Skip to comments.Ukraine's foreign debt hit $36.86 billion on October 1
Posted on 12/19/2005 10:07:16 AM PST by jb6
KIEV, December 19 (RIA Novosti) - Ukraine's foreign debt increased by $2.9 billion during the third quarter of 2005, totaling $36.86 billion on October 1, the National Bank of Ukraine said in a statement Monday.
What is the Untied States foreign debt.
Debt must be compared to GDP.
Under the oranges their GDP growth rate has dropped to 3.8% from 12.7% last year and their inflation is now close to 17%, spurned by a minimal wage rise of 90% and an over all tax rise of 20%.
Tymoshenko is a flat out socialist, an oligarch worth $11 billion and her closest politican ally is the UNA-UNSO party, the Ukrainian nazi party who wants to purify Ukraine of Moskovites (Russians) and Zids (crude slang word for Jews) and who encouraged Ukrainian soldiers in Iraq to shoot at Americans and back the Islamics.
These people are not our friends. Just because someone is a friend of Russia doesn't make them an enemy to us. That's old Cold War think and its loosing us allies and position in central asia and other places.
True but no one has forseen that kinda of a drop. Look at the previous years, they were all higher. As for inflation, the unemployment figures, Yushchenko's policies have caused thousands of small businesses to shut down. There are now shortages of meat and milk as well as oil and gas, caused by low government set price caps. I have a host of articles under keyword "Ukraine" tracking the financial melt down.
and an over all tax rise of 20%.
Only if that was as significant as you meant it to be. Before you take out an economics book and begin your lecture, Mr. prof, consider the specificity of the Ukrainian economy- as much as half of all business do not pay taxes. One of the achievements by the Orange has been the reduction of this "shadow economy" vis-a-vis fighting corruption. (actually I wonder if anyone has been making a case, linking this with the reduced GDP growth.) Sure, I agree taxes should be low, but one step at a time- make everyone pay, then you can afford to reduce taxes.
Never heard more nonsense. (What civil war? jb6, increasingly I begin to suspect that you're following reports of Symonenko & Co. too closely. In the 90s every year they've been calling for a revolt, October Revolution 2)
In his years as PM Ukraine saw its first GDP growths, a stable currency and a reduction in wage arrears. Enough said.
The Rada (Parliment) sacked his butt to avoid revolt.
Again with the revolts? :). No, general consensus is that Yu.-PM was five times as popular as Kuchma, who in return sacked him.
Tymoshenko... her closest politican ally is the UNA-UNSO party,
One guy (Shkil') her contingent of 38 parliamentarians? :))
Another lie. I'm sorry I didn't realize Yanukovich was running the country for any portion of this year. According to the IMF, as I proved last time, Ukraine's inflation was 14% by the end of Sept, plus the .8 for October and the 1.4% for November, that makes 16.2%, reasonable to say that along with December it will be around 17%.
Another thing that I might have asked for your input some time ago- how was it possible that in December 2004 GDP growth was 12.1% and a month later, Jan. 2005, growth was 6.5%?
Gee, because in December that growth rate was for all of 2004, on January 1 the count starts a new. So, it's averaged out throughout the year (GDP, not inflation which is a cumulative). The 6.5% for January was either the actual growth in January or the projected growth for that quarter. Rather easy to understand.
Before you take out an economics book and begin your lecture, Mr. prof, consider the specificity of the Ukrainian economy- as much as half of all business do not pay taxes. One of the achievements by the Orange has been the reduction of this "shadow economy" vis-a-vis fighting corruption.
Interesting, the Russians did the same thing while dropping the tax rate on corporations from 36% to 25% and 14% for tech companies. The tax rate as counted and compliance with the tax rate are not related as stated. They are related in how willing people are to try to go around the tax rate. The higher the tax rate the harder it is to make people pay or to keep them working if payment is enforced. Welcome to macro economics.
Just because they eliminated any of the shadow economy, which I find hard to believe in commodities since artificial price caps always breed shortages and a shadow economy, the bane of the old Soviets, does not mean that the tax rate will increase.
Sure, I agree taxes should be low, but one step at a time- make everyone pay, then you can afford to reduce taxes.
A typical socialist mentality. By lowering taxes, more people pay, not by raising them. Russia, again, is a prime example. Your advice was the exact advice of the IMF on income taxes, when Russia had Western bracketed income taxes. Hardly anyone paid. They dropped to a flat 13% income tax and the first year tax collection trippled. Don't believe me? Go look it up, its one of the main arguments for driving flat taxes in America.
"First of all, we should pay for our independence. If Ukraine really wants to be economically independent, sooner or later we will have to develop market relations in the energy sector and rationally use energy... We should defend our national interests first." - President Yushchenko
Sovereignty is more important than economy.
17-18% inflation, frankly I don't know where this number is from. Here's some recent sources mentioning 11-12%:
These people are obviously idiots by making predictions of 12% if according to you they're already way past that.
http://www.ukrnow.com/content/view/7102/ Inflation tallied 8.1% in January-October.
So, it's averaged out throughout the year (GDP, not inflation which is a cumulative). The 6.5% for January was either the actual growth in January or the projected growth for that quarter
(Picture of the GDP changes. Months on the X-axis; "112.1" reads as "12.1" growth; top line is for the year 2004, bottom line for 2005)
yes I know in January it's starting anew. 12.1% has been the average for the 12 months of 2004, 6.5% is the "average" of one month, January. If things were as good as before, figure for January should have been as high as the average of the previous year of 12.1%.
By lowering taxes, more people pay, not by raising them. Russia, again, is a prime example. Your advice was the exact advice of the IMF on income taxes, when Russia had Western bracketed income taxes. Hardly anyone paid. They dropped to a flat 13% income tax and the first year tax collection trippled. .
Yes, you gotta point (especially if supported by real life data). I'd have to think about this. But for now what's not clear to me is why a person who didn't pay anything when there was a high tax would suddenly agree too pay a lower tax. Out of a goodness of their heart? That's why to me it's more of a question of enforcing the tax collection.
Taxation is a bell curve effect. At first as the level raises the income rises but at some point, people will start to evade paying or will stop working or switch resources to shadow economics. It's a cost vs reward system. If you consider the cost of getting caught to be smaller then the cost of cheating, then yes, most everyone will eventually cheat. If taxes are low and its easy to fill out forms and it feels "fair" that everyone pays an equal share then people are much more apt to pay then under any other system. Either that or you must spend a huge amount of money (like we do on the IRS) to force continued payment and threaten people with ridiculous penalties. In the US, if you can not pay your bill, be it even $100 (state depending) the IRS can come, take your house, sell it as cheaply and quickly as possible, take their $100 and give you the rest. Of course you're still screwed now.
In unstable economies like Ukraine, there will often be a sever drop in GDP for the first 2-3 months after a new regime takes power, as everyone saves their money in anticipation of what is to come. The difference is that 3-12 months later, the GDP is still low, in other words, people and companies do not feel safe in spending and investing.