If Sri Lanka is to be the first to be pushed, to fall, it should be the first to stand up and push back
‘Before you study the economics, study the economists!’
e-Con e-News 03-09 July 2022
The most valuable colonial possession on the globe,
giving to our Indian Empire a security
it had not enjoyed from its first establishment
– English PM William Pitt, after the Dutch ‘ceded’ Ceylon, 1802
Far from Ukraine, Sri Lanka is the epicenter of a global crisis
– Washington Post, 6 July 2022
Epicentre. Bullseye. Canary. Guinea pig. Lab rat. Domino. An example. A lesson and more.
‘If Sri Lanka is going to be the first to be pushed, to fall, it should be the first to stand up and push back with other Asian and African countries’ (see ee Comments).
The perfect storm. A tempest not that natural, rages out of an old teapot.
These wars waged around us. Let’s raise our heads and look: From East Africa to West Asia, from Myanmar to Korea. They are not new nor are they that old. Wars of currencies. Wars of fuel. Wars of food. Wars of fools. Wars of leadership. These wars waged on us.
China. Korea. Vietnam, Laos, Cambodia. Cuba, Palestine. Nicaragua, El Salvador, Guatemala, Iraq, Yugoslavia, Liberia, Libya, Syria, Haiti, Congo, Somalia, Ukraine, Yemen, Myanmar: A roll call of nations, long enduring white military annihilations. A punishment for nations seeking to, or proclaiming, ‘nationhood’, ‘independence’, ‘nonalignment’, ‘strategic autonomy,’ etc, midst imperialism. Nations who dare choose their own leaders.
The IMF is not a bridge over troubled waters. It is what is troubling the waters.
English is not a link language, bringing people closer. It is used as a wedge.
MCC. It’s not just cricket.
Caterer of exploitable workers. Casino. Brothel. Resort. Tax hideout. Money laundry. Drug entrepot.
Is this to be our designated future?
Are dollars really our main problem? 16 IMF loans later, the IMF is still depended upon to deliver one more chalice of old poison that has pushed SL to this pass. A massive US-led campaign is concealing their undermining of the economy and the country, and instead blame China, etc.
This effort became clear with the US state department’s move to appoint a kalusuddha aka Envoy Julie ‘Banana One’ Chung, to front their war against China from Colombo. Chung, who play the ultimate role that Asian and African diasporas in those white countries have to play – is said to be a leading expert on ‘regime change’. Chung is credited with coordinating the choking of essential goods into Sri Lanka.
The stampede of US, Indian and other white officials into Sri Lanka has been to threaten Sri Lanka they cannot deal directly with China and Russia. Meanwhile, who benefits from unleashing Sri Lanka’s ample reserves of anarchists, nihilists, romantics and utopians, who are setting the stage… Maharaja’s Sirasa TV stands accused of sacrificing reporters to provoke arson, etc. The churches also are being exposed (see ee Quotes, Bhadrakumar).
Foreign banks are still refusing to open letters of credit to obtain fuel directly from Russia, etc. It remains to be seen how long it will take to expose the links between the ‘energy mafia’ that operates as middlemen between the large US-led monopolies that control fuel (Exxon, etc.) and food (Cargill, Archer Daniels Midland, etc.).
‘It is essential to determine whether Russian crude oil
is in line with the specifications of Ceylon Petroleum Corporation’:
Minister of Education Susil Premajayantha, also President of SL-Russia Friendship Association
Joke? No. The wise minister may be anticipating the power of a bureaucratic mafia to sabotage shipments – as they did with the imported organic fertilizer incident. After all, it’s possible that the Russian oil, well received in India, may suddenly become cruder if it comes here directly:
‘When Russia is offering fuel at a reduced price,
a price even India has accepted & is purchasing,
Sri Lanka doesn’t want to anger the US
and is buying fuel from India at a higher price
while India is buying from Russia at a discounted price.
What is stopping Sri Lanka from going to Russia
for our energy requirements? Are we a State of India or a US colony?…
The question is simple enough –
if we can get 50,000 MT for $11m from Russia,
why are we buying from LIOC?
See ee Industry, Artificial
This week, the much-touted ‘international community’ was finally defined to be ‘friendly funders!’ An unelected though foreign-funded ‘civil society’ of fluid diversities is being repeatedly put forward, as more representative and democratic than elected politicians. NGOs, who employ this civil society, turn out to be multinational corporations.
So! We are to be entwined further in a con game. A confidence game. The powers-that-aim-to-remain apparently have no faith in us. Somehow the country’s vast archive of land, seas and air, our evident reservoirs of human skill – our real treasures – just do not measure up. Any full accounting, even of more recent bloody history, is shoved off the edges, and outside the lines of the ledgers (see Random Notes, Yoshino).
The main attack is on workers in the state sector. Workers being blamed for the failure of current capitalist strategies that heighten that well-exercised explanation – inflation. Inflation then blamed on Russia, as white envoys keep reminding us. Even as it’s the US and its yippy poodles who war on Russia and almost everywhere else.
