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The West Is Reduced to Looting Itself

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Myself, Michael Hudson, John Perkins, and a few others have reported the multi-pronged looting of peoples by Western economic institutions, principally the big New York Banks with the aid of the International Monetary Fund (IMF).

Third World countries were and are looted by being inticed into development plans for electrification or some such purpose. The gullible and trusting governments are told that they can make their countries rich by taking out foreign loans to implement a Western-presented development plan, with the result being sufficient tax revenues from economic development to service the foreign loan.

Seldom, if ever, does this happen. What happens is that the plan results in the country becoming indebted to the limit and beyond of its foreign currency earnings. When the country is unable to service the development loan, the creditors send the IMF to tell the indebted government that the IMF will protect the government’s credit rating by lending it the money to pay its bank creditors. However, the conditions are that the government take necessary austerity measures so that the government can repay the IMF. These measures are to curtail public services and the government sector, reduce public pensions, and sell national resources to foreigners. The money saved by reduced social benefits and raised by selling off the country’s assets to foreigners serves to repay the IMF.

This is the way the West has historically looted Third World countries. If a country’s president is reluctant to enter into such a deal, he is simply paid bribes, as the Greek governments were, to go along with the looting of the country the president pretends to represent.

When this method of looting became exhausted, the West bought up agricultural lands and pushed a policy on Third World countries of abandoning food self-sufficiency and producing one or two crops for export earnings. This policy makes Third World populations dependent on food imports from the West. Typically the export earnings are drained off by corrupt governments or by foreign purchasers who pay little while the foreigners selling food charge much. Thus, self-sufficiency is transformed into indebtedness.

With the entire Third World now exploited to the limits possible, the West has turned to looting its own. Ireland has been looted, and the looting of Greece and Portugal is so severe that it has forced large numbers of young women into prostitution. But this doesn’t bother the Western conscience.

Previously, when a sovereign country found itself with more debt than could be serviced, creditors had to write down the debt to an amount that the country could service. In the 21st century, as I relate in my book, The Failure of Laissez Faire Capitalism, this traditional rule was abandoned.

The new rule is that the people of a country, even a country whose top offiials accepted bribes in order to indebt the country to foreigners, must have their pensions, employment, and social services slashed and valuable national resources such as municipal water systems, ports, the national lottery, and protected national lands, such as the protected Greek islands, sold to foreigners, who have the freedom to raise water prices, deny the Greek government the revenues from the national lottery, and sell the protected national heritage of Greece to real estate developers.

What has happened to Greece and Portugal is underway in Spain and Italy. The peoples are powerless because their governments do not represent them. Not only are their governments receiving bribes, the members of the governments are brainwashed that their countries must be in the European Union. Otherwise, they are bypassed by history. The oppressed and suffering peoples themselves are brainwashed in the same way. For example, in Greece the government elected to prevent the looting of Greece was powerless, because the Greek people are brainwashed that no matter the cost to them, they must be in the EU.

The combination of propaganda, financial power, stupidity and bribes means that there is no hope for European peoples.

The same is true in the United States, Canada, Australia, and the UK. In the US tens of millions of US citizens have quietly accepted the absence of any interest income on their savings for seven years. Instead of raising questions and protesting, Americans have accepted without thought the propaganda that their existence depends upon the success of a handful of artificially created mega-banks that are “too big to fail.” Millions of Americans are convinced that it is better for them to draw down their savings than for a corrupt bank to fail.

To keep Western peoples confused about the real threat that they face, the people are told that there are terrorists behind every tree, every passport, under every bed, and that all will be killed unless the government’s overarching power is unquestioned. So far this has worked perfectly, with one false flag after another reinforcing the faked terror attacks that serve to prevent any awareness that this a hoax for accumulating all income and wealth in a few hands.

Not content with their supremacy over “democratic peoples,” the One Percent has come forward with the Trans-Atlanta and Trans-Pacific partnerships. Allegedly these are “free trade deals” that will benefit everyone. In truth, these are carefully hidden, secret, deals that give private businesses control over the laws of sovereign governments.

For example, it has come to light that under the Trans-Atlantic partnership the National Health Service in the UK could be ruled in the private tribunals set up under the partnership as an impediment to private medical insurance and sued for damages by private firms and even forced into abolishment.

The corrupt UK government under Washington’s vassal David Cameron has blocked access to legal documents that show the impact of the Trans-Atlantic partnership on Britain’s National Health Service. http://www.globalresearch.ca/cameron-desperate-to-stop-scandal-as-secret-plans-to-sell-the-national-health-service-are-discovered/5504306

For any citizen of any Western country who is so stupid or brainwashed as not to have caught on, the entire thrust of “their” government’s policy is to turn every aspect of their lives over to grasping private interests.

In the UK the postal service was sold at a nominal price to politically connected private interests. In the US the Republicans, and perhaps the Democrats, intend to privatize Medicare and Social Security, just as they have privatized many aspects of the military and the prison system. Public functions are targets for private profit-making.

One of the reasons for the escalation in the cost of the US military budget is its privatization. The privatization of the US prison system has resulted in huge numbers of innocent people being sent to prison, where they are forced to work for Apple Computer, IT services, clothing companies that manufacture for the US military, and a large number of other private businesses. The prison laborers are paid as low as 69 cents per hour, below the Chinese wage.

This is America today. Corrupt police. Corrupt prosecutors. Corrupt judges. But maximum profits for US Capitalism from prison labor. Free market economists glorified private prisons, alleging that they would be more efficient. And indeed they are efficient in providing the profits of slave labor for capitalists.

