IMF “Shock Therapy”

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Great description of how the IMF destroys countries for the purpose of asset stripping.

IMF Continues To Asset Strip Ireland

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When Ireland announced that the IMF was being called in to provide assistance via a bailout program, the first thing that hit my mind was what were they after. We know from economic hitmen like John Perkins that the IMF leaves a country so hocked up in debt that it has to sell of its assets. Skills that were developed in Africa and South America are now coming to Europe. Ireland has already announced what is to be stripped as agreed to with the IMF and now one of the most profitable companies(Bord Gais) is about to floated.

When Ireland floated the national telephone company (Telecom Eireann) in 1999 now called eircom, it turned out to be a disaster. The employees were given 15% of the company as a sweetener not to strike and block the floatation thus denying further revenue for the state. The IPO price was way to high, causing many Irish investors (entire country encouraged to get involved) to lose their shirts. Then after a series of companies took it over including Vodafone, the company was asset stripped and now finds itself bankrupt.

So what can we expect? Well the irish taxpayer will get screwed, the asset will be floated or sold at the worst possible time, foreign companies will take advantage to strip it and finally the taxpayer will be left to pick up the pieces minus a great asset that pays a dividend.


THE Government is set to tender for advisers to manage the flotation of Bord Gais Energy later this year or early next year.

The tender will pave the way for the biggest initial public offering since the privatisation of Eircom back in 1999 and generate millions of euro for Dublin’s hard-pressed stockbroking and legal communities.

The National Treasury Management Agency, which is managing the sale of state-owned assets on behalf of the Government, will put up a detailed tender on the Government’s tender website as well as tendering at European level. Investment bank Barclays Capital was hired by the NTMA earlier this year to advise on the sale options for Bord Gais but the work for the entire project must now be put up for tender.

The Government must sell state assets under the terms of the 2010 bailout deal which called on the State to raise at least €2bn from the sale of state-owned assets. Some of the money will be used for job creation schemes while the rest will be used to repay debt.

Energy Minister Pat Rabbitte plans to sell Bord Gais Energy which buys gas and electricity on the wholesale markets, sells power to homes and businesses and operates energy plants. Solicitors William Fry estimates that the units will raise €1.5bn.

Interesting that one of the assets for sale is Coillte (national forestry) which owns 7% of the state. Former Taoiseach (Prime Minister) Bertie Ahern had a massive study into what minerals etc were under the land. He refused to have the study published so he obviously know where the “good stuff” is. Guess who is chairperson of the International Forestry Fund, which has expressed an interest in buying Coillte lands should they come on to the market. You got it, Bertie Ahern. Hmm, a cynic might say that he compiled the study a few years before things went bad, putting himself in a great position to take advantage, bearing in mind he never published the study.

The State will retain ownership of the gas transmission and distribution systems and the two gas interconnectors which link the UK and Ireland. The Government is also considering the sale of the remaining stake in Aer Lingus and forests belonging to Coillte.

Managing a share offering is big business for the financial, legal and public relations advisers that help shepherd a company on to the stock exchange.

The flotation of Eircom cost the government of the day £80m (€101m) some 13 years ago. The flotation of Aer Lingus in 2006 was another bonanza for advisers with the State shelling out €18m.

The 1999 Eircom sale was led by Merrill Lynch and Allied Irish Bank with help from ABN Amro Rothschild, Dresdner Bank, Morgan Stanley Dean Witter and SG/Paribas.

Source: Irish Independent

IMF’s Track Record And Tactics

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Anyone with an understanding of the IMF knows it leaves countries worse off after it leaves than before it came. This week Christine Lagarde is in the US looking to raise a further $500 billion to pump into Europe. James Corbett explains it little further above it previous adventures and how it deliberatly destroys a country so it can be raped.

In the 1990s the IMF put “stipulations” on their loan package for Brazil that required amendments to the country’s constitution, and then lobbied extensively for those changes. Between the start of IMF involvement in Peru in 1978 and the second round of loans in the 1990s, the appropriately acronymed SAP (structural adjustment program) managed to quadruple illegal coca production by devastating local farmers and leaving them to choose between growing coca or starving. They chose coca.

There are countless other disasters. And countless swindles. Billions of dollars in IMF loans to Russia in the 1990s were diverted straight into the Swiss bank accounts of oligarchs and gangsters. One $4.8 billion dollar loan program administered by the fund in 1998 went in one door of the Russian central bank and straight out the other. The people never saw a ruble of it and were left with unemployment rates, stock market losses and currency devaluation that rivaled the Great Depression.

The fallout from these operations is invariably the same. The people figure out that they’ve been footed with the bill for someone else’s party and the riots begin. We’ve been witnessing this in Europe since the Euro crisis began and it’s flaring up again. This week a 77 year old Greek pensioner shot himself in the head outside parliament because, he said, he didn’t want to have to start picking through trash in order to feed himself. The IMF issued a statement Thursday that it was “deeply saddened” by the incident, but the people of Athens have taken to the streets yet again, with thousands flocking to the site of his death and many scuffling with police.

How the IMF causes riots to use as a tactic on behalf of private corporations to rape countries assests.

These types of protests aren’t merely predictable, they’re part of the plan. The IMF and World Bank documents that leaked out in 2001 detailed the four step plan for looting a country, including the “IMF riot” stage. People take to the streets to protest the austerity measures that are tied to the IMF loans, causing foreign capital to flee, governments to go bankrupt, and foreign speculators to pick up the pieces at fire sale prices. The riots happened in Indonesia in 1998. And Bolivia in 2000. And Ecuador and Argentina in 2001. What’s happening in Europe is not an exact analogue, and it’s aimed at centralizing power in the EU in Brussels and the ECB in Frankfurt, but that the IMF has seen the crisis as an excuse to get its foot in Europe’s door as a lender is particularly telling.

Bribed politicians do very well out of the collapse of their countries.

This is how the game is played and that’s why the politicians for the most part are happy to go along with it. After they serve their term in the cockpit, they jump out with a golden parachute and leave the people to crash in the flaming debt bubble the politicians have created. This is why Lagarde is likely to get her $500 billion, or something approximating it, including an extra $63 billion that the US is slated to start paying under a new quota agreement. And the band plays on.

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