All-out Western assault on Ukraine through economic warfare!

Greetings,

This is nothing but another case of economic warfare. Every time America tries to impose her desires and will over another nation, and that nation refuses to submit, we find these so-called independent Western organizations, companies, and institutions come out the blue with targeted assaults to raise doubt and bring more pressure to bare on the said target of American aggression.

It is no coincidence that Fitch, which came under US government ire for its credit downgrade, is now working lock step with America and the EU to put more pressure on Ukraine to bow to Western dictates. Notice how convenient it was that Fitch issued its credit downgrade & risk of default around the same time that America and the EU needed leverage on Russia & Ukraine to bow?

This is nothing less than economic warfare. Can you not see why there is a need now for a complete change of government globally. This double standard hypocritical way of ruling must be pushed out!

Worse than Greece: Fitch says Ukraine’s default risk high

​The worsening political and economic circumstances in Ukraine has prompted the Fitch Ratings agency to downgrade Ukrainian debt from B to a pre–default level CCC. This is lower than Greece, and Fitch warns of future financial instability.

“Intensification of political and economic stress is such  that default on government debt becomes probable,” Fitch  said in an e-mail.

On the brink of default, the Ukrainian economy has taken a  further beating as protests drag on in the capital Kiev. Foreign  debt is $140 billion, nearly 80 percent of the country’s gross  domestic product.

“There are emerging signs of stress in the banking system.  Demand for foreign currency cash has risen, potentially leading  to further steep exchange rate depreciation. These developments  pose liquidity and asset quality risks, given the large amounts  of foreign currency debt on private sector balance sheets,”   the note said.

The Ukrainian Central Bank is tapping into the country’s reserves  to pay off the country’s fast-accumulating debt.

Foreign reserves shrank 12.8 percent to $17.8 billion in January,  the lowest since 2006, according data published by the central  bank. Overall in 2013, international reserves dropped 16.8  percent, losing a total of $4.1 billion.

The central bank is intervening on behalf of the hryvnia, which  has fallen significantly as President Viktor  Yanukovich and the opposition fail to strike an agreement, and   protesters continue to clash in Kiev after  3-months of unrest.

Limits on foreign-currency purchases have been set in order to  protect the hryvnia, which has spiraled into freefall, rising  above 9.0 against the dollar for the first time since February  2009. At 16:30 MST Monday it was trading 8.4350 against the  dollar.

If the situation continues to unravel, more capital controls  could be introduced to limit the amount of foreign currency  bought, or even moved outside Ukraine. This is the action Cyprus  took when it faced default in March 2013.

  Russian money postponed

Ukraine’s $15 billion loan from Russia has been put on hold until a new government is formed. A  transfer of $3 billion in Eurobonds has already been placed, but  the uncertainty over when the next installment will come worries  Fitch.

“We no longer assume the Russian loan will be disbursed in  full, while Ukraine has lost external market access,” Fitch  said.

“Fitch has previously warned that further Russian support is  likely conditional on President Yanukovich’s continued political  survival,” the statement said.

Mykola Azarov resigned as Prime Minister at the end of  January along with many other top government officials.     Standard & Poor’s and Moody’s Investor Services have both  reduced Ukraine’s outlook.

Violent protests have plagued the country since November, when  President Yanukovich refused to sign a trade treaty with the EU,  and instead in December turned to Russia for monetary aid.

As the currency weakens and foreign currency reserves are  depleted, Ukraine may become more dependent on Russian aid.

Both the US and the EU have pledged monetary assistance to  Ukraine, but no official offers have been inked.

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