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Currency Wars - Russia Buys 20.7 Tonnes Of Gold In December; Netherlands Refutes IMF Go... - 0 views

www.zerohedge.com/...herlands-refutes-imf-gold-data economy Russia physical-gold
shared by Paul Merrell on 29 Jan 15 - No Cached
  • Russia raised its gold reserves for a ninth straight month in December as the country continued its multi month gold buying spree, adding to the fifth-biggest gold holdings in the world, data from the IMF showed yesterday.  Russia continues to dollar cost average into gold and increased its bullion holdings by another hefty 20.73 tonnes to 1,208.23 tonnes in December. The December figure for Russia, who have the fifth largest reserves in the world, brings their officially stated reserves to 1208.23 tonnes. If this trend were to continue their officially stated reserves would increase 20.6% this year.
  • Given that Russia perceives itself to be under financial and economic attack from the West, there is the possibility that they are accumulating more gold than they are declaring officially to the IMF. This is what the People’s Bank of China (PBOC) has been doing in recent years and there is little reason why Russia may not adopt the Chinese practice of not being transparent in this regard. The Chinese government have been surreptitiously accumulating vast quantities of the metal in recent years and there is no reason to believe this buying will end in the coming months as geopolitical and monetary risks intensify. Western central banks seem to be balking at what will be seen as the disastrous policy of dumping the gold owned by their populations onto the market. The Gold Anti Trust Action Committee (GATA) have documented how this was done in order to suppress gold prices, in a bid to support and maintain faith in the dollar as reserve currency. Already there are strong movements across Europe to have sovereign gold stored domestically. The German and Dutch central banks have recently reported the repatriation of large volumes of their gold being held by central banks of foreign nations.
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IMF criticises US spending cuts - Americas - Al Jazeera English - 0 views

www.aljazeera.com/...201361514211826626.html Federal-Reserve-Bankster-Cartel Banksters economy sequestration
shared by Paul Merrell on 15 Jun 13 - No Cached
  • The International Monetary Fund has assailed US government spending cuts as "excessively rapid and ill-designed" as it cut the economy's growth forecast for 2014. Warning that the country still faces downside risks to its recovery, the IMF cheered the Federal Reserve's stimulus efforts and urged Congress to help firm up growth by repealing the severe "sequester" budget cuts. In its annual report on the US economy, the IMF said growth would be only 1.9 percent this year, due to the sequester's impact, when it had the potential of growing as much as 1.75 percentage points faster.
  • It suggested fundamental tax reforms as part of actions to confront the longer term fiscal shortfall, including eliminating many exemptions and loopholes, and introducing a value-added tax and a carbon tax. It credited the Federal Reserve's aggressive quantitative easing - its $85 billion-a-month bond purchases, to hold down interest rates - with keeping the economy on a sure footing as the government slashes spending.
  • Paul Merrell on 15 Jun 13
     
    Austerity cuts for the rest of the world but more spending and "quantitative easing" for the U.S. Banksters!
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IMF's Lagarde guilty of 'negligence' but avoids sentence over 2008 payout - France 24 - 0 views

www.france24.com/...008-payout-french-tycoon-tapie banksters IMF Lagarde France conviction corruption
shared by Paul Merrell on 19 Dec 16 - No Cached
  • A French court on Monday convicted International Monetary Fund chief Christine Lagarde of "negligence" for her role in a controversial €400 million payout to a French tycoon in 2008 while she was finance minister. The Court of Justice did not hand down a sentence, a decision welcomed by her lawyer, Patrick Maisonneuve, as a "partial" victory. “We wanted a complete acquittal, instead we got a partial one,” said Maisonneuve. “The court has decided to not to penalise her – in fact, the court even decided this should not go on Madame Lagarde’s criminal record.” Lagarde, 60, was accused of approving a controversial €400 million ($425 million) payout to businessman Bernard Tapie in an out-of-court settlement when she was finance minister under former president Nicolas Sarkozy.
  • An arbitration panel ordered the payout to Tapie in connection with his sale of sportswear company Adidas. The panel upheld Tapie's claim that the Crédit Lyonnais bank had defrauded him by intentionally undervaluing Adidas at the time of the sale and that the state – as the bank's principal shareholder – should compensate him. It was Lagarde who, in her role as French finance minister, ordered the case to be heard by an arbitration panel instead of proceeding through the regular courts. Critics say that Lagarde ensured Tapie received preferential treatment by referring the matter to arbitration as a quid pro quo for his financial support for Sarkozy during his 2007 presidential bid. They also argue that the state should not have paid compensation to a convicted criminal who was bankrupt at the time and would not have been able to pursue the case in court. Tapie spent six months in prison in 1997 for match-fixing during his time as president of popular French football club, Olympique Marseille.
  • Tapie was placed under formal investigation for committing fraud in late June of 2013. He was ordered to pay back the money starting in December of last year. The "Tapie affair" has entangled several other high-profile figures, including Sarkozy’s ex-chief of staff Claude Guéant and Stéphane Richard, Lagarde’s former chief of staff at the finance ministry and now chief executive of Orange. Lagarde was appointed managing director of the IMF in July 2011. Lagarde served as French finance minister from June 2007 and also served as minister of foreign trade for two years. Before entering politics she worked as an anti-trust and labour lawyer, and was a partner with the international law firm of Baker & McKenzie.
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Head of the IMF Christine Lagarde in court charged with embezzlement and fraud | World ... - 0 views

www.standard.co.uk/...zlement-and-fraud-8628670.html banksters IMF LeGarde criminal-prosecution fraud embezzlement
shared by Paul Merrell on 01 Jun 16 - No Cached
  • The head of the International Monetary Fund arrived in the dock of a Paris courtroom today as she braced herself to be formally charged with embezzlement and fraud.Christine Lagarde’s humiliation is not only a massive personal blow which could lead to her resignation, but one which will plunge the world’s banking system into further ignominy.
  • Lagarde faces a maximum sentence of 10 years in jail if found guilty of the very serious charges.It was when she was President Nicolas Sarkozy’s finance minister that she is said to have authorised a 270 million pounds payout to one of his prominent supporters, so abusing her government position.The money went to Bernard Tapie, a convicted football match fixer and tax dodger who supported Lagarde and Sarkozy’s UMP party.
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Ukrainians Get IMF's Bitter Medicine | Consortiumnews - 0 views

