Truth Revolution

Our mission is simple: To vigorously seek the truth from the garbage heap of lies, ignorance, bigoted bias and witless diversion that has buried public discourse today. We will provide a new venue for disseminating hard news, insightful, fact based analysis of the harsh realities often ignored or distorted by mainstream media.
This is "The hard truth"
| Labor | 30% | 4355 votes |
| Liberal - if it supports carbon tax | 7% | 1073 votes |
| Liberal - if it doesn't support carbon tax | 43% | 6286 votes |
| Nationals | 4% | 647 votes |
| Greens | 7% | 1064 votes |
| Independent | 4% | 629 votes |
| Other | 5% | 666 |
And this?
10th. January 2010
Tracking down the climate scammers
31st. December 2009
Science corrupted
Al Gore won't debate
December 15th. 2009
Real experts and scientists are shouted down
and a huge industry has grown up to promote
what is essentially a fraud.
This template has been used to sell:
* The invasion of Iraq
* The war in Afghanistan
* Swine flu
* The "War on Terror"
* Bogus AIDS science
Nowhere is this pattern clearer than the current
Climate Change hysteria.
Here is the REAL state-of-the-art climate science that
the government and media (and all the "me too" folks who
follow them) is being suppressed.
Does the climate change?
it sure does.
It used to be so warm, grapes grew in Newfoundland and you could raise grain in
Greenland.
Climate change has the potential to be truly catastrophic, but the idea that we
are creating it - or can control it - with the functional equivalent of world
government is lunacy.
Posted by Cromwell
December 11th. 2009
Watch this and re-think your allegiance to Krudd and Wong (wrong)
December 7th. 2009
More on climate change brainwashing / fraud
The media spin masters aren't
worried about mercury in the water...but we know exactly what to do to solve the
problem.
The media spin masters have no problem with toxic gasoline ...even though we've
had a superior alternative for over 100 years.
Why then do they have infinite time, money and energy to sell the world on
"climate change" (formerly known as "global warming.")?
I think the answer is obvious to anyone over the mental age of five years old
who hasn't been thoroughly lied to.
Note how children are being terrorized by the global warming scam artists. It's
criminal.
Today 29th. November 2009
Tonight has been salutary for all of us who believe that Australian public policy should be based on true science, sound economics, and genuine social and environmental improvement. I contrast this with the clichéd mantra of “tackling dangerous climate change”, which is an unscientific and corrupt pretext for imposing a huge, futile, nonsensical, counterproductive, exemption-bedevilled and (most crucially) irreversible new tax on our productive industries, the consumer and, of course, the hapless taxpayer.
For the first
time in the 4.5 billion year history of this planet, climate change is
apparently to be halted – ironically by human beings, who suddenly now blame
themselves for all recent cooling /warming/droughts/floods/
My view is that Tony Abbott, who reads these emails and with whom I have been in close dialogue this week, will be the leader of the Liberal Party of Australia within the next week. Good thing too: it is about time that we had a conservative leader who does more than read opinion polls without regard to the untruth of his sources, whether a corrupt Treasury official or an equally corrupt Climate Research Unit in East Anglia. Thankfully, I no longer expect to have to resign from the Liberal Party, because it will join the Nationals in preventing the legislation of the oxymoronically-named “ Carbon Pollution Reduction Scheme”(sic.).
Now is the time for all of us to support Tony Abbott, Nick Minchin, Cory Bernardi, the Nationals and everybody else in Canberra that refuse to be corralled by a shameful fraud, and in doing so, their success will be felt in political circles around the world prior to Copenhagen.
Philip Wood
Posted by Cromwell
Please watch this stream as it tells it how it really is!
Link to Carbon Sense Coalition Site where science shows no warming in 100 years
here in Australia
Today 27th. November 2009
The rank hypocrisy of the Australian media is an indictment of their dishonesty, their culture, their bigoted bias support of the Socialist communist Labor movement!
