Development Loans And Modern Empire Building

China's Cheap Loans - A Debt Trap

Most of South America and Africa have been mired in debt to foreign loans. While many of these loans came from banks in US/European sphere, China has become a major lender on the world stage. The question with China and these loans, is how China handles collections. What happens in these nations over the next 10-20 years? With less ability to project military power, I suspect China will be forced to evolve a more pleasant method of dealing with it long-term.

Russia, in the Yeltsin years, became indebted to the USA and Europe (IMF, World Bank, Wall Street, London). The thing Putin did that is the real cause of sanctions was to declare a moratorium on foreign debt payments, and to reconstruct the Russian Central Bank, and implement a policy that Russia borrows from its own bank from then on. This meant the International Banksters couldn't steal the largest nation on earth by foreclosure, nor could they continue to break the nation, driving it down into poverty by playing crack the whip with their loans.

What Putin did is what every successful Western nation does. The USA, Canada, UK, and until the EU, all of Europe borrow from their own Central Bank. Now the EU is acting as a kind of empire causing havoc inside the EU between the dominant central nations and the peripheral nations getting shafted. It's a mini-empire colonial policy all contained inside Europe. Same as Rothschilds used to do to the world 300 years ago. Loans to nations for development aid are the foundation of empire with military power as enforcer.