consortiumnews.com/...nians-get-imfs-bitter-medicine war & peace Ukraine bankster looting IMF austerity
shared by Paul Merrell on 03 Apr 14 - No Cached
  • hough lacking legitimacy from national elections, Ukraine’s coup regime has approved a harsh IMF austerity plan that hits Ukraine’s “99 percent” the hardest and asks little from the country’s “1 percent,” including the corrupt “oligarchs,” reports Robert Parry.
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Ukraine a threat to global economy, warns IMF chief Christine Lagarde - Telegraph - 0 views

www.telegraph.co.uk/...F-chief-Christine-Lagarde.html war & peace Ukraine bankster looting IMF
shared by Paul Merrell on 03 Apr 14 - No Cached
  • International Monetary Fund managing director Christine Lagarde has warned that the political crisis around Ukraine poses a danger to the broader world economy.
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Major International Finance Organization Criticizes U.S. Minimum Wage | ThinkProgress - 0 views

thinkprogress.org/...imf-minimum-wage-us financial-collapse minimum-wage IMF banksters
shared by Paul Merrell on 17 Jun 14 - No Cached
  • The United States is facing new international pressure to raise its minimum wage. In its annual review of the U.S. economy released on Monday, the International Monetary Fund criticized America for wages that are both historically low and lower than other countries, and it called on the U.S. to raise its wages accordingly.
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John Kerry admits: some US surveillance has gone too far | World news | theguardian.com - 0 views

www.theguardian.com/...some-surveillance-gone-too-far surveillance state NSA NSA-blowback Obama Kerry Snowden Germany
shared by Paul Merrell on 01 Nov 13 - No Cached
  • John Kerry, the US secretary of state, conceded on Thursday that some of the country's surveillance activities had gone too far, saying that certain practices had occurred "on autopilot" without the knowledge of senior officials in the Obama administration.In the most stark comments yet by a senior administration official, Kerry promised that a previously announced review of surveillance practices would be thorough and that some activities would end altogether."The president and I have learned of some things that have been happening in many ways on an automatic pilot, because the technology is there and the ability is there," he told a conference in London via video link."In some cases, some of these actions have reached too far and we are going to try to make sure it doesn't happen in the future."
  • In recent days, the Obama administration has put some distance between it and the National Security Agency (NSA). Kerry's comments are a reflection in particular of a concern about the diplomatic fallout from the revelation that the US monitored the cellphone of the German chancellor, Angela Merkel.The tactic has irritated senior intelligence officials. On Thursday evening, the director of the NSA, General Keith Alexander, blamed US diplomats for requests to place foreign leaders under surveillance.During a pointed exchange with a former US ambassador to Romania, James Carew Rosapepe, Alexander said: "We, the intelligence agencies, don't come up with the requirements. The policy-makers come up with the requirements."He added: "One of those groups would have been, let me think, hold on, oh: ambassadors."
  • Alexander said that the NSA collected information when it was asked by policy officials to discover the "leadership intentions" of foreign countries. "If you want to know leadership intentions, these are the issues," he said at a discussion hosted by the Baltimore Council on Foreign Relations.Earlier in Washington, the debate continued about whether further legal constraints should be placed on the NSA. The Senate intelligence committee approved a bill that placed largely cosmetic restrictions on the National Security Agency's domestic surveillance programme.The bill, sponsored by committee chairwoman Dianne Feinstein, a California Democrat, allows the NSA continue to collect phone metadata of millions of Americans for renewable 90-day periods, but orders it to be more transparent about the practice.
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  • The bill, which is competing with more restrictive measures from other committees, now moves forward to a full Senate vote. The stage is now set for a showdown with the USA Freedom Act, a bipartisan bill that would prohibit bulk collection of Americans' telephone records.Senator Mark Udall, a Democratic member of the Senate intelligence committee and a supporter of NSA reform, said it did not go far enough."The NSA's invasive surveillance of Americans' private information does not respect our constitutional values and needs fundamental reform, not incidental changes," he said.
  • In a separate development on Thursday, a group of technology giants called for substantial reforms to the US government's surveillance programmes. The companies were furious about revelations this week – the latest to emerge from documents leaked by the former NSA contractor Edward Snowden – that the agency had intercepted the cables that link the worldwide data centres belonging to Google and Yahoo.It was also reported that Obama had ordered the NSA to stop eavesdropping on the headquarters of the International Monetary Fund (IMF) and World Bank. Reuters cited a US official as saying the president had ordered the halt in the past few weeks.The NSA's surveillance of the IMF and World Bank has not previously been disclosed.
  • In response to Reuters inquiries, a senior Obama administration official said, "The United States is not conducting electronic surveillance targeting the headquarters of the World Bank or IMF in Washington." The Obama administration official, who spoke on condition of anonymity, did not address whether the NSA had eavesdropped on the two entities in the past.Kerry, in his comments to a conference organised by the Open Government Partnership, acknowledged that trust needed to be restored. "There is an effort to try to gather information, yes, in same cases inappropriately, and the president is now doing a thorough review, in order that nobody will have a sense of abuse," he said.Despte the cracks between the administration and the spy community, Kerry was careful to defended the motives of US intelligence agencies, insisting no "innocent people" were being abused and saying surveillance by several countries had prevented many terrorist plots.
  • A German MP said he met Snowden in Moscow on Thursday, and said the NSA whistelblower was prepared in principle to help Germany investigate allegations of surveillance by US intelligence.Hans-Christian Stroebele, a lawmaker with Germany's opposition Greens and a prominent critic of the NSA's alleged actions, told ARD television that Snowden "made clear he knows a great deal."He said Snowden would be prepared to travel to Germany and testify, "but the circumstances would have to be cleared up".
  • Paul Merrell on 01 Nov 13
     
    Looks like maybe Snowden is now a hero in Germany and may be allowed to travel there. Meanwhile, the Obama Administration rats continue to desert the sinking NSA ship, but Diane Feinstein fights on to preserve mass surveillance. 
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West's antiquated unipolar world collides with the East's vision of a mulipolar future.... - 0 views