Here is a news report on UK Prime Minister Cameron denying information about the effect of the Trans-Atlantic partnership on Britains’ National Health.
http://www.theguardian.com/business/2016/jan/26/anger-government-blocks-ttip-legal-documents-nhs-health-service

The UK Guardian, which often has to prostitute itself in order to maintain a bit of independence, describes the anger that the British people feel toward the government’s secrecy about an issue so fundamental to the well being of the British people. Yet, the British continue to vote for political parties that have betrayed the British people.

All over Europe, the corrupt Washington-contolled governments have distracted people from their sellout by “their” governments by focusing their attention on immigrants, whose presence is a consequence of the European governments representing Washington’s interests and not the interest of their own peoples.

Somthing dire has happened to the intelligence and awareness of Western peoples who seem no longer capable of comprehending the machinations of “their” governments.

Accountable government in the West is history. Nothing but failure and collapse awaits Western civilization.

(Reprinted from PaulCraigRoberts.org by permission of author or representative)
 
• Category: Economics • Tags: IMF, Neoliberalism

66 Comments to "The West Is Reduced to Looting Itself"

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  1. I regularly read PCR, and have learned a lot from him, but his analysis here can be questioned.

    Let’s say Third World Country takes out a $1 billion development loan for an electrification grid. If most of the loan proceeds are, in fact, used to build such a grid, it’s not as if the Third World Country hasn’t benefited from the development loan. Moreover, during the time after construction but before loan repayment, it’s the lender of the $1 billion who is “out” the proceeds (although it does have a claim – on paper – for repayment, at interest). If Third World Country subsequently is unable to pay back the loan, it still has the electrification grid. It hasn’t been “looted” of anything at that point. Moreover, if the loan is subsequently written down (even if only partially), it’s the lender that has lost on the deal. It’s worth keeping in mind that the IMF is not structured as a for-profit enterprise, something critics like PCR and Perkins frequently fail to remember.

    At root, the typical Third World Country development loan scenario PCR describes – wherein such countries find themselves “burdened” with debt originally issued to fund development projects – stems from the fact that most of these third world countries simply don’t have enough home grown talent among their populations to design and build a public utility system comparable to the standards of a first-world country. Therefore, they must turn to loans from outside sources, such as the IMF, and typically must import the design/technical know-how from foreign companies and persons. Naturally, these foreign companies are going to want a stake in the development project in order to build it, and are going to want to be repaid monies lent out. There’s nothing wrong with that, as such. Of course, details matter here, depending on the situation.

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  2. A simple question for you – why did IMF loan the money for the “electricity grid” if there were no conditions to complete the project? Was this because the grid was never to be built, then to pay the Western companies to build it, and then for various reasons, blamed on the debtor that it has not been completed, whilst the Western company got the money and the “leadership” borrowing the money got its cut?

    This is not the only IMF scenario, but does it not suggest an answer your question how the in-debtedness works?

    In case of Greece, Goldman-Sachs taught the Greek political elite how to cheat the EU and the conditions of the Western banks. A good example is the German submarines, which Greece never needed, but the Germans bribed the Greek Defense Minister etc to take loans and buy the submarines at inflated prices. The German companies got the business, the Greek Defense Minister retired comfortably, the Greek people are left to repay the loan to the German banks.

    Yet, the biggest in-debtedness trick is that when a target country takes the initial loans, the interest rate is 3-4%, but later it is discovered that the country’s creditworthiness (credit rating) is much lower and the interest rate jumps to 10-20%. The loan can never be repaid. This trick has been used on most new, Eastern-European members of EU.

    The international banking cartel operates as a pack and its main tool is the agent-principal problem, that is the problem of “democratic” corruptibility. The political elites in the smaller countries can be easily bribed to work for foreign interests. This is one of the reasons why the West insists on bringing democracy to other countries – to loot.

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  3. Please focus on the cash flows. In your first paragraph, the IMF loan for the electricity grid is cash flow #1, presumably denominated as a loan to Country to fund construction of the grid. But then, you say, the grid was in fact not built [so what happened to the loan proceeds of cash flow #1?] such that there is need for a cash flow #2, which you say is paid [by whom? the IMF again?] to Western companies “to build it.” Can’t you see that this scenario describes a situation in which the IMF has badly lost money? The loan it advanced to Country (cash flow #1), instead of helping to build an economic asset (the grid) that could (ideally) throw off enough cash as part of its ongoing operations to repay the loan to IMF, has instead disappeared into the ether somewhere, thereby requiring a second cash flow (#2) to “Western companies” to build the grid.

    Far from a scenario in which the IMF can reap enormous profits by “looting” Country (presumably in cahoots somehow with its bankster cronies, despite the fact that the IMF is not structured as a private corporation with shareholders), what you describe is a scenario in which the IMF would be repeatedly on the short end of the stick on the loans it makes – though, admittedly, it might retain the right – on paper – to try and recover the debt, perhaps at higher interest rates due to the default – but unless and until it actually collects on that debt, it has still suffered an economic loss!

    Or, focus on the example in your second to last paragraph – where the interest rate has jumped to 10%-20% and the loan cannot be repaid. Can’t you see that in that situation the lender (IMF again?) has (most likely) lost money on the deal? For example, let’s say IMF originally loaned $1 billion to Country at 4% interest, to fund some public works project. Country begins making its 4% interest payments. Some time later (but well before the 4% loan has been repaid to IMF), IMF discovers Country lied about its fiscal health when it took out the 4% loan. This triggers an interest rate jump to 10%-20%, and the re-payment schedule is sharply increased as a result – increased so high, in fact, that Country realistically has no chance to ever pay off the loan. Even so, as an economic matter, the IMF has still lost out on the deal at that point in time. Sure, it has a claim against Country at a punitively high interest rate – but that’s on paper only. A focus on the cash flows would likely show that IMF is the party that has suffered the economic loss. It loaned $1 billion out but likely has been paid back only a fraction of it at that point.

