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Gaines Elites Play

Russia and the IMF

"Lord knows where that went," Boris Yeltsin croaked to one of his Kremlin aides sometime last September. Yeltsin, according to Kremlin sources, was replying to a query from the International Monetary Fund on the expenditure of nearly two billion dollars worth of an IMF "tranche" targeted to stave off impending Russian financial disaster in the summer of 1998. The taxpayers of the Western states who back the IMF ponied up this money (and maybe more) to aid Russian "restructuring" and promote "market reforms" and "democracy." And what did they get for it? The ruble crashed, Russia defaulted on debts to the West, the government was thrown out, IMF money went unaccounted for, and the West did nothing. At least not then.

Cut to New York, February 2000. According to the Wall Street Journal, the joint investigation by the Federal Reserve and the New York State Banking Department into alleged money laundering by the venerable Bank of New York (BNY) has uncovered not a trace of Russian mafia involvement in questionable transactions invoking billions of dollars, some of them possibly diverted IMF funds, which were funneled through the BNY and offshore affiliates. The Russian media, controlled by the "oligarchs" (the shady businessmen-cum-godfathers who have run Russia since the beginning of the Yeltsin era), crowed about the reports, claiming that the whole thing...

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