journal-neo.org/...s-vision-of-a-mulipolar-future war & peace Ukraine banksters
shared by Paul Merrell on 21 Mar 14 - No Cached
  • For years the West has been cultivating a proxy political machine inside of Ukraine for the purpose of peeling the nation away from its historical and socioeconomic ties to Russia. The deep relationship between Western corporate-financier interests on Wall Street and in London and the opposition in Ukraine are best summarized in PR Weeks “Analysis: PR gets trodden underfoot as sands shift in Ukraine.” In the article, the involvement of some of the most notorious corporate lobbying firms on Earth, including Bell Pottinger and the Podesta Group, are revealed to have been involved in Ukraine’s internal affairs since the so-called “Orange Revolution” in 2004 – a coup admittedly orchestrated by the West and in particular the US government.  The article chronicles (and defends) the continuing, unabated meddling of the West up to and including the most recent turmoil consuming Ukraine.    PR Week’s article revealed that heavily funded networks propping up the proxy regime in Kiev are sponsored by “individuals and private companies who support stronger EU-Ukraine relations.” It is these Western corporate-financier interests, not Ukrainian aspirations for “democracy” and “freedom,” that kicked off the “Euromaidan” mobs in the first place – and will be the driving force that misshapes and deforms the regions of western Ukraine now overrun by the West’s proxies.  To the east in Ukraine, people are prominently pro-Russian, sharing closer cultural, linguistic, and socioeconomic ties to Russia as well as long historical parallels. They have welcomed moves by Russia to counter the coup in Kiev and protect eastern Ukraine from the corrosive influence that will grow as the West further entrenches itself.
  • With the vacant chair of deposed Ukrainian President Viktor Yanukovych still warm, the tentacles of Western corporate-financier interests have already wound themselves around Kiev and have begun to squeeze.  Chevron, which had signed a multi-billion dollar deal with Ukraine in November, 2013, was operating in the west of Ukraine, and alongside other Western energy giants such as ExxonMobil and Shell. The deals were part of President Yanukovych’s apparent gravitation toward the West and impending integration with the EU which was then suddenly overturned in favor with re-cementing ties with Russia. Western oil giants clearly saw the benefit of backing a putsch that would leave the western half firmly in the orbit of the US, UK, and EU. They can not only continue their business on the western edge of Ukraine, but expand their interests unabated across the country now that a capitulating, puppet regime sits in Kiev.   While Western big-oil plans to move in and siphon billions, the International Monetary Fund (IMF) is already planning deep cuts in social benefits as part of a staggering austerity regime to restructure financially the seized western region of Ukraine, and if possible, all of Ukraine proper.
  • RT reported in its article, “Pensions in Ukraine to be halved – sequestration draft,” that: The self-proclaimed government in Kiev is reportedly planning to cut pensions by 50 percent as part of unprecedented austerity measures to save Ukraine from default. With an “empty treasury”, reduction of payments might take place in March.  According to the draft document obtained by Kommersant-Ukraine, social payments will be the first to be reduced. The proxy regime set up in Kiev has already indicated its eager acceptance to all IMF conditions. The fate of western Ukraine will be no different than other members of the European Union preyed upon by the corporate-financier interests that created the supranational consolidation in the first place. The reduction of a multipolar Europe into a unipolar, supranational consolidation which can be easily and collectively looted is a microcosm of what the West’s Fortune 500 plan as part of their global unipolar order.  
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  • The natural resources, human capital, and geopolitical advantages found within the borders of Ukraine, will now become the natural resources, human capital, and geopolitical advantages of Chevron, BP, Monsanto, a myriad of defense contractors, telecom corporations, and other familiar brands seen marauding across the planet leaving in its wake destitution, socioeconomic disparity, and perpetual division they intentionally sow in order to protect their holdings from any form of unified or organized opposition.    No matter how obvious the West’s game may be to some, had Ukraine fallen entirely under the control of Western interests, a multitude of excuses could and would have been peddled to explain the unraveling of Ukrainian society in terms that would exonerate the corporate-financier interests truly driving the crisis. But Ukraine has not entirely fallen to the West, and because of that, the planned decimation of western Ukraine, its economy, and its sovereignty will stand out in stark contrast to the eastern region that has remained beyond the West’s reach and within the orbit of Russia’s multipolar vision of the future.  
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Western Sponsors Liable for Kiev Basket Case | nsnbc international - 0 views

nsnbc.me/...onsors-liable-kiev-basket-case war & peace Ukraine-creditworthiness Russia natural-gas
shared by Paul Merrell on 23 Oct 14 - No Cached
  • The Kiev ultra rightwing regime that Washington and Brussels railroaded into power in February this year, in an illegal coup d’état, has compounded fiscal bankruptcy with a seventh-month criminal war on the ethnic Russian population of the eastern Donbass regions, prompting up to a million refugees to stream across the border with Russia. Earlier this month, the International Monetary Fund (IMF) warned that Ukraine will need to find an additional $19 billion to avoid bankruptcy if the Kiev regime continues with its military operations in the east of the country. That is on top of the $17 billion that the IMF has already committed to Kiev following the CIA-backed coup against the elected government of President Victor Yanukovych. The legality and delivery of those IMF funds are questionable given the Washington-based institute’s own prohibition on funding states that are engaged in war.
  • This is the context for why Russia was obliged to put Ukraine on a prepayment basis over gas purchases back in June. At a trilateral negotiation in Brussels on September 26, the parties appeared to reach an agreement on a winter package of gas supply to Ukraine from Russia to cover the months of October to March inclusively, which would be based on a prepayment scheme. The payment rate agreed to was $385 per 1,000 cubic metres of natural gas. Granted, that payment rate is a lot more than what Moscow was previously supplying the Yanukovych government. But that was on a preferential basis to an ally. Given that the Kiev regime ousted this ally of Moscow and has shown unprecedented hostility towards Russia ever since the coup in February it is not unreasonable that Russian state-owned Gazprom has raised the price of its gas to $385, and especially because that figure is the average price paid by all European countries for Russian gas.
  • The fact is that Ukraine owes Russia $5.3 billion in unpaid gas bills going back several years. As Western consumer societies might just appreciate, if a customer does not make good on outstanding credit for a service or goods, then the supplier of that service is entitled by law to with-hold further delivery.
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  • «We are ready to pay in advance but the advance payment mechanism has not yet been squared,» the Kiev energy minister told media. Hmmm, payment mechanism has not yet been squared? That hardly sounds like an ironclad commitment to honour contracts with Russia and to make long overdue amends to outstanding debt. It sounds rather like more of the same shenanigans that typifies this warmongering junta. Russia’s energy minister Alexandr Novak is therefore not only entitled, but is merely exercising a modicum of sanity, to insist that Kiev presents a definitive source of funds by the next trilateral meeting scheduled to take place on October 29. To any reasonable person, Russia’s insistence on Kiev providing proof of ability and willingness to pay for the next delivery of natural gas is not an act of «intimidation» but rather is a basic and wholly justified reservation on the part of Moscow to make sure that it is indeed paid for a strategically vital export. One can only imagine how the US or EU would react if they were being dictated to by a hostile jumped-up regime.
  • The depth of Kiev’s insolvency is probably even worse than the IMF’s own dire forecast. Sergei Glazyev, an economic advisor to Russian President Vladimir Putin, earlier this month reckoned that Ukraine will need at least $100 billion to stabilise its economy. He says that the Kiev regime won’t be able to meet its international obligations even if all the promised financial aid from the US and the European Union is delivered, which is doubtful. «Default is inevitable,» Glazyev concludes. In this context of extreme credit unworthiness, it is not surprising therefore that Russia is insisting that the Kiev regime make prepayments for the further purchase of natural gas. Ukraine will require some 18 billion cubic metres of the fuel to see it through the bitter winter months – and all of it from Russia.
  • The September 26 agreement also stipulated that Kiev would pay off its $5.3 billion debt to Russia in roughly two equal tranches amounting to a total of $3.1 billion by the end of this year, with the first payment at the end of this month. However, on October 13, the Kiev-appointed energy minister Yuriy Prodan announced an about-turn by declaring that the regime would not be making any prepayment, and that money would be forthcoming only after delivery of Russian gas. Such a truculent attitude is by no means the first time that Kiev has vacillated on commitments, not just over gas, but also in the realm of political negotiations to find a peaceful solution to the violence in the eastern regions. In a word, the Western-backed regime in Kiev has shown itself to be unreliable to say the least, if not downright unscrupulous. That conclusion is not based on random delinquent behaviour but rather on a systematic pattern since the regime seized power. Then this week at the latest trilateral talks in Brussels, Kiev’s Prodan once again swivelled position and is now appearing to say that the regime will make good on the arrangement of prepayments.
  • What’s more, Russia’s adamant stance on gas prepayments is all the more warranted because the Western sponsors of the Kiev regime have so far shown little inclination to help it deal with its looming energy crisis.
  • Last week, Kiev put a request to the European Commission for a loan of $2.6 billion. But all that the EC would say is that it is considering the request. Yet, on the basis of no money, the EU’s energy commissioner Guenther Oettinger this week says that he expects a gas deal to be signed on October 29 between Russia and Ukraine under the auspices of Brussels. Washington is even more circumspect than Brussels on the matter of providing hard cash to Kiev, as opposed to lots of hot-air promises of nebulous aid. One gets the feeling that the Western sponsors know full well that this regime is a basket case. Nevertheless, these Western sponsors are liable for the basket case that they created. Russia is thus dead right to be sceptical and to insist: show us the colour of your money. If not, then the Western-aspiring regime should be ready to abide by its Western consumer-market principles. No money, no delivery – unless your Western daddy bails you out, which is not looking likely so far. If Ukraine comes off the rails with an energy crisis this winter, the responsibility lies with the reckless regime-hijackers in Washington and Brussels. They created this wreck, they should pay for it – not the government of Russia, which has shown incredible forbearance in spite of gratuitous insults, provocation and insolence.
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Merkel doesn't oppose Greece leaving Eurozone: Syriza surges to 30.4 % in Poll for Janu... - 0 views

