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Global Financial Crisis Essay

Four years before the global financial crisis started in 2008, John Perkins published a book that exposes the American government’s modus operandi for creating economic havoc around the world. “Confessions of an Economic Hit Man,” writes the Financial Sense Newshour (2005), “which many people warned Perkins not to write, exposes the little known inner workings of a system that fosters globalization and leads to the impoverishment of millions of people across the planet.

” In his book, he explains how he covertly worked for the US government, pressuring foreign governments to borrow money from them to fund huge unnecessary or wasteful projects that they couldn’t afford. Meanwhile, US bankers were doing the same thing at home in the form of easy mortgage loans and high-risk mortgage securities that were sold to naive investors. Finally, people couldn’t pay back their debt, and a financial meltdown occurred.

This modus operandi, which Perkins calls “a game as old as empire,” was also used prior to the Great Depression and World War II; and if governments are not careful, history will repeat itself. Perkins is a former American economic hit man, who worked for the National Security Agency and private corporations, pretending to labor for the

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alleviation of poverty throughout the world. As he explains in the preface of his book (2004): Economic hit men (EHMs) are highly-paid professionals who cheat countries around the globe out of trillions of dollars.

They funnel money from the World Bank, the U. S. Agency for International Development (USAID), and other foreign “aid” organizations into the coffers of huge corporations and the pockets of a few wealthy families who control the planet’s natural resources. Their tools included fraudulent financial reports, rigged elections, payoffs, extortion, sex, and murder. They play a game as old as empire, but one that has taken on new and terrifying dimensions during this time of globalization. One of their global victims, for instance, is the Philippines.

The Westinghouse Corporation and the US government pressured the Philippine government to borrow money from them to fund a nuclear power plant in Bataan, costing $2. 3 billion to construct. The Philippine president, Ferdinand Marcos, was conned into signing a deal, and construction began in 1976. As the Inquirer (2007) reports, “Debt repayment on the plant became the country’s biggest single obligation. ” But Marcos was ousted through a people’s revolution in 1986, inspired by the assassination of his rival, Ninoy Aquino, which some claim to have been masterminded by the US Central Intelligence Agency (CIA).

Despite paying off the debt completely for 32 years, the Philippines never used the power plant because the succeeding administrations never saw the need for it and it became too costly to operate. As the Inquirer states, it “became the country’s biggest white elephant that never produced a single watt of electricity. ” Impoverished Filipinos were scammed, but Americans benefited through this deal. Many other countries suffer in the same way, all because of the US EHMs.

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