china and imf...
imf is usa said with other letters...
rock and hard place...
china... (you have a 50/50 shot of losing your shirt but you definitely have less and less say in what china does in your country... )
gives you loans... with two consequences...
1. backdoor clause... you can't pay them... they take over the property and bring in their millitary... its not an if its a when...
2. softpower grab... the lender can dictate policy in borrowers country...
imf... ( you have illusion of prosperity... but long term smaller pie for everybody...)
imf gives you loan and economic improvement plans...
1. to get the money you must get rid of all protective industry agreements and open economy to goods from other countries... as the imf dictates...
what does that mean... all native industries in borrower country die... because they have no protective tarrifs on imports... all imports are priced cheaper than local competition... and consumers only look for the better deal... in the short run consumer benefits... in the long run consumers have fewer jobs to provide income to keep buying imported goods... ok you say local industries don't die... they are bought out by foreign investment or get a hefty amount of foreign capital... can you say sweatshop... sweet in the mouth but bitter in the belly...
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