Our own media are a collective conglomerate of bare faced liars! Why are they not reporting the news (balanced) instead of their propagandist garbage they serve to the Australian people every hour on the hour! Even our own tax payer funded ABC, are a party to this errant nonsense they are ramming down our throats every night. This fraud, this disgusting lie about CO2 emissions being a pollutant is rubbish, told by 100 of the worlds most esteemed scientist, (See below in an open letter to the UN) who are currently being ignored by our alleged honest media every night on "Our" ABC and the private media.
Listen to interviews with Alan Jones on the emissions trading scam
If ever there was a time for urgent measures in Australian
Politics, it is today. We have a mad, self righteous, sanctimonious out of
control Prime Minister and a mad out of control Penny Wong! Both need to be
stopped as they are about to sign a treaty that would send this nations' economy
into the abyss of bankruptcy and enslave this nation to unelected foreigners
forever! This is not a conspiracy theory, it's happening now as we speak,
today. 17/11/2009 Listen further by clicking on the link below to another
interview with Alan Jones.
More on Alan Jones and Rudds Madness!
Now 29/10/2009
Our medias' hysterical ranting and raving about global warming and how Carbon is a pollutant is not only a fraud it's absolute rubbish!
Mr. Rudd and all your lying cohorts saying the science has been settled, you are so wrong. You and your adoring propagandist media have not allowed any debate whatsoever. Your proposition that carbon is a pollutant is a bare faced lie. Nobody can be so stupid, so ignorant to believe this, so that makes it self evident that you all lie. How dare you do this to your fellow citizens. Your rank dishonesty or simple minded ignorance is a national disgrace! You and your minister Wong are a clear and present danger to the national security of this nation!
Cromwell
This video stream is incredibly important to us all. Lord Monkton tells us how it is. The truth! All of it!
On Dec. 13, 2007, 100 scientists jointly signed an Open Letter to Ban Ki-Moon, Secretary-General of the United Nations, requesting they cease the man-made global warming hysteria and settle down to helping mankind better prepare for natural disasters. The final signature was from the President of the World Federation of Scientists.
Posted by Cromwell
The latest insult to the world is this latest attack on Iran.
This is much closer to the truth!
A two and a half hour movie is here, The Hard Truth
Among some of the many urgent and relevant issues today is the soaring price of fuel. There is absolutely no justification for the price of petrol at the pumps! Fuel still cost exactly the same to refine today as it did in the 70's, 80's and 90's. It's what the media are implying when they ram down our throats hundreds of times a day, "the price of oil per barrel today folks is at record highs". Absolute garbage! Oil companies pay around $10.00 a barrel for their oil and sometimes less. What the deceitful media are telling you is the daily "hedge fund futures market" price, or the daily spot price and has nothing to do with what oil companies pay.
Saturday 14th. June 2008
The Great Oil Swindle: How Much Did the Fed Really Know?
The Commodity Futures and Trading Commission (CFTC) is investigating trading in
oil futures to determine whether the surge in prices to record levels is the
result of manipulation or fraud.
They might want to take a look at wheat, rice and corn futures while they're at it.
The whole thing is a hoax cooked up by the investment banks and hedge funds who are trying to dig their way out of the trillion dollar mortgage-backed securities (MBS) mess that they created by turning garbage loans into securities. That scam blew up in their face last August and left them scrounging for handouts from the Federal Reserve.
Now the billions of dollars they're getting from the Fed is being diverted into commodities which is destabilizing the world economy; driving gas prices to the moon and triggering food riots across the planet.
For months
we've been told that the soaring price of oil has been the result of Peak Oil,
fighting in Iraq, attacks on oil facilities in Nigeria, labor problems in
Norway, and (the all-time favorite), growth in China. It's all baloney. Just
like Goldman Sachs prediction of $200 per barrel oil is baloney. If oil is about
to skyrocket then why has G-Sax kept a neutral rating on some of its oil
holdings like Exxon Mobile? Could it be that they know that oil is just another
mega-inflated equity bubble---like housing, corporate bonds and dot.com stocks that is about to crash
to earth as soon as the big players grab a parachute?
There are three things that are driving up the price of oil: the falling dollar,
speculation and buying on margin.