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  4. The Grid that costs $1B consists of perhaps $100m of capital stock and the rest is so-called added value technical assistance ….

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  5. Yes, the loan proceeds for pretty much any project development will be split between so-called “hard” and “soft” costs. What’s your point?

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  6. The fallacy of “privatization” of government services is lost on most people. Take trash collection. The local government can provide trash collection or private companies can do the work. Both the government and private companies collect the same trash. They use the same equipment. They use the same crew size. How can private trash collection “cost” less. It can’t. How is private trash collection “sold” as costing less? The private services don’t pay workers as much money, they don’t pay pensions, they don’t follow workplace safety rules, they don’t pay insurance and shift the cost of injury to customers and third parties. Worse still, the owners of “private” trash collection take a percentage of the money as “profit.”

    Privatization merely means changing economic distribution. You impoverish previously middle class city workers. You provide poorer service. You shift injury risk to strangers and workers.

    That is the 1% economic model.

    • Agree: Seamus Padraig
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  7. ALL 3d world loans and contracts are loaded with corruption and bribery, of one sort or another…I have been involved personally in a couple of these situations in “better” 3d world countries, but it was still true. And any loan that requires repayment in a hard currency is ultimately going to be a disaster for a 3d world country…..much history shows this fact.

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  8. I fail to understand your logic, but I do understand that your aim is to prove that IMF can lose money? This is as if IMF is a private investment venture bearing any of the risks of investment (you repeated this spoof twice: IMF can lose money). Totally ridiculous and would disqualify you from further discussion. If you fail to understand, or refuse to understand, the basic tenant of in-debtedness: who bears all the risk of any infrastructure project financed by IMF, then you are not worth having a discussion with.

    Nevertheless, just once I will try to address your “scenario” talk. Firstly, most large infrastructure projects, as your “electricity grid” example, have a very long and costly preparatory and planning phase. IMF disburses its loans in tranches. In some instances, the tranche would go to the debtor country, but more commonly it would be divided between the account of the Western supplier/builder and the accounts of the “deserving citizens” of the debtor country. Or the Western supplier/builder would pay the “consulting fees” to the “deserving citizens” of the debtor country. On a large project, this can happen with almost all loan tranches except the last. Sometimes, some “grid” even gets built but it turns that the country does not have the power generation infrastructure – power plants, thus there is nothing to distribute through the newly built grid. In summary, the IMF’s central planning of development has turned out to have very similar outcomes as the Communist Party central planning. Both were almost always bad for the same reason – those doing the planning (IMF or CP) bore no risk, whilst a third party with no say (people of the country) did. The other name for this classical economic distortion is: agent risk or spending other people’s money.

    Please note that the US “rebuilding” projects in Afghanistan ended up the similar way, although no loans to the occupied country were involved. In case of Afghanistan, the mark was the US tax-payer and the beneficiary were the connected US corporations (Bechtel, Halliburton and the like).

    Your explanation on the credit-worthiness of the targeted country (how the interest rates on loans already taken jumps from a couple of percent to 20%) mentions again your totally false mantra “IMF can lose money”. When the IMF puts a squeeze on its mark through a sudden drop in credit-worthiness which results in a jump in interest rate, it will get a good amount of interest out of its mark before it writes off a part of the original loan. This apparent benevolence is the benevolence of a skillful parasite, which does not want the host to collapse and die (declare bankruptcy) and thus lose the whole loan and many private bank loans. Note that IMF never writes off the whole loan, only some part, and most importantly this write-off does not change the credit rating and the excessive interest rate which the mark still has to pay on the remainder. Such scenario is relevant to the story of Greece, although IMF was only one of its creditors.

    All I wrote above is very well known, that only those whose salary depends on not understanding it would fail to understand (to mention Upton Sinclair). Instead, it is more interesting to see how the Chinese will behave with their new competing infrastructure rebuilding credit organizations. China Development Bank International and Asian Infrastructure Investment Bank are the new competitors. Will they take the same no-risk approach of the IMF and private Western banks? Even just the existence of competition may force IMF to start behaving better. As I wrote, the key possible improvement in the infrastructure financing would be that the lender assumes a part of the investment risk.

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  9. The soft costs are really worth maybe 10 cents per dollar billed, even when fully loaded. The rape is in the support.

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  10. Anonymous
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    “To keep Western peoples confused about the real threat that they face, the people are told that there are terrorists behind every tree, every passport, under every bed, and that all will be killed unless the government’s overarching power is unquestioned. So far this has worked perfectly, with one false flag after another reinforcing the faked terror attacks that serve to prevent any awareness that this a hoax for accumulating all income and wealth in a few hands.”

    As long as U.S. borders remain fairly open, it’s hard to see how “the war on terror” has much credibility.

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  11. Does not the IMF pluck the amount of the loan out of the Ether as other central banks do?
    If so, there is no loss to be made if the borrower fails to repay.

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  12. IMF is not like a central bank. It relies on financial contributions from its many member governments, based on a quota system reflecting the size of the member country in question. Thus, the ultimate source of funds loaned out by the IMF are contributions from its member governments.

