by Jerry Alatalo
ike a small city which has had only one bank for decades then a new banking competitor comes to town and sets up operations, the global mega-banking institutions World Bank, International Monetary Fund (IMF) and others now have the newly created BRICS Development Bank and Asian Infrastructure Investment Bank (AIIB) to compete against.
According to John Perkins, author of the best-selling book “Confessions of an Economic Hitman”, this is a good thing for humanity.
Despite critical opposition by the United States, 27 countries have officially signed on to AIIB, including the United Kingdom, Germany, France, Italy and others, while Australia and South Korea are seen by analysts as close to joining. Most observers believe the U.S. is not likely to sign on.
Mr. Perkins, who worked as an economist arranging billion dollar World Bank, IMF, and similar large international institutions’ loans to developing nations in his self-described role as a “hit man”, feels that these institutions “blew it” after the fall of the former Soviet Union by taking advantage of their monopolistic, “take it or leave it”, and sometimes deadly business tactics (assassination) when dealing with elected leaders of nations.
The U.S. Congress has avoided approving a package of reforms to the IMF agreed upon in 2010 which would have given China and other emerging economies a greater say in decision-making. AIIB, along with Latin America focused BRICS Development Bank, allow the world’s elected leaders another option when financial resources are necessary for improving their economies.
In other words, because the World Bank, IMF and similar giant international financial institutions ignored the business world’s main maxim “the customer is always right”, top bank management opened the path for AIIB and BRICS to form and compete in the now-transformed market of multi-billion dollar development financing.
Just as the formerly competition-free small city bank’s managers now have to actually earn their potential customers’ business, trust and confidence after the competition set up operations, so, too, will the top management at World Bank, IMF, etc. Given the extreme “service” the world’s leaders and their citizens have endured for decades; that much harm has come to those nations’ populations when leaders signed the debt-crippling, austerity-generating loan contracts arranged by John Perkins and fellow economic hit men, people can find some reason for optimism with these new, world-consequence events.
And God knows the world’s people, after reading or watching their daily disheartening news reports, really wanted to hear some good, optimistic news for a change.
(Thank you to CCTV America at YouTube)