Important preface by Paul Craig Roberts (received yesterday): "Government of Ukraine Collapses" "Today the Ukrainian government resigned. The prime minister Yatsenyuk, or 'Yat' as affectionately called by Victoria Nuland who put Yat into office, resigned along with the entire Cabinet. The parliament refused to vote the harsh conditions demanded by the IMF. I am not sure what this means. Perhaps it is just a tactic to force the parliament to do as the IMF says. Or perhaps Yat, Washington’s stooge, has realized that IMF or no IMF, Ukraine’s economy is imploding and wants to get out of the blame. The point for now is that I checked the BBC, the New York Times, and CNN and there is not one word about the collapse of the government of Ukraine. I did notice that the BBC, now a reliable element of Washington’s Ministry of Propaganda, reported, as if it were true, State Department spokeswoman Marie Harf’s claim that the Russian military is shelling Ukrainian forces. When Harf tried this out today on a roomful of journalists, they laughed her out of the room. Evidence, evidence! they demanded. 'Why,' Harf was asked, 'do you think something is made true by your saying it!?' So, as usual, real news is missing from the Western press, but fake news is reported. Professor Michael Chossudovsky has provided an account of the collapse of the Ukrainian government on Global Research." (reproduced below)

---

Collapse of Ukraine Government: Prime Minister Yatsenyuk Resigns amidst Pressures Exerted by the IMF

By Prof Michel Chossudovsky                                                                  Region: Russia and FSU Global Research, July 24, 2014                       Theme: Global Economy, Poverty & Social Inequality

Global  Research, July 24, 2014                                        Original Here

Ukraine’s Prime Minister Arseniy Yatsenyuk announced his resignation in the Rada (Parliament) and that of the entire Cabinet on Thursday, July 24.  This decision was taken following the withdrawal of two parties from the coalition government and the non-adoption of two important pieces of legislation, which had been demanded by the International Monetary Fund (IMF)

“I announce my resignation after the collapse of the coalition and the blocking of government initiatives …
“In connection with the breakup of the parliamentary coalition, as well as non-adoption of a number of important bills, I announce my resignation,”

The resignation of the Prime Minister signifies the collapse of the government and the resignation of the entire cabinet.

“But the cabinet members will continue fulfilling their duties until a new coalition is formed in the Rada.”

On July 24th, the Rada failed to support the government’s bill pertaining to the 2014 budget sequestration, which had been demanded by the IMF on behalf of Kiev’s external creditors. The disbursement by the IMF of the “Second Tranche” of a 17 billion dollar policy based loan was conditional upon the prior adoption of this legislation.

“The parliament must adopt amendments to the state budget needed to finance our army and also documents needed for cooperation with international financial institutions.[e.g. IMF, World Bank, EBRD]” said PM Yatsenyuk. (emphasis added)

The entire country is in an impasse. No money will be forthcoming from the IMF until this legislation is adopted. In the meantime, Ukraine remains on the blacklist of its external creditors.

Moreover, a controversial draft law on reforming the country’s gas transportation system was rejected (Itar-Tass, July 24, 2014).

Both bills were tied into the government’s negotiations with both the EU and the IMF.

What Happens Next?

The national economy is in crisis, the political structures of the country are in total disarray, all of which is occurring in the immediate wake of the Malaysian Airlines MH17 crash in Eastern Ukraine.

The two parties which left the coalition are The Neo-Nazi Svoboda party and the Centre Right Ukraine Democratic Alliance for Reform (UDAR) Party led by former champion boxer Vitali Klitschko.

President Poroshenko (left) has intimated that the resignation of the cabinet has paved the way for a process of meaningful political restructuring:  “Society wants a full reset of state authorities,” said Mr Poroshenko.

What is implied by Poroshenko’s statement is that the parliamentary process is slated to become defunct inasmuch as Rada is obligated to adopt the legislation demanded by the IMF and the European Union. And if the Rada does not adopt the legislation, the composition of the Parliament will be changed through a process of outright political manipulation.

The 2014 budget project demanded by the IMF includes massive cuts in social spending coupled with increased allocations to the Armed Forces. Its adoption will contribute (virtually overnight) to a further process of the impoverishment of the Ukraine population.

The speaker of the Rada, Mr. Oleksandr Turchynov confirmed that the Ukraine Democratic Alliance for Reform (UDAR) and Svoboda (Freedom) would be invited to propose a candidate to occupy the post of interim Prime Minister.

So much for democracy: the leader of a Neo-Nazi formation Oleh Tyahnybok (Image right) will play a key role in the appointment of an interim Prime Minister to replace Mr. Yatsenyuk. 

Parliamentary elections will only occur if the Rada fails to forge a new coalition government within the next 30 days:

The breakup of the coalition “was probably agreed on by political parties seeking elections and the president,” Yuriy Yakymenko, the head of political research at Kiev’s Razumkov Center, a non-governmental policy group, said by phone.