The dollar is tanking because of the Federal Reserve's low interest monetary
policies have kept interest rates below the rate of inflation for most of the
last decade. Add that to the $700 billion current account deficit and a National
Debt that has increased from $5.8 trillion when Bush first took office to over
$9 trillion today and it's a wonder the dollar hasn't gone Poof already.
According to a January 4 editorial in the Wall Street Journal: If the dollar had
remained 'as good as gold' since 2001, oil today would be selling at about $30
per barrel, not $99. (today $126 per barrel) The decline of the dollar against
gold and oil suggests a US monetary that is supplying too many dollars. Wall
Street Journal 1-4-08
The price of oil has more than quadrupled since 2001, from roughly $30 per
barrel to $126, WITHOUT ANY DISRUPTIONS TO SUPPLY. There's no shortage; it's
just gibberish.
As far as buying on margin, consider this summary from author William Engdahl:
So the
investment banks and their trading partners at the hedge funds can game the
system for a mere 8 bucks per barrel or 16 to 1 leverage. Not bad, eh?
Is it possible that gambling on oil futures might be a temptation for banks that
are already underwater from a trillion dollars worth of mortgage-related deals
that have gone south, leaving the banking system essentially bankrupt?
And if the banks and hedgies are not playing this game, then where is the money
coming from? I have compiled charts and graphs that show that nearly two-thirds
of the big investment banks' revenue came from the securitization of commercial
and residential real estate loans. That market is frozen. Besides, this is not
just a matter of loan delinquencies or MBS that have to be written off. The
banks are 'revenue starved'. How are they filling the coffers? They're either
neck-deep in interest rate swaps, derivatives trading, or gaming the futures
market. Which is it?
Of course, there is one other possibility, but if that possibility turned out to
be right than it would cast doubt on the legitimacy of the entire financial
system. In fact, it would prove that the system is being rigged from the
top-down by our friends at the Banking Politburo, the Federal Reserve. Here
goes:
What if the investment banks are trading their worthless MBS and CDOs at the
Fed's auction facilities and using the money ($400 billion) to drive up the
price of raw materials like rice, corn, wheat, and oil?
Could it be? Could the Fed really be looking the other way so it can bail out
its banking buddies while they drive prices skyward?
If it is true; (and I suspect it is) it hasn't done much good. As the Associated
Press reported yesterday:
Another
$225 billion for the bankers and not a dime for the struggling homeowner! The
Fed is bankrupting the country with their permanent rotating loans to keep
reckless speculators from going under. So much for moral hazard.
As far as speculation, there is ample evidence that the system is being
manipulated. According to MarketWatch:
And here's
a revealing clip from the testimony of Michael W. Masters of Masters Capital
Management, LLC, who addressed the issue of Commodities Speculation before the
Committee on Homeland Security and Governmental Affairs this week:
In the popular press the explanation given most often for rising oil prices is the increased demand for oil from China.
According to
the DOE, annual Chinese demand for petroleum has increased over the last five
years from 1.88 billion barrels to 2.8 billion barrels, an increase of 920
million barrels.8 Over the same five-year period, Index Speculatorsʼ demand for
petroleum futures has increased by 848 million barrels. THE INCREASE IN DEMAND
FROM INDEX SPECULATORS IS ALMOST EQUAL TO THE INCREASE IN DEMAND FROM CHINA.
Index Speculators have now stockpiled, via the futures market, the equivalent of
1.1 billion barrels of petroleum, effectively adding eight times as much oil to
their own stockpile as the United States has added to the Strategic Petroleum
Reserve over the last five years.
Today, in many commodities futures markets, they are the single largest force.15
The huge growth in their demand has gone virtually undetected by
classically-trained economists who almost never analyze demand in futures
markets.
As money pours into the markets, two things happen concurrently: the markets
expand and prices rise. One particularly troubling aspect of Index Speculator
demand is that it actually increases the more prices increase. This explains the
accelerating rate at which commodity futures prices (and actual commodity
prices) are increasing. The CFTC has taken deliberate steps to allow CERTAIN
SPECULATORS VIRTUALLY UNLIMITED ACCESS TO THE COMMODITIES FUTURES MARKETS.
