4 ms·

If they are instead buying things with US dollars, where do those dollars come from?

stephen_g 3y ago
Often things like IMF loans that massively burden countries with debt to first world countries - with the money mostly going into infrastructure for extractive industries like mining so the countries who indebted them can buy their resources cheap, and also get to suck extra money out of their economy for the interest payments. These kind of things often just happen to end up that the people of a nation end up with the burden of the debt, austerity, etc. while a smaller group of well connected people and companies end up with the benefits.
- pas 3y ago
  US trade balance is negative for decades, exactly because dollars go to developing countries (in the form of direct investment and also as the classic paying for things, and also because tourists leaving hard cash at the locals) IMF loans are better than austerity. and structural reforms as conditions of IMF loans are better than selling natural resource extraction rights for 99 years to private companies. are these development programs perfect? of course not, but the mindless and ignorant vilification is just propaganda at this point.
  - chii 3y ago
    These vilification are propaganda, likely covert operations from places like china or russia. The IMF is no saint, but they at least is looking to improve things, despite not acting altruistically. Their loans are contingent on economic reforms - e.g., Pakistan's default is in part due to state subsidies and inefficient tax allocation, etc. In the short term, reforming these things looks like causing of suffering for the population, but so does alcohol/drug withdrawal. In the long term, it produces a better economic outcome imho. Contrast this with stuff like the Belt and Road initiative.
    - throwawaylinux 3y ago
      > These vilification are propaganda, likely covert operations from places like china or russia. Source? > The IMF is no saint, but they at least is looking to improve things, despite not acting altruistically. Should I consider you likely covert operation from China or Russia because of the accusation that IMF is no saint and does not act altruistically?
    - my_city 3y ago
      [dead]

Often things like IMF loans that massively burden countries with debt to first world countries - with the money mostly going into infrastructure for extractive industries like mining so the countries who indebted them can buy their resources cheap, and also get to suck extra money out of their economy for the interest payments. These kind of things often just happen to end up that the people of a nation end up with the burden of the debt, austerity, etc. while a smaller group of well connected people and companies end up with the benefits.

pas 3y ago
US trade balance is negative for decades, exactly because dollars go to developing countries (in the form of direct investment and also as the classic paying for things, and also because tourists leaving hard cash at the locals) IMF loans are better than austerity. and structural reforms as conditions of IMF loans are better than selling natural resource extraction rights for 99 years to private companies. are these development programs perfect? of course not, but the mindless and ignorant vilification is just propaganda at this point.
- chii 3y ago
  These vilification are propaganda, likely covert operations from places like china or russia. The IMF is no saint, but they at least is looking to improve things, despite not acting altruistically. Their loans are contingent on economic reforms - e.g., Pakistan's default is in part due to state subsidies and inefficient tax allocation, etc. In the short term, reforming these things looks like causing of suffering for the population, but so does alcohol/drug withdrawal. In the long term, it produces a better economic outcome imho. Contrast this with stuff like the Belt and Road initiative.
  - throwawaylinux 3y ago
    > These vilification are propaganda, likely covert operations from places like china or russia. Source? > The IMF is no saint, but they at least is looking to improve things, despite not acting altruistically. Should I consider you likely covert operation from China or Russia because of the accusation that IMF is no saint and does not act altruistically?
  - my_city 3y ago
    [dead]