Russia. It is not a real country anyway.
Ukraine has never been a sovereign nation.
One word needs deleting. It should read: Ukraine has never been a nation.
Thinking about your point...
'Ukraine' (borderland) of sanity in real
I'm getting Christine a 12 inch strap on dildo for a Christmas present. She can use it to rape nations since she doesn't have a tool of her own.
I think the folks at the IMF should take a moment to remember Putin's radioactive tea party. They aren't playing with Washington clowns here.
Ignorant post
Litvinenko: 3 parts
https://www.youtube.com/watch?v=u9thVryIfF8
British Sherlocks want the truth:
https://www.youtube.com/watch?v=2Xq3LXKnatw
Holy Shit! The web is more tangled than I knew. Maybe they need a tea party anyway.
The IMF gets US taxpayers' money. Then it lends billions to the Ukraine. The Ukrainian government headed by a billionaire has no plans to pay back to anybody. The US president announces to the US taxpayer, "Taxes will increase!"
Gambit , Dr Engali
My take on this is simple. If Russia was not involved in the world financial system. Swift, IMF etc how would it function as a soverign financial entity?
I can't see any other solution.
That said, the creation of the AIIB and "Rush" [Russian version of Swift] "pun intended" may enable countries in the BRICS grouping to divest themselves of the Tribal yoke.
Max
If you didn't like him before you'll love him with these statement(s) along with the hsitory lesson(s)...
To the American people. Don't give up your guns for "anything"!
What is truly amazing about him is that he has has every fucking right to loath and detest every single English speaking piece of shit in North American and the U.K. after what we've done to his Country and in his neighborhood. He could very easily shut his mouth and watch the U.S. Federal Government do his dirty work for him while he continues to obliterate American mercenaries and U.S. military in the Middle East...
Fuck Zionist sellout Trump!... Fuck Zionist sellout Hitlery!....
I want this guy to clone himself and run as an Independent in '16!!!
The 15 most terrifying words in the English language:
'Hello we are from the IMF and we are here to help you!'
The Ukriane is broke and incapable of paying for its energy bill so they are like Greece. Since they are busted it seems likely they will be admitted to the EZ where their debts can be ignored as in the Greek Cse.
Think 'Useful Idiots!'
leo-cons.
IMF became a strong and dangerous country
IMF Become Debt, The Destroyer of Worlds.
IMF did what? WTF? Get the Fuck Off of My Planet, Fidouchebags!!
US dollar, IMF and NATO are running against the watch for their survival Mr. Putin knows it. Patience is a bitch when your running against all adds.
So can someone explain this to me with more clarity?
The IMF lent Ukraine the money to pay off Russia with? and did Ukraine then do this or not?
nevermind figured it out.
But if the Ukraine uses this capital to pay off the debt to Russia, isn't it all good then?
ukraine uses what isn't stolen, to buy military hardware
That's it...
Don't strain yourself thinkin about it. It's a contrived financial hall-of-mirrors with phoney printed fiat toilet paper. All now reduced to little credit and debit entries and never-to-be-repaid IOU's on a hard drive on a cloud farm in the middle of nowhere!
Nothing like this at all.
Ukraine defaulted on all its debt, not just Russia. Ukraine worked with its creditors and they all agreed to a GDP linked bond reprofile and a hair cut on the original bond principle. Except for Russia, who refused to negotiate the default terms. Russia held out and said we want to get paid in full, so they didn't work with Ukraine. So they didn't get the reprofiled bond, they got outright default, and maybe no reocvery at all (we'll see).
The IMF merely said that Ukraine worked with any willing creditor to the extent that they will release an IMF funding package to Ukraine.
The author of this post is liar, or idiot, or both. Someone with this little knowledge about a topic shouldn't be writing about it.
Does this IMF funding package mean that Ukraine is lent more money? Ukraine is a bottomless barrel from where I sit, so giving them more money today means more donations in the future because it'll be gone in a few months and then you have to donate again.
The IMF provides bridge financing conditioned to force market reforms, that's all. They don't make lending decisions that way a profit-seeking bank would. So that's not really a concern for them.
The country has a good leadership team, but they are in a tough spot. Financial commitments to defend against Russia. But China signed a huge deal to buy food from them. Something you won't read about on ZH mind you, as it goes against the "China hearts Putin" meme, but it is real. A big problem is that Ukraine has been crushed by dropping steel prices, which is a major export. Without a recovery in iron ore prices, it is going to be tough to make even a 25% haircut and maturity extension work. It isn't just government debt. The whole country imploded and all corporates but one real gem had to restructure.
It won't be months. Likely we'll see another scare in three years or so.
"Someone with this little knowledge about a topic shouldn't be writing about it."
Exactly right! LMAO!
