Time: Sat Dec 06 05:36:21 1997
From: Paul Andrew Mitchell [address in tool bar]
Subject: SLS: "Wall Street's Financial Terrorism" (fwd)
Bcc: sls

>Thought you may be interested in the enclosed column on the Asian banking
>crisis, written for the CHRONICLES magazine.  It is scheduled to run in the
>1Q98.  Some cosmetic editorial changes may be made for the print edition.
>Bob Dj.
>Global Business/Econ Column Written for the CHRONICLES magazine
>By Bob Djurdjevic
>DUNSBOROUGH, Western Australia - Parallels between the British Empire and
>the New World Order Empire are striking.  It's just that the British crown
>relied on brute force to achieve its objectives, while the NWO elite mostly
>use financial terrorism (except for occasional raw power demonstrations,
>such as in the Gulf War or in Bosnia).  The Great Asian Banking Crisis has
>just accentuated both the similarities and the differences between the two
>The British Empire was built by colonizing other countries, seizing their
>natural resources, and shipping them to England to feed the British
>industrialists' factories.  In the wake of the "red coats" invasions, local
>cultures were often trampled and replaced by a "more progressive" British
>way of life.
>The Wall Street-dominated NWO Empire is being built by colonizing other
>countries with foreign loans or investments.  When the fish is firmly on
>the hook, the NWO financial terrorists pull the plug, leaving the
>unsuspecting victim high and dry.  And begging to be rescued.  In comes the
>International Monetary Fund (IMF).  Its bailout recipes - privatization,
>trade liberalization and other austerity reforms - amount to seizing the
>target countries' natural and other resources, and turning them over to the
>NWO elites - just as surely as the British Empire did by using cruder
>In the wake of the IMF invasions, local cultures are also under assault
>world over, just as in Queen Victoria's time, being replaced by the "more
>progressive Western" (read materialistic) way of life.
>Whether McDonald's, Coca-Cola, Nike or the Hollywood film studios really
>represent a "progressive" culture is a dubious notion even in the U.S., let
>alone in East Asia, Russia or elsewhere in the world.  Just as is the
>perception that these multinational companies are "American" - presumably
>because of their headquarters' U.S. addresses.  The truth of the matter is
>that these "Princes of the 20th Century" honor only one flag - the Almighty
>Dollar.  As a result, the Main Street Americans are among the NWO's
>exploited victims, just as are their brethren in East Asia or Russia.
>Such misconceptions aside, there is no question, that McDonald's, Coke,
>Nike or Hollywood represent the visible symbols of the NWO's
>neo-colonialism.  They are the innocent-looking facades which mask the
>destructive work of Wall Street's financial terrorists which operate deep
>in the bowels of national economies.  
>"The financial turmoil in East Asia is a case in point," Malaysia's Prime
>Minister, Dr. Mahathir Mohamad, said on November 24 at the APEC (Asia
>Pacific Economic Community) conference in Vancouver, Canada.  "Two decades
>of growth was wiped out in two weeks... Vibrant economies have been reduced
>to begging for aid from the IMF."  Dr. Mahathir added that the free markets
>were "a recipe for slavery."
>True.  But during the post-Cold War market globalization and expansion
>(1990-1996), the Asia/Pacific region attracted about $375 billion in
>foreign investments, according to UNCTAD, a United Nations agency.  That's
>about 74 cents of every dollar the multinational companies had invested
>anywhere in the developing world ($505 billion).  And it is almost a
>quarter of all foreign investments made in the world during the same period
>($1.6 trillion - including the developed countries).
>The rate of growth of the Asia/Pacific investments was also the highest in
>the world - 29% compounded annually during the 1990s, almost double that
>for the world as a whole (16% compounded annually).  And then the bubble
>burst in the fall of 1997, and the recriminations followed.
>"Power corrupts," Dr. Mahathir lamented in Vancouver.  "As much as
>government can become corrupt when invested with absolute power, markets
>can also become corrupt when equally absolutely powerful.  We are seeing
>the effect of that absolute power today - the impoverishment and misery of
>millions of people and their eventual slavery."
>Also true.  But too late for East Asia.  And for Dr. Mahathir, whose
>country is supposed to host the next APEC conference.  Because GREED and
>quest for POWER of the East Asian leaders has already enslaved them.  "Dr.
