In the 70s when Carter became president the United States decided to raise interest rates and suddenly all the third world, developing countries were unable to pay the huge interest on their loans and nations collapsed leaving them to privatize industries and resources ad dismantle services that were contributing to the growth of the country. These countries suffered, while the west profited. America was suddenly ruling the global economy with free trade. After this there is an emergence of the formation of a global bank and economy. Due to Globalization and the ruling of the economy by huge corporations the gap between rich and poor and the economy plunges.
In the 1990s, the ‘new world order’ was born, with America ruling the global economy, free trade agreements began integrating regional and global markets for the benefit of global banks and corporations, and speculation dominated the economy.
The global economic crisis arose as a result of decades of global imperialism – known recently as ‘globalization’ – and the reckless growth of– speculation, derivatives and an explosion of debt. As the economic crisis spread, nations of the world, particularly the United States, bailed out the major banks (which should have been made to fail and crumble under their own corruption and greed), and now the West has essentially privatized profits for the banks, and socialized the risk. In other words, the nations bought the debt from the banks, and now the people have to pay for it.
To manage the economic crisis, the G20 was established as the major international forum for cooperation among the 20 major economies of the world, including the major developing – or emerging – economies, such as India, Brazil, South Africa and China.
The Bank for International Settlements( BIS) the central and the oldest focal point for coordination of global governance arrangements. The President of the European Union, appointed to the position after attending a Bilderberg meeting, declared 2009 as the “first year of global governance.” The 2009 Bilderberg meeting reported on the desire to create a global treasury, or global central bank, to manage the world economy.
In 2009, prior to the Bilderberg meeting in fact, the G20 set in motion plans to make the IMF a global central bank of sorts, issuing and even printing its own currency – called Special Drawing Rights (SDRs) – which is valued against a basket of currencies. In May of 2010, the IMF Managing Director stated that “crisis is an opportunity,” and while Special Drawing Rights are a step in the right direction, ultimately what is needed is “a new global currency issued by a global central bank, with robust governance and institutional features.” Thus, we see the emergence of a process towards the formation of a global central bank and a global currency, totally unaccountable to any nation or people, and totally controlled by global banking interests.
Title: From Global Depression to Global Governance
Author: Andrew Gavin Marshall
Source: Global Research, October 19, 2010
Student Researcher: Katie Havens, Sonoma State University
Faculty Advisor: Cynthia Boaz, Sonoma State University