You are an imbecile who is deliberately obfuscating.
There is a difference between sovereign debt and the debt owed to private creditors (who btw received a 20% shave).
Learn the diff and try again...
Templeton investment is one of the largest holders of Ukrainian sovereign debt. A private creditor holding sovereign debt that agree to a haircut and term extension.
Russia held Ukrainian sovereign debt and refused to negotiate and they got cut out of the reprofile. It was their choice and they were told that any creditor that chose to not participate would get no recovery.
What is confusing about this?
Oh yes, Russia did INVADE THEIR COUNTRY AND ANNEX PART OF THE EAST AND CRIMEA. I think that alters their seignority to other debt a bit.
A$$ymmetric warefare indeed. No one can claim surprise. With the exception of the UN Security Council where China and Russia have a veto, all these globalist alphabet agencies are merely tools of US foreign poliicy.
But the foreign policy is a tool for the mega-corporations. If they can't get a pipeline through Syria let's force our will on them with a civil war.
Ukraine is a bottomless barrel. They will have to print plenty of money to keep Ukraine in the western camp. Ukrainians need to be bought, slogans won't be enough, although they will play the slogan game with you as long as you pay them.
May all the motherfuckers (cuntface LeGarde included) engaged in this satanic geopolitical conspiracy of cultural & spiritual genocide please ... please ... please die a slow & painful wretched death!!!!!
Crimea is worth more than 3 billion $.
Yuconovitch cheated his country, so that Russia could force its trade deal, that caused its citizrns to rebel, so that Russia could start a counter rebellion after stealing Crimra, therby separating 2 integrated economies and cultures. I have visited there several times since the last revolution. Good people with bad leaders the worst problem dating back to the 1800's from the Franco Prussian war. Ukraines worst problem is its location. It is a very sad pawn. The hidden structure that has evolved is that as US bankers selfish mismanagment overextended US debt and led to the 2008 crash, and then the fed and friends moved interest to 0 with QE123 and still were failing at a true recovery and needed more wealth stimulus by lowering the price of oil. Then some hidden power guy convinced Saudi Arabia that shale oil, and Russian oil would become an existential threat to the house of Saud, and convinced the Saudi's to flood the world with cheap oil to 1-stop shale development by lower prices, 2-force Syria Assad out of power so that Saudi pipeline oil could get to Europe in place of Russia, 3-well theres more but I will stop here. In the end the Ukraine is stuck as a third layer pawn in a game by people they can not see. Putin is not the driving force, only a skilled second layer defensive player. As a physicist I think too much, I should just sit back and watch quietly.
The right people never seem to die.
(Translation-All the evil, communistic, fascistic, globalist NWO bastards seem to be living forever. Is it just me, or have "they" found the Fountain of Youth?)
There is scientific proof that blood transfusions from young to old rejuvenates tissue. I'm sure George Soros funded the research to give scientific legitimacy to what he was already doing.
http://www.nature.com/news/ageing-research-blood-to-blood-1.16762
So this is what it finally comes down to. All phoney banksters' debt should have been "forgiven" in March 2009. The past 6 years have been a total global financial farce.
Reminds me of one of my favorite movies:
Delmar O’Donnell: The preacher says all my sins is warshed away, including that Piggly Wiggly I knocked over in Yazoo.
Ulysses Everett McGill: I thought you said you was innocent of those charges?
Delmar O’Donnell: Well I was lyin’. And the preacher says that that sin’s been warshed away too. Neither God nor man’s got nothin’ on me now. C’mon in boys, the water is fine.
Pete: The Preacher said it absolved us.
Ulysses Everett McGill: For him, not for the law. I’m surprised at you, Pete, I gave you credit for more brains than Delmar.
Delmar O’Donnell: But they was witnesses that seen us redeemed.
Ulysses Everett McGill: That’s not the issue Delmar. Even if that did put you square with the Lord, the State of Mississippi’s a little more hard-nosed.
LOL
All these euroPeons & americans are simply printing money and buying others resources
for nothing
Its time an alternate system should be in place
Let the BRICS currency be in place then ppl like this old hag of IMF will beg to star in granny porn
(and Obomination for gayPorn)
& btw we will all say - fuckOff , go to gutter
Americans print money to buy assets in Other countries.
People in other countries buy American stock and treasuries to earn interest.
Other countries put in place rules to disallow foreigners to own or operate assets in their countries.
Shit happens.
Well, if Russia took the Crimea from Ukraine, haven't they been "compensated"? Why should Ukraine also pay off the invaders? jus' askin'..
Russia didn't take Crimea - Crimea came to Russia and as a result got saved from all sorts of zio orcs and mossad cartels
Not to mention the destruction in the East and loss of life at the hands of Poroshenko.