nsnbc.me/...-poll-for-january-25-elections banksters Greece EU IMF ECB Syriza must-read UK
shared by Paul Merrell on 07 Jan 15 - No Cached
  • German Chancellor Angela Merkel doesn’t oppose Greece leaving the eurozone. Talks about the possibility of Greece leaving the eurozone have gained renewed urgency after 30.4 % of polled Greeks said they would vote for Syriza, suggesting a chance that the left-wing party that runs on a platform of renegotiating bailout terms and national sovereignty as well as social justice could win the Greek snap parliamentary elections on January 25.
  • German Chancellor Angela Merkel said, according to the German magazine Der Spiegel, that Germany wouldn’t oppose a Greek exit from the eurozone if the people of Greece voted a party to power that opposes the current austerity measures in the country which came as conditionalities along with a EU and IMF bailout. Both Chancellor Merkel as well as German Finance Minister Wolfgang Schäuble reportedly believe that such a decision and development would be bearable for Germany as well as for the other eurozone member States. The Chancellor and the Finance Minister were cited as referring to progress made in the eurozone since 2012.
  • EUropean shares and bonds dropped last week after the Greek parliament rejected the current Prime Minister Antonius Samaras’ presidential candidate and set the country on a course towards snap parliamentary elections on January 25. A recent poll showed that the governing PASOK and New Democracy coalition had suffered substantial losses in popular support after they agreed to the EU/IMF bailout and associated conditions that have driven a large percentage of the middle class into abject poverty. Another issue that is hotly debated among Greeks is the loss of sovereignty over the county’s economic and fiscal policy, and domestic affairs, including social policies.
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  • The support for Syriza is by many analysts seen as a clear popular mandate for Syriza and against the austerity measures which have driven impoverished previous members of the middle class to illegally cut down trees for firewood to survive the winter. Many analysts also interpret the results of the recent polls as a clear message to Prime Minister George Papandreou who ruled the country since 2009 and to and PASOK as well as to New Democracy, that “enough is enough”. When UK Prime Minister David Cameron, in 2014, signaled that the UK could leave the EU all together, the majority of polled French said “let them go”. As for Germany and France, a slimmer, more streamlined EU could indeed strengthen a growing continental European consensus against a UK/US economic, political and military hegemony which the Atlantic Axis tries to enforce in Europe. Some analysts say that a Greek departure from the eurozone could be positive for both the EU and for Greece, while a British departure from the EU could put Europe on less hostile course towards Russia and a consolidation of ties between the EU and Russia.
  • Paul Merrell on 07 Jan 15
     
    Be sure to take your pitchfork along if you're traveling to Greece in the near future. Barbecued bankster is on the menu. Don't forget that Russia is waiting in the wings, with Turkey agreed to supply the Turkey-Greece natural gas pripeline with Russian natural gas. So the E.U. can pay Greece and Turkey pass-through revenues if the EU wants any of that gas. 
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U.S. urges allies to think twice before joining China-led bank - Yahoo Finance - 0 views

