Skip to main content

View Diary: New Push By Russian Separatists In Ukraine (133 comments)

Comment Preferences

  •  uh, no. (3+ / 0-)

    Ukraine welcomes IMF austerity regime

    Among some of the details coming to light are a 47% to 66% increase in personal income tax rates; a 50% increase in monthly gas bills; a 40% increase on gas tariffs for heating companies; and an increase in taxes on agribusiness. In addition, while some at the IMF have speculated the currency’s devaluation against the dollar year-to-date (35+%) is enough to satisfy the fund’s penchant for ‘correcting imbalances,’ others are maintaining the currency needs to get even weaker…

    For his part, Yatsenyuk has characterized his approach as a “kamikaze mission”.  He admitted that such policies will likely cause GDP to shrink by 3% and inflation to rise to 12-14% during the next twelve months as subsidies, primarily from Naftogaz, are axed under the austerity regime. Worse yet, Gazprom will no longer honor below market rate gas supply deals cut with Ukraine in December when ousted President Viktor Yanukovych rejected a trade deal with Europe to please Moscow. That Christmas present has been returned to sender.

    Very progressive fellow, clearly! A self-admitted "kamikaze" who proposes to shrink GDP by 3% and raise inflation by 12-14%. And to what end? Is this going to keep people fed and employed? Or will it make it easier for vulture capitalists to pick up Ukraine's infrastructure and assets on the cheap?

    "In America, the law is king." --Thomas Paine

    by limpidglass on Mon Apr 07, 2014 at 11:23:16 AM PDT

    [ Parent ]

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site