11/19/14

Permalink Pepe Escobar Explains Ukrainian Economics in 1 Minute

In a word - Ukraine is in big trouble... Kiev’s foreign reserves plunged last month by a whopping 23.2 per cent to a paltry $12.6 billion. By the end of the year it will be even messier. Kiev’s gotta pay a $3.1 billion gas bill to Gazprom, or else...The central bank will have to sell more foreign currency to support the hryvnia. And there are MORE hefty gas bills as General Winter advances. Is the austerity-devastated EU lending them at least one euro? Of course not. It’s up to the IMF, who now OWNS Ukraine. Yet there will only be “emergency funding” if Kiev applies that good ol’ “structural adjustment” – as in turning the overwhelming mass of Ukrainians into beggars for life. These are the facts. The rest is rubbish.

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