The Khazarian Occupation of America
ABOLISH THE UNITED STATES GOVERNMENT The United States Isn't a Country; It's a Corporation!
Wednesday, August 31, 2016
THE ROTHSCHILDS
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THE WORLD BANK
by Patrick M. WoodWednesday, February 01, 2006
Volume 6, Issue 2
from AugustReview Website
recovered through WayBackMachine Website
Introduction
According to The World Bank, it is,
High-minded words like "our mission of global poverty reduction and the improvement of living standards" would lead the reader to believe that the World Bank is some benevolent and global welfare organization.
Why is it then, that The World Bank joins the International Monetary Fund and the World Trade Organization as organizations that people around the world just love to hate?
In reality, the World Bank carries its weight, along with the International Monetary Fund and the Bank for International Settlements, to forcibly integrate minor countries of the world into its own brand of capitalistic democracy. World Bank Beginnings A sibling of the IMF, the World Bank was born out of the U.N. Monetary and Financial Conference at Bretton Woods, New Hampshire in July, 1944.
The original name given to the World Bank was the International Bank for Reconstruction and Development (IBRD) and reflects its original mission: to rebuild Europe after the devastation of World War II. The name "World Bank" was not actually adopted until 1975.
Both the IBRD and the IMF were created as independent specialized agencies of the United Nations, of which they remain to this day. The word "Development" in the IBRD name was rather insignificant at the time because most of the southern hemisphere was still under colonial rule, with each colonial master responsible for the business activities in their respective countries. Note: It is argued by some that there was an original desire by banking elites to put an end to colonialism by restructuring investment and trade patterns in colonized countries. This paper will not deal with this issue, but it should be noted that this has been exactly what has happened, in many cases being aided by the operations of the World Bank and the IMF. As a "reconstruction" bank, however, the World Bank was impotent. It ultimately loaned only $497(US) million for reconstruction projects. The Marshall Plan, by contrast, became the true engine of the reconstruction of Europe by loaning over $41(US) billion by 1953. The primary architects of the World Bank were Harry Dexter White and John Maynard Keynes, both of whom are summarized Global Banking: The International Monetary Fund as follows:
Structure of the World Bank Today, the World Bank consists of two primary units: The already-mentioned IBRD and the International Development Association (IDA), which was created in 1960. The IBRD lends only to governments who are credit-worthy; in other words, there is an expectation that they will repay their loans. The IDA, by contrast, only lends to governments who are not credit-worthy and are usually the poorest nations. Together, they create a "one-two" punch in global lending to any government that they are able to talk into borrowing. The U.S. currently contributes about $1 billion per year of taxpayer funds to the IDA. Three other affiliates combine with the World Bank, to be collectively called the World Bank Group:
IBRD funds its lending operations by selling AAA-rated bonds and other debt instruments to other banks, pension funds, insurance companies and corporations around the world.
By contrast, the IDA is funded by (taxpayer) contributions from member countries. Annual levels of lending is roughly equal between IBRD and IDA. While the IFC generates its own capital in open markets, MIGA and ICSID receive the majority of their funding from the World Bank, much of which is taxpayer funded.
Ownership of the World Bank consists of voting shares held by member countries, according to size and contributions. Currently, the U.S. is the largest shareholder with 16.4 percent of total votes. The next largest voting blocks are Japan (7.9 percent) and Germany (4.5 percent).
Because major decisions require an 85 percent super-majority vote, the U.S. can effectively veto any change (100% -16.4% = 83.6%).
American Hegemony It should be noted that the United Nations is headquartered in the United States, on land originally donated to it by David Rockefeller. The Bretton Woods Conference was held in New Hampshire. Every president of the World Bank has hailed from the United States. It is no wonder that the rest of the world views the World Bank as an American operation. There has been an unwritten but traditional rule that the World Bank president will always be an American, while the president of the IMF is European. (A recent exception to this is the current IMF president, who is Canadian) It is instructive to review the past presidents of the World Bank, because it demonstrates which elite cabal is really in control of World Bank operations. In turn, this will point strongly to the real beneficiaries of the World Bank hegemony.
The complete biographies and accomplishments of these men far exceed the available space in this report, so only a few highlights are noted.
An important pattern emerges here. These men frame a 50-year time period stretching from 1946 to 2006.
The early players have long since passed away. There was no social connection between the early and latter presidents.
Yet, seven out of ten are members of the Council on Foreign Relations; four are members of the Trilateral Commission, seven have major global bank affiliations (Chase Manhattan, J.P. Morgan, Bank of America, First Boston, Brown Brothers, Harriman, Salomon Brothers, Federal Reserve), and four men were directly connected to Rockefeller interests.
A detailed analysis is not required to see the pattern emerge: Global bankers (the same old crowd) and their related global proxies, have completely dominated the World Bank for its entire history. Collectively and individually, they have always operated purposefully and consistently for their own self-interested, financial gain.
Why would anyone expect even one of them to act out of character (e.g., be concerned for world poverty) while directing the helm of the World Bank?
