Pakistan Observer

Why Strauss-Kahn had to go?

Ali Ashraf Khan

Tuesday, May 24, 2011 - While American military conspiracies against Pakistan and Libya and others are on, there are other initiatives also going on in a bid so save American predominance in the world. Whatever is alleged to have happened in New York hotel last week in which the Chief of IMF Dominique Strauss-Kahn, a French Jew and an ardent reformer in the crusade for building and consolidating the Euro regime in the European Union, and a strong candidate in the forthcoming French presidential elections, has been LBW with a well hatched conspiracy to get him out of the way with a two-fold gain: to provide continuity in power in France to their American poodle Sarakozi, who is alleged to be involved in moral and financial corruption together with his committing genocide in Iraq, Afghanistan & Libya, and then, to get rid of an ardent fighter for a strong Euro that would pose an additional threat to the weakening dollar, a welcome alternative for many who want an end to the dollar domination.

This incident goes to prove the hidden agenda of an international vested interest group trying to build and secure an American Empire for their master, which has not spared even Strauss-Kahn, who has been fixed in a rape attempt with a 32 year old hotel maid in a country where teen aged unwed mothers are a normal accepted feature. The former French Foreign Minister Strauss-Kahn, once if he was elected as president of France would have worked to strengthen the Euro to bring down dollar, which was of serious concern for the Federal Reserve Board in the already ongoing currency war with China. John F. Kennedy, US president was murdered for his only sin of canceling Federal Reserve Act of 1913 in 1963, when for the first time dollar currency was issued with the seal of US government, soon after his assassination President Lyndon B. Johnson revived this Act to continue their financial exploitation.

One could argue that we Pakistanis are also a victim of IMF manipulation through the imposition of conditionality detrimental to our own economy and national interest, will some one some day assess, where we were in seventies and where are we now. The exchange rate for the dollar was kept under control at Rs. 64 during Gen Musharraf regime, thanks to a banker cum finance minister under so-called democracy, who floated dollars rate giving a jump of 30% increase to shelf prices of essential items creating untold miseries for the common men. May be this is right, though I can’t observe any positive change in the policy of the IMF with regard to Pakistan and that alone is what counts for us. Secondly, I don’t think that the world capitalist system dominated by the US can be reformed because the money mafia, which profits from liberalized and globalized markets and world-wide plunder, will not allow that. Thirdly, Strauss-Kahn had enemies because of this in the World Jewry that is why this whole matter stinks to high-Heaven. Firstly because, Strauss-Kahn was the likely candidate of the French Socialist Party who would have a good chance to face Sarkozy in the upcoming presidential elections. The IMF chief clearly had a leg-up on Sarkozy who has been also involved in a number of personal scandals and plunging approval ratings. But if Strauss-Kahn was set up, then it was probably by influential members of the western bank coalition, that shadowy group of self-serving exploiters whose policies have kept the greater body of humanity in varying state of poverty and desperation for the last two centuries.

But there is another feature also. The IMF primus Strauss-Kahn had recently broken free from the “party line” and was changing the direction of the IMF. His road to Damascus conversion was championed by progressive economist Joseph Stiglitz in a recent article titled “The IMF’s Switch in Time”. Here’s an excerpt: “The annual spring meeting of the International Monetary Fund was notable in marking the Fund’s effort to distance itself from its own long-standing tenets on capital controls and labor-market flexibility. It appears that a new IMF has gradually, and cautiously, emerged under the leadership of Dominique Strauss-Kahn. Slightly more than 13 years earlier, at the IMF’s Hong Kong meeting in 1997, the Fund had attempted to amend its charter in order to gain more leeway to push countries towards capital-market liberalization. The timing could not have been worse: the East Asia crisis was just brewing “a crisis that was largely the result of capital-market liberalization in a region that, given its high savings rate, had no need for it. That push had been advocated by Western financial markets and the Western finance ministries that serve them so loyally. Financial deregulation in the United States was a prime cause of the global crisis that erupted in 2008, and financial and capital-market liberalization elsewhere helped spread that ‘made- in-the-USA- trauma’ around the world. The crisis showed that free and unfettered markets are neither efficient nor stable”. So, Strauss-Kahn was trying to move the bank in a more positive direction, a direction that didn’t require that countries leave their economies open to the ravages of foreign capital that moves in swiftly-pushing up prices and creating bubbles, and departs just as fast, leaving behind the scourge of high unemployment, plunging demand, hobbled industries, and deep recession. Strauss-Kahn had set out on a “kinder and gentler” path, one that would not force foreign leaders to privatize their state-owned industries or crush their labour unions. Naturally, his actions were not warmly received by the banker’s mafia and multi national corporations who look to the IMF to provide legitimacy to their ongoing plunder of the rest of the world. These are the people who think that the current policies are “just fine” because they produce the desired results they’re looking for, which is bigger profits for themselves and deeper poverty for everyone else. Here’s Stiglitz this time was imparting the “kiss of death” to his friend Strauss-Kahn: “Strauss-Kahn is proving himself a sagacious leader of the IMF”. As Strauss-Kahn concluded in his speech to the Brookings Institution shortly before the Fund’s recent meeting: Ultimately, employment and equity are building blocks of economic stability and prosperity, of political stability and peace.”