>Mahathir, et. al." should have thought about that BEFORE taking the NWO
>bait (money).  Now that they are a penny short and a day late, remorse
>won't save them from the NWO/IMF brutal collection methods, anymore than
>pleading for mercy would work with Mafia debt enforcers.  Witness the quick
>buckling under of Indonesia, Thailand and Korea, for example, and even of
>Japan.  The once powerful and petulant "Asian Tigers" are all turning into
>obedient pets, wagging their tails fast and furiously to please the NWO
>But "one man's loss is another man's gain," they say.  The enormous flight
>of capital from East Asia, about $1.3 trillion between mid-August and
>late-November (the aggregate reduction in total capitalization of the 11
>East Asian stock exchanges), has landed mostly on the U.S. and European
>shores.  This positive cashflow (from the Euro-American perspective) has
>temporarily helped stabilize the Western stockmarkets after the Oct. 29 crash.
>Also, Bill Clinton, that unabashed champion of the Wall Street elite's
>causes, was all smiles at the Vancouver summit.  He reveled in the triumph
>which APEC's endorsement of the IMF represented.  Clinton even confidently
>predicted that he would eventually overcome his recent setback when he and
>Newt Gingrich failed in their efforts to cajole, bribe or muscle the
>majority of the House into approving the "fast track" trade bill.
>But the victory which Clinton delivered to his Wall Street and Big Business
>backers at the APEC summit was a loss for America's Main Street, including
>the small U.S. entrepreneurs - by far the most vibrant and productive
>element of the U.S. economy.  They CREATED 21 million American jobs in the
>1980s, while the FORTUNE 500 companies DOWNSIZED to the tune of three
>million people, according to a Sept. 20, 1996 Wall Street Journal report.
>And now, these American Main Street eager-beavers are about to be hit again
>by our NWO-controlled  government - to help fund the Wall Street elite's
>Asian bailouts.  Lest we forget, the IMF is a Western GOVERNMENT-supported
>"bank" in which the U.S. taxpayer is by far the largest guarantor.  So when
>Clinton, Gingrich, and other U.S. globalist politicians tell us that the
>IMF solution is the way to solve the current Asian banking crisis, they are
>talking about committing about 40 cents of every IMF bailout dollar out of
>the U.S. taxpayer's pockets.  Just as they did in the Mexican bailout in
>early 1995.  
>Never mind that the NWO elite are in the process of firing at least two
>million additional Americans in the 1990s, according to that Wall Street
>Journal 1996 report.  Thanks to their control of the U.S. media, they and
>their fair-haired boy - Bill Clinton - are still able to claim credit for
>the recent strength of the U.S. economy, while helping themselves to the
>pockets of the true American Main Street entrepreneurs.
>Which is why the NWO pages, like Clinton and Gingrich, don't herald as much
>the fact that their IMF bailouts mean using PUBLIC funds to bail out
>PRIVATE interests in FOREIGN countries.  
>Nor do our (however unfairly) ELECTED politicians get to make the calls
>about things like using taxpayers' money for private rescue missions.  The
>NWO's APPOINTED proxies in the Clinton cabinet do.  
>On Oct. 30, the U.S. Treasury Secretary and a former Wall Street tycoon,
>Robert Rubin, reportedly called the top Treasury and White House officials
>to tell them that he had agreed to contribute $3 billion of U.S. taxpayers'
>money to the IMF bailout of Indonesian banks.
>Get this - the Treasury Secretary told the President what sort of a deal he
>had cut with his Wall Street banking pals!  This kind of sums up who is
>really running this country and for whose benefit.  
>Which is why we should brace ourselves for these Wall Street and Washington
>hyenas helping themselves to the U.S. Treasury till a few more times for a
>few more tens of billions of dollars before the Great Asian Bailout is over.
>For, the amount of money needed to resuscitate other Asian countries could
>amount to more than $100 billion, double the Mexican rescue of 1995,
>according to a Nov. 17 Business Week report.  The potential price tag
>involves not only the $40 billion commitment to Indonesia, but an
>additional $23 billion to Thailand and the Philippines.  Financial markets
>are now betting that Korea, where debt-choked companies have also triggered
>a banking crisis, and the government is running low on foreign reserves,
>will need as much as $40 billion to clean up its mess. 
>"Recession is a foregone conclusion" as taxes and unemployment increase
>while spending is cut, one Korea analyst told the Sydney Morning Herald on
>Nov. 25.
>In Korea, six of the top 30 corporations have filed for bankruptcy this
>year alone.  If all of the bad loans were written off, the entire equity of
>Seoul's commercial banks would disappear.  But not just of Korean banks.
