Time: Sat Dec 06 05:36:21 1997 To: From: Paul Andrew Mitchell [address in tool bar] Subject: SLS: "Wall Street's Financial Terrorism" (fwd) Cc: Bcc: sls References: <snip> > >FROM PERTH, WESTERN AUSTRALIA > >Thought you may be interested in the enclosed column on the Asian banking >crisis, written for the CHRONICLES magazine. It is scheduled to run in the >1Q98. Some cosmetic editorial changes may be made for the print edition. > >Best, > >Bob Dj. > >------------------------------------------------------- >Global Business/Econ Column Written for the CHRONICLES magazine > >WALL STREET'S FINANCIAL TERRORISM: >NEW WEAPONS, SAME OLD IMPERIALISM > >By Bob Djurdjevic >------------------------------------------------------- > >DUNSBOROUGH, Western Australia - Parallels between the British Empire and >the New World Order Empire are striking. It's just that the British crown >relied on brute force to achieve its objectives, while the NWO elite mostly >use financial terrorism (except for occasional raw power demonstrations, >such as in the Gulf War or in Bosnia). The Great Asian Banking Crisis has >just accentuated both the similarities and the differences between the two >empires. > >The British Empire was built by colonizing other countries, seizing their >natural resources, and shipping them to England to feed the British >industrialists' factories. In the wake of the "red coats" invasions, local >cultures were often trampled and replaced by a "more progressive" British >way of life. > >The Wall Street-dominated NWO Empire is being built by colonizing other >countries with foreign loans or investments. When the fish is firmly on >the hook, the NWO financial terrorists pull the plug, leaving the >unsuspecting victim high and dry. And begging to be rescued. In comes the >International Monetary Fund (IMF). Its bailout recipes - privatization, >trade liberalization and other austerity reforms - amount to seizing the >target countries' natural and other resources, and turning them over to the >NWO elites - just as surely as the British Empire did by using cruder >methods. > >In the wake of the IMF invasions, local cultures are also under assault >world over, just as in Queen Victoria's time, being replaced by the "more >progressive Western" (read materialistic) way of life. > >Whether McDonald's, Coca-Cola, Nike or the Hollywood film studios really >represent a "progressive" culture is a dubious notion even in the U.S., let >alone in East Asia, Russia or elsewhere in the world. Just as is the >perception that these multinational companies are "American" - presumably >because of their headquarters' U.S. addresses. The truth of the matter is >that these "Princes of the 20th Century" honor only one flag - the Almighty >Dollar. As a result, the Main Street Americans are among the NWO's >exploited victims, just as are their brethren in East Asia or Russia. > >Such misconceptions aside, there is no question, that McDonald's, Coke, >Nike or Hollywood represent the visible symbols of the NWO's >neo-colonialism. They are the innocent-looking facades which mask the >destructive work of Wall Street's financial terrorists which operate deep >in the bowels of national economies. > >"The financial turmoil in East Asia is a case in point," Malaysia's Prime >Minister, Dr. Mahathir Mohamad, said on November 24 at the APEC (Asia >Pacific Economic Community) conference in Vancouver, Canada. "Two decades >of growth was wiped out in two weeks... Vibrant economies have been reduced >to begging for aid from the IMF." Dr. Mahathir added that the free markets >were "a recipe for slavery." > >True. But during the post-Cold War market globalization and expansion >(1990-1996), the Asia/Pacific region attracted about $375 billion in >foreign investments, according to UNCTAD, a United Nations agency. That's >about 74 cents of every dollar the multinational companies had invested >anywhere in the developing world ($505 billion). And it is almost a >quarter of all foreign investments made in the world during the same period >($1.6 trillion - including the developed countries). > >The rate of growth of the Asia/Pacific investments was also the highest in >the world - 29% compounded annually during the 1990s, almost double that >for the world as a whole (16% compounded annually). And then the bubble >burst in the fall of 1997, and the recriminations followed. > >"Power corrupts," Dr. Mahathir lamented in Vancouver. "As much as >government can become corrupt when invested with absolute power, markets >can also become corrupt when equally absolutely powerful. We are seeing >the effect of that absolute power today - the impoverishment and misery of >millions of people and their eventual slavery." > >Also true. But too late for East Asia. And for Dr. Mahathir, whose >country is supposed to host the next APEC conference. Because GREED and >quest for POWER of the East Asian leaders has already enslaved them. "Dr. >Mahathir, et. al." should