The CFTC has
granted Wall Street banks an exemption from speculative position limits when
these banks hedge over-the-counter swaps transactions. This has effectively
opened a loophole for unlimited speculation. When Index Speculators enter into
commodity index swaps, which 85-90% of them do, they face no speculative
position limits.... The result is a gross distortion in data that effectively
hides the full impact of Index Speculation. (Thanks to Mish's Global Economic
Trend Analysis; the one indispensable financial blog on the Internet)
Masters adds that the CFTC is pressing to make Index Speculators exempt from all
position limits so they can make unlimited bets on the futures which are
wreaking havoc on the global economy and pushing millions towards starvation. Of
course, these things pale in comparison to the higher priority of fatting the
bottom line of the parasitic investor class.
Brimming oil tankers are presently sitting off the coasts of Iran and Louisiana.
The Strategic Petroleum Reserve has been filled. Demand is flat. The world's
biggest consumer of energy (guess who?) is cutting back .
As CNN
reports:
The great oil crunch is another fabricated crisis; another 'smoke and mirrors' fiasco; another Enron-type shell-game engineered by banksters and hedge fund managers. Once again, the bloody footprints can be traced right back to the front door of the Federal Reserve. Don't expect help from the regulators either; they've all been replaced with business reps like Harvey Pitt or Hank Paulson.
The only time anyone in the Bush administration finds their conscience is when they're offered a multi-million dollar tell all book deal.
Research: Mike Whitney & F William Engdahl
Posted by Cromwell
A New World Order...................Not
How the IMF props up the bankrupt U.S. dollar system
One of the crucial pillars of support for today's Dollar System
is Washington's control of the International Monetary Fund, the IMF. The way
this actually works is carefully disguised, behind a facade of technocrats and
economic theory of free market ideology. In reality, the IMF is a modern era
collection agency for the Dollar Empire. It collects its tribute, through major
international banks, which use the dollars to further extend the power of
American financial and corporate hegemony, in effect the driving motor of what
is globalisation.
Ironically, though the IMF is a main prop of the Dollar System, it's nominally
headed by a European, today a German, Horst Koehler, and before him, by a
Frenchman, Michel Camdessus. The real power is carefully concealed behind the
facade. Under the constitution of the IMF, no major decision is possible without
85% support of the board of directors. The United States, which drafted the
original IMF charter at Bretton Woods New Hampshire in 1944, made sure it had
the decisive veto control with an 18% vote share. That veto remains to today.
Insiders know well that the IMF is run by Washington. It is no accident that its
headquarters is also there.
The IMF was originally created in the 1944 Bretton Woods New Hampshire
international monetary conference, called by President Roosevelt to set up a
post-war monetary and trade system. It was intended as a fund to support
stability of currencies and trade of the post-war European allied countries. At
that time Washington held the vast bulk of world gold reserves and expected to
lend dollars to rebuild Europe. The original IMF idea was to pool a share of
reserves of member states, which any single state could then borrow, in event of
a short-term payments crisis, to stabilize their currency. Ten years after the
Great Depression, the major industrial nations, including the USA, were
concerned with creation of a stable, growing Europe, not least as an export
market for US products. The first member to borrow was Great Britain after the
war. The last European state was Italy in 1977.
Since 1977, no European or G7 country has gone to the
IMF to borrow. Instead they have borrowed from private banks or issued state
debt. They know all too well how destructive the IMF conditions are. By the end
of the 1970s some people were suggesting the IMF had outlived its role, much as
some argue with NATO after the end of the Cold War. Washington had other ideas
for the IMF however.
The role of the IMF changed dramatically in the early 1980s, under US pressure.
Instead of serving as a stabilizing fund for industrial countries of Europe or
Japan, the IMF became the decisive agency controlling economic policy of
underdeveloped countries. What evolved since the first Latin American debt
crises of the early 1980s was an entirely new role for the IMF to act as
policeman to collect dollar loans for private New York and international banks.