“Withdrawals from the coalition should not paralyze the parliament’s work,” Poroshenko said before Yatsenyuk announced his resignation.” (Business Week, July 24, 2014

Yatsenyuk intimated in his resignation speech that the State was bankrupt and that failure to abide by IMF demands would create social chaos:

“The fact is that today you failed to vote for the laws, and I have nothing (with which) to pay wages of policemen, doctors, teachers; nothing to buy a rifle with, nothing to fuel an armored personnel carrier with. Today you failed to take a decision to fill the gas storages to allow us to live through the winter, to at last free ourselves from dependence on Russian gas,” (Rada, July 24, 2014)

The IMF Program and the Interim Government

In the days following the Ukraine coup d’Etat of February 23, which led to the ousting of the duly elected president, Wall Street and the IMF–in liaison with the US Treasury and the European Commission in Brussels– had already set the stage for the imposition of the IMF’s “strong economic medicine”.

Following the installation of the interim coalition government, Prime Minister Arseny Yatsenyuk dismissed the need to even negotiate with the IMF. He called for an  an unconditional acceptance of IMF shock therapy:

“We have no other choice but to accept the IMF offer”.
Yatsenyuk intimated that Ukraine will “accept whatever offer the IMF and the EU made” (voice of russia.com March 21, 2014, emphasis added)

In surrendering to the IMF at the outset of the interim government in March 2014, Yatsenyuk was fully aware that the proposed IMF-World Bank macro-economic reforms would brutally impoverish millions of people, including those who protested in Maidan against the Yanukovitch government.

The adoption of the more ruthless components of the IMF’s economic package requiring supportive legislation had been delayed until after the May 25 elections.

Cracking Down on the Party of Regions and the Communist Party

Meanwhile, the government is cracking down on the Ukraine Communist Party which is now illegal as well as on the Party of Regions, both of which were firmly opposed to the IMF policy reforms.

Ukraine as An Ally without NATO Status

In turn, the Ministry of Defense has raised the issue of direct US military support in the military campaign in Eastern Ukraine, where the Donbass militia have repealed the forces of the Kiev regime.

“The current situation testifies to clear Russian interference in Ukraine and its military support to terrorist groups active in Ukraine’s eastern regions… Right now, Ukraine’s armed forces need international support more than ever before”, said Deputy Defense Ihor Kabanenko to David Baldwin, commander of the California National Guard. (Kiev Post, July 24, 2014)

Commander Baldwin was in Kiev for high level consultations with the Ministry of Defense.  In the course of his meetings with DeputyDefense Minister Ihor Kabanenko, Baldwin announced on behalf of the US government that:

“The United States of America is considering the possibility of granting Ukraine the status of an ally without membership in the North Atlantic Treaty Organization (NATO).

… Baldwin said that the American side highly appreciates its cooperation with the Armed Forces of Ukraine and that it is ready to provide comprehensive support to them.

He stressed that a draft law on prevention of Russian aggression, adoption of which will allow Ukraine to obtain the status of an ally of the United States without NATO membership, is currently under consideration by the United States government.

… President Petro Poroshenko has asked the United States Congress to declare the self-proclaimed “People’s Republic of Luhansk” and “People’s Republic of Donetsk” as terrorist organizations and declare their members as terrorists.Poroshenko believes that when sanctions are not working, there are grounds for appeal to the United States Congress to grant Ukraine the special status of a major ally outside NATO (like Israel, Australia, and the Philippines) to enable it to solve its security problems. (Ukrainian News, July 24, 2014, emphasis added)

The granting of the “status of ally outside NATO” would set the stage for the possible deployment of US and NATO forces inside Ukraine in the context of joint military operations with the Ukraine Armed Forces and National Guard.

Why is it that I've spent my adult life believing that the purpose of the IMF has been to help indebted countries out of debt? Whereas its true purpose has been to force those countries to privatize their profit-making sectors, allowing them to be bought off by speculators and global corporations, while forcing the government to cut old-age pensions, government services, government employment, and subsidies to the rest of the populace in order to pay back the IMF for the money that they promised but never really deliver, because the Western banks are given the money (something you surely won't learn from the presstitute "mainstream" media).

---

Western Looting Of Ukraine Has Begun — Paul Craig Roberts

---

March 29, 2014 | Original Here                                              Go here to sign up to receive email notice of this news letter

Western Looting Of Ukraine Has Begun

Paul Craig Roberts

It is now apparent that the “Maiden protests” in Kiev were in actuality a Washington organized coup against the elected democratic government. The purpose of the coup is to put NATO military bases on Ukraine’s border with Russia and to impose an IMF austerity program that serves as cover for Western financial interests to loot the country. The sincere idealistic protesters who took to the streets without being paid were the gullible dupes of the plot to destroy their country.