This would go to the heart of the IMF’s mandate. It must be placed at the heart of the policy agenda. So, now the IMF was going to be an agent for the redistribution of wealth for strengthening collective bargaining, restructuring mortgages, restructuring tax and spending policies to stimulate the economy through long-term investments, and implementing social policies that ensure opportunity for all” writes Stiglitz. Can you imagine how much this kind of talk unnerves the Big Money guys? How long do you think they’d put up with this claptrap before they decided that Strauss-Kahn needed to take a permanent vacation? Not long. Check this out from World Campaign and judge for yourself whether Strauss-Kahn had become a “liability” that had to be eliminated so the business of extracting wealth from the poorest people on earth could continue apace: For decades, the International Monetary Fund has been associated claiming anti-poverty, hunger and development activists as the poster child of everything wrong with the rich world’s fiscal management of the rest of the world, particularly of poor nations, with its seemingly one-dimensional focus on belt-tightening fiscal policies as the price of its loans, and a trickle-down economic philosophy that has helped traditional wealthy elites maintain the status quo while the majority stayed poor and powerless, a real reflection is Pakistan’s economic and financial situation today directly attributed to the battery of its imported financial managers from the World Bank. With a world increasingly in revolution because of such realities, and after the global financial crisis in the wake of regulatory and other policies that had worked after the Great Depression being largely abandoned, IMF managing director Dominique Strauss-Kahn has made nothing less than stunning observations about how the IMF and the world need to change policies. In an article published in the Washington Post, Howard Schneider writes that after the 2008 crash led toward regulation again of financial companies and government involvement in the economy, for Strauss-Khan “the job is only half done,” as he has been leading the fund through a fundamental rethinking of its economic theory. ‘The pendulum will swing from the market to the state. But, it also has a dark side, a large and growing chasm between the rich and the poor.”a fundamental rethinking of economic theory” and a greater “distribution of income” more stringent “regulation of financial companies”, “central banks need to do more to prevent lending and asset prices from expanding too fast”. With all this Strauss-Kahn had signed his own death warrant. There’s not going to be any revolution at the IMF. That’s baloney.

Our financial managers have not been able to convince the IMF to abandon conditionality in the light of new economic theory coined by Strauss-Kahn in its approach towards Pakistan suffering mainly due to IMF strings, whose economy is gripped with highest recession and unable to bear the burden of new taxation measures, whether be it RGST or any new gimmick, recent tour of Prime Minister Gillani to China has met with uncalled for remarks from US, who do not want any other country extending a helping hand towards Pakistan and recent Chinese announcement to extend project assistance and transfer of technology to bring Pakistan back on the rail and cheap supply of electricity. Which is our immediate requirement, Iran has offered to complete Oil & Gas pipeline project to boost Pakistan economically, we must immediately adopt Islamic Social Justice programme as the stepping stone for the future economic and financial well being and not bogged down to Western muscle twisting as seen in the case of Dominique Strauss-Kahn. God may bless us all. Long live Pakistan.
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