There was nothing special about Maggie Thatcher. She was a ‘manufactured’ leader in the same mould as Tony Abbott is being manufactured by Murdoch today.Continued internal problems in late 1976 forced Britain British Government to go to the IMF as a lender of last resort. The IMF was originally supposed to be a fund that countries contributed to and could draw on it they needed short-term financial support.
1976 was turning point in the way the IMF worked. The loan to Britain was made conditional on Britain making internal policy changes according to the dictates of the IMF. This was a world-changing event. The IMF had been converted into a political machine that could impose policy onto an independent country in exchange for a loan. The terminology used to describe this process is ‘international cooperation.
The internal unrest orchestrated by the IMF resulted in a change of government in Britain and the installation of Maggie Thatcher. Maggie was just another mouthpiece.The IMF now made loans to struggling countries dependent on ‘Stabilization Programs.’ An outline model of the standard stabilization program is given in The Unholy Trinity, Peet, Richard. (2003) Wits University Press.
1. Abolition or liberalization of foreign exchange and import controls;
2. Exchange rate devaluation;
3. Anti- inflammatory domestic programmes (sic), including (a) control of bank credit and higher interest rates; (b) lower state budget deficits through curbs on government spending, increases in taxes, abolition of subsidies; (c) controls on wage increases, and (d) dismantling price controls, and
4. greater hospitality for foreign private investors.
Basically these conditions equate to agreeing to create a poorly paid docile work force for the use of invading multinationals. In order to obtain an IMF loan countries are forced to submit to economic slavery.This is basically what has happened the Greece, Ireland and Malta. All are now owned by the multinationals and will probably never recover for the benefit of the people without major world economic reform and the demise of the IMF.
Because of the strong economic position of Australia the IMF has not been able to touch us, but we still have to contend with Murdoch and Abbott whose policies cannot be separated from the “stabilization” policies of the IMF.
Maggie has gone. So what? She was only a mouthpiece.