Billions of dollars have been allocated by the World Bank for infrastructure projects in the Chinese Silk Road Economic Belt, according to the bank’s president Jim Yong Kim at the 1+6 roundtable meeting in Beijing.
“Investments, particularly in infrastructure, are extremely important. The Chinese initiative of the economic belt of the Silk Road catalyzes infrastructure investments,” he told the heads of major international organizations.
“The World Bank will help the countries within the initiative to take maximum advantage of the opportunities provided, in accordance with their own development strategies,” he added.
According to the World Bank’s International Finance Corporation (IFC), an extra $1 billion is expected to be raised within a year as part of a planned $5 billion infrastructure investment fund for China’s Road and Belt program.
“We have raised the first $1.1 billion, we are going to raise the next billion probably within the next year, that’s my guess,” IFC Chief Investment Officer for infrastructure and natural resources Ram Mahidhara told Reuters.
The fundraising plans are part of IFC’s so-called Managed Co-Lending Portfolio Program (MCPP) that seeks to raise more than $5 billion from investors by 2021, he said. A large part of the funds will be deployed for Belt and Road related projects, the official added….
Gee that’s awful kind of them, er, I mean you, the taxpayers of the so-called “sovereign nations” which fund the WB, who btw never see a dime of return on their “investment”.
Is the World Bank a nonprofit organization?
The World Bank was not established to make a profit. It is not a bank in the traditional understanding of the word and does not have private shareholders.
The organisation does sometimes have funds available at the end of the financial year.
The following explanation of what happens to this surplus is extracted from the FAQ page from
We often do have a surplus at the end of the fiscal year, which is earned from the interest rates charged on some loans and from fees charged for some of our services. Some of the surplus goes to IDA—the part of the bank that provides grants and interest free loans to the world’s poorest countries. The rest of the surplus is either used for debt relief for heavily indebted poor countries, added to financial reserves, or helps us respond to unforeseen humanitarian crises.
The organisation’s own goals do not include making a profit. However, some of the income generated could arguably be said to benefit richer nations, with people in the paid employment of the bank in its base in Washington DC. Consultants who tender for work with the bank may do so with the aim of making a profit for themselves, with the tender process balancing the quality of service or product with the fee paid for it.
… Economists Ken Rogoff and Carmen Reinhart carried out a long historical survey going back 800 years, looking at individual countries, or empires in some cases, that have gone broke or defaulted on their debt.
They put the danger zone at a debt-to-GDP ratio of 90%. Once it reaches 90%, they found, a turning point arrives…
At that point, a dollar of debt yields less than a dollar of output. Debt becomes an actual drag on growth.
What is the current U.S. debt-to-GDP ratio?
We are deep into the red zone, that is. And we’re only going deeper.
The U.S. has a 105% debt to GDP ratio, trillion dollar deficits on the way, more spending on the way.
We’re getting more and more like Greece. We’re heading for a sovereign debt crisis. That’s not an opinion; it’s based on the numbers.
How do we get out of it?
For elites, there is really only one way out at this point is, and that’s inflation. …
Now, the Fed printed about $4 trillion over the past several years and we barely have had any inflation at all.
But most of the new money was given by the Fed to the banks, who turned around and parked it on deposit at the Fed to gain interest. The money never made it out into the economy, where it would produce inflation.
The bottom line is that not even money printing has worked to get inflation moving.
Is there anything left in the bag of tricks?
There is actually. The Fed could actually cause inflation in about 15 minutes if it used it.
The Fed can call a board meeting, vote on a new policy, walk outside and announce to the world that effective immediately, the price of gold is $5,000 per ounce.
They could make that new price stick by using the Treasury’s gold in Fort Knox and the major U.S. bank gold dealers to conduct “open market operations” in gold….
Ummm … did you catch that? “most of the new money was given by the Fed to the banks, who turned around and parked it on deposit at the Fed to gain interest. The money never made it out into the economy, where it would produce inflation.”
Reiterating: the “fed” pays interest on these deposits, purely at the “fed”‘s discretion. And we’re supposed to believe it’s a surprise to anyone that the money isn’t being used for anything constructive? This is so f*cked up I don’t know where to begin. And for Rickards to gloss over it as if it wasn’t a compete outrage is itself a complete outrage. And that the economy needs $20T worth of inflation to keep functioning is yet another outrage.
But let me predict the future here: when/if the economy finally signals a bottom by turning around for whatever reason despite the most strenuous efforts of the “fed” and its wall street groupies, a lot of that QE money which is parked in INTEREST BEARING accounts (I can’t even believe they’ve admitted this with a straight face) will be used to buy up physical assets for pennies on the dollar. Just another variation on the great ripoff of the 30’s, which was ALSO caused by the policies of the “fed” ( http://thoughtcrimeradio.net/2014/03/reprise-bernanke-admits-fed-caused-great-depression/ ) and which ALSO vastly benefited the “fed”‘s shareholders.
Is there no limit to what the american people will put up with?
The level of fraud and theft involved in all this is so extreme it defies description. When the F*CK are we going to ditch this vampire squid and get something that can at least pass the laugh test as a public financial institution? Oh yeah, that’s right: politicians who pursue such commonsensical policies tend to be sacrificed to satan. Funny how that works.