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  13. You certainly have failed to grasp the logic of my comments. This is because you still haven’t shown that you’ve undertaken a careful study of the cash flows involved in a typical scenario involving an IMF loan for an infrastructure/public utility buildout.

    Re your last paragraph, I fervently hope that the China Development Bank International and the Asian Infrastructure Investment Bank become viable alternatives to the IMF. If nothing else, these two new IMF alternatives will provide two new options for all the conspiracy mongers who choose to blame the IMF for everything!

    The IMF might have taken on a less “austerian” profile if Stalin’s Soviet Union hadn’t made the fateful choice of refusing to join the IMF in the first place. FDR (and his communist agent Dexter White) made a concerted effort to recruit Stalin into the IMF, but Stalin refused, and would later pressure other communist countries (like Poland and Cuba) to leave.

    Those who complain about the “embedded liberalism” of IMF policies tend to forget that the IMF was set up by a bunch of capitalist countries. OF COURSE its policies will be biased towards capitalism! Instead of complaining about this, we might ask why the Soviets and the other comecon countries didn’t set up an alternative to the IMF with policies that were favorable to socialism and central planning. But I guess it would have been difficult for those countries to contribute the necessary billions to a common fund when those countries themselves were struggling to stave off mass famines and economic breakdown caused by socialism and central planning! Hopefully the China Development Bank International and the Asian Infrastructure Investment Bank will be able to establish themselves as viable alternatives to the IMF, so the conspiracists will have two new IMF-like entities to blame for “looting” everything.

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  14. “The combination of propaganda, financial power, stupidity and bribes means that there is no hope for European peoples.”

    Sadly too many Western people are stupid and allow themselves to be screwed.

    • Agree: Orville H. Larson
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  15. VOODOO ECONOMICS: The West Is Reduced to Looting Itself – By Paul Craig Roberts | RIELPOLITIK
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  16. Your arguments are specious, at best. LOOK at the IMF track record: this bunch is NOT charity, it is to turn a profit. No Christians or Social Creditors need apply.

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  17. Yes to what you say.

    But it depends on the sector, and the area of the country. Around here, gov’t jobs are sinecures for the usual protected groups. They largely don’t show up for work.

    Though the hired corporation charges a premium, the works gets done; and occasionally the contract is awarded to a competing corporation if the first gets too outrageous.

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  18. Of course it is! All money is issued as debt to private banks, period. That is the root of the scam.

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  19. The lack of a truly free media is the “something” that has caused the dire inability of western peoples to be aware and to utilize their intelligence. Reportedly there are only six media organizations in the USA, five of which are owned by Zionist Jews and one owned by a Zionist non Jew. And William S. Colby, Director of the CIA from 1973 to 1976, said that the agency owned every mass media asset worth anything. Things would be very different if the west had 200 free and independent news agencies.

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  20. Read Confessions of an Economic Hit-Man by one of the authors Roberts mentions in the first sentence, John Perkins. The loans are the carrots. The jackals are the stick. To get the run-down, it helps to have the viewpoint of a guy that SET THESE LOANS UP. John will set you straight. You make good points, but have forgotten the jackals. Also, never think these countries came up with these “development” ideas on their own. It’s all. a. scam. And as Mr. Roberts points out in this article, it’s only one small part of the scam. The rest is unfolding now.

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  21. Why the hell should I care, much less BELIEVE this article? I am so sick of the “Westerner” bashing I wouldn’t care if ever third-world country starved to death. What NO ONE WILL ADMIT — the third world is itself to blame for its problems. Overbreeding like rats and lemmings — their populations far, far beyond what a specific country can reasonably support.

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  22. Stiri scurte: 01.02.2016 | George Valah Blog
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  23. Europa a ajuns sa se jefuiasca pe sine insusi, mai exact marile banci si conducerea UE, indeamna tarile sa ia imprumuturi pentru „mari programe de sistematizare” | Lupul Dacic
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  24. “Myself” is a reflexive pronoun, for crying out loud, Paul. A pronoun in the subject or nominative position as you use it there in your first sentence requires the “I.” You’ve been watching too many football interviews.

    I love your stuff otherwise, but as an old English teacher I’m mortified at this absurd gaffe as the first word in your latest salvo.

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  25. John Perkins? As in the guy who writes about time travel and shamanistic experiences throughout Latin and Central America?

    http://iipdigital.usembassy.gov/st/english/article/2006/02/20060202155604atlahtnevel6.165713e-02.html#axzz3ywDWtlxf

    As I said in my first comment, I am a big fan of Paul Craig Roberts and read him religiously. But his one weakness is a vulnerability to conspiracies and the crackpots who peddle them.

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  26. Conspiracy crackpots that say 911 was not done by box cutter Arabs who couldn’t fly? Or crackpots that say AIPAC runs US foreign policy ?

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  27. Well, if I failed to grasp your focus on cash flows, you have certainly failed to address my challenge to you, to answer a simple – who bears the full risk of investment with IMF loans? And as an extension, at least attempt to answer the classical economic issue of agent-principal problem, where the agent is an “elected” leader of the targeted country and the principal are the children of the voters who will have to bear austerity to pay off the trick loan.

    Or the best question:
    Could citizens of an in-debted country reject to pay off an IMF loan if it can be proven that the election process was corrupted by an IMF contributing country, that is the originator of the loan delivered through IMF?

    BTW, risk is the key financial issue, whilst cash flow tends to be (an important) accounting issue. I am not sure why you insist on a cash flow, unless you are trying to create a diversion from the real issue: who takes a loan and who pays it off.

