Tag: #AbolishIMF

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IMF: 80 Years of Economic Slavery—And Its Coming Collapse ( Part 2)

1. Birth of a Loan Shark (1944-1971)

  • Bretton Woods Plot: Created by US/UK to enforce dollar dominance. (The Bretton Woods system required countries to guarantee convertibility of their currencies into U.S. dollars to within 1% of fixed parity rates, with the dollar convertible to gold bullion for foreign governments and central banks at US$35 per troy ounce of fine gold (or 0.88867 gram fine gold per dollar). It also envisioned greater cooperation among countries in order to prevent future competitive devaluations, and thus established the International Monetary Fund (IMF) to monitor exchange rates and lend reserve currencies to countries with balance of payments deficits-Wikipedia)

    Image 1: The Bretton Woods agreement established a new international monetary system in 1944, with gold as the basis for the U.S. dollar and fixed exchange rates.

     

  • Original Sin: Loans tied to gold-backed dollars (until Nixon killed the gold standard in 1971). https://www.federalreservehistory.org/essays/gold-convertibility-ends

  • Early Victims:

    • 1953 Iran: IMF backed UK/US coup after Mossadegh nationalized oil. ( The 1953 Iranian coup d’état, known in Iran as the 28 Mordad coup d’état (Persian: کودتای ۲۸ مرداد), was the overthrow of Prime Minister Mohammad Mosaddegh on 19 August 1953. It was orchestrated by the United States (CIA) and the United Kingdom (MI6). A key motive was to protect British oil interests in Iran after Mossadegh nationalized and refused to concede to western oil demands. It was instigated by the United States (under the name TP-AJAX Project or Operation Ajax) and the United Kingdom (under the name Operation Boot)-Source: Wikipedia)

      Image 2: Confirmation for execution of Operation Ajax

    • 1965 Indonesia: IMF supported Suharto’s massacre of communists for corporate access. ( Large-scale killings and civil unrest primarily targeting members and supposed sympathizers of the Communist Party of Indonesia (PKI) were carried out in Indonesia from 1965 to 1966. Other affected groups included alleged communist sympathisers, Gerwani women, trade unionists,[15] ethnic Javanese Abangan,[2] ethnic Chinese, atheists, so-called “unbelievers“, and alleged leftists in general. According to the most widely published estimates at least 500,000 to 1 million people were killed, with some estimates going as high as 2 to 3 million-Source Wikipedia)

      Image 3: The events of 1965-66 have been taboo for over 50 years in Indonesia

       

2. The Debt Trap Era (1971-2000)

  • Oil Crisis Weaponized: Petrodollars recycled into IMF loans for Global South.https://www.imf.org/en/News/Articles/2015/09/28/04/53/sp032306a

    Image 4: Recycling Petrodollars

  • Structural Adjustment: Template to loot nations:

    1. Cut social spending (hospitals, schools). https://roape.net/2025/01/08/debt-and-austerity-the-imfs-legacy-of-structural-violence-in-the-global-south/

      Image 5: programs include structural benchmarks or general advice to lower the public wage bill, generally through freezing hires and capping or lowering salaries

    2. Privatize resources (water, mines, electricity).https://www.iatp.org/sites/default/files/IMF_Forces_Water_Privatization_on_Poor_Countri.htm