Purposes of convenience Whatever the true purposes of the World Bank and IMF might have been, the publicly displayed purposes have changed when it was convenient and necessary. In 1944, reconstruction of war torn countries after WW II was the important issue. When the Bank demonstrated its impotence by loaning only a pittance of less than $500 million, it changed its pubic image by positioning itself as a check and balance to the expansion of communism. Without the World Bank to engage all of the lesser countries of the world who were susceptible to communist influence, communism might spread and ultimately threaten to end the cold war with an ugly nuclear Holocaust. Public and legislative sentiment ultimately fizzled and the Bank was again under heavy criticism when Robert Strange McNamara was appointed president. Poverty Reduction - Trojan Horse As noted above, McNamara was president of the World Bank from 1968 through 1981. He was also among the original membership of the Trilateral Commission, founded in 1973 by Rockefeller and Brzezinski, and was widely considered to be a central figure in the global elite of his day. It was McNamara who caused the focus of the World Bank to fall on poverty and poverty reduction. This has essentially remained the siren call right into the present. This was a brilliant maneuver because who would ever say they are anti-poor or pro-poverty? Any attack on the Bank would thus be viewed as an attack on poverty relief itself. From 1968 onward, the battle cry of the Bank has been "eliminate poverty." This is clearly seen on the About Us page of the World Bank web site, where these words are prominently displayed:
However, Article I of The Articles of Agreement of the IBRD, as amended on February 16, 1989, state its official Purposes as follows:
The Bank shall be guided in all its decisions by the purposes set forth above.3
Note that the word "poverty" does not appear even once. The reason is clear: Whatever "business as usual" might be with the Bank, it has nothing to do with poverty or poverty reduction. Rather, the Bank is in business to loan money by stimulating borrowing demand in developing countries, with a view to increasing international trade. The primary beneficiaries of international trade are the global corporations, and the poor are actually poorer as a result. This hypocrisy was noted even by Nobel laureate and former World Bank chief economist, Joseph Stiglitz, as late as 2002:
Liberalization and Structural Adjustments
When Alden Clausen (also an original member of the Trilateral Commission) took over the reins from Robert McNamara in 1981, a massive shakeup in the bank occurred. As Stiglitz noted,
Clausen, a true core member of the global elite, brought in a new chief economist with radical new ideas:
This was precisely the time when so-called liberalization policies and Structural Adjustments were forcefully implemented as a means of forcing countries to privatize industries.
If governments were the problem, then they should turn over areas of critical infrastructure to private multinational corporations which, according to Krueger, could perform better and more efficiently than bureaucratic government bodies.
Not surprisingly, most of the career staff economists left the Bank in the early 1980’s in protest over Clausen and Krueger’s policies. How the Money Laundry Works The mechanism and operation of Structural Adjustments, along with the tight cooperation between the IMF and the World Bank, was adequately covered in The August Review’s Global Banking: The International Monetary Fund.
The following well-documented example will be the "picture worth a thousand words" in the Review’s effort to profile self-serving Bank and global corporate policies. It also demonstrates the "tag-team" approach used by the Bank and IMF in the prying open of closed markets in uncooperative countries.
It’s a rather tangled story, but careful reading will produce understanding of how the "system" works.
Water Wars In 1998, the IMF approved a loan of $138 million for Bolivia it described as designed to help the country control inflation and stabilize its domestic economy.
The loan was contingent upon Bolivia’s adoption of a series of "structural reforms," including privatization of "all remaining public enterprises," including water services.
Once these loans were approved, Bolivia was under intense pressure from the World Bank to ensure that no public subsidies for water existed and that all water projects would be run on a "cost recovery" basis, meaning that citizens must pay the full construction, financing, operation and maintenance costs of a water project. Because water is an essential human need and is crucial for agriculture, cost recovery pricing is unusual, even in the developed world.
In this context, Cochabamba, the third largest city in Bolivia, put its water works up for sale in late 1999. Only one entity, a consortium led by Bechtel subsidiary Aguas del Tunari, offered a bid, and it was awarded a 40-year concession to provide water. The exact details of the negotiation were kept secret, and Bechtel claimed that the numbers within the contract are "intellectual property."
But, it later came to light that the price included the financing by Cochabamba’s citizens of a part of a huge dam construction project being undertaken by Bechtel, even though water from the Misicuni Dam Project would be 600% more expensive than alternative water sources.
Cochabambans were also required to pay Bechtel a contractually guaranteed 15% profit, meaning that the people of Cochabamba were asked to pay for investments while the private sector got the profits.
Immediately upon receiving the concession, the company raised water rates by as much as 400% in some instances. These increases came in an area where the minimum wage is less than $100 a month. After the price hike, self-employed men and women were estimated to pay one quarter of their monthly earnings for water. The city’s residents were outraged. In January of 2000, a broad coalition called the Coordination for the Defense of Water and Life, or simply La Coordinadora, led by a local worker, Oscar Olivera, called for peaceful demonstrations.
