A Plan to Collapse Iran’s Central Bank and its Origins

The foreign policy of the richest countries has always depended in controlling the world’s monetary systems. As a continuation of the postcolonial systems, they continue holding the power to grant credits to poorer countries, to rescue their economies in periods of crisis and in pushing for an increase in world “reserves” and international “liquidity.” The end result of this policies resulted in creating world inflation and enriching those central banks that controlled the dice of this international game (just as it had been done in the previous colonial period).

Colonialism may seem to many an ‘old history’ that was overcome with the modernization of the world and the decolonization processes after World War II. Nonetheless, in the following postcolonial period many already institutionalized strategies continued working and are still present today. The IMF, for example, was one of the institutions born as a result of the decolonization process. Its results (far distant from their founding vision) were to keep the postcolonial countries in monetary and economic dependency.

For long the world’s centralized banking and monetary authorities, headed primarily by the International Monetary Fund, collaborated to initiate a period of surveillance, aid, and guarantees for the world’s financial markets as Philipp Bagus and David Howden explained in the post “The IMF and Moral Hazard“. However, the long-term results of theses policies fostered the dependency of postcolonial economies and, as such, empowered the populist leaderships in the former colonies that pursued expansive social programs that couldn’t be supported without their foreign aid and long-term indebtment.

Video: The Plan To Collapse Iran’s Central Bank

Today, I saw a video titled “The Plan To Collapse Iran’s Central Bank” in which analysts in the U.S.A. are evaluating the possibilities of collapsing Iran’s economy and disenabling them to continue researching their nuclear programs. Strategies as these may seem as “bogus” to many; however, the long history of international monetary intervention of the economies in postcolonial countries is long and influential (see: Pastor, Manuel (1989). Latin America, the Debt Crisis, and the International Monetary Fund. Latin American Perspectives). The results of any of these strategies always end up creating inflation and as Henry Hazlitt mentioned in his essay “End the IMF” in the year 1963 the only solution for and end to inflation (an as such for peace and economic recovery) is to eliminate the IMF and the interventionist international monetary system that has proved, in practice, a gigantic machine for world inflation.

File:50000 IRR obverse.jpg — 50,000 Iranian rial

Book Reco: El amanecer de la libertad by Carlos Sabino

Carlos Sabino‘s latests book composes an historiographic evaluation of Latin American history and its heroes from a pro-libertarian, free market perspective. The book is an evaluation of the intellectual influences behind the Independence Movements in the region and how they still influence current political structures. I invite you to listen to this lecture by Prof. Sabino, (audio in Spanish)

Presentación del libro “El amanecer de la libertad”

New M.A. in History at Universidad Francisco Marroquin, Guatemala. (capitalisthistory.wordpress.com)

The Drug War in Guatemala: A Conversation with Giancarlo Ibarguen

“I blame the war on drugs in the United States for what is happening here in Guatemala.”
Giancarlo Ibarguen

Most of the cocaine shipped north from Central and South America these days travels through Guatemala and into Mexico before eventually crossing the border to the United States. The value of that cocaine, even before it enters the US market, is approximately $40 billion a year. That’s nearly the size of Guatemala’s entire economy.

The drug cartels in Guatemala act with impunity and effectively control much of the country. As Guatemala’s President Alvaro Colom recently told Al Jazeera, “The drug traffickers are much better armed and financed than our military and our government.” Guatemala, as a result, has become a very dangerous place to live.

What’s the solution? According to Giancarlo Ibarguen, president of the Universidad Francisco Marroquin, the US government should end its war on drugs.

Approximately 5 minutes.

Produced by Paul Feine and Alex Manning.

Go to http://reason.tv for downloadable versions and subscribe to Reason.tv’s YouTube Channel to receive automatic notification when new material goes live.

Jefferson: The Civil must always be in complete control of The Military

Lady Justice Takes the Bus — Image by djking via Flickr

The ideas of the Founding Father‘s were an inspiration across the breath of Europe and Latin America. Even now, more than 200 years later, the words of the great Thomas Jefferson should and must be remembered now that the new governments we elected continuously impulse the centralization of agricultural, commercial and industrial production.

“But the true barriers [bulwarks] of our liberty in this country are our State governments . . . Agriculture, manufactures, commerce, and navigation, the four pillars of our prosperity, are the most thriving when left most free to individual enterprise . . . standing armies in time of peace should be avoided as dangerous to liberty; and that in all cases the military should be under strict subordination to, and governed by, the civil power.” Jefferson, Thomas. Annual Message to Congress (1801)

As important, Thomas Jefferson’s message to the new Citizens of the United States was that it was fundamental to the survival of a Republican country that The Civil must always be in complete control of The Military. Jefferson had made this warning as an answer to the Constitution that Virginians had written. Nowadays, however, the message goes to the citizenry that fails to recognize that the role of an army in time of peace should be avoided and kept under strict subordination to, and governed by, the civil power.

These are some of Jefferson’s messages that helped the United States build a stable government based on Republicanism. In the cases in which The Military and their allies may sometimes control the executive power they must constantly be remembered that it is the strict following of The Constitution their most important obligation. This is the only tool in which The Civil will complete The Military; failing to do so will only secure autocratic governments in which The Civil loses their rights just as history has shown.