The West Is
Reduced To Looting Itself
By Paul Craig
- Myself, Michael Hudson, John Perkins, and a few
others have reported the multi-pronged looting of
peoples by Western economic institutions,
principally the big New York Banks with the aid of
the International Monetary Fund (IMF).
countries were and are looted by being enticed into
development plans for electrification or some such
purpose. The gullible and trusting governments are
told that they can make their countries rich by
taking out foreign loans to implement a
Western-presented development plan, with the result
being sufficient tax revenues from economic
development to service the foreign loan.
ever, does this happen. What happens is that the
plan results in the country becoming indebted to the
limit and beyond of its foreign currency earnings.
When the country is unable to service the
development loan, the creditors send the IMF to tell
the indebted government that the IMF will protect
the government’s credit rating by lending it the
money to pay its bank creditors. However, the
conditions are that the government take necessary
austerity measures so that the government can repay
the IMF. These measures are to curtail public
services and the government sector, reduce public
pensions, and sell national resources to foreigners.
The money saved by reduced social benefits and
raised by selling off the country’s assets to
foreigners serves to repay the IMF.
This is the
way the West has historically looted Third World
countries. If a country’s president is reluctant to
enter into such a deal, he is simply paid bribes, as
the Greek governments were, to go along with the
looting of the country the president pretends to
method of looting became exhausted, the West bought
up agricultural lands and pushed a policy on Third
World countries of abandoning food self-sufficiency
and producing one or two crops for export earnings.
This policy makes Third World populations dependent
on food imports from the West. Typically the export
earnings are drained off by corrupt governments or
by foreign purchasers who pay little while the
foreigners selling food charge much. Thus,
self-sufficiency is transformed into indebtedness.
entire Third World now exploited to the limits
possible, the West has turned to looting its own.
Ireland has been looted, and the looting of Greece
and Portugal is so severe that it has forced large
numbers of young women into prostitution. But this
doesn’t bother the Western conscience.
when a sovereign country found itself with more debt
than could be serviced, creditors had to write down
the debt to an amount that the country could
service. In the 21st century, as I relate in my
book, The Failure of Laissez Faire Capitalism,
this traditional rule was abandoned.
rule is that the people of a country, even a country
whose top offiials accepted bribes in order to
indebt the country to foreigners, must have their
pensions, employment, and social services slashed
and valuable national resources such as municipal
water systems, ports, the national lottery, and
protected national lands, such as the protected
Greek islands, sold to foreigners, who have the
freedom to raise water prices, deny the Greek
government the revenues from the national lottery,
and sell the protected national heritage of Greece
to real estate developers.
happened to Greece and Portugal is underway in Spain
and Italy. The peoples are powerless because their
governments do not represent them. Not only are
their governments receiving bribes, the members of
the governments are brainwashed that their countries
must be in the European Union. Otherwise, they are
bypassed by history. The oppressed and suffering
peoples themselves are brainwashed in the same way.
For example, in Greece the government elected to
prevent the looting of Greece was powerless, because
the Greek people are brainwashed that no matter the
cost to them, they must be in the EU.
combination of propaganda, financial power,
stupidity and bribes means that there is no hope for
The same is
true in the United States, Canada, Australia, and
the UK. In the US tens of millions of US citizens
have quietly accepted the absence of any interest
income on their savings for seven years. Instead of
raising questions and protesting, Americans have
accepted without thought the propaganda that their
existence depends upon the success of a handful of
artificially created mega-banks that are “too big to
fail.” Millions of Americans are convinced that it
is better for them to draw down their savings than
for a corrupt bank to fail.
Western peoples confused about the real threat that
they face, the people are told that there are
terrorists behind every tree, every passport, under
every bed, and that all will be killed unless the
government’s overarching power is unquestioned. So
far this has worked perfectly, with one false flag
after another reinforcing the faked terror attacks
that serve to prevent any awareness that this a hoax
for accumulating all income and wealth in a few
with their supremacy over “democratic peoples,” the
One Percent has come forward with the Trans-Atlanta
and Trans-Pacific partnerships. Allegedly these are
“free trade deals” that will benefit everyone. In
truth, these are carefully hidden, secret, deals
that give private businesses control over the laws
of sovereign governments.
example, it has come to light that under the
Trans-Atlantic partnership the National Health
Service in the UK could be ruled in the private
tribunals set up under the partnership as an
impediment to private medical insurance and sued for
damages by private firms and even forced into
corrupt UK government under Washington’s vassal
David Cameron has blocked access to legal documents
that show the impact of the Trans-Atlantic
partnership on Britain’s National Health Service.
citizen of any Western country who is so stupid or
brainwashed as not to have caught on, the entire
thrust of “their” government’s policy is to turn
every aspect of their lives over to grasping private
In the UK
the postal service was sold at a nominal price to
politically connected private interests. In the US
the Republicans, and perhaps the Democrats, intend
to privatize Medicare and Social Security, just as
they have privatized many aspects of the military
and the prison system. Public functions are targets
for private profit-making.
One of the
reasons for the escalation in the cost of the US
military budget is its privatization. The
privatization of the US prison system has resulted
in huge numbers of innocent people being sent to
prison, where they are forced to work for Apple
Computer, IT services, clothing companies that
manufacture for the US military, and a large number
of other private businesses. The prison laborers are
paid as low as 69 cents per hour, below the Chinese
America today. Corrupt police. Corrupt prosecutors.
Corrupt judges. But maximum profits for US
Capitalism from prison labor. Free market economists
glorified private prisons, alleging that they would
be more efficient. And indeed they are efficient in
providing the profits of slave labor for
Here is a
news report on UK Prime Minister Cameron denying
information about the effect of the Trans-Atlantic
partnership on Britains’ National Health.
Guardian, which often has to prostitute itself in
order to maintain a bit of independence, describes
the anger that the British people feel toward the
government’s secrecy about an issue so fundamental
to the well being of the British people. Yet, the
British continue to vote for political parties that
have betrayed the British people.
Europe, the corrupt Washington-contolled governments
have distracted people from their sellout by “their”
governments by focusing their attention on
immigrants, whose presence is a consequence of the
European governments representing Washington’s
interests and not the interest of their own peoples.
dire has happened to the intelligence and awareness
of Western peoples who seem no longer capable of
comprehending the machinations of “their”
government in the West is history. Nothing but
failure and collapse awaits Western civilization.
Paul Craig Roberts was Assistant Secretary
of the Treasury for Economic Policy and associate
editor of the Wall Street Journal. He was columnist
for Business Week, Scripps Howard News Service, and
Creators Syndicate. He has had many university
appointments. His internet columns have attracted a
worldwide following. Roberts' latest books are
of Laissez Faire Capitalism and Economic Dissolution
of the West,
Neoconservative Threat to World Order.