These are 10 conditions countries must meet to obtain an IMF loan.
1.) Eliminate and reduce government controls over imports. Justification: transfer decisions on the use of foreign exchange to the free market.
Result: Market is flooded with imports, same phenomena that led to the Boston Tea Party.
2.) Devalue the currency. Justification: Devaluation brings down the price of exports and this allegedly increases exports allowing the debtor to
earn the money to pay the debt. Result: Population can't afford imports and everything made in country is exported.
3.) Restrict availability of credit and raise interest rates. Justification: Control inflation. Result: Causes inflation.
4.) Limit or reduce government spending and deficits. (social spending) Justification: Tight money policy. Result: Leads to reduction in
services, health care, etc.
5.) Raise Taxes. Justification: Curb purchasing power to fight inflation. Result: Less money circulating within market.
6.) Increase prices of public services. Justification: Increse revenue and reduce public spending. Result: Demoralize the people.
7.) Abolish government subsidies for food and transportation. Justification: Limit government spending. Result: Outlaws trade unions creates
starvation.
8.) Control wages. Justification: Control inflation. Result: Suppresses purchasing power.
9.) Eliminate price controls. Justification: Free market policy. Result: Leads to price gouging.
10.) Open country to foreign investment. Justification: Free market economy. Result: Economy is controlled by outside investor's. Loss of National
identity and government has no access to own resources.
This is a paragraph published in the journal Foreign Affairs by the council on foreign relations in response to Clinton's JFKish inauguration speech.
(400 million wasn't spent on impeachment over fellatio.)
"The task is much more complicated and difficult than Clinton makes it out. First the president has not prepared the nation for the
sacrifices that lie ahead if America's trajectory is to turn upward.
Second, he has yet to explain the complex obstacles to restarting the American economy when there is a recession in Japan and Europe.
Third, he has yet to confront the delicate problem of pleasing powerful financial markets which are all too ready to unleash their fury at the
administration's first fiscal misstep.
Now that the election is over the new president will have to move quickly to deliver the tough message and make agonizing decisions. In the CNN age,
when indelible impressions are instantaneously formed around the world and when wall street and it's foreign counterparts can bring policy makers to
their knees overnight Clinton's first hundred days are not just an opportunity to unfold a new agenda, rather they just as equally present a mine
field that could blow up and damage his administration for the next four years.
Clinton's immediate priorities should be both offensive and defensive and defined in terms that are crystal clear and that reduce the cancerous
budget deficit." (social spending)
Noam Chomsky calls it 'Public subsidy of private enterprise"
[edit on 15-12-2006 by clearwater]