Cochabamba was shut down for four days by a general strike and transportation stoppage, but the demonstrations stopped once the government promised to intervene to lower water rates. However, when there were no results in February, the demonstrations started again. This time, however, demonstrators were met with tear gas and police opposition, leaving 175 injured and two youths blinded.
The threat that privatization of public services under GATS (General Agreement on Trade in Services) poses to democracy were demonstrated in March 2000. La Coordinadora held an unofficial referendum, counted nearly 50,000 votes, and announced that 96% of the respondents favored the cancellation of the contract with Aguas del Tunari. They were told by the water company that there was nothing to negotiate. On April 4, the residents of the city returned to the streets, shutting down the city. Again, they were met with police resistance, and on April 8, the government declared martial law. The Bolivian military shot a 17-year-old protester in the face, killing him. However, the protests continued, and, on April 10, the government relented, signing an accord that agreed to the demand of the protesters to reverse the water concession. The people of Cochabamba took back their water. Unfortunately, this inspiring story didn’t simply end with the victory for the people of Cochabamba.
On February 25, 2002, Bechtel filed a grievance using investor protections granted in a Bolivia-Netherlands Bilateral Investment Agreement at the World Bank, demanding a $25 million dollar payment as compensation for lost profits.7
Note: Bechtel Engineering is the largest civil engineering company in the world. It is privately owned by the Bechtel family. For many years, general counsel (and vice-president) for Bechtel was none other than original Trilateral Commission member Caspar Weinberger. Since then, the World Bank has granted additional "poverty reduction" loans to Bolivia. Carefully read the Bank’s current (2006) assessment on Bolivia found on its web site:
Political and social disturbances? Difficult economic, political and social climate? Profound inequality? Widespread disenchantment with corruption? It leaves one speechless.
So, in the case of Bolivia, we see the following in operation:
This kind of operation is brazen stealing (albeit perhaps legally) of funds from everyone in sight: Bolivia, the city of Cochabamba, the people of Cochabamba, U.S. taxpayers.
The only beneficiaries are Bechtel, the commercial banks and a few corrupt politicians who got their customary bribes and kickbacks.
A penetrating question remains to be answered: When did Bechtel first set their sights on the Bolivia deal? Did Bechtel have a role in suggesting or creating the conditionalities and Structural Adjustments specified by the World Bank in the first place? If so, there would be grounds for criminal investigation. It is not likely that the World Bank will tell us, because of its very secretive inner workings. Even Stiglitz has noted,
Corruption The World Bank has received accusations of corruption for many years. Since the Bank is an independent specialized agency of the United Nations and considering the old adage, "The fruit doesn’t fall far from the tree", this might not come as a surprise to most.
The United Nations has a major and documented track record on corruption of every conceivable sort. It would be too simplistic to just leave it at that.
In May, 2004, Sen. Richard Lugar (R-Indiana), as Chairman of the Foreign Relations Committee, kicked off the most recent inquiry into corruption related to the activities of the multilateral development banks, of which the World Bank is foremost. The heads of the various development banks were invited to testify (voluntarily) before the Committee. According to Sen. Lugar, James Wolfensohn,
Witnesses before the Committee testified that as much as $100 billion may have been lost to corruption in World Bank lending projects.
In Sen. Lugar’s opening remarks, he points out that the entire history of the World Bank is suspect, with between 5 percent and 25 percent of all lending being lost to corruption.
One must wonder why World Bank officials have been so sloppy and careless with taxpayer dollars. Even further, one must wonder if the corruption was a necessity to achieve the underlying purposes of the Bank, that is, to create bogus and unwanted projects in order to "stimulate" trade.
Sen. Lugar continued his opening remarks,
It has not been determined which Bank employees might have taken bribes in exchange for influence, but one can be sure that any deal starting with corruption only has one direction to go - down.
In the end, it is helpless individuals who are left holding the bag. The incurred debts and failed projects just add to the impoverishment of already poor people.
This is not to say that charges of corruption at the World Bank are modern revelations only. In 1994, marking the 50th anniversary of its creation at Bretton Woods, South End Press released "50 Years is Enough: The Case Against the World Bank and the International Monetary Fund,." edited by Kevin Danaher. The book details official Bank and IMF reports that reveal the same kind of corruption back then.
In addition, it revealed different types of corruption, for instance,
The text speaks for itself and needs no comment. Readers of this report will likely have a better understanding of where the money went!
Conclusions This report does not pretend to be an exhaustive analysis of the World Bank.
There are many facets, examples and case studies that could be explored. In fact, many critical and analytical books have been written about the World Bank. The object of this report was to show how the World Bank fits into globalization as a central member in the triad of global monetary powers: The IMF, the BIS and the World Bank.
The World Bank is likely to continue to operate despite any amount of political flack or public protest. Such is the pattern of elitist-dominated institutions. Such is the history of the International Monetary Fund and the Bank for International Settlements. It is sufficient to conclude that...
Footnotes
NOTE: Carl Teichrib, Senior Fellow at World Research Library, contributed to this report
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