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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.

26 thoughts on “The U.S. funding next stage of Ukraine war through the IMF Leave a comment

  1. The Globalists are under more pressure to act now and promptly with a looming Trump candidacy. Trump is assembling a ‘Tea Party’ coalition. His mentors are the Koch Brothers, whose father was one of the founders of the anti-communist John Birch society. Trump has already ‘outed’ John McCain and Lindsey Graham, two of the more obvious troublemaker/war hawks/Globalist in the Congress.
    Not that Trump doesn’t have his issues, mind you…we’re living in a crazy world..


  2. This is off-topic but It’s also occurred to me that the Trump candidacy could be a Trojan Horse to introduce Greek style austerity into the U.S., as libertarians don’t believe in things like Social Security or Medicare, as far as I understand them.


  3. I don’t trust Trump for my own personal reasons based on info I heard about him years ago. He would be an austerity guy for sure. It was interesting to hear Larry Nichols compare the Trump candidacy to Ross Perot ( Hagmann & Hagmann) who was talking to Bill Clinton daily while he was running against him. If Trump runs as a 3rd party candidate then we can be sure he is in there to split the Republican ticket and assure a Clinton victory. Let me just go on record saying, I don’t trust any of them, but having said that listening to Hillary as a Pres, would be just too hard to stomach. Then again, the system is just rigged.
    W, said that he thought Trump would join Bush as a VP. Right now, I don’t know we have any assurance that Obama will actually leave the WH in 2016. We might be in a “state of emergency” ( full economic collapse and rioting in the streets) or something else, like war, that would require him to hang around. Time will tell.
    Larry Nichols also said that Clintons planned this with the goal of making Bill Sec Gen of UN. If that happens, there’s no place to run and hide because then you have the Clintons running the world, once of course US hands sovereignty over to UN to handle the “climate change” problem, where they will be required for the sake of the planet to control all of our natural resources.. Then again, maybe Obama is vying for that post next. Sorry, don’t mean to be such a downer, but these people are bent on total control and there is not one ounce of humility in any of them.


  4. I just saw one poll has Trump at now over 30%. That is a meteoric rise, and looks orchestrated. I don’t see Trump and Bush joining hands, though anything’s possible.
    We all know austerity is coming, just because of the unsustainability of the current borrow and spend paradigm. Trump would make the perfect unyielding dictator in a manufactured crisis. Mister ‘Your Fired!’, would be guaranteed to start a revolt in my view. Probably that’s planned too.


    • Trump is the only one running who has experience taking an organization through Bankruptcy. Would be interesting to see what the Republican party does if Trump took an early lead in the electoral count.


  5. Ken, Kind of interesting what’s going on in Syria. US is giving cover to the anti-Assad rebels. Turkey is hitting the Kurds. Supposedly Putin has given up on Assad? Not sure that I believe that, but there are some curious things going on post Iran deal.
    James might also want to comment on this. The thing I find interesting is that we are probably going to take out another dictator and create chaos, like Libya etc. What a strategy.


    • It is becoming apparent that the US wants war and is ratcheting up conflicts wherever they can. Im not sure what Russia’s game in Syria is for the moment… perhaps just a waiting game until there are enough actual Americans/British/NATO, etc… in the region to pull the blanket away.
      But Im more fascinated right now in a piece written by Dr. Paul Craig Roberts yesterday… where both Russia and China outed U.S. led NGO’s within their countries that were working to oppose the governments. This is currently a much bigger consequence and could be used to their advantage.
      Honestly, I think the Eastern strategy is to end the dollar, which would end America’s use of force outside of rogue nation perception. All the current conflicts going on by US backed puppets in Syria and Kiev are distractions… and would delay Eurasia/Asia’s primary goals.


      • Saw this after I responded. My only question is if Russia and China are trying to rebuild a Silk Road, Syria is integral to this plan, not to mention that Syria and Iran are allies and Russia is allied with Iran and Iranian Revolutionary Guard is helping Assad.
        You have to admit, it’s a bit convoluted. US signs a deal allowing Iranian nuclear power, while Iran is Russia’s ally and we are hitting another ally Syria, albeit indirectly and Russia is sitting back quiet because we are doing this with Turkey ( a real rogue state) in the name of defeating ISIS. I don’t buy it. There is something going on behind that maybe we don’t understand.
        Why are US and Russia cooperating on Iran? Who is going to win when Iran suddenly has no more sanctions?
        If the US takes out Assad, I’m guessing we’ll have another Libya. So, if this is the plan, what’s the end game?


      • I will pose something to you here Joyann…
        Who says that the US and Russia are in agreement over Iran? My personal feelings are Iran is playing both sides of the fence and looking out for their own interests. They had to give in a smidgeon to get rid of US sanctions, while at the same time, siding with Russia is beneficial from an energy and trade perspective.
        Its no different than the Saudi’s playing their own game while appearing on the surface to support the US 100%.