HA-HA-HA!! I'm sorry for you if really think like this
Russia did not "take" Ukraine, Here is the bullet summary:
1. The US sponsors the coup in Kiev, US puppet gov takes over.
2. Puppet gov passes legistation hostile to Russian speakers (about 40% of Ukraine population and almost all of Crimea)
3. Crimea votes to leave Ukraine, something they had tried to do several times since 1994
4. Crimean parliament votes to join Russia, Russian Duma agrees.
If one respects the UN Charter on the Rights of Self Determination, everything is fine. Crimeans are happy. No one died. Textbook case of how it should be done.
Homework assignment, how and when did Crimea become part of Ukraine in the first place?
1. I was personally on Maidan
2. I'm russian speaker; nobody never had anything against russian speakers in Ukraine. Nobody gives a F about language in my country.
3. & 4. If you bribe parliamant and put military on the streets, of course they vote :)
Homework for you as well Crimea was Turkish in 17-18th century :)
Tick tock tick tock
ring! ring!
Japan wake up.
No more China.
Then the dominos fall.
bill
Putin, Leave the Ukraine alone .... concentrate on Islam .... the real enemy ?
islam is not the enemy of usa. its the terrorists, which are the enemies. isis is not islam
usa have to be teached on islam. we are living in the year 2015 and most people cant tell the difference between muslims and islam.
there is a lot of work to do about that. also the birthrate of israeli jews is going down. only orthodox jews have children in israel. this cant continue for ever, non of them is working, it will become impossible for israel to mantain an economy based on "life long study". lucky our palestinian friends have a birth-rate of 3.0+. by 2050 muslims will surpass israels jewish population in numbers
its just the fact that we have to come along with muslim and respect them
also usa's society has more common with islam then imaginable
mahommedanism is the enemy of everyone, including other mohammedans. It is a system of life and governance, including religion, devised by a violent, predatory man to get his followers to engage in extreme violence to expand his empire. He had the rat cunning to claim this was the will of god and anyone who did not comply was an infidel or an apostate and was to be killed.
No one who rejects mohammed can claim to be a mahommedan and anyone who follows mahommed is urged by the founder to lie to and slay anyone who does not follow mahommed, and indeed those who don't follow your own version of mohammedanism.
That is why mahommedanism will forever be involved in violent conflict with others and with itself, as it has been for about 1400 years.
Well, it's in the genes, so to speak. ALL Abrahamic religions have that problem. See Elaine Pagels, The Origins of Satan. Every copy of the Bible, the Talmud, and the Koran should be burned. That would heat the northern hemisphere for a full winter, and eliminate most of the non-fossil-fuel causes of war.
Good Luck with Teaching the USA on Islam.
Putin should shut the gas off on a cold day. No money no gas. Tell all the European countries that when you've got it all figured out you can return the money, pull back NATO as agreed to in the 90's and stop the sanctions.
Otherwise, see you in the spring.
If you are single, this would be a good time to find yourself a nice Ukrainian bride.
Just try not to get one of the rabid, Neo Nazi ones - they can't be rehabilitated.
Also, you better hurry for the Obama Admin turns off the Fiance Visa program - can't have any of those pesky Orthodox Christians come in. The Obama Team prefer the Pakistani Jihadi Princess look.
Simple as that
That´s how the war in the Pacific broke out.
I don't get this article....
Because the IMF finances Ukraine (against their own rules) and supports the U.S. agenda, *insert a bunch of hyperboles and doom-and-gloom here*.
Is it a completely pointless article? If not, what am I missing? What did the IMF actually do (or say)?
IMF did not have the right to forgive Ukraine's debt to Russia. It was an act of war.
This is the first I've heard of the IMF "forgiving Ukraine's debt to Russia".
Any more information on that, or is it a hyperbole/lie?
http://www.wsj.com/articles/SB10001424052702304403804579263963348323966
http://www.atimes.com/atimes/China_Business/NH01Cb01.html
"China Development Bank issued the first tranche of an $85 million loan to upgrade a coal mine in Luhansk Region. All in all, Ukraine hopes to receive some $1 billion in loans for its coal mines from China."
" Chinese government ratified a $372 million 15-year loan for a railroad link from Kiev to the international airport in Boryspil. Ukraine expects the first $15 million tranche by early August."
"And as Ukraine continues to seek alternatives to Russian economic coercion and dwindling Western assistance, Chinese loans and joint projects could serve as an important lifeline for the Ukrainian economy."
Divide and Conquer
How about the Greek debt?
I hope this remains the top story for awhile
(edit to add) as in no major (bad) news happens for awhile
Every day. Constant escalation.