The IMF became the driving motor for what came to be called
"globalisation."
After the first oil price rise of 400% in the 1970s, many developing countries
such as Brazil, Argentina, or most of Africa, borrowed heavily to finance needed
oil imports, or trade deficits. They borrowed dollars from major international
banks operating in the London Eurodollar market. London was the centre for, in
effect, the recycling of the large sums of petrodollars from Arab OPEC countries
to US and other major banks.
The major banks took the new oil dollars and immediately relent them at a nice
profit, to countries like Argentina or Egypt. Before the 1970s Argentina had
been a fast-growing economy developing modern industry, agriculture and a rising
standard of living for its people. It had almost no foreign debt. Ten years
later, the country was under control of the IMF and foreign banks. The US
changed the rules, in the process creating the debt crisis.
In October 1979, a dramatic shock occurred for the debtor countries. Overnight
their cheap dollar loans cost them 300% more interest charge. Paul Volcker of
the Federal Reserve Bank in the US, unilaterally changed US interest policy to
force the dollar higher against other currencies. The effect was to raise US
interest rates 300% and rates in the London bank market by even more. The bank
loans to Argentina and other countries had been made in "floating" rate
agreements. If the key international rate in the London bank market, LIBOR, was
low, Argentina would pay a low rate on its dollar loans. But when it suddenly
rose 300% in 1979-1980, many countries suddenly faced a payments crisis.
It took until 1982 for the crisis to reach default level. At that point,
Washington demanded the IMF be brought in to police a debt collection process on
developing debtor nations. This came to be called the Third World Debt Crisis.
The impression was created that countries like Argentina were guilty for
mismanagement. In reality, whatever political corruption may have existed in the
debtor countries, the corruption of the IMF system and the petrodollar recycling
was far greater. The Volcker interest rate shock completed the package of
destruction of living standards on behalf of dollar debts.
How did the IMF act in the third world debt crisis? Here is where it becomes
clear that the role of the IMF was to support the dollar hegemony of the United
States, and not to help poor countries get through a temporary debt problem.
The IMF has been described by some as a tool of
neo-colonialism. That is too mild, as 19th Century British or European
colonialism, however harsh, never managed to accomplish the extent of
devastation and destruction of health and living standards the IMF has done
since the 1970s.
The IMF operates as a supranational agency to take control over helpless debtor
states, to impose economic policies that force the country ever deeper into
debt, while opening the market to foreign, often US capital and global corporate
exploitation. The fact that debtor countries never get out of their dollar debt,
only deeper in, is deliberate. IMF policy in fact insures this. The dollar debt
is a major prop of the dollar system and of private international banks. When
that debt is repaid, banks lose power and credit contracts. So long as debt
grows, bank credit can grow, the paradox of modern banking.
The tip-off that the real purpose of the IMF is quite different from its public
claims, is that despite repeated proof of the destructiveness of its policies,
called "conditionalities," the IMF has never changed the method it uses in a
target country. There is a reason for that.
Take Argentina as a case in point. In early 2002 Argentina defaulted on repaying
$141 billion in foreign dollar debt. One of the most devastating economic
collapses in modern history ensued. The IMF was crucial. In early 2000 Argentina
had turned to the IMF for emergency credit to prevent a collapse of its
currency, then fixed to the strong US dollar. As the dollar rose, Argentina
found its exports trade collapsing. The country went into recession. The IMF
stepped in with a $48 billion "rescue" package. But there were conditions.
First the government had to agree to severe IMF-dictated cuts in government
spending before it would get any money. State subsidies on food for low income
were ended, triggering food riots. Interest rates exploded in a vain effort to
convince foreign banks and bondholders to not sell. That only worsened the
economic depression. State companies were forced to privatise to raise money and
"promote free market" liberalization. The Buenos Aires water system was sold for
pennies to Enron, as was a pipeline going from Argentina to Chile.
Washington insisted all the while that Argentina hold to its fixed currency
value, arguing that the trust of foreign bondholders and creditors was the
priority. Meanwhile the country sank into its worst depression in memory, as
millions lost jobs, and bank accounts were in the final stage frozen, so
ordinary citizens could not even draw savings for life necessities.
