Deflation, Globalization and Depression: Part 1
Some time ago I wrote a couple of blogs outlining how the great US debt and mortgage fiasco appeared to be duplicating the practices of the World Bank and International Monetary Fund. In those posts I pointed out how these entities routinely overwhelmed emerging and third world nations with debt under the pretense of monetary assistance. Once a country was obviously unable to pay off their debts or even the interest on their loans the IMF or World Bank would offer to forgive a portion of their debt if they handed over ownership of their major assets to the US government and corporations. These assets could be the nation’s oil supply, or major exports such as fruit, minerals, etc.
Some years back it began to appear to me that , the US banking/financial industry was flooding its own citizens in debt and unpayable mortgages. Well as the real estate and credit situation worsens it appears the US government must “bail out” bad debtors the way they use to bail out insolvent nations mired in unpayable debt.
Since the World Bank and IMF have always benefited by their poor lending practices, one would have to wonder if they purposely swamped nations in debt in order to acquire ownership. After all having more and more money in fewer and fewer hands has been a hallmark of modern capitalism. It would not be outlandish for the Federal Reserve to help in orchestrating a means of quickening the process of globalization while lining the pockets of themselves and their friends. This makes sense when you consider the fact that the Federal Reserve is a private banking cartel and not a federal agency. As other banks are failing the Federal Reserve is becoming more powerful and better positioned in their industry.
For every default and loss of ownership their is someone there to capitalize on some sweet deals and increase their holdings for pennies on the dollar. In a depression many lose and few win, but those who win, win very big.
In the following posts I plan on discussing some of the possible reasons we may be heading towards a fiscal depression and how this may make some people remarkably powerful and wealthy. Likewise, I’ll offer some possible explanations of how a severe depression and monetary deflation will quicken the process of globalization.
I realize this post was pretty abstract, but please be patient with me. In each successive post the picture I will paint will be more defined and clear.
More on this hopefully over the weekend.
Jim Guido