Is America about to taste the medicine it’s own institutions like the World Bank & International Money Fund have been administrating the world over for decades ?
Joseph Stilglitz has a clue or two. He should for he was the World Bank's former Chief Economist and a Nobel prize winner in economics.
BACK STORY
When I came across this item…
Did the Reagan Revolution actually win? Local and State Governments are Selling Off Public Property and Services http://www.buzzflash.com/articles/analysis/568
…I said to my self : “Here we go !
John Perkin’s Economic Hitmen are smiling & sipping drinks by the IMF & World Bank pool while the greatest transfer of wealth from the bottom up is right on schedule.
With a few variations on the theme of abuse & abject misery brought upon the ‘happy few’ vs the rabble; Naomi Klein’s dreaded Shock Doctrine as applied by our so-called elite is working like a charm. American will act exactly as their masters have planned.
Short of a second American revolution are we pretty much fucked ?
Greg Palast (him again ;) had ‘debriefed’ Stiglitz about it a while ago…
Here’s how it works…
Step One is Privatization
- which Stiglitz said could more accurately be called, 'Briberization.' Rather than object to the sell-offs of state industries, he said national leaders - using the World Bank's demands to silence local critics - happily flogged their electricity and water companies. "You could see their eyes widen" at the prospect of 10% commissions paid to Swiss bank accounts for simply shaving a few billion off the sale price of national assets.
And the US government knew it, charges Stiglitz, at least in the case of the biggest 'briberization' of all, the 1995 Russian sell-off. "The US Treasury view was this was great as we wanted Yeltsin re-elected. We don't care if it's a corrupt election. We want the money to go to Yeltzin" via kick-backs for his campaign.
Stiglitz is no conspiracy nutter ranting about Black Helicopters. The man was inside the game, a member of Bill Clinton's cabinet as Chairman of the President's council of economic advisors.
Most ill-making for Stiglitz is that the US-backed oligarchs stripped Russia's industrial assets, with the effect that the corruption scheme cut national output nearly in half causing depression and starvation.
After “briberization”…
Step Two of the IMF/World Bank one-size-fits-all rescue-your-economy plan is 'Capital Market Liberalization.'
In theory, capital market deregulation allows investment capital to flow in and out. Unfortunately, as in Indonesia and Brazil, the money simply flowed out and out. Stiglitz calls this the "Hot Money" cycle. Cash comes in for speculation in real estate and currency, then flees at the first whiff of trouble. A nation's reserves can drain in days, hours. And when that happens, to seduce speculators into returning a nation's own capital funds, the IMF demands these nations raise interest rates to 30%, 50% and 80%.
"The result was predictable," said Stiglitz of the Hot Money tidal waves in Asia and Latin America. Higher interest rates demolished property values, savaged industrial production and drained national treasuries.
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At this point, the IMF drags the gasping nation to Step Three: Market-Based Pricing, a fancy term for raising prices on food, water and cooking gas.
This leads, predictably, to…
Step-Three-and-a-Half: what Stiglitz calls, "The IMF riot."
The IMF riot is painfully predictable. When a nation is, "down and out, [the IMF] takes advantage and squeezes the last pound of blood out of them. They turn up the heat until, finally, the whole cauldron blows up," as when the IMF eliminated food and fuel subsidies for the poor in Indonesia in 1998. Indonesia exploded into riots, but there are other examples - the Bolivian riots over water prices last year and this February, the riots in Ecuador over the rise in cooking gas prices imposed by the World Bank. You'd almost get the impression that the riot is written into the plan.
And it is. What Stiglitz did not know is that, while in the States, BBC and The Observer obtained several documents from inside the World Bank, stamped over with those pesky warnings, "confidential," "restricted," "not to be disclosed." Let's get back to one: the "Interim Country Assistance Strategy" for Ecuador, in it the Bank several times states - with cold accuracy - that they expected their plans to spark, "social unrest," to use their bureaucratic term for a nation in flames.
That's not surprising. The secret report notes that the plan to make the US dollar Ecuador's currency has pushed 51% of the population below the poverty line. The World Bank "Assistance" plan simply calls for facing down civil strife and suffering with, "political resolve" - and still higher prices.
The IMF riots (and by riots I mean peaceful demonstrations dispersed by bullets, tanks and teargas) cause new panicked flights of capital and government bankruptcies. This economic arson has it's bright side - for foreign corporations, who can then pick off remaining assets, such as the odd mining concession or port, at fire sale prices.