What exactly does the IMF do when it comes into a crisis country that asks for
emergency lending to overcome a debt or currency crisis? The IMF always uses the
same program, regardless of whether it is Russia or Argentina, Zimbabwe or South
Korea, all very different cultures, economies and situations. The IMF demands
are often referred to as the Washington Consensus, the name given in 1990 by a
US economist and IMF backer, John Williamson, to describe the IMF method of
attack.
IMF medicine almost always includes demands to privatise state industries, to
slash public spending even on health and education, devalue the national
currency against the dollar, and open the country to free flow of international
capital-both in and, especially, out.
First the IMF demands the government in question sign a secret Memorandum of
Understanding with the IMF, in which it agrees to a list of "conditionalities",
the pre-condition for getting any penny of IMF aid. Under todays globalise free
capital markets, banks do not invest in a country that does not have the IMF
seal of approval. So the IMF role is far more than giving some emergency loan.
It determines if a country gets any money from any source at all-World Bank,
private banks and other.
The conditions of an IMF deal are always the same. Privatisation of state
industries is top on the list. The effect of privatisation with a cheap Peso or
Rouble currency is that foreign dollar investors are able to buy up the prime
assets of a country dirt-cheap. Often the lure of under-the-table deals in
privatising their national assets corrupts the politicians involved in the
country. Foreign multinationals can grab profitable mining, oil, or other
national treasures with their dollars.
The case of the Yeltsin government in Russia is classic, with dollar
billionaires emerging overnight on the looting of national assets via
IMF-dictated privatisation. The Clinton Administration backed the process fully.
They knew it turned Russia into a dollar zone, and that was the intent.
The second demand of the IMF is that a country liberalize, that is open, its
financial and banking markets to foreign investors. This allows high-profile
speculators like George Soros or Citibank or Credit Suisse to come into a
country, run up asset prices in a speculation, take huge profits, as in Thailand
in the mid-1990s, and quickly sell, then exit with huge gains, as the local
economy collapses behind them. Then Western multinationals can come in after,
and take prime assets at very low cost.
This is what happened to Asia in the 1990s. The IMF and US Treasury, which
actually determines US IMF policy, began strong pressure on the fast-growing
East Asia "Tiger" economies in 1993, to remove national controls on capital
flows. They argued it would help Asia get large sums of money to invest. What it
did was give US pension funds and big banks a huge new market for speculation.
Too much money flowed in, and an unhealthy real estate bubble grew. It burst
when Soros and other US speculators deliberately pulled the plug in 1997,
triggering the Asia crisis. The end result was that for the first time, Asian
economies were forced to turn to the IMF to be rescued.
But the IMF did not "rescue" any Asian economy in 1998. It rescued international
banks and hedge fund speculators. In Indonesia, the IMF demanded the government
raise interest rates to 80%, on the argument that would keep foreign investors
from leaving, and stabilize the situation. In fact, as critics like Joseph
Stiglitz charged at the time, the IMF interest rate demands guaranteed a
full-blown collapse of the Indonesian and other Asian banking systems
.
Once the IMF got control of South Korea, one of the strongest industrial
economies in the world, it demanded break-up of large industry conglomerates,
charging "corruption" and "crony capitalism." In fact, Washington hoped to
weaken a growing competitor and open the door for US companies like GM or Ford
to take over. In part it worked, until Korea and other regional economies were
strong enough to re-impose national controls. Malaysia openly defied the IMF
demands and imposed currency controls during the crisis. The damage to Malaysia
was minimal as a result, a great embarrassment to the IMF.
The next step for IMF conditions, is the demand a country turn to "market-based"
domestic prices. This is code for eliminating government subsidies or price
controls. Often developing countries have state-subsidized fuel or food or other
necessities for their people. In 1998 the IMF demanded, for example, that
Indonesia remove state food subsidies for the poor. The idea of "market-based
price" is itself a fiction. A market is man-made. The market in Switzerland or
Denmark or Japan is different from the market in Cuba or Cameroon. What the IMF
is after is a slashing of state budgets to minimize the state role in the
economy and make a target country defenceless against foreign takeover of its
key assets. The government share in the fragile economy is cut also, in order to
insure foreign banks get their "pound of flesh."
