Why does our government abet greed?
THE decision of President Benigno Simeon Aquino III to lend $1 billion to the International Monetary Fund to save the big banks in Europe from bankruptcy abets the greed of a few moneybags and an outright disregard of the misery they causing millions of common folks like us.
Europe is in an economic crisis after predatory banks mostly based in Germany and France nearly collapsed due to greed. The same thing happened in the United States four years ago when the “housing bubble burst” and consequently its economic activity almost grind to a halt throwing millions of Americans out of their jobs. The US economic stagnation continues to this day.
In their desire to earn big bucks fast and contrary to safe banking practices, European banking institutions (just like their American counterparts) massively engaged in financing in real estate deals and other speculative investments in industry and agriculture. These investments promise to bring in a lot of cash but are inherently unsecured.
As they merrily engaged in speculative transactions, these banks lend so much cash with gusto to poor European countries like Greece, Spain, Portugal and Ireland with an eye on earning a lot, not from debt repayment but on the ensuing debt cycle, despite clear indications of impending economic collapse in these countries.
Note that this is the same immoral tact that credit card companies have imposed on us poor folks. Studies done in the US showed that credit card companies of banks were ironically making a killing on earnings from delinquent debtors and not from those who pay their debts diligently. Thus these companies deliberately target poor folks as credit card clients.
The study also showed that greedy bankers and money lenders thrived in times of crisis and these are now the same people receiving billions in bail outs from governments.
Now that there is an economic recession in the poor European countries I mentioned, these banks are now demanding payment as they threaten to “economically bring all Europe and the world down.” The IMF is thus forced to move and organize a bail out of these greedy financial institutions.
The money we will lend to the IMF will go to this relief fund which will serve as a life vest for these “troubled” banks. In return we will be paid from the money that will be wrung from the poor people of the debtor countries who would suffer from the ensuing IMF imposed austerity programs.
These suffering will include, but not limited to, loss of public service, jobs, health care, good education and housing programs.
Now we are all familiar with and still suffering from these kind of misery since the IMF managed to hook us in debt from the time of former President Diosdado Macapagal when dismantled the nationalist policies of former President Carlos P. Garcia and liberalize our economy, a policy eagerly continued by succeeding presidents and his daughter Gloria Macapagal-Arroyo.
We are victims of the same IMF policies hence it is incomprehensible why we now allow our government to abet the bankers greed.
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