>The Japanese banks are also on the hook to the "Asian tigers" for some $263
>billion; the European banks for about $155 billion, while the American
>banks have lent them some $55 billion, Business Week estimated in a Nov. 17
>cover story.
>But it is in Japan and China - the biggest Asian markets - where the
>biggest troubles may be brewing.  
>Japan is in line for "a truly world class banking crisis," a world
>authority on international finance predicted in an interview with the
>Australian Financial Times (AFT, Oct. 30).  Dr. Morris Goldstein, the
>former deputy head of research for the International Monetary Fund, now
>with the Institute for International Economics in Washington DC, said that
>"systemic risk" is the highest in Japan.  
>He was spot on.  Subsequent failures of Hokkaido Takushoku Bank, of the
>100-year old Yamaichi Securities, of and of Tokuy Bank bore out the
>validity of Dr. Goldstein's forecast.  In late November, Moody's also
>downgraded the credit ratings of Long Term Credit Bank of Japan, Nippon
>Credit Bank, Mitsui Trust, Yasuda Trust and Chuo Trust.  
>A Jardine Fleming report suggested that the non-performing loans held by
>all Japanese banks could account for almost 23% of Japan's gross domestic
>product - a level surpassing even Thailand's failures (13%).  The notorious
>US savings and loan crisis was insignificant by comparison.  The cost to
>the public sector of solving that crisis was "only" around 3% of the GDP.
>Jardine Fleming estimates that the ultimate cost to the Japanese government
>will be 11% of the GDP or about $500 billion.  No question that would be "a
>truly world class crisis."
>And then there's China, that darling of the NWO globalist elite.  During
>the 1990s, China attracted $158 billion of foreign investments, more than
>any other country in the world except for the U.S., according to UNCTAD, a
>United Nations agency  Japan, by contrast, got only about $8 billion during
>the same period.  During the 1990s, foreign capital spending in China had
>grown at a compound annual rate of 52% - more than three times faster than
>the average world increase of 16% per year. 
>And the pace of the business world's fascination with China had been
>accelerating.  In 1996 alone, China received over $42 billion in foreign
>investments.  That's about one-third of all investments made in the
>developing countries last year.  And no wonder.  The master bailer had
>helped set the bait for the victims of its future bailouts.  In September
>1996, the IMF predicted that Asia would lead the world in 1997 with an 8%
>GDP growth.
>Now that a financial tsunami has hit Asia, and as analysts and economists
>scramble to lower their Asia forecasts, investors' enthusiasm is starting
>to ebb even in China.  Foreign investments contracted by about 35% in the
>first 10 months of 1997.
>In part, that's because China's top banks have about $90 billion in problem
>loans, according to Business Week's Nov. 17 report.  Despite nearly two
>decades of economic reform, the Chinese state still owns about 30% of the
>economy, employs two-thirds of the urban work force, and accounts for more
>than 50% of industrial assets, according to an Oct. 19 report in London's
>Sunday Telegraph filed by its Beijing correspondent.  There are more than
>300,000 state enterprises in China, and at least half are in debt.  
>To an economist, these behemoths cry out for sweeping reform, the Telegraph
>concluded.  Read - privatization, downsizing and layoffs, the IMF specialty.
>The country is wallowing in excess manufacturing capacity, and real estate
>in Shanghai and Beijing has been over-built.  A British visitor who has
>recently returned from a trip to China wrote to me on Nov. 6 that a member
>of the Shanghai Real Estate Board enthusiastically proclaimed: "Shanghai
>property is hot."  To which the Briton replied: "No, Shanghai property is
>empty."  The newly built malls and commercial buildings which she had
>visited "were all eerily empty."
>Because the foreign investors had talked themselves into spending hundreds
>of billions of dollars against the grossly inflated Asian economic growth
>projections.  And because the greedy local chieftains had talked themselves
>into believing that they can buy economic prosperity with borrowed money.  
>Well, now that the bubble has burst in Asia, both bankers and politicians
>are talking containment.  Which is why Clinton agreed at the APEC summit in
>Vancouver to hold a global conference on the banking crisis.  
>Meanwhile, while the financial elite debate how best to protect themselves
>by using public funds, much more than jobs and real estate are at stake in
>China and its neighbors in East Asia.  When factories falter so do cheap or
>free education, medical care, housing, and the broader sense of community
>that is part of urban life.  
>In Tianjin, for example, an industrial city an hour's drive from Beijing,
>some families have been plunged into poverty almost overnight after being
>laid off, the Telegraph reported.  All this has led the London daily to
>conclude that "China edges to the brink of a social breakdown" as tens of
>millions of Chinese workers face unemployment or even starvation.
