Connect with us

Economy

The Chinese Debt Trap Is Taking Over The Entire World

Published

on

China has been quietly building an empire across the globe that will soon dominate the world, and not many Americans or Europeans realize it.

The United States and its European allies have a reputation for conquest and colonization, but they are not the only superpower nations who are playing the game of imperialism. These countries typically build their empires through war and occasionally through debt, although the debt strategy is mostly used by international organizations like the World Bank, IMF, and UN. However, while these western nations have been getting all of the attention on the global stage, China has been creating a massive empire through diplomacy and debt.

 

Over the years, China has poured billions of dollars into overseas projects, helping to lift the economies of many nations across the globe, including South Africa, Sri Lanka, Malaysia, and many others. The loans gave these countries the economic boost that they needed to become more significant players on the global stage, however, these countries have all seen economic hardships when it came time to pay back the money, because the conditions of the loan are very strict.

When China loans money to a country and they are unable to pay, which happens often, the country must then give up a large stake in its economic infrastructure, including ports and trade routes. This strategy of conquest is popularly known as “debt trap diplomacy”

Debt

Photo Credit: CNN

According to Wikipedia, “Debt trap diplomacy involves one creditor country intentionally extending excessive credit to another debtor country with the alleged intention of extracting economic or political concessions from the debtor country when it becomes unable to honor its debt obligations (often asset-based lending, with assets including infrastructure). The conditions of the loans are often not made public and the loaned money is typically used to pay contractors from the creditor country.”

A popular media commentator Nas Daily posted a video where he detailed the China debt trap and shared experiences from his travels around the world.

The Chinese Money Trap!

This is a sensitive topic, but it's one I've wanted to show you for a while. After traveling the world for 3 years, I think I saw more Chinese construction people than local ones in many countries. Here is why. —– This is one video out of 100 weekly videos I'm doing! Would love to have you follow this journey here or on Instagram @nasdaily.

Posted by Nas Daily on Friday, March 1, 2019

This is a sensitive topic, but it’s one I’ve wanted to show you for a while. After traveling the world for 3 years, I think I saw more Chinese construction people than local ones in many countries, Nas said in his video.

One of the most glaring examples of China’s debt trap is the case of Sri Lanka. China gave a loan to the Sri Lankan government through the Exim Bank of China to build the Magampura Mahinda Rajapaksa Port and Mattala Rajapaksa International Airport. The state owned Chinese firms, China Harbour Engineering Company, and Sinohydro Corporation were hired to build the Magampura Port. The port cost $361 million to build, and 85% of the construction was paid for by China’s state-owned Bank at an annual interest rate of 6.3%. However, in 2017, Sri Lanka was unable to repay the massive debt, so the new infrastructure projects were was leased to the China Merchants Port Holdings Company Limited, a China state owned company. Through the deal, China was able to take over the infrastructure projects on a 99-year lease.

China

Photo Credit: Architecture update

This caused concern in the United States, Japan, and India that the port might be used as a Chinese naval base to contain China’s geopolitical rivals.

It is important to note that the “debt trap” label is a controversial one, with experts at odds about China’s true intentions. Some experts believe that China is just engaging in good diplomacy, creating a win-win relationship with other countries across the world.

However, other experts say that China is acting no different than the “economic hit men” from John Perkins’ best selling book. Perkins’ book, “Confessions of an Economic Hit Man” details how international corporations from the United States control developing countries through high-interest loans and the debt that follows. The United States does employ this strategy, but China has mastered it, and has been able to spread its influence through debt and diplomacy like no other nation on earth.

Nas Daily ended his video by saying, The world is already ‘made by China’. I think slowly it will become owned by China.”

Regardless of whether China’s intentions are pure or greedy, there is no doubt that they are positioning themselves as the top global super power of the 21st century.

Bernard Marr has always been interested in how the economy works. After the financial crash of 2008, Marr began to learn as much as he could about alternative currencies and Austrian economics. Marr has also become an expert in cryptocurrency and the blockchain industry, and continues to study its impact on global finance.

Advertisement

Economy

Deutsche Bank With Ties To Trump Finances Commits Suicide In Malibu

Published

on

A former Deutsche Bank executive with connections to Donald Trump’s finances has suspiciously killed himself, as nearly the entire world has its attention set on the embattled president and his impeachment proceedings.

Thomas Bowers, who was once the head of Deutsche Bank’s American wealth-management division, passed away in his home in Malibu, and according to the Los Angeles County Medical Examiner-Coroner’s office, the cause of death was suicide by hanging.

