Category Archives: Towards a Global Village

Core Belief 2: Towards a Global Village – Unconditional support for all beliefs and actions that seek to pursue and promote the equality and unification of Races, Religions, Creeds and Gender.

An ‘Economic’ Hit Man

Since circa 3000 BC we, as a species, have sought to create empires. Wikipedia offers that “this aspiration to universality resulted in conquest by converting ‘outsiders’ or ‘inferiors’ into the colonized region.”

Whilst in the past, this has been achieved by military might, I would argue that since the last World War we have seen the emergence of a new empire that is being expanded by other than that traditional forces of conquest, (although military might remains in the background).

I speak of the transfer of global power after the last war from the British Empire to America and the latter’s subsequent conquest of a large portion of this globe, achieved by stealth and without undue outrage.

A perfect example of US colonisation at work can be evidenced in an innocent news report of only a few days ago, which carried the story that the World Bank is ‘supporting’ a new coal plant in Kosovo that will modernise the country’s creaking energy infrastructure. It will also condemn this young nation to a future powered by climate destroying fossil fuels. So what is the World Bank up to in what appears a grossly irresponsible action?

In his book Confessions of an Economic Hit Man  (one of many he has now written and which everyone interested in how the world works today should read), John Perkins describes his former life as a financial strategist, specialising in making countries subservient to US foreign policy through debt . . . an ‘Economic’ Hit  Man.

His book defines such people as:

“highly paid professionals who cheat countries around the globe out of trillions of dollars. They funnel money from the World Bank, the US Agency for International Development (USAID), and other foreign “aid” organisations into the coffers of huge corporations and the pockets of a few wealthy families who control the planet’s natural resources. Their tools include fraudulent financial reports, rigged elections, payoffs, extortion, sex and murder.”

It is a well written and gripping read about the life of a man who constantly wrestled with his conscience over his work. Finally, for the sake of his daughter’s future, he became a whistleblower for the same reasons as Edward Snowden. What he was being asked to do was simply immoral and WRONG!

His work saw him travelling the world, going into countries (many in Latin America) and making an economic analysis of their complete structure, from political to environmental and resource wealth. He would then compile a report on how that country could be transformed with new energy plants to support industry, road and natural resources infrastructures, finishing with a 25 year forecast of an economic bonanza.

The reports were always exaggerated in what could be achieved because the whole object of the exercise was to weigh that country down with the debt needed to fund this expansion, provided by the World Bank and others. The repayments, the country was promised, would be paid out of the expanded economy.

Indeed, his reports would not be accepted by his employers unless they were hugely exaggerated in economic outcomes, to give credence to the vast debt the country would be taking on, in the certain knowledge that they would have great difficulty in repaying, or even unable to repay.

By his own admission it is fraud on a global scale, designed to provide lucrative contracts no only to his employers, Chas. T. Main Inc., an international low profile consulting firm used by the World Bank to spread its global lending strategy but also US global conglomerates. It was and still is a win/win situation for US government, corporations and banking institutes (the ‘corporatocracy’ as he describes them – the 1% as we know them).

Once the loan is in place, lucrative contracts are passed out to the likes of Bechtel, Brown & Root, Halliburton, Sone & Webster and many other huge US engineers and contractors, who profit handsomely for decades into the future from installation and maintenance contracts worth billions.

Government wins from the leveraged power that comes with debt. When a country begins struggling with debt repayments, as all have done, they become targets for US favours. These will include US military bases, UN votes, or access to the country’s valuable oil and other natural resources and sovereign assets, as an ‘obligated member’ of the growing US empire.

Sometimes there would be resistance, as in the cases of Ecuador and Panama. In the former, in 1981 President Roldos administration introduced new hydrocarbons laws to reform the country’s relationship with the oil companies. Unless they adhered to these laws, designed to help the people of Ecuador, they would be forced to leave the country.

This resistance was a beacon to other Latin American countries who were also under debt oppression. Shortly after delivering a major speech to his countrymen and women he died in fiery airplane crash on May 24 1981. “CIA Assassination” (Jackals as Perkins knew them) was a cry difficult to refute, as he had challenged the might of the corporatocracy and had to be made a lesson of.

In Panama, in 1967, President Omar Torrijos had concluded three treaties with President Jimmy Carter to preserve the sovereignty of the Panama Canal, a vital waterway that conferred huge power on the country. When ‘empire building’ Ronald Reagan superseded Carter as President his policies completely reversed those of Carter.