have thought about that BEFORE taking the NWO >bait (money). Now that they are a penny short and a day late, remorse >won't save them from the NWO/IMF brutal collection methods, anymore than >pleading for mercy would work with Mafia debt enforcers. Witness the quick >buckling under of Indonesia, Thailand and Korea, for example, and even of >Japan. The once powerful and petulant "Asian Tigers" are all turning into >obedient pets, wagging their tails fast and furiously to please the NWO >masters. > >But "one man's loss is another man's gain," they say. The enormous flight >of capital from East Asia, about $1.3 trillion between mid-August and >late-November (the aggregate reduction in total capitalization of the 11 >East Asian stock exchanges), has landed mostly on the U.S. and European >shores. This positive cashflow (from the Euro-American perspective) has >temporarily helped stabilize the Western stockmarkets after the Oct. 29 crash. > >Also, Bill Clinton, that unabashed champion of the Wall Street elite's >causes, was all smiles at the Vancouver summit. He reveled in the triumph >which APEC's endorsement of the IMF represented. Clinton even confidently >predicted that he would eventually overcome his recent setback when he and >Newt Gingrich failed in their efforts to cajole, bribe or muscle the >majority of the House into approving the "fast track" trade bill. > >But the victory which Clinton delivered to his Wall Street and Big Business >backers at the APEC summit was a loss for America's Main Street, including >the small U.S. entrepreneurs - by far the most vibrant and productive >element of the U.S. economy. They CREATED 21 million American jobs in the >1980s, while the FORTUNE 500 companies DOWNSIZED to the tune of three >million people, according to a Sept. 20, 1996 Wall Street Journal report. > >And now, these American Main Street eager-beavers are about to be hit again >by our NWO-controlled government - to help fund the Wall Street elite's >Asian bailouts. Lest we forget, the IMF is a Western GOVERNMENT-supported >"bank" in which the U.S. taxpayer is by far the largest guarantor. So when >Clinton, Gingrich, and other U.S. globalist politicians tell us that the >IMF solution is the way to solve the current Asian banking crisis, they are >talking about committing about 40 cents of every IMF bailout dollar out of >the U.S. taxpayer's pockets. Just as they did in the Mexican bailout in >early 1995. > >Never mind that the NWO elite are in the process of firing at least two >million additional Americans in the 1990s, according to that Wall Street >Journal 1996 report. Thanks to their control of the U.S. media, they and >their fair-haired boy - Bill Clinton - are still able to claim credit for >the recent strength of the U.S. economy, while helping themselves to the >pockets of the true American Main Street entrepreneurs. > >Which is why the NWO pages, like Clinton and Gingrich, don't herald as much >the fact that their IMF bailouts mean using PUBLIC funds to bail out >PRIVATE interests in FOREIGN countries. > >Nor do our (however unfairly) ELECTED politicians get to make the calls >about things like using taxpayers' money for private rescue missions. The >NWO's APPOINTED proxies in the Clinton cabinet do. > >On Oct. 30, the U.S. Treasury Secretary and a former Wall Street tycoon, >Robert Rubin, reportedly called the top Treasury and White House officials >to tell them that he had agreed to contribute $3 billion of U.S. taxpayers' >money to the IMF bailout of Indonesian banks. > >Get this - the Treasury Secretary told the President what sort of a deal he >had cut with his Wall Street banking pals! This kind of sums up who is >really running this country and for whose benefit. > >Which is why we should brace ourselves for these Wall Street and Washington >hyenas helping themselves to the U.S. Treasury till a few more times for a >few more tens of billions of dollars before the Great Asian Bailout is over. > >For, the amount of money needed to resuscitate other Asian countries could >amount to more than $100 billion, double the Mexican rescue of 1995, >according to a Nov. 17 Business Week report. The potential price tag >involves not only the $40 billion commitment to Indonesia, but an >additional $23 billion to Thailand and the Philippines. Financial markets >are now betting that Korea, where debt-choked companies have also triggered >a banking crisis, and the government is running low on foreign reserves, >will need as much as $40 billion to clean up its mess. > >"Recession is a foregone conclusion" as taxes and unemployment increase >while spending is cut, one Korea analyst told the Sydney Morning Herald on >Nov. 25. > >In Korea, six of the top 30 corporations have filed for bankruptcy this >year alone. If all of the bad loans were written off, the entire equity of >Seoul's commercial banks would disappear. But not just of Korean banks. >The Japanese banks are also on the hook to the "Asian tigers" for some $263 >billion; the European banks for about $155 billion, while the American >banks have lent them some $55 billion, Business Week estimated in a Nov. 17 >cover story. > >But it is in Japan and China - the biggest Asian markets - where the >biggest troubles may be brewing. > >Japan is in line for "a truly world class banking crisis," a world >authority on international finance predicted in an interview with the >Australian Financial Times (AFT, Oct. 30). Dr. Morris Goldstein, the >former deputy head of research for the International Monetary Fund, now >with the Institute for International Economics in Washington DC, said that >"systemic risk" is the highest in Japan. > >He was spot on. Subsequent failures of Hokkaido Takushoku Bank, of the >100-year old Yamaichi Securities, of and of Tokuy Bank bore out the >validity of Dr. Goldstein's forecast. In late November, Moody's also >downgraded the credit ratings of Long Term Credit Bank of Japan, Nippon >Credit Bank, Mitsui Trust, Yasuda Trust and Chuo Trust. > >A Jardine Fleming report suggested that the non-performing loans held by >all Japanese banks could account for almost 23% of Japan's gross domestic >product - a level surpassing even Thailand's failures (13%). The notorious >US savings and loan crisis was insignificant by comparison. The cost to >the public sector of solving that crisis was "only" around 3% of the GDP. >Jardine Fleming estimates that the ultimate cost to the Japanese government >will be 11% of the GDP or about $500 billion. No question that would be "a >truly world class crisis." > >And then there's China, that darling of the NWO globalist elite. During >the 1990s, China attracted $158 billion of foreign investments, more than >any other country in the world except for the U.S., according to UNCTAD, a >United Nations agency Japan, by contrast, got only about $8 billion during >the same period. During the 1990s, foreign capital spending in China had >grown at a compound annual rate of 52% - more than three times faster than >the average world increase of 16% per year. > >And the pace of the business world's fascination with China had been >accelerating. In 1996 alone, China received over $42 billion in foreign >investments. That's about one-third of all investments made in the >developing countries last year. And no wonder. The master bailer had >helped set the bait for the victims of its future bailouts. In September >1996, the IMF predicted that Asia would lead the world in 1997 with an 8% >GDP growth. > >Now that a financial tsunami has hit Asia, and as analysts and economists >scramble to lower their Asia forecasts, investors' enthusiasm is starting >to ebb even in China. Foreign investments contracted by about 35% in the >first 10 months of 1997. > >In part, that's because China's top banks have about $90 billion in problem >loans, according to Business Week's Nov. 17 report. Despite nearly two >decades of economic reform, the Chinese state still owns about 30% of the >economy, employs two-thirds of the urban work force, and accounts for more >than 50% of industrial assets, according to an Oct. 19 report in London's >Sunday Telegraph filed by its Beijing correspondent. There are more than >300,000 state enterprises in China, and at least half are in debt. > >To an economist, these behemoths cry out for sweeping reform, the Telegraph >concluded. Read - privatization, downsizing and layoffs, the IMF specialty. > >The country is wallowing in excess manufacturing capacity, and real estate >in Shanghai and Beijing has been over-built. A British visitor who has >recently returned from a trip to China wrote to me on Nov. 6 that a member >of the Shanghai Real Estate Board enthusiastically proclaimed: "Shanghai >property is hot." To which the Briton replied: "No, Shanghai property is >empty." The newly built malls and commercial buildings which she had >visited "were all eerily empty." > >Why? > >Because the foreign investors had talked themselves into spending hundreds >of billions of dollars against the grossly inflated Asian economic growth >projections. And because the greedy local chieftains had talked themselves >into believing that they can buy economic prosperity with borrowed money. > >Well, now that the bubble has burst in Asia, both bankers and politicians >are talking containment. Which is why Clinton agreed at the APEC summit in >Vancouver to hold a global conference on the banking crisis. > >Meanwhile, while the financial elite debate how best to protect themselves >by using public funds, much more than jobs and real estate are at stake in >China and its neighbors in East Asia. When factories falter so do cheap or >free education, medical care, housing, and the broader sense of community >that is part of urban life. > >In Tianjin, for example, an industrial city an hour's drive from Beijing, >some families have been plunged into poverty almost overnight after being >laid off, the Telegraph