Finally the IMF demands the country devalue its currency, and massively, often
by 60-70% or more. Here the argument is that this will make its exports "more
competitive" and bring more income to repay the foreign dollar debts. This is a
crucial part of the IMF Washington Consensus medicine. If, say, Chile devalues
the Peso in half, or the Republic of Congo, it must export twice as many tons of
copper to earn the same dollar of export surplus. For the giant multinationals
in the industrial world, it means the cost of raw materials has become cheaper
by half.
Over the past twenty years since the IMF stepped in to play the major role in
reorganising developing countries, world raw materials prices have been
dramatically depressed, even though demand has risen. The reason is that
countries of Africa, Latin America and elsewhere are mainly raw materials
exporters, and their commodities, like oil, are all exported in dollars. They
need to earn dollars to repay dollar debts. The IMF policies have driven their
raw material prices, measured in dollars, drastically lower. This has been
deliberate, but is never admitted. The IMF is an agency of American
dollar domination of the global economy, not an agency to help developing
countries.
None of this is exaggeration, unfortunately. IMF defenders claim
that "market liberalization" has resulted in major economic growth over the past
20 years in developing countries. The reality is opposite. In a study done by
Joseph Stiglitz when he was at the World Bank, between 1989 and 1997 the GDP of
every country in the former Soviet Union had fallen to levels of 30% to 80% of
that before the collapse of state controls, with the sole exception of Poland.
The level in Russia was only 60% that in 1989. GDP had collapsed 40%, and
unemployment went from 2 million to 60 million. The rapid privatisation without
adequate legal and institutional safeguards such as unemployment insurance or
health insurance, led to social catastrophe comparable to wartime. IMF demands
to free capital movement allowed new Russian dollar oligarchs such as Berezovsky
to plunder billions of dollars and put it into secret bank accounts in Cyprus or
Liechtenstein, while they bought luxury villas in Monte Carlo.
The IMF record in Africa is as outrageous and destructive. In Zimbabwe, the IMF
demanded the government privatise certain state companies and cut subsidies on
food, education and health care to get IMF aid. The government complied with
most demands, and then the IMF accused it of funding the war in the Democratic
Republic of Congo, using that as an excuse to deny giving Zimbabwe loans. In
Kenya the IMF earlier demanded that specific individuals be named to the
government of Moi, people friendly to Western interests. Washington then charged
these governments being "corrupt," which conveniently blinds Western opinion
from realizing the moral travesty-taking place under IMF auspices.
Take the official World Bank debt statistics and it becomes
obvious that the IMF game is to support the dollar. The first debt crisis in the
Third World erupted in 1982. The IMF stepped in to "stabilize" the debt problem.
Since then, the foreign debts of developing countries have risen exponentially.
In Argentina, the earlier "success" of the IMF, foreign debt stood at $62
billion in 1990. In 2000 it was $146 billion. Brazil's foreign debt has gone
from $120 billion to $240 billion in the same time. Iran, isolated from the IMF
system by US sanctions, is one of the few developing countries, which has
managed to reduce its foreign debt.
The total foreign dollar debt of all low and middle-income countries rose from
$1.4 trillion in 1990 to $2.5 trillion in 2000, almost double. In most cases,
the unpayable interest costs on the debts were merely added to the amount of
principal owed foreign lenders, at compound interest rate, of course. With
compound interest charges often 10% to 15% per year, the debt grows
exponentially.
The result is a Ponzi debt pyramid, in which the more a country pays, the more
it owes. Bankers call it "interest capitalization." It is no different from the
plight of a poor shopkeeper debtor who is forced to turn to a mafia loan shark
to survive and ends up paying more and more at ever more interest, until he is
bankrupt and the mafia takes all his possessions. The IMF and banks know only
some 80% of Third World debts can ever be repaid. They care only about the legal
fiction and the ability to use the debt as a lever to grab assets cheaply.