Reagan became the servant of those who supposedly served him but actually ran government for the benefit of the corporatocracy. People like George H W Bush, Casper Weinberger, Dick Cheney and Robert McNamara, people in government with powerful backgrounds, connections and influence with global corporations.

They were incensed by the deal Carter had done over the rights for the Panama Canal and wanted Omar Torrijos and his administration consigned to history, with its anti-corporatocracy campaigns for an independent Panama. On July 31st 1981, just two months after Roldos death, Omar Torrijos died in a similar plane crash.

Latin America and the world reeled at these events but worse was to follow. In 1986 the US empire called upon its military might and invaded Panama to deter the then President Noriega, who had superseded Torrijos, from concluding a potential deal with Japan to rebuild the canal.

US corporatocracy was not going to allow this vital link to come under the control of a foreign power and so President Noriega was extracted from the country he ruled over and carried back to the US where he stood trial and imprisonment for violations of American law, committed on that rulers own turf!

American propaganda dealt with world outrage at this abusive use of power by branding Noriega as a despot and tyrant and sentencing him 40 years in prison. Many attempts have been made to uncover the truth but the media are a powerful tool in either shaping people’s minds or keeping the truth buried.

1973 saw a turning point for the empire when President Nixon sought $2.2 billion aid from congress to support Israel. It resulted in a Saudi oil embargo on shipments to the US and brought America to its knees. It was this trauma that welded together big corporations, international banks and government and birthed the global corporatocracy we have today.

To ensure this would not happen again the US proffered the Saudi’s the knowhow and corporate might to build a modern day kingdom out of a barren desert. In addition, American military might would always be available to the kingdom. All of this in exchange for petrodollars and the vital undertaking that there would never be another oil embargo.

To further underwrite this security, we now have the present turmoil in the Middle East that has been nurtured by the CIA and their version of ‘foreign policy’, as the empire seeks to preserve its hold on the world and divert any consolidation of power in this oil rich area.

Whilst I have only skimmed the surface of this man’s experiences and their vast impact upon our modern world, it can be seen why Kosovo is flying in the face of global climate agreements with its coal fired power plant, as well as the recent barbaric treatment of Greece. Power and profit are at stake in the growth of this modern empire, neither of which will be compromised at any cost.

All empires eventually decline and today we have China waiting in the not too distant wings. Where it will all end I have no idea but again we are indebted to a brave man with a conscience who is prepared to stand up against US imperial might and tell the world what is happening.

Like Snowden and so many others, we can only applaud their courage and moral integrity, at a time when these essential values have completely left those who rule us.

Until the next time.

 

Thinking from his Book: Global Magna Carta. Returning Power to the 99% . . . If They Want It! By J T Coombes

‘Brexit’ . . . The Third Option

BREXIT photo

As the 24th June recedes into memory there is no doubt the establishment machinery has been working overtime to undermine the voice of the British majority decision to exit the EU, even suggesting many are having a change of heart.

The stock markets were beautifully manipulated to make small fortunes for those who already have large fortunes as they bounced back after the chaos of the vote. The IMF  reckon Britain will outstrip Germany, France and Italy’s growth forecasts and our own Bank of England report our economy has not slowed since the Brexit vote . . . So much for the end of the world!

Whilst the ‘presstitutes’ now focus on the triggering of Article 50, our new government is preparing for the supposed two years of negotiations to enable our extraction from Brussels influence.

The question nobody seems to be asking, in all of this hype and scaremongering, is the very real possibility that those negotiations won’t actually go the distance, because the EU has collapsed.

As time passes the problems for Brussels seem to be escalating, as the technocrats lurch from one regulated disaster to the next. With the benefit of hindsight, we should have read the warning signs of over regulation in the 70’s, with the famous beef and butter ‘mountains’ and wine ‘lakes’.

Then we saw the introduction of the disastrous single currency, designed to bring about financial control over the EU. Time has now shown that it is beyond possibility to try and manage the individual financial environments of many different countries in such a manner.

This one piece of mismanagement has led to building a toxic financial environment that is no longer sustainable without blatant subterfuge. Negative interest rates are not only killing the traditional business of banks but also crucifying pensions investment and the future incomes of hundreds of millions who have paid in with utmost good faith.

Moving from the financial to the political, we now have the political pantomime that has seen France, Germany and Italy declare a summit in Italy next month following the aftermath of the UK exit. We have G20 and G7, is this E3? I can only see it as another very expensive taxpayer funded ‘bun fight’, as I question the credibility that will give substance to these three getting together?

