Ukraine’s government has folded, Ukrainian Prime Minister “Yatsâ€Â has resigned, and Ukrainian bonds have tanked. Many public servants and the military have not been paid in months. Look for a default in Ukrainian bonds, which will set off a wave of credit default swaps.
As I wrote on Day 1 of the Ukraine crisis, the liability will be put to “core†Europe (ei. Germany), and I don’t think they will support it. The MH17 incident has back fired, and German intelligence no doubt knows the real story. In fact, look for Germany to cut even more deals with Russia and China and start to eliminate sanctions as those are hurting the German economy. There was a reason that Putin and Merkel hung out together at the World Cup.
In turn, if core Europe backs down on Ukrainian support, the U.S. will extort them via the standard modus operandi: a manufactured banking crisis. Europe is very exposed on this front. Always pay attention to what the psychopathic U.S. financial media chooses to cover. Right now European bank troubles rank high. The BRICS are moving to a new agenda, and it won’t be supported either. The BRICS will support Argentina but only in a rebellion against the parasite guildists. The dominoes are lined up. All the weakened financial sickos around the world are playing chicken with each other.
After killing more than 700 in Gaza, mostly Palestinian civilians, Israel now faces a general uprising of outraged brethren in West Bank.
