The Money Tree

A Five Part Series: Part Three, The World Bank

by J. Walter Diamond

It is inconceivable to think that more than $12 billion in stolen IMF funds are missing and more people are not upset about it. Especially when insiders know who took the money. That really goes to the heart of the matter and is a thread that runs through this entire commentary.

The IMF and the World Bank seem immune to controversy and responsibility, unless and until the people of the United States stand up and demand more out of the representatives, who pork barrel themselves into lifetime appointments in Washington. People that contingency for real change is you and I. Our voice and our vote!

Our country has been ripped off to the tune of billions of blood and sweat capital, since Johnson conjured up the Great Society in the 60's. Johnson was fired as a 7th grade school teacher and has become the standard for excellence in public service since.

A junior high school student with a modest IQ would be able to take an objective look at these two One World government institutions and conclude their polices are an abysmal failure. Hopefully, this recent financial hit will galvanize the anger in tax- payers -referendum around the country to demand immediate change.

And furthermore, when I think what the President has done to hack up our military readiness, when I think about how food stamps are the life force feeding people in the military, and when I think about how both parties are constantly dipping into the Social Security Trust Fund, to fund third world criminals and thugs, I'm sorry, I get a little bit ANGRY..and so should you.

These 6 Russian criminals should be put in jail and the missing funds should be returned to the U.S.! But it's more complicated, some would say, but it doesn't have to be that way. We need to be about waking up and taking the destiny of our great nation back.

As we continue, I want to examine some of the darker issues that are under- girding these secrete institutions and how you and I can curb their hellish powers and even put them out of business.

The Bible declares " know the truth and the truth will set you free!" The only way we can reign in the exclusivity and enormous powers of the IMF, The World Bank and the United Nations is at the ballot box. The one world power groups operate very quietly almost stealth-like. They have incredible wealth and set their own agendas, which has nothing to do with the two major parties of our country!

They have been courting our political leaders for 50 years or more. Often they allow just enough descent like Mc Cain's rise in the polls in New Hampshire to make you believe it's a real contest, it is not. They allow a Bradley challenge, to paint the air of true political contest, but if you dig hard enough, the scary truth is that it is more scripted than a bad day at the WWF. Fake wrestling is more real, because at least they call it Sports Entertainment. Please let this thought settle in your heart and mind for just one moment.

If you can't support Web today financially, at least help get the message out and tell your friends you know where to find intelligent truth. Information is the greatest weapon we have to put these folks out of the game in public outcry. These institutions thrive on secrecy and camouflage.

Before we enter into a more developed discussion of the world bank, take a moment and examine some thought provoking commentary by Professor Bob Blaine. The ill at the center of unfair policies whereby the World Bank and the IMF hold other smaller nations hostage to an unfair system where they control the valuing of world trade and commerce. The article is entitled: Time values of the money of 74 countries Around 1995." Professor Blaine is part of the faculty of Southern Illinois University;

"Countries close to each other on the list can trade with each other on fair terms. The further apart on the list, the more unfair the terms of trade between countries. For example, Switzerland and Norway can trade fairly. Their exchange rates are both equal to about 2.5 minutes. But trade between Austria and Hungary is biased in favor of Austria where about 3 minutes of work equals the exchange rate of its schilling compared to Hungary where 13 minutes of work are needed to equal the exchange rate of its forint. What needs to be done is to move exchange rates to work time parity - to where they trade on an equitable basis - equal work time for equal work time. The strong correlations between work time currency exchange rates and actual rates throughout the history of the IMF, especially for countries that have been members longer, tell us that work time parity is where exchange rates tend naturally. Deviations are probably maintained unnaturally by the desire of the countries that control the IMF to keep exchange rates biased in their favor. But this is the main reason that so many countries today are poor when we have at hand the means for all countries to be wealthy. " Hence the World Bank and the IMF have created a carefully crafted lock down system, which serves to hamstring entire nations. A system designed to keep the smaller nations in debt and servitude. Smaller nations bow the whims of these two money-monsters and their colossal ability to bail out member nations, when needed. Also comes the ability to bless them with new infusions of cash to create the mystique they are working hard to develop fairness in world commerce and the exchange rates they allow to move various economies forward.

Remember these international behemoths depend on total secrete and working in the shadows. According to J.W. Smith these two institutions are siphoning off the wealth and life-blood of the poorer nations in their hideous desire to conqueror the world's wealth! If this subject is intriguing to you, I suggest you take a closer look a this very informed book, due out at the end of the year.

Capital accumulation: A 10 times wage differential means 100 times more wealth for the well-paid nation. (High pay divided by the low pay squared--10 divided by 1 = 10. 10 X 10 = 100).