Stiglitz notes that the IMF and World Bank are not heartless adherents to market economics. At the same time the IMF stopped Indonesia 'subsidizing' food purchases, "when the banks need a bail-out, intervention (in the market) is welcome." The IMF scrounged up tens of billions of dollars to save Indonesia's financiers and, by extension, the US and European banks from which they had borrowed.
A pattern emerges. There are lots of losers in this system but one clear winner: the Western banks and US Treasury, making the big bucks off this crazy new international capital churn. Stiglitz told me about his unhappy meeting, early in his World Bank tenure, with Ethopia's new president in the nation's first democratic election. The World Bank and IMF had ordered Ethiopia to divert aid money to its reserve account at the US Treasury, which pays a pitiful 4% return, while the nation borrowed US dollars at 12% to feed its population. The new president begged Stiglitz to let him use the aid money to rebuild the nation. But no, the loot went straight off to the US Treasury's vault in Washington.
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Now we arrive at…
Step Four of what the IMF and World Bank call their "poverty reduction strategy": Free Trade.
This is free trade by the rules of the World Trade Organization and World Bank, Stiglitz the insider likens free trade WTO-style to the Opium Wars. "That too was about opening markets," he said. As in the 19th century, Europeans and Americans today are kicking down the barriers to sales in Asia, Latin American and Africa, while barricading our own markets against Third World agriculture.
Ultimately, what drove him to put his job on the line was the failure of the banks and US Treasury to change course when confronted with the crises - failures and suffering perpetrated by their four-step monetarist mambo. Every time their free market solutions failed, the IMF simply demanded more free market policies.
"It's a little like the Middle Ages," the insider told me, "When the patient died they would say, "well, he stopped the bloodletting too soon, he still had a little blood in him."
I took away from my talks with the professor that the solution to world poverty and crisis is simple: remove the bloodsuckers.
http://www.hartford-hwp.com/archives/25/079.htmlAlso & related…
Why Are Public Assets Being Cut Right When We Need Them Most?
http://www.alternet.org/blogs/peek/128029/Bad News From America’s Top Spy
http://www.truthdig.com/report/item/20090216_bad_news_from_americas_top_spy/It’s Not Going to Be OK
http://www.truthdig.com/report/item/20090202_its_not_going_to_be_ok/EXECUTIVE RESUME
All Of Them Must Go !
http://www.naomiklein.org/articles/2009/02/all-them-must-goCRIME PAYS
http://current.com/items/89775960/crime_pays.htmBubble Economy 2.0: The Financial Recovery Plan from Hell
http://www.globalresearch.ca/index.php?context=va&aid=12265The Shadow Money Lenders: The Real Significance of The Fed’s Zero-Interest-Rate Policy (ZIRP)
The Battle To Save The Fiat Money System Has Begun
http://www.globalresearch.ca/index.php?context=va&aid=11491SO ARE WE BUT A NATION OF VILLAGE IDIOTS & CHUMPS TAKEN TO THE CLEANERS BY OUR SO CALLED ELITE ?
"We can easily forgive a child who is afraid of the dark; the real tragedy of life is when men are afraid of the light." – Plato
“The real truth of the matter is, as you and I know, that a financial element in the larger centers has owned the government of the U.S. ever since the days of Andrew Jackson.” - President FDR (during the “Great Depression” on de facto Fascist rule in a letter to corporate monopoly charlatan “Colonel” Edward M. House, co-founder of the Council on Foreign Relations and political fixer for the ruling class. House also handled President Wilson. 11/21/ l933 from "F.D.R.: His Personal Letters”)
“The minority, the ruling class at present, has the schools and press, usually the Church as well, under its thumb. This enables it to organize and sway the emotions of the masses, and make its tool of them.”
- Doctor Albert Einstein (letter to Sigmund Freud 7/30/1932. 1879-1955)“We disapprove of slavery and the cost of the maintenance and upkeep of slaves. We prefer our English model in which we control the issuance of currency, and control of money, it allows us to control labor without the cost of maintaining it.”- Lord Baron Rothschild (private owner of the Bank of England. Quote 1849)
“Some people think the Federal Reserve Banks are U.S. government institutions. They are not…The sack of the United States by the Fed is the greatest crime in history…The truth is the Fed has usurped the government. It controls everything here and it controls all our foreign relations. It makes and breaks governments at will.”- Congressman Louis T. McFadden (Chairman Banking & Currency Committee charging a private “FED” Corporation with conspiracy, fraud & treason, June 1932)
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Two big factors have already made the US a THIRD WORLD nation
1) R. Reagan's tax cut of 1982 which began a trend in which wealth trickled up to the top one percent. The trend reversed in Clinton's second term but resumed with Bush Jr. Today--as a direct result of unfair REGRESSIVE taxation, the nation's elite of about 1 percent of the populations owns MORE than about 90 percent of the rest of the population combined.