    To others: IMF loans are not private bank loans, they are country-to-country loans. Sometimes they are for new infrastructure projects, but often they replace the existing large private bank loans, protect the original private loan issuers (Western banks) from any further risk, and make the target country politically dependent on a Western country (feudal slavery that Greece now finds itself in). Amazingly useful function of IMF, is it not?

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  28. You are obviously some sort of Socialist.
    It is not the function of a “country” to support people, it is the function of the people living within that “country”- a geographical myth delineated by invisible lines on the ground that only exist on a piece of paper.

    The issue is that the people cannot support themselves.

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  29. Пол Крејг Робертс: Запад се свео на то да пљачка сам себе | Pogledi
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  30. The IMF is, at best, a conduit; a means to direct money from third world taxpayers to western companies.
    Its dressing of finery and foppery merely serves to confuse the credulous, such as FedreralistFuckover.

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  31. Thank you, Mr Roberts, for mentioning society’s role in all of this.
    It never ceases to amaze me the grade of victimhood people can assume with a straight face. Greeks are not illiterates do not live in mud huts – they have just the same opportunity to make an informed vote, or making sure their society functions – as any other nation.
    To me – it’s far more immoral and wrong, to have people like myself (who pay taxes and wake up for work every weekday) support a state of moochers who do everything they can to evade work, and moreso paying taxes. Forgive me, but I find the idea that nations like Greece or Ireland are “victims” completely ridiculous. They are sovereign states and they elect their leaders.
    But in most of these countries, owning a luxurious car and big home (you really never could afford) and paying low taxes, was more tempting than contributing to the nation’s good – and still seems to be. It’s similar to how people love to buy cheap goods, and refuse to pay a cent more than they have to – yet are outraged over how jobs are moving abroad.
    Greece is filled with sneaky public officials, that’s true – however consider the fact that these sneaky men were considered worthy a vote by the people electing them. I think that speaks volumes of what qualities are held in high regard by Greeks.

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  32. “Therefore, they must turn to loans from outside sources, such as the IMF, and typically must import the design/technical know-how from foreign companies and persons. Naturally, these foreign companies are going to want a stake in the development project in order to build it, and are going to want to be repaid monies lent out. There’s nothing wrong with that, as such. Of course, details matter here, depending on the situation.”

    Must they? Or can impoverished countries turn to China?

    According to Wikipedia, African nations have already turned to China for development loans, which have generated economic growth for the borrowers.

    “In the diplomatic and economic rush into Africa, Taiwan, the United States, France, and the UK are China’s main competitors. France and the UK were once the primary commercial partners in Africa, but China recently became its largest trading partner, with trade of US$90 billion in 2009. The United States ranked 2nd, with $86 billion.” https://en.wikipedia.org/wiki/Africa%E2%80%93China_economic_relations

    Billions of dollars of Chinese loans to African nations without IMF strings seem to support Robert’s criticism of Western development loans and debunk ‘s blinkered spin.

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  33. How can you call it feudal slavery? Do you even know what feudalism is?
    If the Greek people don’t like the situation they’re in – they can exit the EU, they can close off their borders and nationalize every inch of sovereign soil. Tell me, why don’t they? Why do they keep insisting to stay in the union, despite being “feudal slaves” in it?
    Here’s why: because it’s a lot more convenient to outsource social costs to countries with functioning tax collection, than having to maintain such a system oneself. It’s like an obnoxious teen bitching and moaning about having to do the dishes, completely ignoring he’s eating his meals and living in a house, that are paid for by someone else.
    The same goes for rigged elections. The GREEKS are responsible for GREEK elections conforming to GREEK laws and whatever the GREEKS consider fair play. You saying it’s the equivalent of a medieval lord riding into an isolated village extorting people with swords, amounts to a pretty stupid hyperbole. Besides, I’m sure most nations would gladly become vassals if it meant they didn’t have to pay for public projects. Freedom is overrated.
    If you honestly believe there aren’t forces in play to steer elections or public spending in ANY nation, you’re deluded. The difference is the level of tolerance for it the population has, and to what extent they’re willing to do something about it. I can give you countless of examples of how Greeks accepted quite a generous level of corruption, before it finally backfired on them.

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  34. Where on earth does self government work? The West self governs and becomes a civilization of looters. The third world does self government and gets looted.

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  35. Can you give any actual examples of your “biggest indebtedness trick”? It presupposes the making of variable rate loans to these poor countries or that short term loans have been taken out for long term projects.

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  36. I am not knowledgeable on economy . So help me understand why IMF hasn’t defaulted or never got bankrupted by the periodic losses of the investments ,loans ,grants it made in third word countries over last 70 yrs.
    How does it get replenished? Who does it make it whole gain and again? Where does the money com from to make it whole again and again ?

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  37. People seem to ignore that without the REA and TVA vast portions of this country would be without electricity. One might propose that these endeavors represent a wealth transfer from more industrialized areas to less so, and in part they are, but, like much of the “prosperity” in the US, they are in large part a wealth transfer from future generations.

    Most residential power supply is a money loser without subsidy, only industry pays its way in the here and now. Industry led the way to the development of the First World. Borrowing against the future has levered the wealth of industry to provide our present “prosperity”.

    This realization applied in the larger sense to our problems and the problems of the world can lead to some disturbing conclusions.

    The “looting” Mr. Roberts refers to is happening because it is becoming ever more difficult to mortgage the future to get the funds to buy off all parties today. We are at the dawning of an era when struggles will be about solutions in the here and now – real struggles that will be fought to a real decision – and everyone is not going to be made happy because there is not enough real wealth to spread around. Borrowing from the future to buy off conflict in the present has become so much of the norm in this country that most do not even realize it is going on.

