IMF Has Ruined Jordanian Economy And Same Techniques Are Being Used In Pakistan. GDP growth in the range of 4%. External debt around $38 billion. Youth population 40%. Per capita income of about $5000. A low inflation of under 4%. A budget deficit of about $2 billion. And foreign reserves of about $13 billion. Unemployment of about 12%. And a population just over 10 million.
Nothing seems wrong with this picture ? Does it.
Well not to the common eye. Look back to its economic history and you will see how The IMF ruined this country, so important strategically between Saudi Arabia, Syria, Iraq and Israel. Yes Israel. That’s is where The IMFs interest rests. For decades The IMF has been telling this small Constitutional Monarchy, what an Oxymoron, Constitutional Monarchy, nation that their Debt To GDP ratio was not that high and they should borrow more. I have always advocated that the Debt To GDP Ratio is never an indication to borrow rather it is used by The IMF to encourage more borrowing by nations in order to make them debt ridden to the point that they are no longer able to pay back. Your revenues or your tax collections or in simple English, your ability to pay back your loans is the correct indicator of your ability to borrow. Never the GDP because your GDP is not your income.
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The lies given for decades by the lenders finally have come to fruition. All of a sudden The IMF has imposed austerity measures on Jordan because they want their loans to be paid back. The energy prices have risen 55% in months. If you remember, The IMF wants Pakistan to increase its energy prices as well as one of the conditions to its loans. Why the energy prices ? Because expensive energy kills an economy and brings it to its knees without an effort. Exporters can’t afford to pay the bills or their production costs go so high that they have no choices but to discontinue their only revenue stream, their exports.
The IMF also dictated to us three years ago that we should have 18 Rupees per unit of energy. They want us to increase the prices more. They are also ready to give us more money if we devalue our currency more. It already touched a high of 121 Rs to a Dollar today. Last week in my article I had written that I wouldn’t be surprised if the rupee hits 125 during this interim government.
For the last and final time I am writing that I see all signs leading to an economic meltdown. I have repeatedly given examples of Argentina, Greece, Spain, Portugal, Egypt and how IMF has played the same game there. I add today to my list Jordan.
There are street protests in Jordan all over. Since 2000, there have been 11 Prime Ministers that have been replaced. None have been able to fix the economy. None. Because once you become a slave of The IMF, only heavens can save you and not humans. Banking system is collapsing and the Jordanian capital markets have tanked to the point of no recovery. We need a National Economic Action Plan. Heck with this Mantra Of Democracy. Let’s first ask the candidates how they plan to fix the economy before we get fooled into voting for them for the last time. If there is no economy left, God Forbid, what will we do with this concept of Democracy ? It does not pay any bills nor can you cash it as a cheque in the Parliament.