John Perkins is the author of the book Confessions of an Economic Hit Man. In this book he described ways in which International Monetary Fund (IMF) and the World Bank actually force countries to borrow huge loans under promise that their economy would strive and blossom. Instead, these countries become the victims of unsustainable debt burden.
The term economic hit men describes a person whose job is to recognize countries which could be of interest to a certain organization and persuade the official people of those countries to take on a huge loan. The purpose of these loans is to enable the companies which lend the money to build infrastructure projects in those countries. These countries become bound by debts and then IMF acts on behalf of the company which lent the money and imposes harsh austerity policy on the country. Greece is the latest victim of an economic hit man.
Their strategy usually involves presenting politicians with overly optimistic growth forecasts which in truth have no resemblance to reality. The result of such investments can be observed initially. However, they only result is wealthy people getting wealthier and poor people becoming poorer. These forecasts which show the economy growth serve to justify these horrendous debilitating loans.
Countries which are targeted by these powerful organizations are rich in many resources like minerals and oil, strategic location, big marketplace and cheap labor and many others.
According to Perkins, indebted countries are forced to adopt policies that will sell their publicly owned utility companies, water and sewage systems, maybe schools, transportation systems, even jails, to the big corporations.
The corporate power behind such organizations controls the politics of the United States, to some degree in China and around the world. He calls this corporate power the corporatocracy.
Perkins sees the crisis in Greece as a typical example of economic hit man’s target. Unfortunately, people of Greece are now forced to pay for the mistakes of their officials. People are let to believe that they are to blame for everything, that they made the wrong choices, when the truth is that they were guided by their bankers into making the wrong choices. People are wrong and the corporations are right.
And this happens all around the world. Greece is only the latest example of this conspiracy. Based on Perkins, the only solution is to put people back to work and rehabilitate the economy instead of forcing harsh austerity policy on people.
The people should fight for their rights, since presidents can be taken down by a bullet, sex scandal, drug scandal if they push too hard against corporatocracy. The president is in charge of a country, but he is just one man and he can be taken out in a second. However, it is up to people to fight.
He mentioned Iceland as an example of the country where people voted against the referendum to repay their debt. In addition to this, Iceland has invested in programs that put people back to work and now is doing quite well economically compared to the rest of Europe. The people of Iceland decided not to accept austerity. Instead they invested that money into putting people back to work.
One of the ways for Greece to overcome this crisis is to overcome the 28 percent of unemployment rate. The level of employment has to be increased so that disposable income is back up and people can invest in their country and in goods and services.
As a conclusion he stated that people of Greece should take their stance and decide not to pay off those debts. He added that people of Greece should not accept criticism and austerity. The strength of middle class should be increased, people should be put back to work in order to get the money flowing into Greece’s economy. People of Greece must show the world that they are warriors and leaders in democracy like it is well documented in the history.