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US sees Ukraine's disability to find good solutions

Author : Olexandr Honcharov

14:15, 1 April 2016
US sees Ukraine's disability to find good solutions

Author : Olexandr Honcharov

Ukraine went into an even worse situation than it was in the 90s - expert

14:15, 1 April 2016

dailyreckoning.com

March 30, President of Ukraine Petro Poroshenko has started his official working visit in America. He planned a series of meetings with heads of state who to attend the Nuclear Security Summit in Washington, DC, as well as a meeting at the White House with US Vice President Joe Biden. Finally, we are waiting for a working lunch with President Poroshenko and President Obama. But if there is a meeting of our president with the US President, I believe it will be a signal for us - neither the United States nor the European Union will no longer serve us the tug, the locomotive, clinging to that, we were able to get out of this big crisis.

Moreover, because of incompetent actions or inaction of our authorities, our overseas partners have come to understanding that the crisis in Ukraine is permanent. And 2016 is not a bad year that we are experiencing. This fall the situation will be much harder. Today, the West is facing a fork in the road: continue to fund corrupted Ukrainian authorities or stop. Most likely, the situation will develop in the second scenario.

Despite the statement of the head of the Radical Party, Oleh Lyashko, there is no progress in the negotiation on reformatting the coalition in the Verkhovna Rada, many people are set on early elections. Although recently the head of the presidential faction Yuriy Lutsenko noted that the leaders of the parliamentary factions this week should start negotiations for a new coalition to form a new government. Also, previously Vice-Speaker of the Parliament, deputy of the faction "Samopomich" Oksana Syroid stressed that the parliamentary faction "Bloc of Petro Poroshenko", "People’s Front" and the Radical Party began to work on forming a new coalition in the Verkhovna Rada. Politicians, in my view, are confused.

Related: Petro Poroshenko meets Barack Obama during Nuclear Summit in Washington

No one no one wants to give or agree on compromises. Mere loud statements, with serious threats and unexpected revelations. I think the default in such circumstances is simply inevitable. It is, in fact, not just my opinion. So, what is next? Again, print money to refinance the banks, or rather on their recapitalization? This means new and more powerful round of inflation. And what to do with it? The politicians did not provide protection in the case of the collapse of the coalition and the confidence in the government. Amateurs.

At the same time Yatsenyuk and Greusman underestimate the new threat. Well, too slow, they are moving in search of solutions for the Cabinet. They are late in their decisions. But events in the world are developing rapidly, things are moving along an unfavorable scenario for Europe and, in particular, in Ukraine.

Related: Washington won't exchange Russians detained in the USA for Savchenko

We live in a global world. Yesterday and the day before new risks and threats appeared. Yes, and the President Poroshenko in Washington reminded the participants of the forum "Ukraine continues to struggle for freedom," that at the time Ukraine refused from the largest nuclear arsenal in the world, and in return received the Russian military aggression. "In 1994, Ukraine abandoned the third-largest nuclear arsenal. We got a guarantee of security under the Budapest Memorandum, Russia violated the agreement and made a direct military aggression against Ukraine," said Poroshenko.

Yet the main topics for discussion undoubtedly will be the settlement of the conflict in Donbas and Ukraine’s way out of the political crisis. Perhaps our politicians in America will be  strongly pushed for rapid decision-making? At the same time, with anyone of the experts spoke, everyone understands that Greusman with his level of competence is not be able in any way to fix the collapse of the Ukrainian economy, destroyed by Yatsenyuk. Especially now, when incomes and costs continue to drop dramatically. Besides, now the key problem is that people have lost confidence. A couple of years ago they were as live a month or two a year, and now they do not even believe that tomorrow will retain their jobs.

Related: Groisman and Yaresko might replace current PM Yatsenyuk

In this regard, the Minister of Finance Yaresko, who lived most of her life in the United States actually had to know exemplary stories of a number of US cities such as Washington, Chicago, Detroit, and so on. Everything began with their officials, like with our minister Yaresko, seemingly harmless and cute. Also, they had the budget deficit, then increased taxes, including tariffs and property taxes.

Americans, who bore the main tax burden, began to travel outside the city to the suburbs, where life is cheaper. The tax base has continued to fall. The taxes increased again. As a result, at the time, Washington was the capital of the criminal US, Chicago has become the center of the ghetto, almost the same thing happened with New York. And this economic story was described a hundred times, but apparently, our ministers and MPs do not read anything.

In fact, why do we step on the same rake?! Therefore, our banks continue to collapse, people are no longer able to service the loans. Plus, the government further reduces costs, the tax base falls. Ukraine went into an even worse situation than it was in the 90s. How to get out of this situation and get out of that debt pit? I am sure everybody understands that Yatsenyuk is not able to fix the situation. But what is the problem? "People’s Front" fraction to face huge losses. The business interests close to him entrepreneurs will be under the impact.

Related: Yaresko's Government is like a patient that needs artificial respiration

But if the situation reaches a critical point, the EU and the US will be able at any time, enough to dramatically change our current situation. And IMF appears again with new programs. The representative of the US State Department Mark Toner said that the resignation of the Prosecutor General of Ukraine Victor Shokin would signal a serious intention to the reform process. Yes, and Victor Shokin praised the decision of the Verkhovna Rada of his resignation. I want to believe that many of our politicians finally realize that only after repositioning the main political forces, exit out of our great crisis will be quite fast. Now a word is for Arseniy Yatsenyuk, and we will cover a new and more powerful wave of the crisis: take a white sheet and go to the cemetery.

In principle, ordinary people suffer from these serious mistakes of our politicians. Well, the society received another serious problems caused by their authorities. The re-election of the Prime Minister has today depressing effect on all people. The picture looks very ugly for our foreign partners in the US and the EU. They also realize that our politicians cannot find the beautiful and elegant solutions. We do not have a leader, a bright political figure capable of leading the people. 

Related: Personal friend of Obama: history of Poroshenko's visits to the U.S.

Related: Barack Obama prolonged sanctions against Russia due to occupation of Ukrainian territories

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