2) Deals cut by R. Nixon, Ronald Reagan primarily have resulted in the outsourcing of a) jobs; b) entire industries. As a result --the CIA lists the US as leading the entire world with by far the BIGGEST BALANCE OF TRADE DEFICIT! In stark terms, one is hard pressed to name a single industry in which the US still leads the world even as we OWE the world for having picked up our debt.
The US simply cannot continue to survive as a nation, let alone a world power. And for all of this we owe the GOP for having been its architect and the Democratic party for having caved on crucial issues.
Instead of making peace with the GOP, the Democrats should have waged JIHAD! By bending over and taking it, by capitulating to the robber barons, the US has been sold down the river.
It's all over folks. This US will not come back in our lifetimes.
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lenhart says...
"one is hard pressed to name a single industry in which the US still leads the world"
...may I suggest : The Military Industrial Complex ;)
“When will the American people actually vote to give to the world more than bombs and missiles, sweatshops, dubious science, frankenfood, poverty and misery?” - Cynthia McKinney
Our complacency seems to have no limit indeed !
Ignorance is the downfall of all cultures and we are about to hit bottom.
"The American nation is in the worst condition I can remember in my lifetime, and our prospects for the immediate future are even worse. I am surprised and embarrassed to be a part of the first American generation to leave the country in far worse shape than it was when we first came into it. Our highway system is crumbling, our police are dishonest, our children are poor, our vaunted Social Security, once the envy of the world, has been looted and neglected and destroyed by the same gang of ignorant greed-crazed bastards who brought us Vietnam, Afghanistan, the disastrous Gaza Strip and ignominious defeat all over the world. The stock market will never come back, our armies will never again be No. 1. " - Hunter "Gonzo" Thompson
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- WhiteNoise
- 9 months ago
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This is soooo depressing, even though I have to agree.
Globalization is not going to be good for the "free" world. -
Time to order disproportionate foam hand.
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If every challenge is an opportunity for creativity , it is time to see how creative we are !
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OK...I agree with statements made here. I understand trying to inform people of what is coming down the pike.
Is there a solution short of massive violent revolutions around the world? Is there even a solution? For what is put out here is far beyond the means of the average person to even want to try and find a solution, let alone execute that solution.
I am a reader of science fiction, and in almost all futures one world with one government is the norm and the people are simply, there.
Revolutions are in place, but basically ineffective on a global scale.
Is this where the people of the world are now? Where do we go from here? -
If there is one person who may be credited it predicting all this well in advance, it is Naomi Klein...
Google Shock Doctrine, Naomi Klein
You'll fiind lots of good articles and some good videos.
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Indeed...Klein nailed it !
Check this out for size...
FIVE AUTHORS. ONE WARNING.
The Warning exposes the dangerous excesses of last eight years and warns against allowing those changes to go unchallenged during the next administration. Five authors, during extensive interviews, uncover the political and economic forces behind this radical transformation of American democracy.-
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- WhiteNoise
- 9 months ago
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"FIVE AUTHORS. ONE WARNING"
Excellent video. If Obama does nothing to undo the mortal wounds inflicted by Bush, then revolution is the last remedy. The people must be prepared to defend their rights, their freedoms guarateed them in the Constitution and the Bill of Rights. The alternative is oppression and slavery at the hands of an elite one percent or less of the population. Americans should be prepared to shoot the bastards who would enslave them.
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WhiteNoise,
You replied, "Don't want to sound too cocky but...
How can knowledge be ultimately sooo depressing ?
Is ignorance really bliss ?"
To my "sooo depressing" remark made, above.I guess ignorance is bliss, to some people. I, however am not one of them. If I was, I surely would not be reading your posts.:))
I too, like to know, even when/if the news is not good.