finance.yahoo.com/...taly-join-china-002209014.html economic-warfare dedollarization AIIB Germany France Italy Luxembourg EC
shared by Paul Merrell on 20 Mar 15 - No Cached
  • (Reuters) - The United States urged countries on Tuesday to think twice about signing up to a new China-led Asian development bank that Washington sees as a rival to the World Bank, after Germany, France and Italy followed Britain in saying they would join. The concerted move by U.S. allies to participate in Beijing's flagship economic outreach project is a diplomatic blow to the United States and its efforts to counter the fast-growing economic and diplomatic influence of China. Europe's participation reflects the eagerness to partner with China's economy, the world's second largest, and comes amid prickly trade negotiations between Brussels and Washington.
  • European Union and Asian governments are frustrated that the U.S. Congress has held up a reform of voting rights in the International Monetary Fund that would give China and other emerging powers more say in global economic governance.
  • Washington insists it has not actively discouraged countries from joining the new bank, but it has questioned whether the Asian Infrastructure Investment Bank (AIIB) will have sufficient standards of governance and environmental and social safeguards. "I hope before the final commitments are made anyone who lends their name to this organization will make sure that the governance is appropriate," Treasury Secretary Jack Lew told U.S. lawmakers. Lew warned the Republican-dominated Congress that China and other rising powers were challenging American leadership in global financial institutions, and he urged lawmakers to swiftly ratify stalled reform of the IMF.
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  • In a joint statement, the foreign and finance ministers of Germany, France and Italy said they would work to ensure the new institution "follows the best standards and practices in terms of governance, safeguards, debt and procurement policies." Luxembourg’s Finance Ministry confirmed the country, a big financial centre, has also applied to be a founding member of the $50 billion AIIB.
  • A spokeswoman for the European Commission, the EU's executive arm, endorsed member states' participation in the AIIB as a way of tackling global investment needs and as an opportunity for EU companies.
  • Lew told lawmakers that the U.S. delay in ratifying the agreement was undermining its credibility and influence as countries question the United States' commitment to international institutions. “It's not an accident that emerging economies are looking at other places because they are frustrated that, frankly, the United States has stalled a very mild and reasonable set of reforms in the IMF,” Lew said.
  • Some Republicans have complained the changes would cost too much at a time Washington is running big budget deficits. The reforms have also ran afoul of a growing isolationist trend among the party's influential Tea Party wing.
  • Washington says it sees a role for the IAAB given Asia's immense infrastructure needs and regards it as a potential partner for established institutions like the ADB. But its strategy of questioning the IAAB's standards has drawn criticism from some observers, who say the administration should have been more accepting of the new bank or offered alternatives within the existing institutions. "If you try to fight the rising power's peaceful ascent you sow big problems in the future," said Fred Bergsten, a former top international affairs official at the U.S. Treasury and currently a fellow at the Peterson Institute in Washington. Scott Morris, a former U.S. Treasury official who led U.S. engagement with the multilateral development banks during the first Obama administration, said Washington was paying the price for delay on IMF reform. "It's a clear sentiment among a pretty diverse group of countries: We would like to mobilize more capital for infrastructure through MDBs (multilateral development banks)," said Morris, now with the Washington-based Center for Global Development. "And the U.S. stands in the way of that and now finds itself increasingly isolated as a result.”
  • Japan, Australia and South Korea remain notable regional absentees from the AIIB. Australian Prime Minister Tony Abbott said at the weekend he would make a final decision on membership soon. South Korea has said it is still in discussions with China and other countries about possible participation. Japan is unlikely to join the AIIB, but ADB head Takehiko Nakao told the Nikkei Asian Review that the two institutions were in discussions and could work together.
  • Paul Merrell on 20 Mar 15
     
    Oh, man. Angela Merkel just hitched Germany's wagon to China's, which implictly means Russia's and the rest of BRICS too. Plus the European Commission, UK, France, Italy, and Luxembourg   Keep in mind that China will open its RMB trading centers in the major financial hubs in September and that the folks in Brussels are making noises about a European combined defense organization, independent of NATO anjd the U.S.   I want more information to be certain that there is more here than moves to create bargaining leverage with Washington, D.C.. but it might soon be time to buy a wheelbarrow to carry my walkabout spending money. Wow!
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Washington Misses Bigger Picture of New Chinese Bank « LobeLog - 0 views

www.lobelog.com/er-picture-of-new-chinese-bank
shared by Paul Merrell on 22 Mar 15 - No Cached
  • Bibi Netanyahu’s election, persistent violence through much of the Middle East and North Africa, and intensified efforts to forge a nuclear deal between the P5+1 and Iran topped the news here in Washington this week. But a much bigger story in terms of the future order of global politics was taking place in Europe and Beijing. The story was simply this: virtually all of the closest European allies of the United States, beginning with Britain, defied pressure from Washington by deciding to apply for founding membership in the Asian Infrastructure Investment Bank (AIIB). This Chinese initiative could quickly rival the World Bank and the Asia Development Bank as a major source of funding for big development projects across Eurasia. The new bank, which offers a serious multilateral alternative to the Western-dominated international financial institutions (IFIs) established in the post-World War II order, is expected to attract about three dozen initial members, including all of China’s Asian neighbors (with the possible exception of Japan). Australia, Russia, Saudi Arabia, and other Gulf states are also likely to join by the March 31 deadline set by Beijing for prospective co-founders to apply. Its $50 billion in initial capital is expected to double with the addition of new members, and that amount could quickly grow given China’s $3 trillion in foreign-exchange reserves. More details about the bank can be found in a helpful Q&A here at the Council on Foreign Relations website.
  • Along with the so-called BRICS bank—whose membership so far is limited to Brazil, Russia, India, China and South Africa—the AIIB poses a real “challenge to the existing global economic order,” which, of course, Western nations have dominated since the establishment of the International Monetary Fund (IMF) and the World Bank in the final days of World War II. As one unnamed European official told The New York Times, “We have moved from the world of 1945.” That Washington’s closest Western allies are now racing to join the AIIB over U.S. objections offers yet more evidence that the “unipolar moment” celebrated by neoconservatives and aggressive nationalists 25 years ago and then reaffirmed by the same forces after the 2003 Iraq invasion is well and truly. And yet, these same neoconservatives continue to insist that—but for Obama’s weakness and defeatism—the United States remains so powerful that it really doesn’t have to take account of anyone’s interests outside its borders except, maybe, Israel’s. (That Washington’s closest Western allies are now racing to join the new bank over U.S. objections could also presage a greater willingness to abandon the international sanctions regime against Iran if Washington is seen as responsible for the collapse of the P5+1 nuclear negotiations with Tehran. Granted, Iran’s economy—and its potential as a source of investment capital—is itsy-bitsy compared to China.)
  • Indeed, commentators are depicting US allies’ decision to join the AIIB (see here, here, and here as examples) as a debacle for U.S. diplomacy. The Wall Street Journal editorial board has predictably blamed Obama for defeat, calling it a “case study in declining American influence” (although it also defended Washington’s decision against joining and accused Britain of “appeasing China for commercial purposes.”) What the Journal predictably didn’t mention was a key reason why the administration did not seek membership in the new bank: there was virtually no chance that a Republican-dominated Congress would approve it. Indeed, one reason Beijing launched its initiative and so many of our allies in both Asia and Europe have decided to join is their frustration with Republicans in Congress who have refused to ratify a major reform package designed to give developing countries, including China, a little more voting power on the Western-dominated governing boards of the IMF and the World Bank. The Group of 20 (G20) biggest economic powers actually proposed this reform in 2010, and it doesn’t even reduce Washington’s voting power, which gives it an effective veto over major policy changes in both institutions. As a result of this intransigence, the United States is the only G-20 member that has failed to ratify the reforms, effectively blocking their implementation.
  • Paul Merrell on 22 Mar 15
     