      • Ken,I agree that the goal is war, and it is looking more and more that they want to take Assad out. It’s interesting that post Iran nuke deal that Russia is being quiet. The other thing that is interesting is that US gave carte blanche to Turkey to hit the Kurds ( after Erdogan had some political setbacks).
        The other interesting thing is that Erdogan has let all the “fighters” transit through his country. The ones that have become ISIS, with no visa, no nothing and all of a sudden he is going to go after ISIS when in reality it looks like an excuse to hit the Kurds.
        All of this is very ugly. US is bent on taking Assad out, using all kind of other excuses, so my question is why all of a sudden Russia is sitting back quietly? I don’t have answers, but I’m just asking obvious questions. A year ago Russia would not have stood for this. Is there some quid pro quo going on? I don’t know, but the dynamic has changed.
        It would be interesting to hear what James thinks about this, since he has a lot more insight into Russian motives. I’m perplexed, but maybe things will become clear soon???


  6. I just found this link on the site ‘Global research’ which is either Russian sponsored or Russian sympathetic. Dated July 31st. very recent,it claims Russia is ‘fully behind’ Assad, so things we have heard to the contrary may just be Western media BS.
    On the 19th of June, President Putin received the Saudi Minister of Defence the deputy Crown Prince. The meeting with the “uncrowned king” dealt with many files: Yemen, weapon deals, nuclear reactors, price of crude, and most importantly Syria and terrorism.
    Clearly, Putin prepared for this meeting very well, as by then:
    – The Russian prediction was that the nuclear deal with Iran was ready, constituting “bad news” for Riyadh.
    – It was clear that ISIS has declared mutiny on its original supporters and turned into an international danger, especially for Saudi Arabia taking into account its status as the home of Islam. It is also a danger for Russia considering that many of its fighters come from central Asia.
    – It became obvious that the war on Yemen was not going to be a walk in the park and may end up as a long protracted war. Saudi Arabia had already been giving signs of dissatisfaction from the inadequate American support and became convinced that any settlement will require a Russian role, especially that Russia has vetoed the Arab-initiated UNSC resolution seeking placing Yemen under Chapter Seven and which would prohibit any army shipments to the Houthis and enforces sanctions against their leaders.
    It must be remembered that the previous Saudi Foreign Minister Saud Al-Faisal was one of the staunchest advocates of this failed resolution, together with Prince Bandar Bin Sultan who was sacked earlier on the 29th of April.
    Moscow seized the moment and Putin laid out his vision of the situation in Syria to Mohamad Bin Salman: After four years of fighting, there is a tangible change of in the international mood. Geneva 3 is no longer on the table neither is Moscow 3 or Moscow 4. In the meanwhile, terrorism is creeping towards your homeland. In the meantime also, the position of the Syrian Army is improving on the ground and there are no other parties left who are convinced that the Syrian “regime” should fall other than Saudi Arabia and Turkey. There is no option but to cooperate with him [ Assad] in order to fight terrorism that is threatening everyone.


  7. More from this link:
    The Saudi Prince seemed convinced though very reluctantly that the essence of Putin’s harangue was that the Syrian “regime” is here to stay. This encouraged his host to go a step further and suggest a meeting between the Prince and a Syrian official without any preconditions.
    Ten days later, on the 29th of June, Syrian Foreign Minister Walid Mouallem together with his deputy Faisal Al-Makdad and Buthaina Shaaban who is a counsel for the Syrian President, arrived in Moscow. Putin renewed his commitment towards Syria’s “government and its people”. He suggested the formation of a quadrilateral anti-terrorism coalition to be comprised of Syria, Saudi Arabia, Turkey and Jordan. Iran was excluded as the Russians are careful not to intimidate the Saudis. The Syrian envoys were unable to hide that they were taken by surprise, and this is what Mouallem referred to later on when he said that this “will require a miracle”. Putin however insisted that the proposal be taken to President Assad and he [is Assad] agreed. The proposal remained confidential between Assad, Mouallem and the chief of home security general Ali Mamlouk.
    The Russian secret service was given the task of communicating with Mamlouk to make it happen. Then there was a second communication from the Russians saying that the Saudis insist that the meeting should be held in Riyadh, and Damascus did not object. A few weeks later, a special plane carrying the deputy Russian chief of intelligence landed in Damascus and flew with general Mamlouk on board bound for Riyadh. The meeting was held in the presence of the Saudi chief of intelligence Saleh Al-Humaidan.
    The significance of this extremely historic meeting is enormous. It has the potential to be pivotal in whatever happens from this point on. It is very important to note at least the following ramifications, corollaries and conclusions :
    It confirms that the original anti-Syrian coalition has capitulated.
    It is a recognition of Syria’s upper hand on the situation on the ground.
    It implies an admission of failure on the part of Saudi Arabia.
    It further reconfirms Russia’s role and commitment towards Syria.
    It is a further proof that the US is disengaging in the Levant.
    In trying to reach a deal between Saudi Arabia and Syria, the only remaining obstinate foe of Syria, Turkey, will be left out alone in the cold. In any future negotiations, Turkey will have to strike a deal of its own without the support of any partners to count on. This will prove very difficult if and when the intended safety zone plan in the north of Syria fails.