>Ditto re. the tens of millions of workers in Korea, Japan, Thailand,
>Indonesia... They will bear brunt of The Great Asian Banking Crisis, not
>the NWO bankers and politicians who had caused it.  Stories about such a
>human impact of NWO's financial terrorism have been woefully absent from
>the front pages of the world media.
>Another thing which the recent Asia stories did not dwell on was that the
>big Japanese investors, including the ailing banks, owned $291 billion of
>U.S. Treasury bills as of July, or 8.5% of the total outstanding, according
>to a Wall Street Journal (WSJ) Oct. 29 report.  That's up from 5.4% or $176
>billion as of December 1994.
>In other words, in today's intricately interwoven global financial system,
>it is virtually impossible that a failure of the Japanese banking system
>would not affect other countries, including the U.S.  We've already seen
>how a stockmarket crisis which began in Hong Kong soon spread like a
>wildfire around the globe.  Even if the fire seems to be temporarily under
>control now, thanks in part to the Asian crisis (flight of capital), we are
>evidently not out of the woods yet.  
>Maybe that's why the U.S. Treasury Secretary, Rubin, warned his Japanese
>counterpart in a private letter disclosed by the New York Times on Nov. 13
>that the Japanese "should not be tempted to export their way out of their
>troubles."  Which is kind of like telling a drowning victim to keep gulping
>water instead of swimming.
>That's because one effect of the industrial globalization has been a huge
>U.S. trade deficit, which stood at $192 billion in 1996.  And if current
>trends continue, America's trade deficit with the rest of the world could
>expand to $250 billion to $300 billion by early 1999, according to David
>Hale, a trade economist with Zurich Insurance Group.
>As of August, the U.S. trade deficit with China ($5.2 billion), for
>example, was even bigger than that with Japan ($4.5 billion), or that with
>the entire Western Europe and Canada - combined! ($3.6 billion).  In 1997
>to-date, our deficit with China is running 30% ahead of last year's pace.
>So Rubin's remark seems to have been driven by a parochial U.S. industry's
>concern - losing market share to low priced imports from Japan or other
>Asian countries.  Yet those are precisely the benefits to consumers which
>the NWO globalists have hailed during the recent debate on "fast track"
>trade legislation.  
>So "free trade" advocates, such as Rubin, a former Wall Street tycoon,
>evidently have no trouble talking out of both sides of their mouths.  Moral
>corruption is another trademark (pun intended) of the Clinton administration.
>But another important conclusion one can draw from Rubin's remark is that,
>if the Japanese are not allowed by the NWO Empire to export their way out
>of trouble, then they may have no choice but to dump their huge U.S.
>T-bills holdings and other U.S. securities so as to feed the Nippon banking
>beast.  And if the Japanese pull out of the U.S., that would hardly be good
>news for the stockmarket, would it?
>So if you are a Wall Street investor, stand by for a few more
>roller-coaster rides of the Dow.  But if you are a Main Street entrepreneur
>or worker, brace yourself for a possibility of a global recession.  "If it
>(recession) spreads (from Korea) to Japan, then it goes all over the
>world," the Korea analyst referenced earlier also told the Sydney Morning
>Herald on Nov. 25.  
>What goes around, comes around - especially in globally integrated markets.
> The U.S. is no exception, just as the British Empire wasn't.  The only
>question is if the social unrest caused by the gouging of the NWO elite may
>also become a global affair and the ultimate downfall of the NWO.
>ATTRIBUTION: Bob Djurdjevic is a Phoenix-based writer and businessman.  He
>heads up Annex Research, a market research and consulting firm which
>analyzes global economic and geopolitical affairs
>(http://www.djurdjevic.com).  Djurdjevic is also the founder of Truth in
>Media, a non-profit organization (http://www.beograd.com/truth).  
>TOTAL: 2,900 words.
>Bob Djurdjevic 
>Phoenix, Arizona 
>e-mail: bobdj@djurdjevic.com 
>LINKS:  http://www.beograd.com/truth/
>        (Truth in Media home page) 
>        http://www.forbes.com/tool/html/97/oct/1021/col.htm
>        (Djurdjevic's Oct 1997 FORBES column, "Bet on Asian Large Caps") 
>        (Djurdjevic's Nov 1997 IM column, "Welcome to Asia/Pacific...
>        and Buckle Up" - IM is a WASHINGTON POST publication)
>        http://www.djurdjevic.com 
>        (Annex Research home page)

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