CAPITAL ACCUMULATION'S INDEFENSIBLE SECRET: UNNECESSARILY APROPRIATING THE WEALTH OF THE WEAK A synthesis (roughtly 10%) of Chapter One of Economic Democracy: The Political Struggle of the Twenty-First Century, by J.W. Smith, release date December 1999.

Please take a moment more and examine the source theory of developing wealth and or depressing global wealth by pinning down poorer countries under the guise of growth and currency stabilization polices; J.W. Smith writes:

"high profits and high wages in the societies which have won these trade wars, covert wars, and hot wars. . If equally productive Developing World workers are paid $1 per hour for 5 hours to produce products or services (5 units of wealth produced in 5 hours) and equally productive Developed World workers are paid $5 an hour for 5 hours to produce products or services, the well-paid nation can contract the production of 25 units of wealth from the equally productive but poorly-paid nation. But with the pay earned in that same timespan the poorly-paid nation can contract the production of only 1 unit of wealth from the well-paid nation. The wealth accumulation rate differential between the higher paid nation and the lower paid nation is the high pay divided by the low pay squared ($5 divided by $1 = $5. $5 X 5 = $25). Only a part of the workers in world trade are equally productive workers but all could be just as productive if they had access to technology and markets. Even now, grape pickers, strawberry pickers, any work which is not mechanized anywhere in the world, and a share of the industrial labor of the Developing World, are just as productive as other workers anywhere in the world. It has been thoroughly proven that labor everywhere can be trained to run industries just as efficiently, and at times more efficiently, than Developed World labor. Summary: In direct trades between individuals or countries, wealth appropriation compounds in step with the spread between pay for equally productive labor. If the pay differential is five, the wealth accumulation differential is 25. If the pay differential is 20, the wealth accumulation differential is 400. If the pay differential is 40, the wealth accumulation differential is 1,600. If the pay differential is 60 (the pay differential between the defeated Russia and the victorious America [.23 cents an hour against $14 an hour]), the wealth accumulation differential is 3,600. And if the pay differential is 100 (the pay differential between the collapsed Russia and the victorious Germany [23 cents an hour against $23 an hour]), the wealth accumulation differential is 10,000. (Remember, the productivity of Russians before the collapse of the Soviet Union was not far behind the West. When they collapsed, they were within eight years of equaling the West in technology.) Quite simply, a currency valued below equal labor value means that the grand strategy of an opposing imperial center of capital has been successful, the collapsing society has lost the trade war, is weak, is dependent upon other societies, and cannot defend itself from powerful societies appropriating its wealth through unequal trades. Paying equally productive Developing World labor 20 percent the rate of Developed World labor (only 10% since the currency collapses on the periphery), and the former Eastern bloc only a fraction of that, is surely a wealth siphoning rate equal to, or greater than, that at the origin of the monopolization of the tools of production and proto-mercantilist control of trade in the Free Cities of Europe centuries ago.iii In fact that wealth appropriation is picking up speed. During Kennedy's Presidency there were three dollars flowing North for every dollar going South, today the ratio is seven to one, and, assuming the financial meltdown of the entire world can be prevented, it will pick up speed as the enormous reserves of wealth in the developed world buy up properties in the financially collapsed world for 10 cents to 30 cents on the dollar. Those titles to others' wealth will demand profits and those profits will flow north. The homogenized world market is full of subtle monopolies entrenched from centuries of monopolization. We have been addressing only the primary monopolies. Adam Smith philosophy, as interpreted by neo-mercantilists, specifically states not to give anybody anything and, combined with the formula for appropriating defeated/dependent nations' wealth, that is a philosophy for monopolization. For monopolies to disappear, a substantial share of what was stolen through unequal trades will have to be given back. The cooperative approach to Germany, Japan, and Southeast Asia we witnessed for 40 years as technology was shared with allies was only a cover for the battle to suppress the breaks for freedom worldwide. But that battle has been won and the rules are changing. Because we propose restructuring to an efficient economy with wasted labor time converted to free time and do not allow for the enormous appropriation of wealth by monopolies and then the waste of that wealth through distribution by unnecessary labor, this formula will be challenged. But once the world economy equalizes, both in internal and external trades, those monopolies will disappear, a properly designed trading system, both internal and external, will eliminate the waste, and this formula (the high pay divided by the low pay squared) will work exactly as outlined. Just reinstate those extreme unequal wages upon a world of equal wages and shortly all the wealth will again be back in the monopolists' hands. The fact that almost every region of the world has more natural resources than Japan tells you that, once they have capital, an efficient internal transportation system, and access to markets, the Developing World can, on the average, produce cheaper than Japan. Where are Hong Kong's resources? Where are South Korea's Resources? Where are Taiwan's resources? Where are the resources of most of Europe? The answer, of course, those resources are primarily in the impoverished world. World commerce and internal commerce has been monopolized so long that it is very hard to conceptualize an economy with no monopolies. All we are saying in this thesis is, "Be who we say we are. Do what we say we do. Have honest free trade and have honest free enterprise." That requires equalizing those wages and eliminating the system of subtle monopolization of the world's resources, industry, and trade. Many will challenge this thesis as not allowing for the accumulation of capital. But in the subchapters A Free Enterprise, Socially Owned, Capital Accumulation Fund , the subchapter Unrestricted Land Titles Permitted the Mobilization of Capital, the subchapter If Society Collected Landrent, All Other Taxes Could Be Eliminated, and the subchapter Investment we have pointed out how capital can be accumulated much easier than through subtle monopolization of the world's resources, technology, and markets. How to eliminate poverty now becomes evident, equalize pay for equally productive work both within internal economies and between trading nations. If the pay of weak nations were raised to a 50% pay differential for equally productive work ($5 an hour labor trading with $10 an hour labor), the wealth claimed by the high-paid nation in direct trades would be reduced to four times that of the low-paid. Even with only a 25% pay differential ($3 an hour trading with $4 an hour) there is still almost a doubling of wealth retained by the equally productive but better paid nation. When all have access to technology and markets and pay is equal for equally productive work, the wealth retained (and available for accumulation) by each nation is equal. Most important, it is obvious that, whenever possible, the underpaid Developing World should be trading with each other. If trading countries pay roughly equal wages for production of the products traded, neither has appropriated the wealth of the other and the efficiencies of trade can function honestly. Because they will retain much more wealth when trading with each other, nation's with low-paid labor can develop their economies much more rapidly than when trading with a nation with high-paid labor. This reality explains why the powerful Developed World so desperately protects their monopolization of technology and for centuries have been maintaining control of resources and markets through destroying the industrial capital of weak societies. The powerful Developed World has established the IMF/World Bank/GATT/NAFTA/WTO/MAI as the front line in that on-going battle over the world's resources and markets. The military is still there to place any recalcitrant nations into that straitjacket and do battle with any alliance which might break out of it. A key neo-mercantilist/corporate mercantilist method for maintaining the low paid labor rates of weak societies is through the high (hard) currency values of powerful nations and the low (soft) currency values of weak nations. The IMF's restructured method of calculating the wealth of the world (called the "Purchasing Power Parity system" [PPP) exposes this long-standing policy. Take, for example, the difference in value of China's yen against the standard world currency, the U.S. dollar. Under the new method of accounting a nation's wealth in the purchasing power of their own currency within their own economy, as opposed to the old method of currency-exchange-rate values, the measured purchasing power within China tripled.175 Under the then-current exchange rates, even if paid the same nominal wage, in direct trades with the U.S., equally productive labor in China could purchase only one-third as much. Of course with their currency discounted on the world market they are paid less then 10 percent that of Developed World labor. By the above formula (high pay divided by the low pay squared), direct trades between nation's of that wage discrepancy would result in a 100 times difference in buying power [10 X10 = 100]). Purchasing Power Parity accounting will expose equal discrepancies in currency values of other developing nations and the collapsed nations of Eastern Europe and the former Soviet Union.