Let’s start with Germany, where Merkel is just about hanging on to power, with her country overrun with refugees she has invited in without reference to the other members and who are frightening off tourists as fast as the immigrants appear.

Her posturing and dictates also give no clue to the fact that her country is about to financially implode. Hers is the first Eurozone country to issue negative interest debt, something the ECB will not (currently) redeem in event of problems.

For over a year now the financial pundits have been saying the country’s largest bank by far, Deutsche Bank, is in serious trouble. Its share price has dropped 48% since last July, motivating finance minister Wolfgang Schauble to declare in February he has “no concerns about Deutsche Bank”, something finance ministers don’t say about ‘healthy’ banks!

The bank has been selling more of its shares and issuing ‘contingent convertible bonds’ to raise desperately needed capital, all of which have gone to further depressing it share price and credibility!

Such is global concern that Deutsche Bank will become the next Lehman Brothers that the IMF, no less, have publicly branded it the riskiest globally significant bank, at a time when its US businesses also failed a Federal Reserve stress test. If/when this bank collapses, the reverberations will make 2008 look like a walk in the park.

Then we have Italy, where the IMF have also declared the country’s banks, who have seen their share price plummet by more than 50% this year alone, pose a particular threat to the economic outlook. “Unless asset quality and profitability problems are addressed in a timely manner, lingering problems of weaker banks can eventually weigh on the rest of the system” came their warning.

Monte Dei Paschi is Italy’s third largest publicly traded bank and its particular distinction is that no bank in Europe has fallen so low so fast without completely crashing. Two years ago their shares were worth between €5 and €9 and today they are worth €0.33. What keeps it on life support is constant taxpayer bailouts, something a Merkel bullied Brussels has now pulled the carpet on.

Here lies the embarrassment for premier Renzi before his summit with France and Germany, rumour has it he is contemplating going head to head with Brussels and enacting a unilateral sovereign rescue of the Italian banking system.

How will he face Merkel, who insisted upon ‘bail ins’ over ‘bail outs’ and has gone on record as saying “We wrote the rules for the credit system, we cannot change them every two years”. If Merkel gives in it will make a mockery of her ‘bail in’ rules before they have been properly used, to say nothing of the political fallout if, once again, there is a raid upon taxpayer’s money to save a bankrupt financial system.

Whether she maintains her position or waivers, neither is an endorsement of her direction of EU policy, or the credibility of Brussels regulations.

What cannot also be overlooked is that Italy is the EU’s third largest economy, with €2.23 trillion of public debt, €400 billion of which is stagnating in Italian banks as bad loans, making them not only ‘too big to fail’ but also ‘too big to save’!

Finally, we have France’s contribution to the ‘toxic trio’ and their pompous little president, who is now traveling around the EU to secure unity in the face of these pending financial disasters, the Greek fiasco and Brexit and being publicly booed for his troubles. (Or perhaps it’s because of the $14,500 of taxpayer money he spends each month on haircuts!  Where is his credibility, when his popularity rating at home is now reported at below 10%?

As Philippe Le Corre noted in the Financial Times, opinion polls show that 61% of French people “hold unfavourable views of the EU”. Two-thirds feel that ”the EU has failed them economically”. By contrast to the UK, it’s the young who have been among the hardest hit, with massively high unemployment. “It is likely that they would vote for “Frexit” in a referendum”, says Le Corre.

This seems to be lost on Martin Schultz, President of the EU Parliament, who stated quite clearly: “It is not the EU philosophy that the crowd can decide its fate”. (So what is the point of the elected members of this parliament, or indeed this parliament?!!!) And this pearl of wisdom comes only weeks after the people of one of the EU’s largest contributors demanded a return of democracy following their Referendum on membership on 23rd June.

The European Commission’s attempts to drive through the trade deal with Canada (CETA) is pouring more petrol on the glowing embers of discontent, as it is now close to collapse after a German political party sued Brussels over its implementation. “it reveals once more the cavernous differences opening up between different member states which have effectively rendered the European project unworkable”, according to one recent report.

The only logic appears to be that this undemocratic move by Brussels creates a precedent for the equally undemocratic TTIP trade deal with the US, which is running in the face of huge public protest.

It will only take the effects of one of these trade deals, or the collapse of a bank, on top of the mounting problems of immigration, to trigger revolt in an already unstable union, which it is not that far off if Brussels pursues its present political stance.

Two years of exit negotiations . . . we shall see.

Until the next time.

 

Thinking from his Book: Global Magna Carta. Returning Power to the 99% . . . If They Want It! By J T Coombes