    U.S. global hegemony is rapidly disintegrating as former puppet states in Europe jump from the dwindling dollar economy to the rising remnimbi/ruble BRICS economies. And many of the "stans" south of Russia threatened by U.S. mercenaries provided by the Gulf Coast States are jumping in that direction too, along with Turkey, a NATO member. The Stans involved are oil and natural gas rich; combined with Russian oil and gas, they have enough oil and gas reserves to rival the Gulf Coast States.  The most interesting part to me is the debate now under way in the EU over dropping out of NATO and creating a replacement European mutual defense force that excludes the U.S. I'm beginning to hit some chatter about inviting Russia into that hypoethesized treaty. That makes sense for the EU because it would give Europe the benefit of Russian nuclear deterrence, both in land and submarine-based ICBMs. I'm not convinced that Russia would sign on. Russia is already running joint military exercises with China, which is playing the role of Russia's economic savior at this point. So China might have the final say on that scenario. A pan-Eurasian mutual defense treaty? What would be left of the U.S. Empire without NATO, particularly given that the dollar would surely collapse before such a treaty were signed? The War Party in Congress has only one tool to work with, war, and when all you have is a hammer, all problems look like nails. Current U.S. military power is built around the capacity to wage two major wars concurrently, but is very heavily dependent on NATO to do so. I'm not sure at all that the War Party has what it takes to cope with a peaceful group boycott by other NATO members. 
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Saudi Arabia Will Be Broke In 5 Years, IMF Predicts | Zero Hedge - 0 views

www.zerohedge.com/...-be-broke-5-years-imf-predicts war & peace Saudis IMF Saudi-economy Syria
shared by Paul Merrell on 22 Oct 15 - No Cached
  • As crazy as it sounds, the Saudis are going broke. Of course you wouldn’t know it if you read the account of King Salman’s latest visit to Washington which included booking the entire DC Four Seasons and procuring a veritable fleet of Mercedes S-Class sedans.
  • You’d also be inclined to think that everything is fine if you simply looked at SAMA holdings (i.e. FX reserves) which still total nearly $700 billion. 
  • The problem however, is the outlook.  Fighting wars costs money and so does bribing the citizenry to ensure you don’t get some kind of Arab Spring-type uprising. When you endeavor to artificially suppress the price of the export that is the source for your wealth and international prestige (all in an epic attempt to bankrupt the competition and secure geopolitical “ancillary benefits”) you don’t do yourself any favors from a financial perspective and now, the Saudis are staring down a massive budget deficit and a current account that’s in the red for the first time in ages. So while things may look on the up and up from an FX reserve perspective (even as the cushion is at its lowest level since 2013) and while the kingdom has plenty of capacity to borrow with a debt-to-GDP ratio of just a little over 2%, things are about to get ugly very quickly going forward and if Riyadh decides to plunge headlong into Syria’s civil war, it will only get worse. Note that while debt levels are likely to stay low relative to a world where countries like Japan are borrowing so much that the number of decimal places won't even fit into a title, going from basically 0% to ~16% of GDP in the space of just 24 months isn't exactly a good sign:
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75 Economic Numbers From 2012 That Are Almost Too Crazy To Believe - 0 views

theeconomiccollapseblog.com/...re-almost-too-crazy-to-believe economic-collapse Obammunism Obamanomics
shared by Gary Edwards on 13 Jan 13 - No Cached
  • Gary Edwards on 13 Jan 13
     
    Thanks to Marbux we have this extraordinary collection of facts and figures describing the economic catastrophe that has hit the USA.  excerpt: "What a year 2012 has been!  The mainstream media continues to tell us what a "great job" the Obama administration and the Federal Reserve are doing of managing the economy, but meanwhile things just continue to get even worse for the poor and the middle class.  It is imperative that we educate the American people about the true condition of our economy and about why all of this is happening.  If nothing is done, our debt problems will continue to get worse, millions of jobs will continue to leave the country, small businesses will continue to be suffocated, the middle class will continue to collapse, and poverty in the United States will continue to explode.  Just "tweaking" things slightly is not going to fix our economy.  We need a fundamental change in direction.  Right now we are living in a bubble of debt-fueled false prosperity that allows us to continue to consume far more wealth than we produce, but when that bubble bursts we are going to experience the most painful economic "adjustment" that America has ever gone through.  We need to be able to explain to our fellow Americans what is coming, why it is coming and what needs to be done.  Hopefully the crazy economic numbers that I have included in this article will be shocking enough to wake some people up. The end of the year is a time when people tend to gather with family and friends more than they do during the rest of the year.  Hopefully many of you will use the list below as a tool to help start some conversations about the coming economic collapse with your loved ones.  Sadly, most Americans still tend to doubt that we are heading into economic oblivion.  So if you have someone among your family and friends that believes that everything is going to be "just fine", just show them these numbers.  They are a good summary of the problems that the U
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11 Reasons Why The Federal Reserve Should Be Abolished - BlackListedNews.com - 0 views

www.blacklistednews.com/...M.html Banksters Federal-Reserve-Bankster-Cartel
shared by Gary Edwards on 07 May 13 - No Cached
  • Gary Edwards on 07 May 13
     
    "If the American people truly understood how the Federal Reserve system works and what it has done to us, they would be screaming for it to be abolished immediately.  It is a system that was designed by international bankers for the benefit of international bankers, and it is systematically impoverishing the American people.  The Federal Reserve system is the primary reason why our currency has declined in value by well over 95 percent and our national debt has gotten more than 5000 times larger over the past 100 years.  The Fed creates our "booms" and our "busts", and they have done an absolutely miserable job of managing our economy.  But why do we need a bunch of unelected private bankers to manage our economy and print our money for us in the first place?  Wouldn't our economy function much more efficiently if we allowed the free market to set interest rates?  And according to Article I, Section 8 of the U.S. Constitution, the U.S. Congress is the one that is supposed to have the authority to "coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures".  So why is the Federal Reserve doing it?  Sadly, this is the way it works all over the globe today.  In fact, all 187 nationsthat belong to the IMF have a central bank.  But the truth is that there are much better alternatives.  We just need to get people educated. The following are 11 reasons why the Federal Reserve should be abolished..."
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Asia Times Online :: Central Asian News and current affairs, Russia, Afghanistan, Uzbek... - 0 views

