Article by David D’Amato.
For the world’s ruling classes, primed for the latest G20 summit this week, the seemingly colorless niceties of monetary policy have become the topmost theme of debate. And while the villains of the political class characterize monetary decisions as the technical and politically-neutral bailiwick of qualified experts, those decisions are a weight-bearing pillar of statist exploitation.
As the world economic order has dealt with the aftereffects of the financial crisis, China and the United States have exchanged barbs, both accusing the other of unfair manipulation of its currency. As a resolution of the discord and for the prevention of future imbalances, reports Reuters, U.S. Treasury Secretary Timothy Geithner has “called for a stronger International Monetary Fund.”
Geithner argued this week (March 31) that an empowered IMF would “shine a spotlight on risks” and “preempt the emergence of large imbalances in the global economy.” Contrary to Geithner’s glib assurances, however, imbalances and risks are part and parcel of the world’s statist financial framework. Moreover, the exploitative nature of the paradigm will remain intact regardless of the outcomes of China/U.S. squabbles.
Where the banking complex of the state allows favored corporations to, in the words of Murray Rothbard, “expand and inflate without cease” — to charge monopoly interest rates on money they don’t even have — workers are prevented by law from mobilizing their own wealth. Under coercive statist systems, the likes of Royal Bank of Scotland and Deutsche Bank can pull the money they lend you out of the ether, but ordinary people are prevented by the high hurdles of minimum capital stipulations from establishing institutions that would serve their needs.
From the World Bank to the Export-Import Bank of the U.S. and the Federal Reserve System, the entire financial structure of statist banking, both internationally and domestically, is a device not for the functioning of free markets, but for corporate welfare. The Ex-Im Bank, as an example, hands stolen taxpayer money to the dependencies of the American Empire to fabricate a foreign demand for the rubbish product (in particular weapons) of chosen Big Businesses.