To be forewarned is to be forearmed.BTW...like the name. That's the background hiss on my ham radio that just won't allow me to ignore it.:))
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Was mostly pulling your virtual leg with the assumption that humor is the politeness of despair as the optimist said ;)
'If you wind up with a boring, miserable life because you listened to your mom, your dad, your teacher, your priest or some guy on TV telling you how to do your shit, then YOU DESERVE IT. Stupidity has a certain charm, ignorance does not." - Frank Zappa
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- WhiteNoise
- 9 months ago
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Thank you Whitenoise, I am constantly checking my footing to try to understand if my primal terror at the current socio/politcal/economic situation is justified or not. I keep answering yes. Then the trick is to try to share the concerns with others without having them write me off as a fear monger or 'conspiracy theorist'. Of course I understand how the fascist types have taken over the media and the disparaging use of the term conspiracy theorist is a tool used to undermine the very real and justified concerns of the socially and democratically minded people who would like to protect their life and liberty.
We can join groups that are active around disaster response, that are active around sustainablitiy and developing alternative economies. Those groups could be a life saving network when networks are needed most.
Hopefully, everyone who shares here on current is also active in some community organizations as well, so that if we have to respond, there will be people who share some of our concerns and are willing to act.
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- uppityprogressive
- 9 months ago
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"FIVE AUTHORS. ONE WARNING"
http://www.youtube.com/user/JPSottile-
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- WhiteNoise
- 9 months ago
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Interesting, all of it, but there is an underlying persuasion here that what America is losing truly represents a loss. China can laugh all the way to the bank, but look at their landscape, look at their disregard for the health and well being of their people, and I see a giant nation running blindly after the discarded playthings of the US. China can manufacture everything it wants to manufacture, but when they are their own best customers and they finally wake up and realize they have destroyed both their people and their environment in the ridiculous pursuit of worthless goods, then they will understand that being number 1 carries a price (human and environmental) that the US is no longer willing to pay. China is not only destroying itself manufacturing the foam hand, it is destroying itself by turning into the main consumer of the foam hand.
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- Incredulous
- 9 months ago
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WOW !
Most of what you just wrote could also applies to the US of A !!!!
"The injury we do and the one we suffer are not weighed in the same scales": - Aesop, Fables
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- WhiteNoise
- 9 months ago
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amen
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- Incredulous
- 9 months ago
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HIM AGAIN :)
BEST MIDDLE OF THE ROAD ANALYSIS
Nobel Prize-Winning Economist Joseph Stiglitz: Obama Has Confused Saving the Banks with Saving the Bankers
http://www.democracynow.org/2009/2/25/stieglitzHAVE A LISTEN PRESIDENT O !
If he had taken the $700 billion that we gave, levered it ten-to-one, created some new institution guaranteed—provide partial guarantees going for, that would have generated $7 trillion of new lending. So, if he hadn’t looked at the past, tried to bail out the banks, bail out the shareholders, bail out the other—the bankers’ retirement fund, we would have easily been able to generate the lending that he says we need.
So the question isn’t just whether we hold them accountable; the question is: what do we get in return for the money that we’re giving them?
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- WhiteNoise
- 9 months ago
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DRESSED REHERSAL IN MEXICO & PAKISTAN ?
Mexico, Pakistan, and the So-Called “Failed State”
http://www.globalresearch.ca/index.php?context=va&aid=12709Are Mexican drug cartels a threat to the United States? This is an easy conclusion to make after reading most mainstream U.S. newspapers. Hardly a day goes by without sensational stories about “broad daylight” gun battles, heart-wrenching interviews with weeping mothers, and praise for the Mexican army in its “war” against “narco-terrorists.”
Interestingly, Mexico has lately been compared to Pakistan as a country “on the verge” of becoming a “failed state,” with the Mexican drug cartels accused of playing the same “destabilizing” role as the Taliban/terrorists in Pakistan. Calling such a comparison a stretch would be a gross understatement, of course.
There is in fact a real connection between Mexico and Pakistan that’s worth discussing, though you’d never hear it mentioned in the mainstream media. Both countries have governments that are virtual pawns of the U.S. and, as such, are having a difficult time with their native populations as they attempt to please their real bosses — U.S. mega-corporations and rich investors.
And these bosses can be demanding. For example, in Pakistan the U.S. dominated International Monetary Fund (IMF) is demanding that Pakistan privatize state-owned banks, railways, power plants, water, insurance, factories, etc. — so that U.S. corporations and investors can buy them at discount rates for private profit.
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- WhiteNoise
- 8 months ago
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