How the world pimps America
Pepe Escobar: And how the US is shifting the crisis into the rest of the world
The US Treasury will borrow one trillion dollars from the developing world in 2009. This figure will increase even further in 2010. The Real News Analyst, Pepe Escobar, argues that the US is in a privileged position: not only has it unleashed a global financial crisis, it “turns into a black hole and sucks up money from all across the world”. This is based on the fact that the US remains the “manager” of choice of global capitalism, taking money “from the periphery to the masters of the universe in New York and Wall Street”. As if this was not hardship enough for the developing world, it now also has to cope with the resurgence of the discredited Word Bank and IMF.
US Secretary of the Treasury Tim Geithner, handled a similar financial crisis in the past, the Asian financial crisis of 1997/98, in which he designed what economist Dean Baker warned, and what Australian Prime Minister Paul Keating confirmed, was a failed bailout strategy. Nevertheless, Geithner and US President Obama continue to insist that pumping money into the insolvent US market is the answer to our current global financial crisis. This could set the US up to drown further under its own global capitalism and bring the international community down with them.