Moral Outrage
Whew! God help us!

Western banks and US Treasury the winners from IMF and World Bank moves

Revelations from Joseph Stiglitz, the World Bank’s former Chief Economist, include how the IMF and US Treasury fixed the Russian elections. Most ill-making for Stiglitz is that the US-backed oligarchs stripped Russia’s industrial assets, with the effect of cutting national output nearly in half, causing depression and starvation.

Stiglitz also told me about his unhappy meeting, early in his World Bank tenure, with Ethopia’s new president after the nation’s first democratic election. The World Bank and IMF had ordered Ethiopia to divert aid money to its reserve account at the US Treasury, which pays a pitiful 4% return, while the nation borrowed US dollars at 12% to feed its population. The new president begged Stiglitz to let him use the aid money to rebuild the nation. But no, the loot went straight off to the US Treasury’s vault in Washington.

In 1999 the World Bank fired Stiglitz. I “debriefed” Stigltiz over several days in April 2001. And here, from sources unnamable (not Stiglitz), we obtained a cache of documents marked, “confidential,” “restricted,” and “not otherwise (to be) disclosed without World Bank authorization.”

[From the findings of this interview] a pattern emerges: There are lots of losers in this system but one clear winner: the Western banks and US Treasury, making the big bucks off this crazy international capital churn.

GregPalast.com

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