By 1988, Argentina had again stopped payment on its loans and was falling hopelessly behind as bankers and politicians went into a huddle to call the next bailout play. Somehow, the payments had to be passed on one more time to the taxpayers—which they were in the form of new loans, rollovers, and guarantees. As summarized by Larry A. Sjaastad at the University of Chicago:
There isn't a U.S. bank that would not sell its entire LatinAmerican portfolio for 40 cents on the dollar were it not for thepossibility that skillful political lobbying might turn up a suckerwilling to pay 50 or 60 or even 90 cents on the dollar. And that suckeris the U.S. Taxpayer.
As mentioned previously, this history can become repetitious and boring. It would be counterproductive to cover the same sordid story as it has unfolded in each country. Suffice it to say that the identical game has been played with teams from Bolivia, Peru, Venezuela, Costa Rica, Morocco, the Philippines, the Dominican Republic, and almost every other less-developed country in the world.
THE NEED FOR CONVERGENCE
This sets the stage for understanding the next phase of the game which is unfolding as these words are being written. It is the inclusion of China and the former Soviet bloc into the Grand Design for global government. As with all the other countries in the world, the primary
he
2 Other mechanisms which involve culture, education, political sovereignty, and itary power are embodied in agencies of the United Nations.
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122 THE CREATURE FROM JEKYLL ISLAND
nations—which drags them down economically to a suitable
common denominator—and (2) the acquisition of effective control over the political leaders of the recipient countries as they become dependent upon the money stream. The thing that is new and which sets this stage apart from previous developments is that the apparent crumbling of Communism has created an acceptable rationale for the industrialized nations to now allow their lifeblood to flow into the veins of their former enemies. It also creates the appearance of global, political "convergence," a condition which CFR theoretician, Richard Cooper, said was necessary before Americans would accept having their own destinies determined by governments other than their own.
CHINA
Red China joined the IMF/World Bank in 1980 and immedi-
ately began to receive billions of dollars in loans, although it was well known that she was devoting a huge portion of her resources to military development. By 1987, China was the IMF's second largest borrower, next to India, and the transfusions have grown at a steady pace ever since.
The Bank has asserted that loans will encourage economic
reforms in favor of the private sector. Yet, none of the money has gone to the private sector. All of it is funneled into the government bureaucracy which, in turn, wages war against the free market. In 1989, after small businesses and farms in the private sector had begun to flourish and surpass the performance of similar government enterprises, Red China's leaders clamped down on them with harsh controls and increased taxes. Vice Premier Yao Yilin announced that there was too much needless construction, too many private loans, and too much spending on "luxuries" such as cars and banquets. To stop these excesses, he said, it would be necessary to increase government controls over wages, prices, and business activities.
Then there is the question of why China needs the money in the first place. Is it to develop her industry or natural resources? Is it to fight poverty and improve the living standard of her citizens?
James Bovard answers:
The Bank's defense of its China Policy is especially puzzlingbecause China itself is going on a foreign investment binge. The World Bank gives China money at zero interest, and then China buys BUILDING THE NEW WORLD ORDER
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property in Hong Kong, the United States, Australia, and elsewhere.