www.atimes.com/...CEN-02-050314.html war & peace foreign policy Ukraine UNA-UNSO NATO pipelinestan
shared by Paul Merrell on 09 Mar 14 - No Cached
  • Here's the US's exceptionalist promotion of "democracy" in action; Washington has recognized a coup d'etat in Ukraine that regime-changed a - for all its glaring faults - democratically elected government. And here is Russian President Vladimir Putin, already last year, talking about how Russia and China decided to trade in roubles and yuan, and stressing how Russia needs to quit the "excessive monopoly" of the US dollar. He had to be aware the Empire would strike back. Now there's more; Russian presidential adviser Sergey Glazyev <a href='http://asianmedia.com/GAAN/www/delivery/ck.php?n=a9473bc7&cb=%n' target='_blank'><img src='http://asianmedia.com/GAAN/www/delivery/avw.php?zoneid=36&cb=%n&n=a9473bc7&ct0=%c' border='0' alt='' ></a> told RIA Novosti, "Russia will abandon the US dollar as a reserve currency if the United States initiates sanctions against the Russian Federation." So the Empire struck back by giving "a little help" to regime change in the Ukraine. And Moscow counter-punched by taking control of Crimea in less than a day without firing a shot - with or without crack Spetsnaz brigades (UK-based think tanks say they are; Putin says they are not).
  • Putin's assessment of what happened in Ukraine is factually correct; "an anti-constitutional takeover and armed seizure of power". It's open to endless, mostly nasty debate whether the Kremlin overreacted or not. Considering the record of outright demonization of both Russia and Putin going on for years - and now reaching fever pitch - the Kremlin's swift reaction was quite measured. Putin applied Sun Tzu to the letter, and now plays the US against the EU. He has made it clear Moscow does not need to "invade" Ukraine. The 1997 Ukraine-Russia partition treaty specifically allows Russian troops in Crimea. And Russia after all is an active proponent of state sovereignty; it's under this principle that Moscow refuses a Western "intervention" in Syria. What he left the door open for is - oh cosmic irony of ironies - an American invention/intervention (and that, predictably, was undetectable by Western corporate media); the UN's R2P - "responsibility to protect" - in case the Western-aligned fascists and neo-nazis in Ukraine threaten Russians or Russian-speaking civilians with armed conflict. Samantha Power should be proud of herself.
  • The "West" once again has learned you don't mess with Russian intelligence, which in a nutshell preempted in Crimea a replica of the coup in Kiev, largely precipitated by UNA-UNSO - a shady, ultra-rightwing, crack paramilitary NATO-linked force using Ukraine as base, as exposed by William Engdahl. And Crimea was an even murkier operation, because those neo-nazis from Western Ukraine were in tandem with Tatar jihadis (the House of Saud will be heavily tempted to finance them from now on). The Kremlin is factually correct when pointing out that the coup was essentially conducted by fascists and ultra-right "nationalists" - Western code for neo-nazis. Svoboda ("Freedom") party political council member Yury Noyevy even admitted openly that using EU integration as a pretext "is a means to break our ties with Russia." Western corporate media always conveniently forgets that Svoboda - as well as the Right Sector fascists - follow in the steps of Galician fascist/terrorist Stepan Bandera, a notorious asset of a basket of "Western" intel agencies. Now Svoboda has managed to insert no less than six bigwigs as part of the new regime in Kiev.
  • ...5 more annotations...
  • And even as 66% of Russian gas exported to the EU transits through Ukraine, the country is fast losing its importance as a transit hub. Both the Nord Stream and South Stream pipelines - Russia not on-the-ground but under-seas - bypass Ukraine. The Nord Stream, finished in 2011, links Russia with Germany beneath the Baltic Sea. South Stream, beneath the Black Sea, will be ready before the end of 2015. Geoeconomically, the Empire needs Ukraine to be out of the Eurasian economic union promoted by the Kremlin - which also includes Kazakhstan and Belarus. And geopolitically, when NATO Secretary General, the vain puppet Anders Fogh Rasmussen, said that an IMF-EU package for the Ukraine would be "a major boost for Euro-Atlantic security", this is what clinched it; the only thing that matters in this whole game is NATO "annexing" Ukraine, as I examined earlier. It has always been about the Empire of Bases - just like the encirclement of Iran; just like the "pivot" to Asia translating into encirclement of China; just like encircling Russia with bases and "missile defense". Over the Kremlin's collective dead body, of course.
  • Then there are the new regional governors appointed to the mostly Russophone east and south of Ukraine. They are - who else - oligarchs, such as billionaires Sergei Taruta posted to Donetsk and Ihor Kolomoysky posted in Dnipropetrovsk. People in Maidan in Kiev were protesting mostly against - who else - kleptocrat oligarchs. Once again, Western corporate media - which tirelessly plugged a "popular" uprising against kleptocracy - hasn't noticed it.
  • Ukraine's foreign currency reserves, only in the past four weeks, plunged from US$17.8 billion to $15 billion. Wanna buy some hryvnia? Well, not really; the national currency, is on a cosmic dive against the US dollar. This is jolly good news only for disaster capitalism vultures. And right on cue, the International Monetary Fund is sending a "fact-finding mission" to Ukraine this week. Ukrainians of all persuasions may run but they won't hide from "structural adjustment". They could always try to scrape enough for a ticket with their worthless hryvnia (being eligible for visa on arrival in Thailand certainly helps). European banks - who according to the Bank for International Settlements (BIS) hold more than $23 billion in outstanding loans - could lose big in Ukraine. Italian banks, for instance, have loaned nearly $6 billion. On the Pipelineistan front, Ukraine heavily depends on Russia; 58% of its gas supply. It cannot exactly diversify and start buying from Qatar tomorrow - with delivery via what, Qatar Airways?
  • US Secretary of State John Kerry accusing Russia of "invading Ukraine", in "violation of international law", and "back to the 19th century", is so spectacularly pathetic in its hypocrisy - once again, look at the US's record - it does not warrant comment from any informed observer. Incidentally, this is as pathetic as his offer of a paltry $1 billion in "loan guarantees" - which would barely pay Ukraine's bills for two weeks. The Obama administration - especially the neo-cons of the "F**k the EU" kind - has lost is power play. And for Moscow, it has no interlocutor in Kiev because it considers the regime-changers illegal. Moscow also regards "Europe" as a bunch of pampered whining losers - with no common foreign policy to boot. So any mediation now hinges on Germany. Berlin has no time for "sanctions" - the sacrosanct American exceptionalist mantra; Russia is a plush market for German industry. And for all the vociferations at the Economist and the Financial Times, the City of London also does not want sanctions; the financial center feeds on lavish Russian politico/oligarch funds. As for the West's "punishment" for Russia by threatening to expel it from the Group of Eight, that is a joke. The G-8, which excludes China, does not decide anything relevant anymore; the G-20 does.
  • If a wide-ranging poll were to be conducted today, it would reveal that the majority of Ukrainians don't want to be part of the EU - as much as the majority of Europeans don't want the Ukraine in the EU. What's left for millions of Ukrainians is the bloodsucking IMF, to be duly welcomed by "Yats" (as Prime Minister Yatsenyuk is treated by Vic "F**k the EU" Nuland). Ukraine is slouching towards federalization. The Kiev regime-changers will have no say on autonomous Crimea - which most certainly will remain part of Ukraine (and Russia by the way will save $90 million in annual rent for the Sevastopol base, which until now was payable to Kiev.) The endgame is all but written; Moscow controls an autonomous Crimea for free, and the US/EU "control", or try to plunder, disaster capitalism-style, a back of beyond western Ukraine wasteland "managed" by a bunch of Western puppets and oligarchs, with a smatter of neo-nazis. So what is the Obama/Kerry strategic master duo to do? Start a nuclear war?
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Chairman Of Joint Chiefs: US Ready For "Military Response" In Ukraine | Zero Hedge - 0 views

