IMF loans will enrich Ukrainian Oligarchs, but impoverish middle class, workers and poor.

[another_liberal]

The IMF is a tool of the most powerful international economic interests, that much we already know. In this interview, economist Michael Hudson explains how that powerful international financial Oligarchy intends to use its loans to help fellow Ukrainian Oligarchs make money off of their country's current crisis. It is a convoluted story of deceit , greed and uncaring Capitalist excess:

IMF pushes Ukraine to ‘voluntarily committing suicide’

Western support will allow more IMF and European lending to prop the Ukrainian currency so the Ukrainian oligarchs can move their money safely to British and US banks, economist and author Michael Hudson told RT’s Truthseeker.

RT: Could you summarize for us the tried and tested steps that will lead from IMF loans, to Ukraine's best assets ending up in private Western hands - the IMF's 'knee-breaker' role as you memorably described it as?

Michael Hudson: The basic principle to bear in mind is that finance today is war by non-military means. The aim of getting a country in debt is to obtain its economic surplus, ending up with its property. The main property to obtain is that which can produce exports and generate foreign exchange. For Ukraine, this means mainly the Eastern manufacturing and mining companies, which presently are held in the hands of the oligarchs. For foreign investors, the problem is how to transfer these assets and their revenue into foreign hands – in an economy whose international payments are in chronic deficit as a result of the failed post-1991 restructuring. That is where the IMF comes in.

The IMF was not set up to finance domestic government budget deficits. Its loans are earmarked to pay foreign creditors, mainly to maintain a country’s exchange rate. The effect usually is to subsidize flight capital out of the country – at a high exchange rate rather than depositors and creditors getting fewer dollars or euro. In Ukraine’s case, foreign creditors would include Gazprom, which already has been paid something. The IMF transfers a credit to its “Ukraine account,” which then pays foreign creditors. The money never really gets to Ukraine or to other IMF borrowers. It is paid to the accounts of foreigners, including foreign government creditors, as in IMF loans to Greece. Such loans come with “conditionalities” that impose austerity. This in turn drives the economy even further into debt – forcing the government to tighten the budget even more, run even smaller budget deficits and sell off public assets.

(snip)

Read more of this fascinating interview at: http://rt.com/op-edge/170960-economy-imf-ukraine-oligarchs/

[Duckhunter935]

1. I hope you are happy

that the government is now feeding and taking care of the civilians in the towns the Pro-Russian separatists ran away from. Now they seem to be blowing up infrastructure to the main cities.

Now, the Ukrainian forces who retook the city July 6 are using the building as a makeshift food bank for Slovyansk's 130,000 shell-shocked residents.

In the City Hall and in the main square surrounding it, long lines have formed for residents to collect handouts of goods like bread, kielbasa, and watermelon.

Oleksandr, a Slovyansk resident, expresses relief, telling RFE/RL's Ukrainian Service that local stores had not been able to provide staples for over two weeks and retired residents had not received their monthly pensions in months.

http://www.rferl.org/content/slovyansk-liberated-from-separatists-but-wounded/25448686.html

[another_liberal]

5. At least you don't offer us any "propaganda" . . .

Good photography, well produced.

At least you don't indulge in any of that awful "Propaganda" stuff, right?

[Duckhunter935]

7. From the same source (pic heavy)

at least in their propaganda they seem to show all sides.
Link but caution some graphic photos, be warned
https://www.facebook.com/ato.news/photos_stream?fref=photo

[Duckhunter935]

9. did RT show this?

using a church as a firing position for heavy weapons?

[malaise]

2. and don't forget it will take the central bank

out of the hands of the government where the multilaterals will facilitate the looting and plunder of the best resources.

[another_liberal]

8. Ukraine's treatment will make what is happening to Greece look tame.

Last edited Mon Jul 7, 2014, 07:58 PM - Edit history (1)

There is no one the Ukrainian people can even appeal to. Their own government is an accomplice to the looting which will proceed at an increasing pace.

[Igel]

10. Which is completely different from before.

When the oligarchs ran thing and the pro-Russian side facilitated the looint and plunder of the best resources.

But it's only a bad thing when "we" do it. If it helps Russia, if it's more of the same, then it's a good thing. Of course, it might not be more of the same. With any change of scenery there's the chance that things might improve. But really, we want more looting and plunder, as long as it's somebody with an openly anti-American agenda. Putin's ONF, Purgin, and the like.

Is that really what's being said? If you understand the history of the country for the last two or twenty years, if you have any sense of context that's not from rt.com, that's what you're stuck with. Governmental looting of the country for the sake of oligarchs and another government.

Now, I don't like the Maidanovtsy, but that's exactly what they don't like and precisely what I don't like, and the reason I don't trust Porosyonok. But to openly call for those who we *know* looted and plundered to return so they can resume ... ?

[Scootaloo]

3. Well, that's just what the IMF DOES

[KoKo]

4. Recommend...Michael Hudson is well respected.

[another_liberal]

6. That is a frightening interview . . .

Leaves one feeling almost powerless to oppose such people.