The Sri Lankan government turned to the IMF for a near $3 billion bailout to repay loans provided by India and Japan, as well as international sovereign bonds issued by foreign creditors such as BlackRock. Dr. Asoka Bandarage, sociologist and author of Crisis in Sri Lanka and the World, suggests that Prime Minister Rajapaksa's declaration of bankruptcy in 2022 and the subsequent IMF bailout under Prime Minister Wickremesinghe was not an absolute necessity, but an attempt to shift Sri Lanka further under the umbrella of Western and Indian institutions, and away from Chinese loans. Please donate at theanalysis.news/donate/ - we can't do this without you. How Indian, Chinese, and US Corporations Vie for Control of Sri Lankan Ports - Asoka Bandarage 2/2: kzread.info/dash/bejne/dGSL06Sfdc-roMY.html Debt and Climate Crisis in Sri Lanka and the World - Asoka Bandarage: kzread.info/dash/bejne/rKCorthuYdGymc4.html Come visit us at theanalysis.news Sign up for our newsletter: theanalysis.news/newsletter/ Like us on Facebook: facebook.com/TheAnalysisnews-111882350255869 Follow us on: Twitter: twitter.com/paul__jay?lang=en Instagram: instagram.com/theanalysis.news/ Linkedin: www.linkedin.com/company/theanalysis-news #PaulJay #theanalysis #srilanka #economy

Can't China or oil-rich non-Western countries offer lower-interest or zero interest loans? Why is the IMF the only option? Also, why would India and Japan (not usually characterized as colonial) act in the same predatory manner as the IMF?

@yashsingh4211

Ай бұрын

In layman terms, banks create money out of thin air. Technically, they create liabilities (promises to give the debtor real dollar notes) as evidenced by the numbers in the debtors electronic account. This power to create money of thin air belongs to the banks alone (an exception -- prime brokers can reuse collateral to make loans, effectively doing what banks do). Hence when you need funding you go to a bank and NOT to say a pool of savings like a Pension fund. The IMF, World Bank and BIS were designed to provide dollar funding to national governments. This was agreed upon at Bretton woods by the victorious allies post WWII and other nations. Why? If other nations trade with the US & allies then they will not join the Communist block. This is the Post WWII Global Order -- if you want to trade (aka breathe and stay alive) you need dollars. If you go into debt to acquire these dollars and then can't repay, well, do what you can to re-negotiate the debt (aka go play politics and try to get a decent deal).

@vgstb

Ай бұрын

@@yashsingh4211 Great explication!

sri lanka was mismanaged by politicians. then they covered their bungles with foreign loans, a fairly certain path to slavery. a common story, with no happy ending. prc has an interest in building international trade with development. perhaps sri lanka should be in brics? or are they terminal?