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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Lazarus_Long who wrote (30492)	3/6/2008 11:52:23 PM
From: elmatador	Respond to of 217815

The reply alludes to borrowing at variable rates on the 70's. Once full up to the neck with debt, Volcker stepped in jacked interest rates to the stratosphere and cleaned Brazil up. It would be akin today to Volcker come back and clean up all property owners who are up to their necks in dent. Thus the banks would be gorging in profits and the homeless fighting hard to pay up.

To: Lazarus_Long who wrote (30492)	3/10/2008 8:42:05 AM
From: elmatador	Respond to of 217815

How we exported capital. I recorded all as it was happening 20 years ago. “According to World Bank’s ‘World Debt Tables’ the net transfer of money from the South to the North reached a high of $43 billion for the fifth consecutive year of net transfers from the Third World” South, Feb. 1989. “In its latest report, the World Bank admit to receiving $2.6 billion more in interest rates and principal payments from still developing countries in the year to the end of June 1989 than it disbursed in new loans” The Economist, Sept. 22, 1989. “The multilateral agencies have become net takers of money from Latin America. Commercial banks lent $6 billion of new money to the continent last year. But they extracted more in interest—around $26 billion.” The Economist, Feb. 11, 1989. It is profitable to be a ‘donor’ “America’s interests in the World Bank are often overlooked, its exports to World Bank projects exceeded $1.6 billion in 1987, which is more than the $1.5 billion it has made in direct cash contributions over the institution’s forty-year history. From each dollar the U.S. provides in the general capital increase, the World Bank will be able to lend more than $200. Bretton Woods Committee, Banking Success: The World Bank, The United States and the Developing World, Washington D.C., 1988. Cited from Yochelson, John, (ed.), Keeping the Pace, U.S. I now seat down here and look how things develop.