A few years ago, virtually all the Latin American leaders decided they’d had quite enough of our neoconservative hogwash. Basically, they tossed us out and took over for themselves.
The Community of Latin American and Caribbean States is a regional bloc that was created on December 3, 2011, in Caracas, Venezuela. The organization consists of 33 sovereign countries in the Americas representing roughly 600 million people. Absent from the bloc are Canada and the United States, as well as the territories of France, the Netherlands, Denmark and the United Kingdom in the region. The bloc decided the neoconservatives had done enough damage.
Latin American leaders had enough
They tossed us out.
Then the BRICS came to a similar conclusion.
The BRICS countries are Brazil, Russia, China, India, and South Africa. They had been under similar pressures, so they decided to form the Contingent Reserve Arrangement (CRA) and the New Development Bank (NDB). These new organizations are designed to bolster the economies of the BRICS countries. They are also designed to get away from the traps of the First World banks.
Now, why did they do these things, when they already have the all-benevolent International Monetary Fund, World Bank, and World Trade Organization to help them with all their economic needs?
Easy, really. They did it because this Unholy Trinity are organizations that function for the benefit of First World banks, corporations, and the governments of the US and Europe, and no one else.
The Unholy Trinity
are their enemies.
The standard neoconservative advice for a poor country with economic problems is to accept multi-billion-dollar loans, which are awarded on condition of restructuring the economy and banking systems. Restructuring always means that everyone but the rich will suffer and become poorer for decades. Naturally, the loaners benefit greatly. The recipient country is saddled with huge loan payments over many years that become increasingly hard to meet.
Since the work force and tax revenue are reduced by the banks’ austerity recommendations, recipient countries quickly become trapped in a declining spiral from which the only escape is to default unless the loans are forgiven. So some did the only reasonable thing. They defaulted, and immediately after their fortunes began to slowly improve.
They escaped by forming
their own institutions,
free from the clutches
But the big banks are not the only culprits. The news recently showed Argentina trying to escape the clutches of the “vulture funds”, namely a group of New York hedge funds whose purpose is to extract as much unearned wealth from the Argentine economy as possible to make their rich investors richer, which of course would have a dreadful effect on the Argentine poor. Argentina defaulted for the second time, which will be difficult in banker’s terms, but will save the people a lot of grief.
That’s why Latin America dumped the IMF and World Bank and formed their own. The IMF and World Bank are their enemies, along with every hedge fund that bets on a government failure, and all the blustering of IMF and World Bank executives with their self-serving advice no longer impresses them.