How The World Bank and IMF Keep Developing Nations Poor

in money •  8 days ago  (edited)

Hey Jesslaves

Have you ever wondered why if we have so-called free markets and international trade agreements that give us access to resources from around the world, why individual nations are poor or developing countries and why you never see first world nations dethroned? It's probably because you're looking at the worlds biggest Ponzi scheme, but some call it the international monetary fund or the world bank.

This institution was set up under the idea that it would help nations needing capital to extract wealth and build better futures so they could catch up to the rest of the world. However, all it ever was, is a debt noose strangling smaller economies, keeping the status quo, enriching individual nations at the expense of others.

So why hasn't it changed? Because it benefits the first world, of course! No one's going to bring change when they benefit from the system being there.

The World Bank

Image source: -

The drive to be an export nation

In a debt-based fiat currency world, every nation is trying to be a net exporter of goods, apart from the US who has world reserve currency status, the US exports debt and allows other richer countries to export their debt to get resources from other nations.

The goal for every nation is to push out as much product as they can and get as much debt-free money into the country that they can use for developing the nation. Now if you owned your production, this would be amazing, you could monetise your countries value and give it back to the people.

Unfortunately, for many developing and emerging nations this is not the case, they need to pay their debtors before they can pay their people and sadly, it's a debt they'll never get out of in the current system.

Ever wondered why people are starving in countries when the world has an abundance of food? Well if it makes more economic sense to export to pay your debt, then you instead do that, then feed your own people, and sadly that is the state of the world we live in today.

The debt trap

Let's take my home country of South Africa for example, they've run to the IMF for a "relief" which is another word for a loan, and put together a 500 billion Rand ($27 Billion) chokehold on the country or around. These loans often come with certain conditions that benefit developed nations. The IMF naturally grant the loan on the condition that you will do what they want you to with the money.

Let's say it was to build hospitals and get medical equipment; it wouldn't;t be a case of you using the funds to create it locally or looking to the market to get it at the best rate, no you would need to get it from service providers the IMF says you can use, which means the money is effectively moved back to the developed nation now as debt-free money while leaving the developing country with all the debt.

Now they developing nation will have the misfortune of paying it back in a currency that continues to get stronger as the majority of the debt is denominated in dollars and all governments are fighting for it to pay off their debts.

It creates an endless loop of servitude that developing nations will never break and all it does is prop up the US dollar at the expense of other countries fiat until they go bust.

Sell out policies

It is clear that either smaller nations leaders are wholly incompetent and have no idea how economics works, or they paid off a small fee to sell out their country, its labour and resources to the Ponzi scheme. Since nations in Africa and Asia are some of the youngest, they're filled with new suckers to put into indebted servitude in a new form of slavery.

We can talk about how we can bring relief to places like Africa and poor nations around the world all we like, but these efforts are never going to have the desired effect until smaller nations free themselves from debt cycle and move to sound money.

Have your say

What do you good people of HIVE think? When will smaller nations wake up?

So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."

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I'm 100% with you on all of this. The IMF and World Bank are projects of the U.S. pentagon basically and a economic colonialism. Michael Hudson has excellent insight and experience with all of this, and knew Alan Greenspan in the 1960s and talks about what a suck up toady he is (as an aside, I'm not at all a anti-semite, but it is astounding how many Fed chairs have Jewish backgrounds; the run from Volcker-Greenspan-Bernanke-Yellen for instance; and all part of the Yale-Princeton complex, control center for the oligarchy).

In a just world, any currency system would support individual national currencies, not manipulate everyone to be dependent on dollars, I mean everyone can see how corrupt it is, but they don't want to. The classic formula is support a dictator, they waste all the money on weapons and corruption, hide funds for themselves, and then leave the nation sunk in debt. Or speculators from the Western nations that control markets attack currencies and devalue them (Asian Tigers economic crisis of late 90s). They only country that has been left off the hook basically was Japan, since they are the Western placeholder in Asia. They are successful in Western capitalism yet they had absurd money printing starting in the 1980s yet their currency wasn't devalued by the west.

But yes, it is economic colonialism, pure and simple, and much smarter than war in that approach. It also ties in with what Yanis Varoufakis details as the break down of the Bretton Woods, semi-gold standard system and how the U.S. has the rest of the world pay for the U.S. debts by all nations having to buy dollars and U.S. treasuries to hold reserves. It's been a brilliant scam. Yet even so the people of the U.S haven't largely benefited except the military industrial complex and wall st., many U.S. citizens live in the precariat on the verge of poverty or bankruptcy.

As i like to say, we still live in the middle of history, with bizarre and corrupt systems. Just look at the mess of the history of money in the u.s., it is a mix of hocus pocus and the fantastical, i just found this great overview last night:

And in 2020 the deflation vs. inflation chaos still rages; depending on the velocity of money, the amount of goods and services available, and the ability of it to escape to other parts. Looks like deflation before inflation as most are understanding better currently.

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Oh for sure, its a smart system but it's so crazy to think it benefits so few to the maximum extent and yet it's allowed to rage on due to bribery, compliance, ignorance and show of force. They rely on the fact that we are fragmented and couldn't put an Ikea shelf together as a human race if we tried

I'm not too phased about the identity politics of it all the result would be the same regardless. I'm amazed it has got this far and the level of indoctrination by some very smart people, its going to take a monumental shift, I have confidence in Bitcoin but even then I don't think its enough, we'll have to see

not, it's not enuff, but it can be a watershed type movement.

people are bought off and rationalize a lot of shit... the u.s. still sees itself as a savior instead of an empire and parasite...

people are strange and enjoy fantasies

I'll be honest I know nothing about the US, sentiment and culture except what gets pushed in various media and online, but you seem to be pretty self aware, I assume its a minority thinking? Also it seems like a nation filled with vapid distractions that allow people to be fragmented and only unify under things like being an empire and a superpower, rally them when needed otherwise keep them bickering

... actually it sounds like you know everything about the U.S.
... what you said sadly is about all their is to know.

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