Short intro to Yuri Bezmenov by G.Edward Griffin:
Longer, illustrated version, “Deception was my job”:
Psychological Warfare, Subversion & Control of Western Society:
From Sally Writes, who wants to remain incognito:
Some see this summer’s delayed Senate vote on health care as a positive. However, Republican leader Mitch McConnell assures us that Medicaid cuts will still be on the table, whether they’re included in Affordable Care Act reforms or not. While this round of cuts would decrease Medicaid spending, it will significantly impact our country’s elderly, making it clear that there’s no place for one of our most vulnerable populations.
Health Care Spending Out of Control
Longer life spans and lower government spending might look good on paper, but when those are coupled with astronomically rising health care costs, the results are alarming. With more middle-aged adults forced to be away at work during the day, the elderly rely on housing in long term care programs. Currently, Medicaid covers long term care for the elderly with little money, but squarely middle-class retirees are now forced to rely on government funding when their savings run out all too quickly. Medicaid now covers long-term care for at least 2 million older adults.
The expense of this kind of long term care is staggering and helps explain why this group of people is being targeted. While long term care is only used by 6% of Medicaid enrollees, expenses account for 42% of Medicaid spending. A full 64% of Americans currently in nursing homes are dependent on Medicaid, and this begs the question–where will these people go when funding is cut?
No Good Choices
Nursing homes are already rife with accounts of abuse and sexual exploitation by the very people hired to care for patients. If cuts are enacted, states under budgetary pressure will react by decreasing what they pay for nursing home stays or by restricting eligibility for coverage.
Nursing homes owners will have to choose between running deficits or decreasing the standards of care. Worse, they will charge prices too high for the average family to pay or eliminate Medicaid beds. Many individuals in today’s economy are already struggling to stay afloat; quitting jobs to care for elderly parents just isn’t an option.
Medicaid cuts swing another blow at an already fragile and hurting elderly population. Forcing states and then nursing homes to charge more or kick out the elderly is a mistake and yet another example of the secret wars that are so common and yet so rarely recognized.
Who doesn’t like music. Here’s a musical topic I wish I knew more about. A welcome change from the daily grind of politics AFAIC.
The playlist is here: https://www.youtube.com/playlist?list=PLII9LiUkpnv5dO531rapMdrmX7JvX6VPX
The 1944 Bretton Woods international monetary system as it has developed to the present is become, honestly said, the greatest hindrance to world peace and prosperity. Now China, increasingly backed by Russia—the two great Eurasian nations—are taking decisive steps to create a very viable alternative to the tyranny of the US dollar over the world trade and finance. Wall Street and Washington are not amused, but they are powerless to stop it.…
By the end of the 1960’s with soaring US Federal budget deficits from costs of the Vietnam War and other foolish spending, the dollar standard began to show its deep structural flaws. A recovered Western Europe and Japan no longer needed billions of US dollars for financing reconstruction. Germany and Japan had become world class export economies with higher efficiency than US manufacturing owing to a growing obsolescence of US basic industry from steel to autos and basic infrastructure. Washington should then have significantly devalued the dollar against gold in order to correct the growing world trade imbalance. Such a dollar devaluation would have boosted US manufacturing export earnings and reduced the trade imbalances. It would have been a huge pus for the real US economy. However for Wall Street banks it spelled huge losses. So instead, the Johnson and then Nixon administrations printed more dollars and in effect exported inflation to the world.
The central banks of especially France and Germany reacted to the deafness in Washington by demanding US Federal Reserve gold for their US dollar reserves at $35 per unce s in the Bretton Woods 1944 agreement. By August 1971 the redemption of gold for inflated US dollars had reached a crisis point where Nixon was advised by a senior Treasury official, Paul Volcker, to rip up the Bretton Woods system.
By 1973 gold was allowed by Washington to trade freely and was no longer the backing of a sound US dollar. Instead, an engineered oil price shock in October 1973 that sent the dollar price of oil higher by 400% in a matter of months, created what Henry Kissinger then called the petrodollar.
The world needed oil for the economy. Washington, in a 1975 deal with the Saudi monarchy, insured that Arab OPEC would refuse to sell one drop of their oil to the world for any currency other than US dollars. The value of the dollar soared against other currencies such as the German Mark or Japanese Yen. Wall Street banks were awash in petrodollar deposits. The dollar casino was open and running, and the rest of the world was being fleeced by it.
In my book, Gods of Money: Wall Street and the Death of the American Century, I detail how the major New York international banks such as Chase, Citibank and Bank of America used the petrodollars then to recycle Arab oil profits to oil-importing countries in the developing world during the 1970’s, laying the seeds for the so-called Third World Debt Crisis. Curiously, it was the same Paul Volcker, a protégé of David Rockefeller and Rockefeller’s Chase Manhattan Bank, who this time, in October, 1979 as Chairman of the Fed, triggered the 1980s debt crisis by pushing Fed interest rates through the roof. He lied and claimed it was to nip inflation. It was to save the dollar and the Wall Street banks.
Today, the dollar is a strange phenomenon to put it mildly. The United States since 1971 has gone from being a premier industrial nation to a giant debt-bloated casino of speculation….
The only factor keeping the dollar from total collapse is the US military and Washington’s deployment of deceptive NGOs around the world to facilitate plundering of the world economy….
Now, ironically, two of the foreign economies that allowed the dollar an artificial life extension beyond 1989—Russia and China—are carefully unveiling that most feared alternative, a viable, gold-backed international currency and potentially, several similar currencies that can displace the unjust hegemonic role of the dollar today. …