www.zerohedge.com/...eady-military-response-ukraine war & peace U.S. foreign policy Dempsey NATO saber-rattling
shared by Paul Merrell on 12 Mar 14 - No Cached
  • With diplomacy having failed miserably to resolve the Russian annexation of Crimea, and soon East Ukraine (and with John Kerry in charge of it, was there ever any doubt), the US is moving to the heavy artillery. First, moments ago, the US DOE announced in a shocking announcement that it would proceed with the first draw down and sale of crude from the US strategic petroleum reserve, the first since June 2011, in what it said was a "test sale to check the operational capabilities of system infrastructure", but is really just a shot across the bow at Putin for whom high commodity prices are orders of magnitude more important than how the Russian stock market performs. And now, as Bloomberg just reported, the US has escalated even further, citing the Chairman of the Joint Chiefs of Staff, General Martin Dempsey, who "has claimed that in the case of an escalation of unrest in Crimea, the U.S. Army is ready to back up Ukraine and its allies in Europe with military actions."
  • So much for those peaceful hour long phone calls between Obama and Putin. From Bloomberg: According to the Web site of the Atlantic Council, Dempsey said that "he's been talking to his military counterparts in Russia, but he's also sending a clear message to Ukraine and members of NATO that the U.S. military will respond militarily if necessary."   "We're trying to tell [Russia] not to escalate this thing further into Eastern Ukraine, and allow the conditions to be set for some kind of resolution in Crimea. We do have treaty obligations with our NATO allies. And I have assured them that if that treaty obligation is triggered [in Europe], we would respond," Dempsey said.   According to the General, the incursion of Russian troops into the Crimea creates risks for all the countries of Europe and NATO allies.   "If Russia is allowed to do this, which is to say move into a sovereign country under the guise of protecting ethnic Russians in Ukraine, it exposes Eastern Europe to some significant risk, because there are ethnic enclaves all over Eastern Europe and the Balkans," Dempsey said. And with that, the USDJPY ramp takes the pair to overnight highs, and futures are set to go green. BTFWWIIID! More seriously, the real question is how Putin will react to this quantum escalation in verbal hostilities: wild guess here, but somehow we doubt he will pick up and leave.
  • Paul Merrell on 12 Mar 14
     
    At stake, a few areas inside eastern Ukraine that have voted to join the Crimea and stick with Russia rather than NATO/IMF. 
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Iceland Defies Bank Backlash: Advance $1.2 Billion Debt Relief Plan - 0 views

www.informationclearinghouse.info/article37023.htm financial-collapse Iceland debt-relief banksters
shared by Paul Merrell on 02 Dec 13 - No Cached
  • Iceland’s government has announced that it will be writing off up to 24,000 euros ($32,600) of every household’s mortgage, fulfilling its election promise, despite overwhelming criticism from international financial institutions. The measure was introduced by the country’s prime minister, Sigmundur David Gunnlaugsson, the leader of the Progressive Party which won the late-April elections on a promise of household debt relief. According to the government’s website the household debt will be reduced by 13 percent on average.  Citizens of Iceland have been suffering from debt since the 2008 financial crisis, which led to high borrowing costs after the collapse of the krona against other currencies.   “Currently, household debt is equivalent to 108 percent of GDP, which is high by international comparison,” highlighted a government statement, according to AFP. "The action will boost household disposable income and encourage savings.” The government said that the debt relief will begin by mid-2014 and according to estimates the measure is set to cost $1.2 billion in total. It will be spread out over four years. 
  • The financing plan for the program has not yet been laid out. However, Gunnlaugsson has promised that public finances will not be put at risk. It was initially proposed that the foreign creditors of Icelandic banks would pay for the measure. International organizations have confronted the idea with criticism. The International Monetary Fund (IMF) and the Organization for Economic Cooperation and Development (OECD) have advised against it, citing economic concerns. Iceland has “little fiscal space for additional household debt relief” according to the IMF, while the OECD stated that Iceland should limit its mortgage relief to low-income households. In the meantime, ratings service, Standard & Poor's, cut back on its outlook for Iceland's long-term credit rating to negative from stable, stating that the economic measure could affect the confidence of foreign investors if it ends up being paid for by the existing creditors of Icelandic banks.
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Russia threatens to cut off Ukraine gas from June 3 - Yahoo News - 0 views

news.yahoo.com/aine-gas-june-3-154426657.html war & peace Russia Ukraine Gazprom pipelinestan
shared by Paul Merrell on 13 May 14 - No Cached
  • Russia's state energy giant Gazprom warned on Monday that it may halt natural gas shipments to Ukraine on June 3 in a move that could impact the supplies of at least 18 EU nations.Gazprom chief executive Alexei Miller said Ukraine must pay upfront for its June deliveries because of outstanding debts. He added that Kiev had until the morning of June 3 to make the payment "or Ukraine will receive zero cubic metres (of gas) in June," Interfax reported.
  • Paul Merrell on 13 May 14
     
    Russia cranks up the pressure on the EU to take a more neutral stance. The comedy: Billions of dollars of that IMF, E.U., and U.S. money being funneled to the Kiev coup leaders will have to go to Russia to keep the gas flowing. The announcement by Gazprom has been anticipated in published articles since the first days of the coup.  
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