If Vlad turns off the oil and gas to Ukraine and Europe, a lot of innocents will die. Vlad has no proof Russia will be paid for fuel deliveries for 2015-2016.
In war, there are very severe shortages.
This is the US trying to get Putin's goat again via economic warfare.
I think the US are preparing some more nefarious though.
I imagine Putin will take the legal route to buy some more time and to show the world he is more reasonable. Not that Ukraine has any assets around the world to arrest if the case is successful. I am sure their politicians have billions but Ukraine not so much.
Needless to say, if you are the local gas man delivering the red LPG cylinder and your customer stiffs you for an invoice and spits in your face with the neighbors cheering him on, I highly doubt you are going to deliver more fuel.
https://enronnext101.wordpress.com/
Three Truths
r
sorry i was mistaken
This may have already been raised in one of the 555 comments, but if the IMF have now made a new loan to Ukraine - thereby jumping into geo-politics and re-writing its own lending rules accordingly by only enforcing rules insofar as paying back USD loans are concerned - how does this help the IMF's assumed long-standing agenda to remove the USD as GRC and to replace it with the SDR?
As the article suggests, this IMF action appears to split the world into two blocs: the USD+ally bloc and everybody else (mostly BRICS). This will potentially strengthen the USD GRC bloc as other countries may choose to change their alignment and join the USD bloc in order to help ensure their loans get repaid.
does this mean i don't have to pay taxes anymore?
Russia should default on their debt to the west. Let's start bringing the house down.
Actually they have quite low debt.
http://www.usdebtclock.org/world-debt-clock.html
The Russians are complete morons.
They are groveling at the feet of the Americans.
Instead of at least selling their oil and gold for rubles, they are still selling them for UNCONSTITUTIONAL therefore ILLEGAL Federal Reserve Notes aka US Dollars.
Who is stupid enough to give their stuff away in exchange for participating in, and perpetuating, the greatest international financial and economic CRIME in history?
Vladimir 'the Impaled by Erdogan' Putin and his merry bunch of faggots, whores and drunkards, the Russian people.
Other countries indebted to the IMF could start demanding that their debts are forgiven too (hello Greece!). Or they could simply refuse to pay and turn to the BRICS bank. Russia and China could provide them credit in the form of the US bonds they hold. So America would pay the loans provided by Russia and China.
Thoughts about this anybody?
Scheme out the Schemers at their own game. Yep, that's definitely one way to go but these Russians, Chinese and Greeks are too stupid and gutless.
They are subanimals (whereas the Americans are bona fide animals).
Can't work with that. That's simply ISIS fodder.
Exceptional animals?
Well, the Yuan just made into the SDR basket of global currencies so the Chinese might not want to threaten that. But of course it would provide them leverage* over these borrowing countries as well as over the US.
* Mr. Ruskie and Mr. Chinaman, if you like my idea please send me some reward. Gold would do nicely. Greek can send some gyros (all they can afford).
No one uses SDRs for trade. Being part of the SDR scheme only means you're part of the problem and not the solution.
China,
just like Russia,
are IMF members.
All IMF members are PROHIBITED from using gold as money.
Understand?
Hmmmm. No More Mr. Nice Guy. The US tries to force the nonaligned members of the world to choose between the US/Saudi axis and the BRICS alliance before they have completely lost the edge. I dunno. It could have worked IF not ISIS. But they're just going to have an impossible time working the American public around into tolerating the jihadis, who are an essential element of the Saudi game.
It would be much easier in the long run for Americans to get along with Iranians, who are a very old, very sophisticated people with a vibrant secular side to their culture. Which was probably why the original coup to install Reza Pahlavi. Americans could and DID get along perfectly well with Iranians. Until they decided to run their own country.
The Saudis, not so much. Nobody I know who's spent time in their country has much good to say about it. And no woman I've known who's had a relationship with a Saudi man, has been willing to stay with it. They're bad friends and worse lovers (Persian boys, on the other hand . . . !) Which could have something to do with our California shooter having to go to Saudia Arabia to find himself a wife. Which also speaks to jihadism in general as it's well known to psychologists and wizards that males who can't find a mate tend to become violently unhinged.
No, I think that long term the Russian-Iranian alliance is much solider. And probably has more energy resources still in the ground, i.e. reserves. And let's not forget that the Russians have demonstrated time and again that they have the staying power, the resources and social cohesion to go it alone. They LIKE Western trade. But they can live without it. Entirely. They've done it before, and if the idiots running our country push them to it, they can do it again, and it will be OUR loss.
Common, Tylers... How u could be so pro-russian? From the articles on ZH it seems like Russia is a Dreamland! Calling the Ukrainian government Hunta? WTF?? Too much of LIFE-News!!
When Syrian refugee asked if he would go to Ukraine...
"Nyet!"