With these thoughts in mind it is perfectly clear, why America has been so quick to try and preserve peace around the world. Also know it is not the want to be genius of Bill Clinton, but rather a cadre of well evolved handlers, who could careless about political ideology or how treaties are either bad or good for the U.S.A. My dear friends, if you have not figured it out already, it is all about power, wealth and long- lasting control. Sharing a few crumbs with the poorer nations is far better than major disruption in the flow of money.

Read Joel Skousen's last two articles. One is posted on Wed Today and speaks to the dark side of what happened to some of the missing IMF dollars, the second article is an in depth discussion about so-called handlers of the Republican front runner G.W. Bush. This article can be found in our November archives. Is anything what it seems to be, or is everything a smoke screen designed to coddle our desire to be informed asleep?

Much of the discussion really is related to why the IMF and World Bank work so hard at keeping what they do a deep dark secretes.

The only way I know to balance what these organizations are trying to do, is stay informed and tell a few of your friends about Web Toady and other pro-active web sites that have a passion for truth in the media!

More about the World Bank: as presented on their web page: You can go to their web site for more information : As follows..

Founded in 1944, the World Bank Group consists of five closely associated institutions: the International Bank for Reconstruction and Development (IBRD); International Development Association (IDA), International Finance Corporation (IFC); Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). James D. Wolfensohn is the President of the five institutions.

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