In our last post on this we noted that Jim Rickards had been tweeting that the US would use the Ukraine situation to try and move forward the IMF funding and reform package stalled in the US Congress. Jim calls it the "Shock Doctrine" meaning "use a crisis in one place to push an agenda elsewhere."
We have noted in articles like this and like this that this reform package if approved could open the door to major monetary system changes.
Today Rueters runs this breaking article confirming the Shock Doctrine is in full play by the Obama Adminstration. Here are key quotes from the article:
"Russian officials are pushing for the International Monetary Fund to move ahead with planned reforms without the United States, which could mean the loss of the U.S. veto over major decisions at the global lender, sources said."
"The failure of the U.S. Congress to approve IMF funding has held up reforms agreed in 2010 that would double the Fund's resources and give more say to emerging markets like China. The United States is the only country that holds a controlling share of IMF votes, meaning its approval is necessary for any major decision to go forward."
The U.S. Treasury is now seeking to attach the funding to a financial aid package for Ukraine that is under consideration in Congress. It argues the reforms would allow crisis-hit countries like Ukraine to borrow more money from the IMF.
"It is imperative that we secure passage of IMF legislation now so we can show support for the IMF in this critical moment and preserve our leading influential voice in the institution," Treasury Secretary Jack Lew told lawmakers on Thursday during a hearing in the U.S. House of Representatives.
The Ukraine bill may be the administration's best chance of passing the IMF funding shift this year, analysts say.
But a senior House Republican aide said on Wednesday that the House assistance package for Ukraine would not include IMF funding. The Senate said it was still deciding whether to include the IMF in its version of the bill.
my added comments:
I think we may be seeing right here what the Ukraine is really all about. A crisis that needs to be solved by getting the US Congress to approve more IMF funding and voting reforms. This is exactly what we said to watch for the other day based on Rickards twitter comments.
Since we also have people like Jim Rickards and Paul Craig Roberts saying this revolt was a US intelligence agency funded operation, we can conclude that it is plausible that the key to this whole situation is to get the IMF package passed in Congress so major monetary reforms can move forward at the IMF. So far, Congress is refusing. We will surely keep an eye on this situation. A stalemate could start both sides into economic warfare that could impact the dollar.