London Directs IMF Policy of War Loans to Ukraine, No Credit for Greece

February 3, 2015

In its latest issue The Economist — the publication which often speaks for the City of London banks — reports that the International Monetary Fund (IMF) "has indicated that there would be a new bailout package for Ukraine," the second such loan package in less than a year. Moreover, The Economist itself editorializes that the package must be big:

"Ukraine will probably need $20 billion in external support to survive 2015."

This is the very figure proposed two months ago by financier George Soros, who stridently declared "Europe is at war," and demanded that Ukraine get $20 billion to fight Russia.

Not only that, The Economist says that the Kiev regime now admits it can't pay its existing debts, so it must have a writedown or writeoff of debt:

"Creditors will now have to shoulder some of the load.... Accepting some losses on loans my now be the only way they will get anything back."

The contrast with the current London-enforced European hard line against any debt relief for Greece, could not be more shocking. The new Greek government has proposed a European Debt Conference to consider the debts which the most-indebted "peripheral" countries of the European Union obviously cannot pay. It proposes the principles of the 1953 agreement on German debt, which wrote off 60% of then-existing German loans and helped unlock the "German economic miracle" which followed.

The answer to Greece from the same IMF, the European Central Bank, and the major European countries, has been no to debt relief.

Ukraine is to get $20 billion and debt relief to fight Vladimir Putin's Russia, as Soros made crystal clear. Greece is denied debt relief to recover and develop its economy.

This is London imperial policy. The cynicism involved would be repulsive even if it did not involve the threat of triggering a global thermonuclear war.

But the policy also triggers a breakup of the Eurozone — and, it is being fought by a growing anti-austerity mass movement in a number of European countries. The BRICS — specifically China — are offering credit, investment, and construction of infrastructure in Greece and the Balkans regardless of debt relief or no, return to the drachma or no.

The mass movement for the Silk Road may defeat the London movement for self-extinction.