Project Censored 2011: Story #19: Obama's down with the IMF and the World Bank?

"For decades, left critics of the International Monetary Fund (IMF) have maintained that the IMF is merely a tool for enforcing the interests of financial elites, especially those in the US. Predictably, this view has been scornfully dismissed by those in power and their media lackeys who posture the institution as the benefactor of needy countries. The persistent history of the IMF’s extortionate funding, linked to austere cuts in social spending, is simply dismissed as pressing fiscal responsibility on countries lacking the spine to address their profligacy. Such are the myths that sustain faith in global capitalism."

-Quote from International.to

Image Credit: 
http://current-world-affairs.blogspot.com/2009/09/world-bank-approved-four-projects-worth.html


1. Essential Facts: Story #19: "Obama Administration Assures World Bank and International Monetary Fund a Free Reign of Abuse"

-April 24, 2009,  US Treasury Secretary Timothy Geithner hosted meetings with finance ministers from the world's top economies to discuss increased oversight of the global financial system in the wake of the recession. These meetings came before gatherings of the IMF (International Monetary Fund) and World Bank in DC.

-This April G20 meeting in London secured tons of positive media attention after world leaders announced a global package of $1.1 trillion for economic recovery, mostly for the IMF. The plan however, failed to include specific information about the much needed operational reforms of the IMF and World Bank. Geithner spoke 5 months later on the eve of the September 2009 G20 summit, calling for higher regulatory standards of financial markets.

Image Credit: http://www.icumoney.net/2010/03/

-Also in Sept. 2009, a report from the Public Citizen's Global Trade Watch emphasized that the World Trade Organization (WTO) has advanced extreme financial deregulation under the disguise of trade agreements. These undermine the current push for increasing regulation. The summit talks pose an incredible contradiction, we have on one hand discussion about regulating finances, and at the same time, talk about adopting WTO policies, which are huge agreements of deregulating finances. The G20 commitments aren't binding, while WTO rules are very binding and enforceable by sanctions. If the WTO agreements go into place, all of the world's countries will have a commitment not only to keep in place existing WTO deregulation policies on finance, but to even deregulate further right in the midst of what seems to be an attempt at solving the recession in a global commitment to re-regulate. How many policies will the G20 and the WTO create in a poor attempt to reform our economic structure?

-These contradictions show the failure of these economic entities. While the summit talks about putting rules into place regarding regulation of financial companies, a WTO dictate forbids it. These binding WTO rules require countries to maintain the very exact policies that led to the financial crisis. This agreement was never brought to a vote in any congress.

-The ideology and the structures of the World Bank and the IMF have failed. There is enormous economic instability. The system has failed to create equity, and eradicate poverty. It perpetuates poverty and debt in developing countries, while maintaining the financial system keeping the rich richer, and the poor poorer. These economic powers control a global capitalist market, making their economic policies a global system to maintain this gap of wealth, keeping it in place. These systems fail to ensure that human rights are protected. They have failed to address environmental issues, all in the name to enforce financial systems around the world on developing nations. They enforce with trade agreements, and continuous amounts of money loaned to poor nations. The money comes with conditions and requirements to meet, locking them into a life of debt. Examples are Jamaica, Haiti, or Argentina.

Image Credit: http://fuckcopyright.blogspot.com/2010/05/life-and-debt-2001.html

Image Credit: http://likethedew.com/2009/06/09/fireworks-ahead-on-imf-funding/


-Despite these failures from these global economic structures, they have not prevented President Obama from stopping their free reign. In June 2009, Obama negated provisions of US legislation that would have compelled the World Bank to strengthen labor and environmental standards. He actually included a statement in which he refused to require the Treasury Department to report to Congress on the activities of the World Bank and the IMF. When Obama instead signed the $106 billion war-spending bill into law.

-The sections rejected by Obama would have required his administration to direct pressure on the World Bank to fairly represent the value of internationally recognized workers rights, which organized labor groups have pushed for a revision of these standards.

-Another section rejected by Obama would have pushed the World Bank to account for the cost of greenhouse gas and to fully disclose operating budgets. Also a section rejected by Obama in his signing statement would have required Geithner to develop a report with the heads of the World Bank and IMF, detailing the steps taken to coordinate the activities of the two financial institutions, to eliminate overlap between the two.

-Obama actually said in a statement that "provisions of this bill...would interfere with my constitutional ability to conduct foreign relations by directing the Executive to take certain positions in negotiating or discussions with international organizations and foreign governments...I will not treat these provisions as limiting my ability to engage in foreign diplomacy or negotiations." Obama is using the excuse that he needs the ability to negotiate with foreign governments, to protect the economic policies and enforceable structures of the IMF and World Bank, keeping these destructive and unstable global systems in place.




Skip to around 5:00 minutes to get info on the ill actions of the IMF and the World Bank, and the "Corporatocracy" as the emperor of our political, economic, and media systems.




Here's another video of an educated testimony about the terrible control of debt that the US and French governments have over Haiti.

Image Credit:

 http://schizoamerica.com/2009/04/imf-projecting-41-trillion-in-financial-losses/

2. When reading the results of a LEXIS NEXIS search for articles about my story, I found that it is not a truly "censored" story. Obama's specific provisions he failed to approve were definitely under reported and not mentioned in news sources. The story itself is under reported in US media. There are plenty of sources indicating the stimulus packages around the world, as Project Censored indicates. Stories range from US sources providing support for Obama's moves with the IMF/WB, and other domestic sources discredit Obama's actions.  For example, the NYT has articles on both sides, with support for stimulus packages, and disapprovment of the 'signing statements' that allow Obama to disobey laws that prohibit IMF assistance. Media outlets like the Washington Post, and the Christian Science Monitor, highlight support for Obama and the free reign of the World Bank, reporting positive outlooks on Obama and the financial institutions. I found several articles from the global media (UK, Africa, Canada) that signify the support of Obama and the World Bank, with an slight tone of disapproval, or an inclination or suggestion that more reform is needed between the powers, and that he shouldn't disapprove regulation laws. Therefore, this story is not censored, but rather paid attention to by American and international media in various ways to cater to various demographics, pushing a specific agenda media publishers wish to suggest. Different media bodies look at this story through different perspectives and lenses. Some US media outlets chose to focus on the 'positive' story in support of the trillion dollar stimulus package signed at the G20 summit in March/April 2009, and the big corporate bail-outs. Others question the story of Obama allowing assistance for the World Bank/IMF which is detrimental to recovery and system reform. The media can choose to ignore facts, such as that Obama allows the worlds economic systems a free reign of abuse by ignoring policies to regulate these economic institutions.  This story is not fully censored, it's just underreported, and information is used or misled to satisfy the government's and media's intentions.

The global media has reported much more on the connection and support of Obama and the World Bank, but still largely fail to indicate the negatives of allowing a free reign of abuse. They simply report on the issue and story, of how the G20 and Obama will work with these organizations and the World Bank to alleviate the symptoms of the global recession, offering questions and ideas for alternative methods from the G20. These stories largely call for hope, that these initiatives from Obama and the G20 will work out.


Let's refrain from looking at corporate media sources on important issues like the politics and control of our global economic system. Instead, it is important to look for independent media outlets, and avoid corporate owned sources that have various intentions and motives.

Here's an independent source on the IMF/WB's actions. With a more negative, alternate approach.

And another, how the IMF can trap countries into debt.  From an Australian source.

Image Credit: http://blog.beerkens.info/2007/05/next-bank-president.html




Heres another video showing the media and political machine inciting economic destruction in countries. Perpetuating poverty, and keeping people rich and the global system in place.