Politically Ukraine is an untenable aggregation of Ukrainian and Russian territory, because traditional Russian territories were stuck into the borders of the Ukraine Soviet Republic by Lenin and Khrushchev. The Crimea, stuck into Ukraine by Khrushchev, has already departed and rejoined Russia. Unless some autonomy is granted to them, Russian areas in eastern and southern Ukraine might also depart and return to Russia. If the animosity displayed toward the Russian speaking population by the stooge government in Kiev continues, more defections to Russia are likely.

The Washington-imposed coup faces other possible difficulties from what seems to be a growing conflict between the well-organized Right Sector and the Washington-imposed stooges. If armed conflict between these two groups were to occur, Washington might conclude that it needs to send help to its stooges. The appearance of US/NATO troops in Ukraine would create pressure on Putin to occupy the remaining Russian speaking parts of Ukraine.

Before the political and geographical issues are settled, the Western looting of Ukraine has already begun. The Western media, doesn’t tell any more truth about IMF “rescue packages” than it does about anything else. The media reports, and many Ukrainians believe, that the IMF is going to rescue Ukraine financially by giving the country billions of dollars.

Ukraine will never see one dollar of the IMF money. What the IMF is going to do is to substitute Ukrainian indebtedness to the IMF for Ukrainian indebtedness to Western banks. The IMF will hand over the money to the Western banks, and the Western banks will reduce Ukraine’s indebtedness by the amount of IMF money. Instead of being indebted to the banks, Ukraine will now be indebted to the IMF.

Now the looting can begin. The IMF loan brings new conditions and imposes austerity on the Ukrainian people so that the Ukraine government can gather up the money with which to repay the IMF. The IMF conditions that will be imposed on the struggling Ukraine population will consist of severe reductions in old-age pensions, in government services, in government employment, and in subsidies for basic consumer purchases such as natural gas. Already low living standards will plummet. In addition, Ukrainian public assets and Ukrainian owned private industries will have to be sold off to Western purchasers.

Additionally, Ukraine will have to float its currency. In a futile effort to protect its currency’s value from being driven very low (and consequently import prices very high) by speculators ganging up on the currency and short-selling it, Ukraine will borrow more money with which to support its currency in the foreign exchange market. Of course, the currency speculators will end up with the borrowed money, leaving Ukraine much deeper in debt than currently.

The corruption involved is legendary, so the direct result of the gullible Maiden protesters will be lower Ukrainian living standards, more corruption, loss of sovereignty over the country’s economic policy, and the transfer of Ukrainian public and private property to Western interests.

If Ukraine also falls into NATO’s clutches, Ukraine will also find itself in a military alliance against Russia and find itself targeted by Russian missiles. This will be a tragedy for Ukraine and Russia as Ukrainians have relatives in Russia and Russians have relatives in Ukraine. The two countries have essentially been one for 200 years. To have them torn apart by Western looting and Washington’s drive for world hegemony is a terrible shame and a great crime.

The gullible dupes who participated in the orchestrated Maiden protests will rue it for the rest of their lives.

When the protests began, I described what the consequences would be and said that I
would explain the looting process. It is not necessary for me to do so. Professor Michel Chossudovsky has explained the IMF looting process along with much history here: http://www.globalresearch.ca/regime-change-in-ukraine-and-the-imfs-bitter-economic-medicine/5374877

One final word. Despite unequivocal evidence of one country after another being looted by the West, governments of indebted countries continue to sign up for IMF programs. Why do governments of countries continue to agree to the foreign looting of their populations? The only answer is that they are paid. The corruption that is descending upon Ukraine will make the former regime look honest.

---

Listen to this radio interview with economists Paul Craig Roberts and Michel Chossudovsky. As explicitly stated by the latter, by listening to these interviews you will learn more about today's grave economic situation than a Ph.D. student in economics. Don't laugh. I've experienced the same sort of thing in "pure" science, where certain "truths" become dogma and any scientist who dares to disprove them risks losing his livelyhood. “In a time of universal deceit - telling the truth is a revolutionary act.” -- George Orwell

---

Welcome to PaulCraigRoberts.org
My new book, The Failure Of Laissez Faire Capitalism And Economic Dissolution Of The West, is available in ebook form at Barnes & Noble and at Amazon.com.
Click Here.

PCR interviewed by KPFA California

---

March 30, 2013 | Original Here

http://www.kpfa.org/archive/id/90132

Guns and Butter

"The Bubble Economy" with Paul Craig Roberts and Michel Chossudovsky. The three bubbles in the U.S. economy: the bond market, the stock market, and the dollar; a negative real interest rate; off-shoring of jobs; the Cyprus banking crisis where deposits are now considered risk capital; the effect of austerity measures; economics as taught in academia and as portrayed by the media.

---