    Interesting times.

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  38. PCR

    I have extensive knowledge of the third world .
    What I gather from this experience and knowledge are myriad and manifold interconnected psychological ,financial and intellectual dependence of the third world countries on the western countries .None of them could be a great artist,author,activist,socially conscious citizen,scientist or innovator unless he or she is certified by the west . That certification process has robbed the nation of any self confidence . It has created a class whose claim to relevance depends on being groomed by schools who offer these certification , depends on being accepted by the proper NGO ,depends on beings praised by the western leaders depends on being certified by the western think tank media or some celebrities . The natural ecology for intellectual ,emotional,and social growth have been destroyed.
    Meet an Indian or Pakistani or Nigerian( educated middle class) , you will find one copycat reproduction of another ,and they are all same . They know least about their own cultures and harbor any respect for their own citizen . Even in medical school political science or economy classes or social science classes or discussion, one would see blind dependence on the western views and tendency to brag about how much they know the western views by heart .

    The same process have started here in the west at least in the fields of economy and in the politics. People don’t use brain because using them gets them nowhere and not using them gets to somewhere like being part of ” Evangelical” tribe if they supported Carlson or Cruz , or ” feminism” if they supported H Clinton, or ” mainstream” if they supported the candidates with most shrill voice against Iran . This is why Bush jr doesn’t get invited . He is not to be seen together in this election campaign . But the voters with that mindset have no problem to support his policies delivered in new bottles and have no ability to wonder why the same advisors ( of Bush) are advising the candidates like Rubio,Clinton, Trump,Cruz,Santorum, or offered to Mitt Romney.
    More people believe in psychic reading and in lottery because they don’t have faith anymore that success could come from legitimate process . They spend more on alternate med because regular medicine is layered with one onion peal of confusion,corruption,misinformation,after another .
    Colleges the riot students by glorifying the gladiator clubs of successful sportsmen or women.
    Dumbness is celebrated like diversity is .

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  39. Didn’t the Greek political party renege on bail out after winning the election? It didn’t keep the promises made to the electorates.

    Yes,Greeks are responsible . So were t he victims of the color revolution countries from Lebanon to Kryizistan , Libyan and Iranian and Syrian nd Argentinian? We know what happened to them .
    Nobody in right mind will support or excuse the non -involvement of the citizen in decision making process or support the acceptance of the temporary advantages or gains ,no one will condone the participatory aspects of the citizen in the corruption that brings Goldman Sachs or gives rise to the power of people like Sashkalavi or of Maidan Sniper powered Ukraininan leader . But the power of Goldman Sach is more robust,enduring,multifaceted and more destructive.

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  40. I’m really surprised Dr. Roberts. Don’t tell me you didn’t know that United States was established on the looted land from five million Natives by the European White criminals?

    When Columbus and his crew landed on the island of San Salvador on October 12, 1492, the West hailed him the “Founder of Americas”, even though tens of millions of Muslim, Christians and Pagans already lived on that mass of land unknown to the Europeans.

    “In reality, the history of the Americas and its people stretches back over twenty-thousand years. It tells the story of a rich continent with thriving civilizations and talented, organized human beings. It reveals, to the objective readers, tales of beautiful cities, abundant agriculture, linguistic and philosophical achievements, high technology, pyramid building, respect for and development of women, highly developed political structure, and extensive migrations,” says Abdullah Hakim Quick PhD in book, ‘Deeper Roots’.

    The distorted image of Americas by the earlier Europen settlers was no different than the 20th century European Jewish settlers in Palestine; ‘A land without people for a people without land‘.

    https://rehmat1.com/2014/01/13/who-discovered-americas-before-columbus/

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  41. So, before the IMF and other elements of the post-war world order came around, third-world countries governed themselvs effectively? Produced honest, productive citizens whose enterprising nature caused vibrant market economies to flourish while providing for their infrastructure? Didn’t indebt themselves? And their dictators didn’t loot their countries the old-fashioned way?

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  42. Things would be very different if the west had 200 free and independent news agencies.

    Unfortunately we don’t. But Unz.com is a good start.

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  43. Please read my comment #12 above. As I explained, the IMF relies on financial contributions from its many member governments (well over 100 of them at this point) based on a quota system reflecting the size of the member country in question. Thus, the ultimate source of funds loaned out by the IMF are contributions from its member governments.

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  44. Privatization is sometimes a good idea in some situations, since the private sector tends to be more efficient. However, the private sector is no miracle worker, and there are a lot of situations where it’s been meaner but no leaner than the public sector.

    For example, the privatisation of telecom, electricity and rail infrastructure in British Commonwealth countries hasn’t really resulted in big improvements in services for customers. A better model would have been to keep the core of these services in public hands and let private contractors take over the service side. For example, keeping rail infrastructure in government hands and letting the private sector provide the rolling stock and take care of freight and passenger services.

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  45. You misunderstood what I wrote. My point in the paragraph you quoted was that foreign companies whose personnel have the necessary technical expertise to carry out the infrastructure buildout are going to want to be paid something. This holds true even if the foreign company is Chinese. So, even if the impoverished country in question turns to China, those Chinese companies are going to want some sort of financial/economic stake in the development project in order to agree to do the buildout.

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  46. From a HBD/nationalist perspective I’ve always thought the IMF and World Bank has been pushing a very unrealistic strategy for national development.