      Country IMF Program Loan Condition Summary of Policy
      ANGOLA Staff-monitored program Structural benchmark: Adjust electricity and water tariffs in accordance with formulas agreed with the World Bank. Reduce accounts receivables of the water and electricity companies to one month of sales revenue Adjust water tariffs periodically to recover costs, including a reasonable return on capital.
      BENIN Poverty Reduction and Growth Facility (PRGF) Other measure: After the revision of regulatory framework, the government expects to complete the privatization before the end of the third quarter of 2001 Privatize the water and electric power distribution company (SBEE)
      GUINEA-BISSAU Emergency Post-Conflict policy Structural benchmark: Transfer of electricity and water management to private company Transfer of electricity and water management to private company
      HONDURAS Poverty Reduction and Growth Facility (PRGF) Other measure: Approve framework law for the water and sewage sector by December 2000 To facilitate private concessions in the provision of water and sewage services, approve the framework law by December 2000.
      NICARAGUA Poverty Reduction and Growth Facility (PRGF) Structural benchmark: Continue adjusting water and sewage tariffs by 1.5% a month. Offer concession for private management of regional water and sewage subsystems in Leon, Chinandega, Matagalpa, and Jinotega. Adjust water and sewage tariffs to achieve cost recovery and offer concession for private management in key regions.
      NIGER Poverty Reduction and Growth Facility (PRGF) Other measure: Divestment of key public enterprises, including the water company, SNE. Privatization of the four largest government enterprises (water, telecommunication, electricity & petroleum) have been agreed with the World Bank with the proceeds going directly to pay Niger’s debt.
      PANAMA Stand-By Arrangement Structural benchmark: Complete plan to overhaul IDAAN’s (state-owned water company) billing and accounting systems, allow to contract with private sector operators, determine need for tariff increase and possible rate differentiation among clients. Overhaul the water company’s billing and accounting systems, allow it to contract with private sector operators, review the tariff structure.
      RWANDA Poverty Reduction and Growth Facility (PRGF) Structural benchmark: Put the water and electricity company (Electrogaz) under private management by June 2001. The water and electricity company (Electrogaz) will be put under private management as a prelude to its privatization.
      SAO TOME AND PRINCIPE Poverty Reduction and Growth Facility (PRGF) Structural benchmark: The new adjustment mechanism for public water and electricity rates will be brought into operation by decree. The price structure will cover all production and distribution costs as well as the margin of the water and electricity company. The accounts will balance consumption and resources without recourse to government subsidies. In May 2000, the government conducted a study of alternatives for the future of the water and electricity company (restructuring, leasing, concession or full privatization), with assistance from the World Bank. By December 2000, it will select one of the options and adopt a financial restructuring plan, and strengthen the revenue collection procedures.
      SENEGAL Poverty Reduction and Growth Facility (PRGF) Other measure: Regulatory agency for the urban water sector will be created by end-2000. Transfer the recurrent costs of water pumping and distribution equipment to the communities. Increase the involvement of private sector operators. Encourage the involvement of private sector operators in the water sector. Assess the possibility of private sector operation and financing of the infrastructure required to meet Dakar’s long-term water needs.
      TANZANIA Poverty Reduction and Growth Facility (PRGF) Condition for HIPC debt relief: Assign the assets of Dar es Salaam Water and Sewage Authority (DAWASA) to private management companies. Assign the assets of Dar es Salaam Water and Sewage Authority (DAWASA) to private management companies.
      YEMEN Poverty Reduction and Growth Facility (PRGF) Structural benchmark: Implement adjustments in water, wastewater, and electricity tariffs to provide for full cost recovery. Implement formulas for automatic adjustments in tariff rates to ensure full pass through of product prices and full cost recovery; establish regional water authorities with private sector participation and independence to set regional tariff structures.
  • TABLE I: Countries with IMF-imposed water privatization and cost recovery policies(Source: Letters of Intent and Memoranda of Economic and Financial Policies prepared by government authorities with the staffs of the International Monetary Fund and World Bank. The documents are made available at the IMF website: www.imf.org.)
    1. Devalue currency → hyperinflation → riots. (Exsample: https://www.theguardian.com/world/2016/nov/03/egypt-devalues-currency-meet-imf-demands-loan)

  • Body Count:

3. Modern Colonialism (2000-2024)

4. BRICS: The Executioner

  • New Development Bank:

    • No austerity clauses.

    • Local currencies accepted.

https://www.linkedin.com/pulse/brics-new-development-bank-ndb-vs-bretton-woods-imf-david-vichet-uvpof

Image 8: IMF crimes vs. BRICS rise