The Global Debt Game: A Perpetual Cycle of Lending and Bailouts

Commercial banks from industrialized nations create money out of nothing and lend it to less developed countries (LDCs). They are aware of the risks involved, so they charge high interest rates to compensate. When these LDCs are unable to pay the interest, the World Bank and the International Monetary Fund (IMF) step in to bail them out. This bailout money is also created by the central banks of industrialized nations out of nothing and is given to these LDCs, enabling them to pay their interest and address political needs.

With the risk of default now minimized, commercial banks agree to reduce their interest rates to levels that the debtor governments can manage. This cyclical process keeps the game going indefinitely, effectively transforming the IMF and the World Bank into a global central bank issuing international fiat money.

Once this global central bank is in place, the IMF can collect unlimited resources from the citizens of the world through a hidden tax called inflation. This continuous money stream can be sustained indefinitely, as no country has its own independent money.

The essence of socialism is the redistribution of wealth, aiming for equality by taking from the rich and giving to the poor. Unfortunately, the poor do not benefit significantly from this maneuver. They often do not receive the money initially, as much of it is siphoned off by the bureaucracies administering these programs. The funds are merely spent until they are gone, leaving no one significantly better off.

Politicians understand that promises to redistribute wealth are popular among voters, who believe it will help the poor, and among socialist managers, who see it as job security. This ensures their election and the continuation of the cycle.

In essence, the global financial system operates on a delicate balance of debt, bailouts, and inflation. While the promise of socialism seeks to uplift the poor, the reality often results in the perpetuation of poverty and wealth depletion, maintaining the status quo for those in power.