    For example, lending a third world country a large amount of money to a produce a large-scale infrastucture to western standards, seem like trying to put the cart before the horse. Before a third world country starts building freeways for example, it needs to develop proven skills in building and maintaining basic roads and bridges, servicing vehicles, and providing adequate levels of driver training and licencing. It also needs a pend up demand from the population for the infrastructure being provided – if few people have cars for example, then why provide freeways?

    Any development loans from the West to third world countries need to take account of such things as a nation’s existing level of economic development, the IQ and education level of its population and its reputation for corruption and political stability. Hence, in the case of really poor, corrupt and unstable countries. The WB and IMF should only be providing small loans for small scale projects that don’t require a high level of planning and technology.

    The IMF and WO seem to be pushing a lot of blank slate utopian thinking which is getting a lot of countries into unnecessary debt. However, when I here western elites making hyperbolic statements about banishing world poverty it doesn’t come as much surprise.

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  47. {Don’t tell me you didn’t know that United States was established on the looted land from five million Natives by the European White criminals?}

    We are really surprised at you, you anti-Christian, IslamoFascist bigot.
    Don’t tell me you didn’t know Islamistan was established on the looted lands of 10s of millions of indigenous Christians by mass-murdering criminal Muslim IslamoFascist invaders.

    btw: why are you still living in Canada, established by quote, ” European White criminals”?

    You filthy, anti-Christian, IslamoFascist parasitic bigot: why don’t you go back and live in the Muslim paradise of Mecca ?

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  48. It’s not enough for PCR to argue that the terrorist threat has been blown out of all proportion. No – he’s got to claim that pretty much every terrorist attack ever has been a false flag operation.

    Larry Auster saw this guy for what he is some years ago.

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  49. Thanks. But how do these countries keep on loaning out with no return?
    Let me think –
    Is it as British Medical Journal reported in 1994 that for very pound given as aid to Africa came back as 2 pound to UK.?
    Is it related to the equation what Micheal Hudson wrote in one of his book after analyzing the US data that the US had profited from the aid it had made to the 3 rd world countries ?

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  50. No wonder the Christians forced your ancestors to wear a tag around their necks with the inscription: “I’m the bastard who killed Christ”. They even did better than that – they kicked your forefathers 108 times from Europe.

    Late Israel Shahak, Israeli historian had claimed that Jewish Bible (Old Testament) is more antisemite texts than Christian Bible (New Testament) and Holy Qur’an put together.

    https://rehmat1.com/2015/11/10/netanyahu-obama-and-bible-hate-jews/

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  51. Please explain how the Guardian “prostitutes itself.”

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  52. Oh no, another Western ideal-casist. I just explained to all of you dreamers and BSers that it is all about corruption of the “elected” governments. The fact that Tsipras decided to serve the German masters instead of his own people after being given a mandate to leave the EU is only another proof of my explanation how the Western-organised corruption works. And it is not only Tsipras himself, a good part of the corrupt Greek elite still has a strong interests to remain in the EU, this is the people who pay low/no taxes but benefit from the IMF loans that the Greek Gov takes, the same old private gain – public loss elite’s strategy which rules in the West. Greece is just another bankrupt franchise of the same Western power and control system.

    The funniest things is that all of your kind speaks of free elections in foreign countries, but no Western country has free elections. The one party – two names crap that I have to vote between I would not invite to clean my toilet let alone to lead my country, but hey this is called “democracy” and “free elections”. When I go voting I know that both crap party names will serve the interest of the 0.01% Anglo-Zionist elite which is ruining everything it touches. For how long?

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  53. With the entire Third World now exploited to the limits possible, the West has turned to looting its own. Ireland has been looted, and the looting of Greece and Portugal is so severe that it has forced large numbers of young women into prostitution. But this doesn’t bother the Western conscience.

    I agree what’s happening is international loan sharking – they bribe politicians to borrow more than the country can repay and then asset strip the country when the debt gets too high.

    It’s not the “West” though is it; it’s the banking mafia.

    There’s effectively been a silent coup in the West paid for with banking mafia money. They bought the media and they bought the politician and they are the ones dictating policy.

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  54. That’s the other part of the problem.

    One part is active criminal loan sharking from the banks. The other part is the blank slate ideology combined with idealistic westerners. They assume western levels of development as a default and aim too high. Instead of nuclear power stations they should have been looking more at the windmills and watermills level.

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  55. Just because companies from the US or UK “profited” doesn’t mean an injustice has occurred. Suppose a US or UK oil company contracts with Country to help exploit its fossil fuel reserves/oil deposits. Country cannot supply all the personnel required for the construction and buildout, as it requires hundreds of technicians and engineers with highly specialized levels of experience and education, which the Country doesn’t have. So, Country agrees to pay the oil company 50% of the revenues generated from the completed construction and operations, while Country keeps the remaining 50%.

    It’s easy to show that this arrangement, done right, and setting aside all environmental issues, can be a mutually beneficial “positive sum” arrangement, and not an inherently exploitative “zero sum” arrangement, given that the value of the land post-construction is likely to be MUCH higher than pre-construction, such that Country’s 50% share of the post-construction land (with operational oil rigs) is likely to be worth much more than Country’s 100% share of the pre-construction land, prior to development. Trouble is, many countries over time get greedy, and begin to demand more than the agreed-upon 50% of the revenues. Some even resort to kicking out the oil companies altogether, breaking their deal, and “nationalising” everything. This is what happened in Iran in 1952-1953, to take just one of many examples. (No wonder Churchill and Eisenhower were upset!)

    Of course, what I’ve just described above is not the typical IMF fact pattern. Again, the IMF is not a for-profit corporation, with shareholders. Rather, its members are governmental entities. That it often loans its funds out at a loss is consistent with the fact that it is a quasi-charitable organization, interested more in maintaining stability and promoting economic development – admittedly from a capitalist-slanted perspective. If countries don’t like that, they are free to band together and form an IMF-alternative!