reported. All this has led the London daily to >conclude that "China edges to the brink of a social breakdown" as tens of >millions of Chinese workers face unemployment or even starvation. > >Ditto re. the tens of millions of workers in Korea, Japan, Thailand, >Indonesia... They will bear brunt of The Great Asian Banking Crisis, not >the NWO bankers and politicians who had caused it. Stories about such a >human impact of NWO's financial terrorism have been woefully absent from >the front pages of the world media. > >Another thing which the recent Asia stories did not dwell on was that the >big Japanese investors, including the ailing banks, owned $291 billion of >U.S. Treasury bills as of July, or 8.5% of the total outstanding, according >to a Wall Street Journal (WSJ) Oct. 29 report. That's up from 5.4% or $176 >billion as of December 1994. > >In other words, in today's intricately interwoven global financial system, >it is virtually impossible that a failure of the Japanese banking system >would not affect other countries, including the U.S. We've already seen >how a stockmarket crisis which began in Hong Kong soon spread like a >wildfire around the globe. Even if the fire seems to be temporarily under >control now, thanks in part to the Asian crisis (flight of capital), we are >evidently not out of the woods yet. > >Maybe that's why the U.S. Treasury Secretary, Rubin, warned his Japanese >counterpart in a private letter disclosed by the New York Times on Nov. 13 >that the Japanese "should not be tempted to export their way out of their >troubles." Which is kind of like telling a drowning victim to keep gulping >water instead of swimming. > >That's because one effect of the industrial globalization has been a huge >U.S. trade deficit, which stood at $192 billion in 1996. And if current >trends continue, America's trade deficit with the rest of the world could >expand to $250 billion to $300 billion by early 1999, according to David >Hale, a trade economist with Zurich Insurance Group. > >As of August, the U.S. trade deficit with China ($5.2 billion), for >example, was even bigger than that with Japan ($4.5 billion), or that with >the entire Western Europe and Canada - combined! ($3.6 billion). In 1997 >to-date, our deficit with China is running 30% ahead of last year's pace. > >So Rubin's remark seems to have been driven by a parochial U.S. industry's >concern - losing market share to low priced imports from Japan or other >Asian countries. Yet those are precisely the benefits to consumers which >the NWO globalists have hailed during the recent debate on "fast track" >trade legislation. > >So "free trade" advocates, such as Rubin, a former Wall Street tycoon, >evidently have no trouble talking out of both sides of their mouths. Moral >corruption is another trademark (pun intended) of the Clinton administration. > >But another important conclusion one can draw from Rubin's remark is that, >if the Japanese are not allowed by the NWO Empire to export their way out >of trouble, then they may have no choice but to dump their huge U.S. >T-bills holdings and other U.S. securities so as to feed the Nippon banking >beast. And if the Japanese pull out of the U.S., that would hardly be good >news for the stockmarket, would it? > >So if you are a Wall Street investor, stand by for a few more >roller-coaster rides of the Dow. But if you are a Main Street entrepreneur >or worker, brace yourself for a possibility of a global recession. "If it >(recession) spreads (from Korea) to Japan, then it goes all over the >world," the Korea analyst referenced earlier also told the Sydney Morning >Herald on Nov. 25. > >What goes around, comes around - especially in globally integrated markets. > The U.S. is no exception, just as the British Empire wasn't. The only >question is if the social unrest caused by the gouging of the NWO elite may >also become a global affair and the ultimate downfall of the NWO. > >------------------------- >ATTRIBUTION: Bob Djurdjevic is a Phoenix-based writer and businessman. He >heads up Annex Research, a market research and consulting firm which >analyzes global economic and geopolitical affairs >(http://www.djurdjevic.com). Djurdjevic is also the founder of Truth in >Media, a non-profit organization (http://www.beograd.com/truth). >------------------------- >TOTAL: 2,900 words. >------------------------- > >---- >Bob Djurdjevic >TRUTH IN MEDIA >Phoenix, Arizona >e-mail: bobdj@djurdjevic.com > >LINKS: http://www.beograd.com/truth/ > (Truth in Media home page) > > http://www.forbes.com/tool/html/97/oct/1021/col.htm > (Djurdjevic's Oct 1997 FORBES column, "Bet on Asian Large Caps") > > http://204.134.221.30:8898/ows-bin/owa/im_pak.imdecode?link=294 > (Djurdjevic's Nov 1997 IM column, "Welcome to Asia/Pacific... > and Buckle Up" - IM is a WASHINGTON POST publication) > > http://www.djurdjevic.com > (Annex Research home page) > <snip>
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