Wednesday, 17 December 2008

IMF Chief Warns of Violence if Financial System Benefits Only the Elite

Last night, the head of the IMF warned of violence from financial policies which only benefit the elite:

"If we are not able to do that [jump-start economic activity], then social unrest may happen in many countries - including advanced economies," Strauss-Kahn said.

He added that violent protests could break out in countries worldwide if the financial system was not restructured to benefit everyone rather than a small elite.

The IMF is a tool for first world bankers, corporations and governments. IMF loans to distressed nations always come with harsh strings attached, involving deregulation and privatization of institutions for the benefit of foreign powers.

The IMF may "save" some countries but it is at the expense of that nation's control of their wealth. The loans they issue, like those of the World Bank, are often excessive with the repayments keeping the target country "in check" for decades.

At the end of the day the condition of the common people and the foundation of the assisted economy is often very little improved. The situation may have arrived when there is very little choice but for the IMF to be more equitable with global wealth. Don't hold your breath on this one ...

[Posted at the SpookyWeather blog, December 17th, 2008.]

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