The New Colonialism: Greece & Ukraine

[polly7]

Last edited Mon Sep 21, 2015, 01:07 PM - Edit history (2)

By Jack Rasmus
Source: teleSUR English
August 31, 2015

Behind the appearance of the recent Greek debt deal is the reality of European bankers and their institutions—the European Commission, European Central Bank, IMF, and European Stability Mechanism (ESM)—who will soon assume direct management of the operation of the economy, according to the Memorandum of Understanding, MoU, signed August 14, 2015 by Greece and the Troika. The MoU spells out direct management in various ways. In the case of Ukraine, it is even more direct. US and European shadow bankers were installed by US-Europe last December 2014 as Ukraine’s finance and economic ministers. They have been directly managing Ukraine’s economy on a day to day basis ever since.

The new colonialism as financial asset transfer takes several practical forms: as wealth transfer in the form of interest payments on ever rising debt, in firesales of government assets sold directly to the colonizer’s investors and bankers, and in the de facto takeover the colony’s banking system and bank assets in order to transfer wealth to shareholders of the colonizing country’s private bankers and investors.

The Case of Ukraine

In Ukraine’s case, only once US and Euro bankers were installed as Ministers of Finance and Economics last December 2014, were more loans promised to Ukraine. The US and EU put in another $4 billion in January, and the IMF quickly announced the new $40 billion deal in February. After the $40 billion,Ukraine’s debt rose from $12 billion in 2007 to $100 billion in 2015.

The new $100 billion debt will mean a massive increase in financial wealth extraction in the form of interest payments on that $100 billion.

Another form of transfer will occur in the accelerating of privatizations. No fewer than 342 former government enterprise companies are slated for sale in 2015, including power plants, mines, 13 ports, and even farms. The sales will likely occur at firesale prices, benefiting US and European ‘friends’ of the new US and European ministers. So too will the sale of Ukraine private companies approved by the new Ministers. One of every five are technically bankrupt and unable to refinance $10 billion in corporate junk bond debt. Many will default, the best scooped up by US and EU shadow bankers and multinational corporations.

Full article: https://zcomm.org/znetarticle/the-new-colonialism-greece-ukraine/

Austerity and poverty are just great for these countries, according to some. It's too bad Ukrainians weren't allowed to vote for or against it. It's also too bad that the brutality against those in Eastern Ukraine who did not want any part of it and are now 'terrorists', scum, Russian apologists for trying to defend their livelihoods and lives on some of Ukraine's most valuable resources, is acceptable, and even supported. I wonder what they'll say when it's our turn.

[truebluegreen]

1. I find it amazing that many Democrats, including many here,

don't see the Greek coup for what it is: the systematic pillaging of a country's wealth by the global elites. It seems like all we hear is how Greece needs to pay its debts, and no one seems to be aware that they were set up for failure. Same with Ukraine...and it will come here too. It already has, in many ways, as when taxpayers bailed out the banks that caused the Great Recession. The austerity practiced here has not been as severe, but it has been detrimental, has slowed the recovery, and harmed the middle class and the poor while leaving the rich richer than before.

[Paka]

3. K&R

Corporate take-over of the world.