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UNDERNEWS

Undernews is the online report of the Progressive Review, edited by Sam Smith, who covered Washington during all or part of ten of America's presidencies and who has edited alternative journals since 1964. The Review, which has been on the web since 1995, is now published from Freeport, Maine. We get over 5 million article visits a year. See prorev.com for full contents of our site

January 31, 2010

HAS AMERICA BECOME A THIRD WORLD COUNTRY?

Washington's Blog - Fiscal liberals say [Obama] cuts spending at the exact time that we most need to increase it. See this and this.

Fiscal conservatives say this doesn't go nearly far enough. See this, this and this.

But I think there's a bigger issue that deserves some inquiry: is America being turned into a third world country?

As I wrote last June: "When the International Monetary Fund or World Bank offer to lend money to a struggling third-world country (or 'emerging market'), they demand 'austerity measures'". . .

Private banks, or institutions like the International Monetary Fund, may require that a country pursues an 'austerity policy' if it wants to re-finance loans that are about to come due. The government may be asked to stop issuing subsidies or to otherwise reduce public spending. When the IMF requires such a policy, the terms are known as 'IMF conditionalities'.

Since the IMF and World Bank lend to third world countries, you may reasonably assume that this has nothing to do with "first world" countries like the US and UK.

But England's economy is in dire straits, and rumors have abounded that the UK might have to rely on a loan from the IMF.

And as former U.S. Comptroller General David Walker said :

"People seem to think the [American] government has money. The government doesn't have any money."

Indeed, the IMF has already performed a complete audit of the whole US financial system, something which they have only previously done to broke third world nations.

Al Martin - former contributor to the Presidential Council of Economic Advisors and retired naval intelligence officer - observed in an April 2005 newsletter that the ratio of total U.S. debt to gross domestic product rose from 78 percent in 2000 to 308 percent in April 2005. The International Monetary Fund considers a nation-state with a total debt-to-GDP ratio of 200 percent or more to be a "de-constructed Third World nation-state."

Martin explained:
'de-constructed' actually means is that a political regime in that country, or series of political regimes, have, through a long period of fraud, abuse, graft, corruption and mismanagement, effectively collapsed the economy of that country."

Some have asked questions like, "Is the goal to force the US into the same kinds of IMF austerity programs that have caused riots in so many other nations?" Some predicted years ago that the "international bankers" would bring down the American economy.

I used to think, frankly, that such kinds of talk were crazy-talk. I'm not so sure anymore.

Catherine Austin Fitts - former managing director of a Wall Street investment bank and Assistant Secretary of the Department of Housing and Urban Development under President George Bush Sr. - calls what is happening to the economy "a criminal leveraged buyout of America," something she defines as "buying a country for cheap with its own money and then jacking up the rents and fees to steal the rest.". . .

Writer Mike Whitney wrote in CounterPunch in April 2005:

The towering [U.S.] national debt coupled with the staggering trade deficits have put the nation on a precipice and a seismic shift in the fortunes of middle-class Americans is looking more likely all the time. . . The country has been intentionally plundered and will eventually wind up in the hands of its creditors This same Ponzi scheme has been carried out repeatedly by the IMF and World Bank throughout the world. Bankruptcy is a fairly straightforward way of delivering valuable public assets and resources to collaborative industries, and of annihilating national sovereignty. After a nation is successfully driven to destitution, public policy decisions are made by creditors and not by representatives of the people . . . "

And given that experts on third world banana republics from the IMF and the Federal Reserve have said the U.S. has become a third world banana republic, maybe the process of turning first world into the third world is already complete.


1 Comments:

Anonymous Anonymous said...

I was not old enough to vote when Reagan was elected, but I was a teenager. I listened to what he was saying, and before the election, I became convinced that he was planning to turn the US into a third world country. People said I was just being negative.

Unfortunately I was right.

The fact that every president after Reagan has had the same agenda, has made us a broken third world kleptocracy. Every president still living from Reagan to Obama should be facing life in prison for their corruption and treasonous behavior.

January 31, 2010 1:47 PM  

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