From Global Research, February 20, 2015
By Prof. John McMurtry
The IMF enforces the global money-sequence cancer system by its defining policy commands on debt-impoverished countries to open them up to foreign feeding on their domestic markets and fire-sale enterprises, drastically reduced workers’ wages and benefits, stripped public pensions, healthcare and education, sell-off of historic infrastructures to pay ever more bank-created debts, and – in general- multiplying transnational money demand and profit invading their life functions at all levels. The IMF and Wall Street have been cumulatively hollowing out Africa, Latin America, South-East Asia, South Europe and the US itself in these ways over 35 years. Now it is the turn of the once social democratic Europe, state by state, beginning with the most indebted and helpless. Ukraine on the outskirts of Europe next to Russia is where the military option has been required to strip it and its former Slavic economic union with Russia. This historic relationship has been the last line of life defense in the way, a conservative but sharing ethos of resource-rich societies with Putin as a superior leader facing the US-EU’s many-times more powerful economic levers and lethal arms to bully him and Russia into submission.
To take the naturally rich Ukraine for transnational bank and corporate looting, the public must be sold the story of Putin as the villain. Only then can debt screws be applied and the country opened to long-term and full-spectrum financial, foreign and oligarch control beneath the people’s notice. The IMF is already in motion to ensure that the Kiev coup state provides all of this. Few observe the underlying fact that the crushing bank debt eating societies alive across the world is all debt money created by big private banks with no legal tender to back 97% of it. Ukraine is the latest nation to fall into the deadly trap without a sound. Here public money for public need is ended, although it created the US itself. As Ben Franklin has testified, to regain public money issue was the prime reason for the American Revolution. Public banking was also what made modern Canada from 1938 to 1974 by public investment money without private debt-servicing loaned by the public Bank of Canada for construction of Canada’s material and social infrastructures from the St Lawrence Seaway to public pensions and universal healthcare.
The same is true of almost every society that has economically succeeded in the modern world. . The Depression and the War especially taught the world’s real leaders something about public banking as the only thing that works for real social development. Germany in peace, China, India, Japan in their most prosperous periods have all relied on public investment banking in some form. But the Wall Street counter-revolution happened invisibly in 1974 by Bank of International Settlements policy to stop governments from lending their own money for their public investments – the BIS being a coterie of bank heads meeting in Switzerland led by Wall Street bankers and with no accountability to any public interest or body. On the contrary, against their constitutional rights, all governments have been made accountable to the Wall Street system which runs the US Treasury and the IMF by the revolving door method. This silent BIS policy destroyed public investment free of the self-multiplying debt charges now eating away at every level of the Western economy including sovereign public investment. Ukraine, with few noticing, has just been privatized at the bank debt and investment level by the US-led coup state. Its arrangements with the IMF now loaning money on Wall Street permanent debt-servicing terms have replaced the $20 billion it had from Russia on payable public terms along with 30% cut-rate oil and gas.
This most far-reaching change of all has been erased from view by the official story – the delivery of Ukraine by the US-led coup into the ever-devouring funnels of the Wall-Street-and-company private banking system. With all the permanent new debt servicing of an already broken country spending its future debt on fighting a US-manufactured civil war fueled by neo-Nazi war thugs, Ukraine will be bled dry. A revealing example of how IMF debt bondage leverages transnational corporate control of Ukraine’s greatest resources is the new IMF $17 billion loan on the condition that Ukraine opens up its peerless vast stretches of black soil and fertile lands to the biotech cycles of Monsanto, Dupont, Deere and factory looting of the earth. Similar plans are also in motion for Big Oil racking of Ukraine’s large newly discovered gas deposits (fracking is prohibited in Russia).
The transnational corporate and bank looting of Ukraine is the shadow reason for the US block against any reasonable truce in the civil war that it has created. This is why a jackal government like Canada’s Harper’s refuses to respond to any diplomatic correspondence from Russia, blocking information flows, and proclaiming inflammatory falsehoods. The profound common life interests at stake are exactly what the war party is out to make impossible to act on. Ukraine is a prime agricultural land source of the world and Europe’s biggest landmass, and it is set for US-EU financial and corporate takeover. Ukraine is also facing the same ultimate crisis as every country and people – its government being mutated into a corporate satrap to ensure the country as an unlimited profit site at least costs and accountability for foreign corporate and local oligarch profit. It is a paradigm case of the carcinomic global dispossession that knows no growth but its own. But it is also the leading current case of armed resistance against this takeover. Donbas, Putin and Russia are alone in stopping the life-devouring system’s advance East, with Syriza in Greece the newly elected resistance within Europe.
All face the same stripping of collective life capital bases to grow the global money sequences of the apical few with no life function. Ukraine is the new major feeding zone opening towards Russia. Here as much as Greece, public assets are on the privatization block. Slash-and-burn budgets are set to service new unpayable debts to foreign banks, with far more rich natural and soil wealth to marketize and expropriate for debt servicing. Ukraine also has large and untapped fossil-fuel deposits, and it provides new strategic military control up to Russia’s main border and colossally rich natural resources on the other side.
Yet the operation of reverse blame goes from Iraq to Libya to Syria to Ukraine to Russia in one society destruction to the next. With one-way pervasive media abuse, cumulatively destructive sanctions, and incremental arming of neo-fascist-led Ukrainian forces, vast global power, treasure and most of all direction are at stake which affect all humanity. The line is drawn on the global disorder’s runaway aggression and trail of social ruin. Or it is stopped by intelligent mass resistance that does not let up.
Consider the systemic violations and subversions across the spectrum. The US government has refused to ratify the International Criminal Court to uphold the law against war crimes and crimes against humanity, and it has publicly repudiated the Court’s right to investigate US criminal violations including the “supreme crime” of initiating a war of aggression. While it perpetually invokes international laws to accuse others, it repudiates any life-protective law whatever in its actions. In truth, the US (and its key ally Israel) has systematically undermined virtually all international laws to protect human life – treaties and conventions against landmines, against biological weapons, against international ballistic missiles, against small arms, against torture, against racism, against arbitrary seizure and imprisonment, against military weather distortions, against biodiversity loss, against climate destabilization, and even international agreements on the rights of children and of women.