I am a fortunate person……I have the time to keep up with my interests…..politics, international affairs and economics….I can thank that bitch Katrina for this good fortune…..you see she crushed my leg that forced me into retirement which in turn gave me all the time I want to keep track of the world and its insanities……
Now that the Crimean thing is all but settled and the Russians are pushing into Eastern Ukraine……..now with the loss of Crimea Ukraine will be needing to bring its economics into balance….but how will they do that? One term…..the IMF!
This situation is just what the IMF is looking for so they can step in and demand changes in the economy and society……………The IMF will offer financial assistance to Ukraine…..but that will mean a whole lot of restructuring…..and that could be a disaster in the making…..How you may ask?
Remember the old USSR, that evil empire that Reagan brought down single handedly, kinda like the work of Underdog, and with the failure and the collapse the IMF stepped in to help……help with the transition to a free market economy…….
Since the USSR’s collapse, Russia faced many problems that free markets proponents in 1992 did not expect. Among other things, 25% of the population lived below the poverty line, life expectancy had fallen, birthrates were low, and the GDP was halved. And this gave rise to the true “free markets”…..the Black Market and an increase of criminal activity that is still massive to this day……..
The IMF has been licking its chips to get their hands on the another country to boss around….they were not satisfied with the economic collapse of the PIGS…..now they have Ukraine to work on……….
IMF aid programs typically are accompanied by stringent conditions to ensure that a country will be able to fix its economy and make it grow. Canada, the European Union, the United States and other countries have promised to support Ukraine if an IMF program is put into place.
When developing countries get into financial trouble—usually because of reckless government spending—IMF procedures require that any loans made to these countries be accompanied by fulfillment of strict “conditions” that must be met before IMF funds can be disbursed.
Interesting, right? But what are these conditions?
Program approval or reviews are based on various policy commitments agreed with the country authorities. These can take different forms:
- Prior actions are measures that a country agrees to take before the IMF’s Executive Board approves financing or completes a review. They ensure that the program has the necessary foundation to succeed, or is put back on track following deviations from agreed policies. Examples include the elimination of price controls or formal approval of a budget consistent with the program’s fiscal framework.
- Quantitative performance criteria (QPCs) are specific and measurable conditions that have to be met to complete a review. QPCsalways relate to macroeconomic variables under the control of the authorities, such as monetary and credit aggregates, international reserves, fiscal balances, and external borrowing. For example, a program might include a minimum level of net international reserves, a maximum level of central bank net domestic assets, or a maximum level of government borrowing.
- Indicative targets are used to supplement QPCs for assessing progress. Sometimes they are also set when QPCs cannot because of data uncertainty about economic trends (e.g. for the later months of a program). As uncertainty is reduced, these targets are normally turned into QPCs, with appropriate modifications.
- Structural benchmarks are (often non-quantifiable) reform measures that are critical to achieve program goals and are intended as markers to assess program implementation during a review. They vary across programs: examples are measures to improve financial sector operations, build up social safety nets, or strengthen public financial management.
These are nothing more than a rape of the working class and a boom for business to take whatever they can out of the country before it implodes…….it lead to the depression in Russia after the collapse and it is killing the PIGS…..the people of each of these countries suffer at the hands of the IMF………and Ukraine will be NO different.
The IMF is the front man of trans-national corporations and their plundering of a nation in trouble……..I see political unrest in the Ukrainian situation which could lead to even more economic problems…….