 

This situation is incredibly suspicious, especially considering the bank’s relationship with the president and its involvement in some recent accusations against him. Deutsche Bank provided Trump with roughly $2 billion in loans, even after he was denied by most other financial institutions over his history of bankruptcy.

As a result of this relationship, the bank has become the target of an investigation, which is being overseen by two Congressional committees and the New York Attorney General, both of which are hoping that gaining access to the bank’s records will provide them with more insight into Trump’s finances as a whole.

Investigators have tracked Trump’s activity at the bank to a managing director named Rosemary T. Vrablic. The two began working together in 2010 after Jared Kushner set up a deal with them.

In this case, it was reported that Vrablic helped Trump secure loans from the bank. Bowers, the banker who recently passed away, was involved in the situation because he approved many of these loans, including a loan of $100 million, which was used to buy his Doral resort in Miami

When Vrablic was hired by the bank in 2006, Bowers praised her in a press release, saying that she was widely recognized as one of the top private bankers to the “ultra-high-net-worth community” in the United States.

Oddly enough, Bowers left Deutsche Bank in 2015, at which point he was hired by Starwood Capital Group as their new COO. He was also appointed to the Board of Directors of Opus Bank in 2016, so despite his departure from Deutsche Bank, he continued a very lucrative career.

Deutsche Bank

Photo Credit: Leon Neal/Getty Images

One aspect of this story to make matters even more bizarre is the fact that Bowers is not actually the first executive at Deutsche bank wth connections to Trump’s finances to commit suicide.

Just a few years ago, in 2014, Deutsche derivatives analyst William S. Broeksmit, also died under very similar circumstances at his home in London.

According to the Hill, the Manhattan District Attorney’s Office issued a subpoena to Trump’s accounting firm, Mazars USA, back in August, requesting the president’s personal and business tax returns and other financial records.

However, Trump shot back quickly with a lawsuit of his own, attempting to block the subpoena, arging that it was unlawful because presidents are immune from criminal prosecution. Thus far, Trump’s lawsuits to block the subpoena have been blocked by both the district and appeals court in the state of New York.

There may not be any progress in the case until December 13th, when Trump’s petition is expected to be ruled by the Supreme Court, and the District Attorney has promised not to enforce any previous rulings until the Supreme Court makes their decision.

Continue Reading

Economy

McDonald’s Employee Shares How Much They Make In One Year

Published

on

To work at a McDonald’s is to sign up for a less-than-glamorous job with minimal pay and guaranteed grease stains. But what many people don’t know, is that those who are employed by the double arch company full-time are basically required to get a second job or claim welfare in order to make ends meets.

That’s right. Working minimum wage, this is what a full-time employee can expect to take home in one year:

 

Click/tab on image to enlarge

The image above was shared by Fight for $15, a campaign that aims to raise support for a $15 minimum wage in the United States – where the federal minimum wage still remains a measly $7.25 per hour. The accompanying text reads:

“In case anyone was wondering what full-time wage at McDonald’s are like for a full year, this is it. It’s worth adding that the average cost of a 1-bedroom apartment in the U.S. is $8,993.64 – $11,410.92, or up to 82% of this entire year of work.”

As cost of living continues to increase, those who are pressured to take minimum pay as their main form of income are forced to stretch the dollar pretty thin.

economist

How can it be right that a person who works full-time for a multi-billion dollar company has difficulty rising out of poverty? While employees who work for franchises like McDonald’s exchange their efforts for peanuts, millions of dollars are thrown at the CEO. This is the same CEO who oversaw a 30% nosedive in profits last year – yet his efforts are worth that extra cash.

But wait – it gets even more interesting. After McDonald’s fired previous CEO Don Thompson, they then gifted him $3 million dollars to consult for one year. For an average fry cook employed by the same company, it would take him/her 6,631 hours to make what Thompson will be paid for one week of consulting.

economist

The company’s long-standing practice of using franchise agreements to limit corporate liability for labor violations at specific stores appears to be crumbling in the face of multiple lawsuits in America. Unions are asking the European Commission to investigate the company’s use of a tax haven in Luxembourg to allegedly deprive various European governments of a billion euros’ worth of tax payments in recent years. And in Brazil, the company may face massive fines stemming from a union lawsuit against the company’s largest franchisee over serious alleged violations of the country’s strong legal protections for workers.

Thankfully the effort to raise minimum wage is rallying more support on a city-by-city, state-by-state basis, if not at a federal level.

Continue Reading

Trending