According to the World Bank, between 1980 and 1986, for a group of 109 debtor
countries, payment of interest alone to the creditors on foreign debts totalled
$326 billion. Repayment of principal on the same debts totalled another $322
billion, for a combined capital flow out to the New York and other creditor
banks, in debt service, of $658 billions on an original debt of $430 billion.
Yet, despite this enormous effort, these 109 debtors still owed the banks a sum
of $882 billion in 1986. This was because of the pyramid effect of compound
interest, interest capitalization and Volcker's floating rate policy.
In 1990 the developing world repaid some $150 billion in interest on dollar
debt, three times all aid received. This was a huge boost to the dollar credit
system, which lends on the basis of assuming it will be repaid the entire $2.5
trillion third world debt. The IMF allows that myth to continue. Occupied Iraq
today must still "honour" billions in debts of the Hussein era, many to the
former Soviet Union, despite its devastated situation. Russia is still forced to
admit billions in debt from the Soviet era to Western agencies. Under
the IMF system, debt is more sacred than human life.
The vicious trick in all IMF-led "debt restructuring," is that so long as a
debtor is able to pay interest on its loans, the creditor banks in New York or
London or elsewhere do not have to declare their loan in default. Even if they
know it never will be repaid, they treat it as if it were a fully good credit,
and use it as capital collateral for further bank lending. The banking system of
the dollar world is to a major degree propped up by the pyramid of unpayable
third world loans from Africa to Indonesia to Argentina to Croatia.
There has been a dramatic slowdown in economic growth in developing economies
over the past two decades since the IMF was brought in to police the debtor
states in 1982. There is a direct link. In Latin America, if we take per capita
GDP growth, there was a growth of 75% between 1960 and 1980. In the following 20
years to 2000, per capita GDP grew a mere 6%.
In Sub-Sahara Africa, per capita GDP grew by 36% in the two-decade period to
1980. Then, it fell by a staggering 15% the next two decades. According to the
World Bank itself, some 300 million Africans, almost half of the Continent,
survive on less than ? 0.65 a day. IMF-dictated cuts in national health care
have resulted in rising infant mortality across the Continent. In 2002 Malawi
underwent famine. It coincided with the April 2002 decision by the IMF to
suspend Malawi on allegations of "corruption." The IMF had ordered Malawi's
government to sell its grain reserves in order to repay a South African bank
loan of the National Food Reserve Agency. The IMF also ordered export of maize
to service debt, ignoring a developing famine crisis. The IMF piously denied it
played any role in the famine crisis however.
For Arab states, including Algeria, Morocco, GDP growth per capita swung from a
plus 175% between 1960-1980 to a minus 2% in the following two decades, a
staggering collapse.
The only apparent exception to this negative trend is East Asia including China.
Here growth was faster between 1980 and 2000. But the reason is the including of
China, which saw a 400% increase in GDP and accounts for 83% of the region's
population. China has adamantly refused any dealings with the IMF, and runs a
controlled state-guided economy with full currency controls, hardly an IMF model
state.
Globalisation is a word used today, often without precision. If we use the word
globalisation to refer to the entire process of IMF and WTO-led neo-colonialism
under the Dollar System, then it is a descriptive term. It describes the
creation of a global dollar imperium, a Pax Americana. Establishment critics of
the IMF system such as Joseph Stiglitz, himself a former Clinton adviser and
World Bank official, make accurate charges against the IMF. They assume,
however, that it is merely misguided policy that leads to the problems. The
entire IMF institution, along with the World Bank and WTO, however, have been
deliberately developed to advance this globalisation of the Dollar System, the
second pillar of Pax Americana after the military power. It is no mistaken
policy, no result of bureaucratic blunders. That is the crucial point to be
understood. The IMF exists to support the Dollar System.
Cromwell (material collated from F. William Engdahl) Public Citizen
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Editorial: The Great Global Warming Hoax? |
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Posted by Cromwell
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