The US Senate just passed its version of the Ukraine aid bill. This version includes approval for the 2010 IMF reforms we have discussed on this blog many times. Since we have already covered that pretty well, below are a list of links to all the latest news articles on this topic. For us, this continues to be the key item to watch related to the Ukraine situation.
In summary we think that approval of IMF reforms and additional funding will lead to a larger global role for the IMF when the next financial crisis arises. This can open the door for introducing a new global reserve currency and also a possible reset for world currencies (what we watch here). This would take some time, but we think it is the most important thing to watch regarding the Ukraine.
Here are the article links:
Notice how this IMF reform package is right in the middle of all this. There has to be a reason why it is so important. We think the reason is that it will be perceived as enlarging the role of the IMF going foward and really has not much to do with the current situation in the Ukraine.
The US FED has pretty much tapped out its ability to deal with another financial crisis if it arises. The IMF could become the last resort instead. But it needs a larger pool of reserves and the perception it is a problem solver. If the IMF reforms fail here and the IMF looks weak, it would probably be viewed as a major disappointment by IMF supporters. So look for a relentless effort to get these reforms approved.