Monday, July 19, 2010

Bankrupt Borrowing From Bankrupt

Bankrupt countries borrowing from other bankrupt countries in the euro zone. The whole euro zone is insolvent and the solution is to layer more debt on top of the already unpayable current debt. I read the book
Confessions of an Economic Hitman
by John Perkins and he discusses how the IMF and the World Bank got third world countries like Ecuador and Indonesia in austerity type situations. John Perkins worked for a company called Chas T. Main and they would go into these countries and sell IMF and World Bank loans to develop infrastructure. The infrastructure was for power plants and water treatment plants along with the pipelines. John Perkins would sell pie in the sky power utilization rates which would drive economic activity to pay back the loans. Of course these countries wouldn't be able to pay and the loans would be restructured at even more egregious terms. Eventually the country's natural resources like oil would pay back the loans. If the country's leadership wouldn't comply then the US military would be called and the CIA would organize a coup d'etat or a presidential assassinations. John Perkins felt compelled to write this book after 911. Where does the loan money come from? It comes from the IMF and World bank and gives the appearance of a solution. The banks caused the problem by issuing too many bad loans to uncreditworthy people. The countries and the people react to the austerity measures and the solution is to issue more debt at longer terms. Where's the failure when you take bad risks that every other person has to realize when the credit card is maxed out? Mayer Amscel Rothchild said "give me the power to issue a nations currency and I care not who makes the laws." The politicians will be beholden to the banksters and the people will get the short end of the stick.

Wednesday, July 7, 2010

Thursday, July 1, 2010

The Socialist Sweedish Model is Capitalist

Reason TV is a great youtube channel. Bottom line is that free market capitalism works. Make sure not to confuse fascism, crony capitalism, and corporatism as the real deal. The political leaders will say that capitalism failed. Obviously Sweeden is doing well because of their free market based economy. In the United States we have government subsidies and other corporate welfare programs for the rich. This is not capitalism.