Skip to comments.UKRAINE - ECONOMIC SITUATION - APRIL 2014
Posted on 04/18/2014 9:07:43 AM PDT by PieterCasparzen
SUMMARY POINTS -----
(5) The implementation of economic adjustment programs will improve growth prospects over the medium term, but will have short term costs. Following zero growth in 2013, real GDP is forecast to decline by about 4% yoy in 2014 (excluding Crimea, which represents 3% of GDP) due to the fiscal austerity measures that will affect domestic demand, Russias trade restrictions, and higher imported energy prices. (6) The new government has already announced strong fiscal austerity measures to reduce Ukraines public sector fiscal deficits, which had widened to about 6-7% of GDP in 2013. The fiscal consolidation plan includes increases in utility tariffs and taxes, plus cuts in government spending and employment, and should bring the fiscal budget deficit to 4.5% of GDP in 2014 and below 3% of GDP in 2016. (7) Public debt is forecast to increase to 53% of GDP in 2014, up from 40.5% of GDP. At the same time, with the presence of the IMF program, we do not see solvency risks for Ukraines government liabilities. (8) Consumer inflation is projected to accelerate to 12% yoy in 2014, up from 0.5% yoy in 2013. The acceleration will mainly be due to adjustment of utility tariffs and spillover effect of Hryvnia depreciation.
 Currently all citizens of Ukraine pay 15% tax if their income is less than UAH 12,180 ($1110) and 17% otherwise. According to the proposal, those whose income is higher than UAH 300,000 ($27,270) and UAH 500,000 ($45,450) per year will be taxed 20% and 25% respectively.
(Excerpt) Read more at usubc.org ...
The US effort, a partnership between the US private sector, spearheaded by SigmaBleyzer principals since at least 1995, and the US government, has been working towards a market economy in Ukraine since its independence.
Over 200 major companies are members of Bleyzer's USUBC.
Private investment by US and European - and Russian - companies, as flooded into Ukraine by the billions, through both debt and equity stakes.
Globalist supranational banking, e.g., World Bank, IMF, etc., has invested billions in Ukraine in debt, both government debt and loans to private sector businesses.
USUBC's news on their own website has numerous articles proudly declaring how their member consulting firms, law firms and others have sheparded legislation through the Ukrainian parliament to facilitate business and finance.
Yet now, after all these years and all that influence, reports like this one sit and play dumb regarding corruption in Ukraine.
They present every excuse why THEIR invested billions and business and banking efforts and political influence have not produced a sound economy with a growing middle class.
And what is the solution they call for ? You guessed it, more lending by World Bank, IMF, etc.
We have too much Ukrainian government debt, the Ukrainian economy is going to be sputtering, we need more Ukrainian government debt.
Message to Ukrainian citizens with European aspirations to have their Ukraine submit to joining the European Union - get ready to suck it up.
Consumer prices skyrocketing, currency value plummeting, weak jobs market, taxes rates increasing dramatically.
Not to worry.
If you join the EU, they'll arrange for your Ukrainian government to borrow billions in your name and then provide you with maybe barely enough government cheese to keep you alive.
Because most of those billions will go to multinational contractors to build new roads and trains for you.
You know, so the Ukrainian economy will improve.
Now, if we could just somehow... find where that darn corruption is. Ah, maybe next year.
Monsanto Nazis/neo-cons/sodomite EU and Rothschilds ?
No, World Bank.
Did you know the World Bank exists ?
Can you spell it with me ?
W... o.... r....
Now, don’t stomp your feet and cover your ears and scream that the World Bank doesn’t exist...
You’re only making yourself look immature.
Come on, put your big boy pants on and admit that the World Bank and IMF exist.
When you’re older and more mature, we’ll move on to who controls them.
“Come on, put your big boy pants on and admit that the World Bank and IMF exist.”
LOL! Your measured humor is 99% good. More, please.
Pyetr, come one, you have already covered that on another forum: http://www.stormfront.org/forum/t579739/
“Youre only making yourself look immature.”
You have read several conspiracy websites and think you know how the world works and everyone else is an idiot. Well, that is simply hilarious approach I'm afraid...
Greg, it’s very simple.
Just think for a minute.
If you are a govenment, you can print your own money. For Poland, it’s zloty, right ? For the US, it’s US dollars.
Now, if YOU are the government, why would you borrow those dollars from a bank ?
If you need dollars, you can print them.
Just think about that a while.
Do you know what the US Federal debt is, that $17 trillion thingy ?
The Federal Reserve Bank creates money.
The US Treasury does not.
The US Treasury borrows by issuing bonds.
As a country we can’t print money.
The Federal Reserve can.
But the US government is not the Federal Reserve.
It seems you think I’m a village idiot and I think the same about you. That’s why we have problems with communication.
“It delegated that job to the Fed, which is not technically part of the government.”
I know, that’s how it works in the civilized world. Politicians would quickly destroy any currency printing money to buy votes of the plebs If they were allowed to do that.
So what in your opinion Ukraine should do ? Print the money instead of borrowing from the IMF/World Bank ? UAH would soon be worth less than the paper it is printed on.
That's how the market works. Are you willing to invest in UAH now ? I doubt it.
“People may assume that Ukraine was completely independent since their independence”
Of course it wasn't. They have never managed to shake off huge Russian influence, one of the major reasons why Kiev's performance during current crisis is so pathetic is that all their generals are ex-red army people, military and administration are deeply infiltrated by Moscow, when people in Kiev make any decision, guys in Moscow know it immediately and can get prepared. Natural gas alone gives Moscow a bigger leverage on Ukraine than anything the west can come up with, so much for your theory that Ukraine is some colony of the west. Your crowd claims that Ukraine should “stay independent” -> do not join EU/NATO, the thing is that they want closer ties with the west to counterweight Russian influence, otherwise the country will be re-annexed by Russia step by step, so much for “staying independent”.
“The government borrows (by issuing government bonds) from the banking industry, that is, a syndicate of the largest banks.”
That's how you borrow real money... ok I know but still far more real than money generated out of nowhere by the government as you propose.
“With the Treasury borrowing when government overspends, it's piling up future tax obligations. But wealthy powerful Americans have many ways to avoid paying high EFFECTIVE tax rates, so they are fine with the future tax obligations. “Taxes are for the little people”. “
That is largely true. Using commie terminology, paying off interest on public debt is the constant transfer of huge amount of cash from the working class to “owners of capital”...
“If only the Treasury created money, when government overspent and created money, investors would see the dollar losing value. Thus, it would be in the interest of wealthy powerful Americans to keep government spending deficits low.”
The rich would always find a way to cover their asses, the poor would be the hardest hit and there would be no way to control the government. Now you at least know that it is $18 trillion. This is not the root of the problem, the problem is that unfortunately people are idiots, who do not understand that for anything government “gives” them they will have to pay themselves adding extra costs of administration, public sectors’ mismanagement and interests on debt going from poor to the rich. So they keep voting for feckers promising them to increase spendings even more and we can see the effect. The key issue here is to make people understand that, not some structural changes, which will trigger off even worse disaster.
Banks are “evil” as much as liquor stores owners are, they offer you... products, It's up to people If they enjoy a bottle or two from time to time or become alcoholics.
And in case of Putin... dude is against IMF, NGOs etc. only because he can't control them. Western world is not perfect but If Russia somehow defeated the west, they wouldn't shut down IMF, World Bank etc. they would take them over and fill in key positions with guys making the current crew looking like a bunch of scout boys.