The U.S. funding next stage of Ukraine war through the IMF

Thanks to Victoria Nuland, the alternative media has received enough fodder to prove that the Kiev coup and subsequent war on Ukrainian citizens was planned and orchestrated by the United States.  Yet because of the videos, articles, and tapped phone conversations that have outed several neo-cons within the State Department and independent think tanks, any overt attempt by Washington to fund, arm, and intervene directly in the conflict would be quickly met with severe opposition from a public that is growing tired of Washington's lies, and has grown weary of more than a decade of falsely created wars.So instead it appears that the Obama administration is sticking primarily with its most powerful weapons, and using its control over the reserve currency and Western banking systems to continue a foreign policy meant to disrupt the rise of Russia, and to stir up chaos at a time when the West itself is insolvent and on the verge of a monetary crisis that could quickly lead to its losing its hold on the global financial system.

Say hello to the IMF and its new role as a money launderer for Washington's foreign policies

The IMF from day one has broken a multitude of its own rules in an attempt to provide upwards of $17.5 billion in loans to the unlawfully attained Kiev government, with the IMF even admitting that to receive the money they must first crush the rebels in the East who have historic ties to Russia.  But with the separatists proving to be more than a match for Poroshenko's Kiev forces, the ceasefire has forced Lagarde and the U.S. to backtrack on their initial demands.

Kiev is going to receive a new tranche of the $17.5 billion loan from the IMF despite concerns over its growing national debt and shaky truce in eastern Ukraine torn apart by civil war. In return, the IMF expects Kiev to put its economy “on the path to recovery.”

Ukraine is going to get the approved $1.7 billion, a tenth of the $17.5 billion financial assistance program adopted by the IMF executive board in March.

Back in March, Kiev already got $5 billion of initial disbursement under the IMF financial assistance program. The policy of the Washington-based institution, representing 188 countries, implies that the IMF would provide financial assistance only to a country that is “sustainable with high probability” of repaying debt. - Russia Today

Yet looking at this last statement, we know that Kiev is in far worse economic straits than in 2014, and cannot even pay for current energy contracts with Russia without borrowed money from the IMF and other sources.  And besides this singular lapse in following IMF procedures for the right to lending privileges, there are several other mandates Christine Lagarde and the institution is ignoring to ensure that Kiev gets money laundered from Washington to carry out the next phase of this geo-political conflict.

The IMF, whose bailout operations are absorbed by the taxpayers in the member countries whenever a particular bailed-out nation defaults, announced on Friday, June 19th, that it will “continue to support Ukraine through its Lending-into-Arrears Policy even in the event that a negotiated agreement with creditors in line with the program cannot be reached in a timely manner.” Though this new “Lending-into-Arrears” policy violates two IMF rules, it was justified by the IMF’s Managing Director Christine Lagarde on the basis of the Ukrainian government’s “continued efforts to reach a collaborative agreement with all creditors.” 

In other words: a statement by Ukraine’s government that it wants to reach an agreement with its private creditors is being used by the IMF as if it were an excuse to extend into the indefinite future the IMF’s continued taxpayer-guaranteed financing of (‘lending’ to) the Ukrainian government, despite the fact that the IMF is violating two of the IMF’s own most-basic rules restricting its lending-authority — these rules are lending-restrictions whose purpose was to reduce the riskiness of the IMF’s lending, and so to minimize the amount that the IMF will be taking from taxpayers to fund its losses:

1: The IMF does not lend to nations at war — but Ukraine continues being at war against its former Donbass region despite the Minsk II ceasefire agreement; ceasefire violations, especially by the Ukrainian side, continue regularly.

2: The IMF does not lend to nations that are likely to default — but every independent source categorizes Ukraine as being virtually certain to default, and the only actual question regarding Ukraine is: when? The IMF’s answer: we’ll keep lending, building Ukraine’s public debt even higher, until our aim is achieved, and then we won’t — and that’s when the default will occur — the default will happen when we decide it will happen. It will happen when we will stop lying and saying that it won’t happen. - Washingtons Blog

There is only one entity that could make the IMF supersede its own rules, and that is the United States.  And the reasons become apparent from a story that surfaced a little more than two months ago that cited Ukrainian President Poroshenko saying that he is using the ceasefire to rearm his troops to soon re-engage with Eastern separatists.

A Russian central banker who has served at the IMF comments: “the Fund should not place military spending below the line. But if you try to nail the Fund down on that, you would be wasting your time. The Fund has internationally-renowned expertise in doublespeak and hypocrisy. What the Fund is doing around Ukraine was at first laughable; now has become outrageous. No matter what, the Fund will keep financing the civil war in Donbass because the Americans want the fighting to continue and spread. Period.” - Naked Capitalism

us invades ukraine

Graphic courtesy of David

Heading into September, the buildup of NATO troops in countries along Russia's border are not simply an exercise, and have no reason for being there except to prepare for a conflict that appears to have been set in motion beginning with the Kiev coup in late 2013.  And in fact, the U.S. head of NATO operations has already expedited war rhetoric that has not been seen since the days of the Cold War.  And when you take the failing economic indicators that are now exploding in both Europe and the U.S. into play, and the threat that Russia, China, and the rest of the BRICS nations have created to wrest global monetary control from Washington at the slightest hint of insolvency, it should no longer be a surprise that war is no longer just a luxury for the West as it had been in the Middle East over the past decade, but a necessity that will leave no stone un-turned, including the killing of the IMF's credibility as a 'neutral' organization, and turning it into a money launderer for war and the furtherance of the Empire's foreign policies.