NAFTA was huckstered by Clinton and Congress as a way to increase American jobs and benefit the great majority of people both at home and abroad through its realization of a free-market global capitalism.
It has failed on all counts.
- American jobs have been lost.
- Workers thoughout the world have suffered from the slave-wages paid by the relocated "American" corporations.
- Environmental protection measures have been totally ignored in the global economy countries such as Mexico.
Globalism's showcase nations are now in shambles:
South Korea's economy has shrunk by 45 percent
Thailand's economy has decreased by 50 percent
Japan is in deep recession (read depression)
Russia is in default of its loans, after following the dictates of the Harvard economic pundits
Indonesia's economy has shrunk by nearly 80 percent
- Even though Indonesia has been through four IMF "reform packages" and $41.2 billion in IMF funds since October 31, 1997, five million of its people still face starvation.
- The Indonesian currency, the rupiah, has collapsed 80%.
- The Indonesian stock market has collapsed 50%.
- On July 2, 1998, the Indonesian statistics bureau announced that 95.8 million people, 48% of the entire population, will sink below the poverty line by the end of 1998, and that 80 million people, 40% , can no longer afford food and basic goods.
Clinton's Bailout Plan
Congress passed Clinton's plan which took $18 billion more from American taxpayers to fund International Monetary Fund (IMF) bailouts.
- "Bailouts" mean that "American" financial institutions, such as Chase Manhattan or Goldman Sachs, can make bad loans to Mexico or Brazil and then receive American tax money when their loans go south.
- The IMF and the World Bank are essentially tools of the world's largest banks and financial institutions, stealing money from taxpayers when their loans go bad.
- The IMF has imposed ruinous economic and political plans that have virtually bled debtor countries to death. Its main policies are imposed austerity, corporate welfare, and deregulation. All of these have proved disastrous in Russia, Asia, and Mexco, and the world's people are finally waking up to its failures.
How Globalism Really Works - The Case of Russia: In June of 1998, Russia's chief financial officer, Venianin Sokolov, conceded that all the IMF billions pumped into Russia had been stolen or wasted "at the highest levels" of what he called an "entirely corrupt regime."
The IMF went ahead to hand Russia another $4.8 billion in July, most of the money coming from the pockets of American taxpayers. What happened to this money?
- Sergei Dubinin, Russia's central bank governor, admitted that every last dime of it went to propping up the ruble, which Moscow finally had to cut loose and let fall.
- Within days, the ruble fell 30% against the dollar, 40% against the German mark.
- The Russian stock market has collapsed
- Russian interest rates on U.S. Treasury bill loans has skyrocketed to 80%
- Even with this catastrophic loss, the IMF is still going ahead to disburse the second tranche of its $11.2 billion loan in September, 1998, to replenish the Russian central bank's reserves and control the slide of the ruble.
The "privatization drive that was supposed to reap the fruits of the free market," writes Janine Wedel in The Nation, "helped to create a system of tycoon capitalism run for the benefit of a corrupt political oligarchy that has appopriated hundreds of millions of dollars of Western aid and Russia's wealth."
Patrick Buchanan, in a recent editorial, asks the important question: "Who got - and who stole - the scores of billions of dollars in Western loans sunk into Russia since 1991, because it surely was not the people of Russia, who are destitute and far worse off than in 1991."
The IMF is beginning to have trouble enforcing its suicidal policies. IMF Director, Michael Camdessus, ordered the Argentine government to implement all the structural reforms it has so far failed to implement
Former Argentine Finance Minister, Domingo Cavallo, stated that Argentina must implement these reforms "before they [the IMF] massacre us."
Argentine President, Carlos Menem, (pictured with Bush, left) can't get even a watered-down version of the legislation passed.
On August 26, 1998, a third attempt to get a vote in the Argentine Congress failed when opposition deputies boycotted the session, ensuring there would be no quorum.
On that same day, 4,000 workers rallied outside the Congress against IMF suicide policies
Globalism's Current Big Crisis - Brazil $1 billion is leaving Brazil daily
Brazil has only $50 billion in reserves
Brazil's $70 billion in debt payments was due October 31, 1998.
President Fernando Cardoso paid investors 50% interest to keep money in Brazil until his October 4th election, after which Brazil defaulted on its loans.
But the world's plutocrats (through their agencies such as IMF and the World Bank) can't let it be known that Brazil defaulted on its loans or all the other debtor countries, especially those in South America, would follow suit.
So, the IMF provided a huge bailout of $41 billion to lenders of Brazil's debt. That means that $41 billion of taxpayers' money around the world is going to pay off the world bankers' bad debts in Brazil.
The IMF has now created what it calls a "preemptive safety net" with $90 billion for bailouts on an emergency basis.
The IMF also set up rules for disallowing member countries to set up measures to restrict speculative transactions or short-term capital flows as demanded by governments in Asia, China, and Russia. As Malaysia's Prime Minister, Mahathir bin Mohammad, said on October 31, 1998, the international financial cartel rigs the game "which allows them to leverage their resources up to 200 times. ... Nobody really knows how much because transparency is demanded by them only of others, not of themselves."
Globalism's Second Big Crisis - Russia On December 29, 1998, Russia defaulted on $26 billion in debt to commercial banks worldwide. Russia failed to make a $363 million cash interest payment to loans from more than 600 commercial creditors worldwide Russia maintained that missing the payment didn't constitute a default because more than 70% of the debt holders agreed to accept new bonds instead of cash
Some Recent Anti-Globalism Victories: Anti-sweatshop campaigns are forcing companies like Gap and Nike to reconsider some of their most reprehensible labor practices.
The recently passed Sanders-Harkin amendment bans the import of products made with child labor.
Legislation has been introduced that would end U.S. financial support for IMF programs that degrade the environment and undermine workers' rights, restrict the power of governments to regulate "hot money" capital flows, and give more bailouts to international bankers and investors.
Bernie Sanders, Independent U.S. representative from Vermont and other legislators are introducing legislation to create a "new populist architecture" for the global economy. The Swiss daily, Neue Zuercher Zeitung, recently grudgingly endorsed capital controls in the Third World. Business Week endorsed a global write-off by financial institutions of much of the debt strangling world production. On September 2, 1998, Malaysian Prime Minister, Mahathir bin Mohammad, announced a policy to halt the usurious system of globalism.
- His government is slapping on all-inclusive exchange controls to protect Malaysia's economy and crush stock and currency speculators.
- The Malaysian central bank will overseee which companies will be allowed to obtain Mayaysia's currency, the ringgit, to exchange for dollars, or vice versa.
- All purchases and sales of ringgit-denominated financial assets, such as stocks and property, must be transacted through a Malaysian-authorized depository institution. This stops speculators, such as George Soros, from obtaining ringgits to speculate with from off-shore banks in, for example, Singapore or Luxembourg.
Hong Kong and Taiwan have followed the example of Malaysia. Taiwan has banned George Soros or his companies from operating in Taiwan.
Currency speculators, such as Soros, treat a country's currency as just another commodity. They bring ruin to a country's currency with absolutely no regard for the destruction they bring the nation and its people.
The people of the world are waking up to globalism's disastrous repercussions. It's now time for us to demand more equitable economic policies and practices worldwide. Our greatest power is our purchasing power and we should use it to make certain that governments and corporations serve the interests of the people, not the plutocrats.