The genocides and mass killing of people because of war was undoubtedly devastating. But, there is a mass killing going on unseen and unheard of in the name of capitalism, in the name of globalization. Globalization was needed when people didn’t know how to mass produce and how to reduce scarcity. But now the interest lies in creating scarcity so the profit will increase for the industries. Even though the world has plenty of food production to feed the whole world and some more, still people are dying of poverty and hunger. Every four second a person dies of hunger i.e. 21000 each day.
You see when World Bank or IMF lend the money to any government they make the money out of thin air that mean they don’t have any money at all, its just that they have the authority to print money or allow an amount of money to exist. So when they give the money to a government they give it as a debt which has an added interest to it. And the interest rates are generally very high when they lend it to a developing country as they say there is more risk in giving the money to a country which has such low GDP or still struggling to cope with the global market. They clearly know when they are giving a country money that it they will not be able to return the money they borrowed as when every penny of the planet’s money is printed by the central banks then where would the money for the interest come from? “Central bank only right”.
Let me clear the confusion for your understanding. If I am the only authority to print money or create money. I will create a $100 to give to a govt. but I will however add an interest rate of 10% of the capital. So this country has to return me $110 but if I haven’t printed the other $10 then how is this country going to pay me the extra interest? It can only pay me back when it takes extra money that I printed from other source. But that source has also taken the money from me only with debt in return. So that other source will also be in debt no matter what. So the scenario becomes such that the debt can never ever decrease it will go on increasing. If we need to repay our debts we need more money, so we have to print money and for printing money more debt is created. So, there is no way out of this rabbit hole.
When a country is in so much of debt it has to pay back by selling its products and resources like trees, minerals, man power to the big corporations. And because the corporations rule the global market and compete with the local market. It creates a massive losses in local businesses. Because the big corporations have money they can advertise and in fact they invest more money in advertisement than they do in manufacturing the products. That’s how they rule the market. If I show you all day in TV repetitively that my brand of shirts are the best over and over again with your affirming celebrities and known figures in the ads. Then there will come a time that you would start inclining towards the product. And because the local business can’t advertise that much due to lack of capital. They will perish under the corporate. So they will have to do jobs with low pay. Because maximum population of the world is middle class and they are the consumers of the products. If they are not getting a good pay out of their jobs they will reduce their purchases which will in turn reduce our country’s GDP and force the government to take even more loans from the World Bank in order to maintain services like roads, clean water, food, health and military. So the country will be in more debt than before and has to agree with the corporate to exploit even more of their resources no matter how much harm its causing to the country’s population in terms of economic inequalities, pollution, scarcity of food and poverty.
This causes massive bankruptcies all over the world. Very soon many of the countries will be bankrupt or will declare default because they are not able to pay back their debt. And this will cause civil unrest among nations and will have devastating consequences.. That’s why We have to leave the monetary system of economy back and reform a new economy which will be in interest of the people not corporate. It creates more poverty and economic imbalance than ever. We should form a service based economy. That will be a true economy to live with.