February 2, 2012 2 Comments
Regulation or deregulation can be used as the controlling power sees fit, and for free market capitalists and Keynesian leftists and progressives (really interventionists) to act like the solution to the economic problems are some legislation, is naive. The IMF shock doctrine is one that is predicated on deregulation that allows the implosion of third world nations’ economies. It is essentially a restructuring of those economies by the global mega-banks and corporations that are done by deregulation, allowing them to enter those nations (such as NAFTA), and then in turn those international interests using regulations to shut down any competition and control resources.
This is how the global economy works, and it’s all bundled into a massive ball of toxic derivatives assets that are then backed up by the governments, who are forced to sign on to bailing the speculative hedge funds that use derivatives as weapons of mass destruction. credit default swaps and derivatives are now a huge portion of the global economy.
People in general are not aware of the existence of derivatives and the consequences of having governments sign on to bailing out megabanks who are liable to go under from losing. The argument is made that the entity going under is so large, that for it to fail, the national or global economy would suffer as a result. This was the purpose of the 2008 Banker Bailout. The system is layered to create confusing, but isn’t that difficult to grasp. The banks and hedge funds are made to go under, so that the real assets of the national economies can be signed on to back up the non-existent digital derivative debts, which are more or less leveraged to infinity. The name of the game is simply consolidation of power. As Nomi Prins explains in It Takes a Pillage, “The acquisition of power comes through the consolidation of money on Wall Street.”
This basic strategy was explained in the IMF-leaked documents that were sent to Greg Palast of the BBC. Palast writes that, according to the confirmation of Dr. Joseph Stiglitz, former chief economist of the World Bank. It describes the steps taken to take over an economy and consolidate the assets:
“Step One is Privatization – which Stiglitz said could more accurately be called, ‘Briberization.’ Rather than object to the sell-offs of state industries, he said national leaders – using the World Bank’s demands to silence local critics – happily flogged their electricity and water companies. “You could see their eyes widen” at the prospect of 10% commissions paid to Swiss bank accounts for simply shaving a few billion off the sale price of national assets.” Read more of this post