Their multinationals and banks monopolize international trade. They are artificially jacking up prices of dollars, fuel, and food. They also control the English media, to frame the debate and choose our priorities.
• The Daily Mirror this week headlined the ‘dilemma…between free market economy & welfare state.’ They do not wish us to even consider what a planned modern industrial socialist society may look like. It’s beyond their narrow cashier’s window. We are once again, post-nationalization. The Sunday Times editorialized triumphant, ‘The recovery from the ruin: Rolling back nationalisation!’
Wijeya Group’s Sunday Times even scolded Opposition Leader Sajith Premadasa of the UNP-linked Samagi Jana Balavegaya (SJB) for his feign to the Left:
‘Surprising enough, who should oppose the privatisation of the petroleum sector? Believe it or not… Many of his parliamentary colleagues are livid… Some even accused him of following the JVP-led National People’s Force policies.’
‘Livid’ colleagues are the SJB’s so-called ‘liberal economic rightwing’ demanding the total selloff of all national enterprises (aka SOEs). This to seduce their suitor, the IMF, who’s apparently left in a huff. Such is the present charade enacted from the Kollupitiya junction.
We’ve also not been told what the US Treasury tag team exactly demanded other than downgrading local accountants All we heard is that the US wishes to ‘feed’ ‘more than 800,000 children and 27,000 pregnant and lactating women.’ Kollupitiya junction appears to have a fetish, no doubt sincere, with the bodily fluids of darker women (see ee Agriculture).
Still, with all this hunger and thirst to appease, the Sunday Times states ‘the exact reasons are not known’, why the whites in Washington appear displeased. Darker fluids apparently, like oil (Random Notes).
‘How did you go bankrupt? Two ways. Gradually, then suddenly.’
– Ernest Hemingway, The Sun Also Rises
‘Government leaders are concerned over India
for what they say are new conditions to the already agreed
in principle of bridge finance of around $US2bn in 3 tranches.
Though details of the conditions are still not clear,
Sri Lanka has no alternative but to agree to the terms set.
India is the only country that has committed
to any significant amount as bridge finance.
In return, India is also seizing the opportunity to consolidate
its foothold by securing as many strategic assets as possible.’ – Sunday Times
Hanuman & Bridge Finance – Our media economists and politicians have learned a new term to costume short-term loans in fancy dress: bridge finance.
So what’s with the white push for Sri Lanka to use short-term loans that must-not-be-called loans? ‘Bridge finance’ (BF) is needed pronto, they say, to stanch Sri Lanka’s so-called thirst for loans. Constant repetition of this BF betrays their eagerness to further inveigle Sri Lanka into the coils of their deadly embrace.
Bridge finance aka short-term loans were the spark for the 1997 ‘Asia Crisis, ignited by foreign bankers (esp. Japan) who became ‘suddenly unwilling’ to rollover short-term loans. From 1993 to mid-1998 private foreign bank loans to Asia had outpaced capital inflows such as securities (int’l money-market instruments, bonds & paper) by at least two to one.
Yet from 1996-7, private banking funds to Asia were decreased from $79.8billion to $7.6bn due to ‘widespread nonrenewal of interbank credit lines.’ There were ‘negative flows’, 3Q 1997 – 2Q 1998, with losses from outflows of bank credit from Asia reaching $80.8bn. Total debt was thus increased, much of it short-term, increasing vulnerability. Short-term debt is most sensitive to a rapid fall in currency exchange rates. The heavens indeed caused a mood change among fund managers on ceasing ‘rollovers’ of short-term debt.
This ee looks therefore at where this fancy moody euphemism for short-term loans – Bridge Financing, has travelled (see Random Notes)
A1. Reader Comments –
• Ask Unilever for the Dollars • ee causes trauma • Temple lands robbery • Colombia wants Mazzucato, Colombo wants Coomaraswamy • Anuradhapura’s Economics • Superpower in the dark too • Need world view • Sri Lanka first to stand up
A2. Quotes of the Week
• India must intervene? • Enter the strong man • India dictates • Private car, National sell out • 2017 Exchange Control Act • 2015’s Evangelicals • Japan innovation down • Argentina wants State that Plans • Developed means Public Bus • Two Types of Infrastructure
A3. Random Notes –
• Media’s US Economist Dogma • How England Stole from Sri Lanka • International and civil – Final Definitions • Bridge Finance • Private vs Public Managers • Accountants Can’t Count • De Mel, Jafferjee and Theagarajah • Rainforests for Dollars • Bankers’ Aragalaya • Fiscal Management (Responsibility) Acts Once More • Strategic autonomy
B. ee Focus
B1. CPC Hedging Robbery, Citibank (US), SCB (England) & Deutsche Bank (Germany)
B2. Jigsaw Oil Mafia & US Architecture for War in Asia