Only a liar or a banker could say he sees positive signs in the world economy.
With Europe immersed in a dire economic depression, the United States ever more engaged in wars all over the world and a group of emerging markets with stagnated economies, only a member of the banking or financial industry could see the present as a good omen for the future.
In contrast to reality and according to finance ministers of the euro zone, the IMF and the World Bank, the European crisis has ended.
In the United States, politicians and bureaucrats are speaking of recovery, growth and of success against the difficult economic situation that still hits the poor and the thining middle class.
In Latin America, even countries that traditionally kept a stable economic scenario are now succumbing to the cancers of corruption and economic depression.
So where is the optimism of the finance ministers, the IMF and the World Bank coming from?
It comes from the fact that the have successfully beta-tested their plan to literally transfer power from nation-states to unelected officials. It comes from the completion of their plan to subdue national governments into accepting financial ‘rescues’ on behalf of the people to effectively bail out banking institutions.
Optimism also comes from the successful imposition -as they did in Portugal and Greece- of unnecessary austerity programs on countries whose debt was already a heavy burden and who did not have a way to pay back such debt.
They are enthusiastic because they proved that it is possible for banks to lend to anyone they want no matter the risk because governments can rescue them by socializing their losses and privatizing their profits.
According to economists attending the annual IMF-sponsored meeting of finance ministers and bankers in Washington D.C, the crisis is over. According to them, the global economic situation is good. They have given themselves billions of euros in bailouts so there appears to be no more risk of a European collapse.
The bankers believe the crisis has ended, despite the fact that there is no European recovery and that Greece, the scapegoat of the euro zone will continue to go through a traumatic collapse that will affect all of the Europe.
Apparently, interest has grown among investors to put their money back in Europe. But the type of investment that is being paraded is that of the sort seen in Greece, where the government has given away the country’s assets for pennies on the euro in order to obtain liquidity to pay for its expenses.
After nationalizing some banks, for example, the Greek government was obligated by the Troika to put them for sale so that American hedge funds could buy them at bargain prices. The same happened to Greece’s islands and other publicly-owned lands.
Despite the invisibility and intangibility of the so-called economic recovery in Europe, bankers see 1%, 2% and 3% growth rates as signs of progress. At the same time, they ignore humanitarian crises, armed conflict and political instability in sub-Saharan Africa, the Middle East and in neighboring Ukraine. They also forgot about the Chinese economy, whose economic growth has slowed down considerably -the lowest growth rate in 24 years.
The other big emerging country that has gone from being a hope to be seen as a bad example is Brazil.
The efimerous legacy of President Lula da Silva combined with the disastrous economic policies of Dilma Rousseff have come to the inevitable outcome: a painful economic adjustment that will be paid disproportionately more by the poor the any other social group.
In general, Latin America will be affected by the falling prices of raw materials, although some countries are already weakened by bad policies. This countries including Venezuela, Argentina and Brazil will suffer more than the rest.
In Latin America more than in any other part of the world, corruption has reached dimensions of macroeconomic importance. Although it is nothing new in the region, the magnitude of the activities run by corrupt elites has seen regional consequences.
In China, the fight against corruption is slowing along with the economy as a central theme. President Xi Jinping led a purge of officials, politicians and businessmen accused of corruption.
More than 80,000 people were prosecuted and another 100,000 are being investigated. In Brazil, on the other hand, a huge diversion of public money is also shaking the government, but no one has seen the face of justice due to arrangements between the justice system and those accused of financial crimes.
Meanwhile, lavish oligarchies that have accumulated fortunes through constant and suspicious support in all of Latin America, Europe and even Asia. This wealth accumulation has come at the expense of the masses.
For all this is that the bankers are extremely optimistic. It has been them -the bankers- and the political oligharchies in nation-states the most favored groups during the ongoing global financial crisis. They are optimistic because, once again, they have gotten away with financial murder.
For an in-depth look at the global financial crisis, with specific focus on Europe, watch the documentary The Trail of the Troika, whose interviews can be seen here.