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  56. Not only you are an IslamoFascist parasite living off of Christians in Canada, but you are an idiot.

    I am not Jewish you parasitic IslamoFascist scum.
    And why are you still living in Christian Canada?
    Why don’t you go back to your Islamist paradise in Mecca.
    Who knows, you might get lucky and say the wrong thing and your empty skull will be separated from the rest of your carcass by the Wahhabist head choppers, putting you out of your anti-Christian hate-filled, miserable existence.

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  57. To take the measure of this article, just read this: “In the US tens of millions of US citizens have quietly accepted the absence of any interest income on their savings for seven years.”

    Big Business, banks, etc. are in the same boat. This is a general problem of Surplus Capital. Financial institutions and corporations are PAYING banks to store their surplus capital.

    Roberts, long gone around the bend, has plunged into the ravine of no return.

    Retire him, and the other guys too…marxists who have lost sight of the real issue: low wages due to immigration and globalization leading to under-consumption and little for a capitalist to invest in.

    Joe Webb

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  58. its considered good form here at unz to ignore remhat. if you notice , no one responds to him no matter how deranged his attention whoring gets.

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  59. thanks marwan.

    just having fun. also practicing some advanced English (…got to keep in top form, English being 2nd for me).

    I don’t respond to most of his deranged ramblings, but on a slow day, I sling some of the mud back at his face: to give him a taste.

    Cheers.

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  60. Well for me, PCR has done a short summation of how the luting has gone from an extraction of third world countries, IMF loans that really are intended as inducements to initiate agreements that compromise their economies, and delivered dubious real benefits, probably often the money might never leave to another country, but lubricates a lot of palms right at home from engineering all the way to contractors and materials sales.

    When all that has come full circle and there is no more ”discretionary money available, or the country is basically broken, they move into resource extraction schemes, hazardous waste disposal deals. and altering agricultural focus away from self support and subsistence, to commodity production… Rubber, Palm oil, Soya etc. putting further dependence on imports of staples.

    When the third world is widdled down to a certain point that it starts to fail to be as productive, from sheer exhaustion, the porcess moves up the food web to the BRICKS
    taking them down with sales of unneeded submarines etc. and then on to… the thoroughly enjoyable (for a certain mentally retarded bunch of wannabe Neocons who hate to see any thing in the service of humanity, that isn’t paying them dividends, on the way to being stolen and obliterated, so called Austerity measures, and looting pensions etc.

    Then, to this you could ad that, foreign military ventures, that could loot outright, are more pernicious because the war materials industry loots the home country, this is a blank check that the folks are don’t seem too aware of, with the accounting smoke and mirrors and captive MSM, keeps it surreal and the tax payers, and principals who are the citizens will be extracted with out knowing it until too late.

    Bottom line: Looting comes home… just like some other nasty war technology.

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  61. “This is what happened in Iran in 1952-1953, to take just one of many examples. (No wonder Churchill and Eisenhower were upset!)”
    This shows your knowledge . This is pathetic .

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  62. For a minute there I thought I was reading an Op-Ed by Michael Moore then I realized it was PCR and it all made sense. Lots of details are glossed over here. First off, trillions in loans to the 3rd World have been forgiven. The West has lost it’s ass lending money to developing nations. It’s not as cut-and-dried as PCR makes it sound.

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  63. “First off, trillions in loans to the 3rd World have been forgiven.”

    I have a question. Were the trillions in loans to 3rd World countries forgiven by the bankers or were they forgiven by the taxpayers who paid the bankers?

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  64. Perkins tells the story much like this:
    You go to your bank and want plumbing installed in the house you are building. The bank tells you a plumber they will loan to complete the job. The plumber gives you a wildly high estimate, but since you need the loan, he gets the job.
    Naturally, the delays cause cost overruns that look rather shady but you need the plumbing so they get added in.
    What do you mean that contract doesn’t include piping to the city water service? Add that in too.
    Now your contract repayment is double the highly inflated original price and you seem to have difficulties paying it back.
    No problem, we’ll just take some of your garden produce and rent out your garage to make up the difference.
    By the way, your daughter looks pretty hot. Go see this guy who owns a club, he’ll give her a job as an exotic dancer.
    All these ‘nice folks’ who will help you out happen to be very good friends of some of the members of the bank.
    They have less nice friends who will show up if you fall too far behind in making your payments.

    Federalist Forever makes the common mistake that ‘Banking’ is the business that the IMF and World Banks engage in.
    Henry Hill of ‘Goodfellas’ fame calls it “Busting the Joint Out”.

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  65. Great. I win all the money in the world.
    But what’s the use of a luxury mega-yacht with helipad, internal drydock etc. if I can’t make landfall anywhere on the planet without fear of being turned into “long pig”, or being torpedoed by pirates. If the only way I can rule the world is if my praetorians have to exterminate every living thing within 20 clicks of my exalted presence?
    Unlesss .. unless .. you’re Dunning-Kruger enough to believe that everybody else is actually stupider than you are, because your own personal luck is (at this moment) in the ascendant, and those losers could never mount an effective fightback?

    Even Darth Vader had loyal minions who he didn’t have to pay half his net worth to, to avoid having his wheezy neck cut, because Charisma .. oh and the Force.

    I’m quite looking forward to the Age of the Petty Warlords. It’s sort of where we came in; comfy, like old shoes.

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  66. Jews gonna Jew

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