The only war the USA won so far is its 'imperialistic'
ambitions. That is supported by its building and expanding its military
bases all around the world.
When China embarked on the BRI, it
was demonised to no end, and accused of setting debt traps. If that is
true, what have the IMF done to countries like Argentina, now in deeper
debt to the IMF with each devaluation of the Argentina Peso. With
Argentina's inflation running out of control, it gets more difficult for
it to repay its IMF loans in US$. Why have the USA or the West never
consider that as a debt trap set by the IMF is beyond logic.
Over
the decades, no country big or small have come out to accuse the USA of
harbouring 'Imperialism' ambitions by building military bases in
countries it wants to control, often using fabricated threats to create
fear and unease for such countries to suit its vile agenda. This is
often their modus operandi, that is slowly being seen more clearly by
many countries, particularly with the experience by the Africans, the
most colonised and exploited continent in history.
It was the
same with the Europeans, using the threat from the former Soviet Union
as a basis to form Nato. After the fall of the Soviet Union, logically
Nato should have been disbanded. But the USA continued to play up the
threat of Russia to instil fear among the Europeans, that without Nato,
Russia will swallow them up. The Warsaw Pact countries are already
history and disbanded, but Nato continues to exist, solely for the USA
to station troops and have a foothold in Europe.
The USA is now
creating the same kind of scenario in East Asia and Indo Pacific region,
using China to create fear among those countries around the region, so
that it can start to expand its 'Imperialistic' footprint in the region.
USA is even using Nato to expand its influence in the region by setting
up and intending to expand Nato into the Asian continent through Japan.
Do not think for a moment that ASEAN will be spared. What is happening
in Papua New Guineau is just the beginning of trouble, first for
Indonesia and later for ASEAN as a whole. The USA is already using the
CIA and its supported NGOs working the ground in Indonesia and many
ASEAN countries.
Anonymous
PS. IMF and World Bank interest rates are 5%. China's loan interest rates
are 1 to 2%. China even gave interest free loans to countries like
Nicaragua, selling its EV buses at a huge discount, at 3/4 its normal
price.
Who is the real culprit that is causing debt traps to third world countries?
In fact if China extended loans to poor countries in US$ (by recycling its US$ surpluses in trade, which in the past goes to buying more risky US$ Treasuries) and asking for repayment in Yuan over an extended period, is actually beneficial for those debtor countries with the slightly weakening Yuan. This is my two cents worth, so please pardon me, as I am no economist.
ReplyDeleteOn the other hand, when countries take US$ loans from the IMF and World Bank, which is to be repaid in US$ for sure, the debt trap is there, if those countries' currencies are slowly being devalued, as it is happening today. Therefore, repayment is getting more and more difficult for them by having to buy expensive US$ to repay their loans, using their devalued currencies. That is the debt trap that we are talking about, pure and simple. Argentina is the perfect example of taking IMF loans.
Mohammed bin Salman just rubbished the Chinese debt trap narrative espoused by the West over those BRI projects. Countries that took the loans from China have all the infrastructures to show - airports, railways, roads, reservoirs, ports, housing, on top of opening up trade that benefits economically those countries that took Chinese loans for infrastructures. Such infrastructures belongs to them and no one is able to take them away. Those infrastructures that China constructed do not belong to China anymore, while the surplus US$ in trade as held by China is a target for sanctions and is subject to the risk involved. The lessons from Russia, having its Central Bank reserves seized by the USA, has not gone unnoticed by the Chinese. That was a drop in the ocean compared to the size of China's foreign reserves of US$3.2 trillion.
The only take away is that it is a win win situation for China and the debtor countries, and this is not beneficial for the USA. China discovers a channel to recycle its massive US$ surpluses, without having to take the risk of buying more US$ treasuries, while the USA has no chance of seizing those assets constructed by China, which now belongs to others and not China. Seizing those infrastructures is impossible, unlike USA assets held by China, which had alreay been targeted by the USA neo-Cons during the COVID19 pandemic, right?