  8. This sounds like Russia’s hand continues to strengthen, and the game seems to be about forming coalitions against a ‘rogue’ ISIS, using it as a lever to unite the region in an anti-ISIS program and drawing all players away from ‘unreliable’ Western support. In response, the U.S. seems to be doubling down on and with, whatever they still have, or think they have some control over, to change things in the direction THEY want. This could escalate real fast.


  9. From the same site, different author. Argues that the policy has been established by Washington to allow airstrikes against anyone threatening our ‘moderate’ Islamists. Which would include Assad’s forces. The Russians will counter this, but how, I’m not sure. Shoulder fired anti-air rockets? Doesn’t that get dicey if you want to avoid a major war? I’m sure the Eurasians wish we would just collapse and go away.


    • I read the opposite, that US would provide air cover for moderate Islamists ( an oxymoron) that were being threatened by Assad’s army. It is hard to know whose propaganda is true, but Erdogan has been supporting ISIS by letting them transit through his country without visas and probably in more ways than this. In a sudden about face when an important internal election was lost that affected his power base, he is now supposedly going after them, but in reality using it as an excuse to hit “other terrorists” who are the Kurds.
      There are all these groups fighting on the ground in Syria. . Supposedly jihadi John left ISIS to join some other group because he was recognized. It sounds like an absolutely chaotic situation and it was stated in some other papers that Assad had to let go of certain cities because his army was unable to hold them and presumably is concentrating on protecting Damascus.
      Here’s a recent RT article about Russia’s involvement in Turkey:
      If you flip to the business section US just signed billion dollar contract for 2 engines for space which I find totally amusing. We made France break a 2 billion dollar contract for subs, but we are not honoring the same sanctions that we forced on our allies. What the heck is that all about? It looks like Valerie Nuland’s prophetic words about Europe are playing out while the Pentagon does business with Russia.
      This reminds me a bit of WWII where we were in theory enemy of Hitler’s while all of our corporations were doing business with him.
      One thing is also strange, Syria’s traditional allies, Hizb’allah and the Iranian Republican Guard and Russia should be able do a bit more to help Assad against a bunch of rebels. If they are, they are keeping a lower profile.
      US has turned its back on the Kurds who were helping against ISIS. I guess this is the price they are willing to pay to gain access to Turkish air base. I won’t post articles but if you take a look at Al Arabiya there’s some more in depth about the different groups operating in the country.


  10. The rest of the US ME “allies” ( using this term loosely ) want to join in the fun in Syria, against ISIS. Take careful note of Assad’s comments. He certainly is not out of chemical weapons or his own allies Russia, Iran and Hizb’allah. This has the potential to get very ugly. Obama’s comments about the nuke deal and a war starting in Tel Aviv if the deal with Iran is not approved add another interesting element to the chaos in the region.
    With all the economic experts openly predicting that the economy will unravel, it’s probably a good time to start a big war somewhere in the world. Why not the Middle East?
    The blood moon will appear especially large over Israel in September.


    • Interesting. I note that the Zerohedge article shows the normal players forming ‘this’ coalition being all current or former Langley associates, and connected by a pipeline on a supplied map, I’m not sure if the pipeline is existent or proposed.
      Hard for me to not see this as oil politics, and isn’t war politics by ‘other means?’ Anyway, I’m real sure Russia isn’t going to stand down. Webster Tarpley backs up the story about Putin telling Erdogan to go to Hell, that he will make Syria a Stalingrad for Turkey, and by extension, Langley.


      • Tarpley is also strongly suggesting that General Allen, an associate of General Petreaus, has gone somewhat rogue, that Obama can neither control him or fire him. Allen is apparently behind some of the things going on. The audio is a little long, but worth a listen, he goes into much more detail than I’m posting here.


  11. MLYTLEO,
    I’ll try to have a listen later, but I did read in the Arab press that Iran is going to make a “peace proposal” at the UN for Syria. They are withholding the details. Lots of stuff going on between the nuke deal and Obama’s remark saying that there will be a war in Tel Aviv if the deal doesn’t go through.


    • Could be a little good cop/bad cop thing going on. Putin did say that he would lean on his allies China and Iran, to help broker a solution. Putin being the bad cop. just beat up the Turks, but Iran has better relations with Turkey than Russia at the moment.
      “Iranian Deputy Foreign Minister for Arab-African Affairs Hossein Amir-Abdollahian has announced a new initiative to resolve the Syrian crisis.”
      “In a statement to Al-Alam News Channel, the Iranian official said that Russian President’s Special Envoy for the Middle East and North Africa Mikhail Bogdanov and Syria’s Foreign ister Walid Al Moualem will visit Tehran to discuss the initiative.”
      “He said the initiative would be discussed with regional and international actors.”
      “He added that the political environment that followed the recent nuclear deal on Iran’s nuclear programme would constitute a great opportunity to strengthen Iran’s ties with neighboring countries, and it would also deepen cooperation in various files so as to come out of the crises facing the region.”
      The main problem will be to pull Turkey away from the influence of crazy elements of the U.S. deep state.


  12. In two days. it will be 8/8/2015 which can be written as 8/8/8. Hope we get through it alright. A lot of stress and pent up aggression out there.


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