Financial power and global governance
World War II was coming to an end. The United States was building new global financial, economic, and political systems. The Bretton Wood Institutes and the United Nations were erected to consolidate power. The International Monetary Fund, World Bank and associated institutions were designed for US hegemony. Things were organized in such a way that the supremacy of the United States could not be challenged. The voting rights of the World Bank and the IMF were designed on the model of the veto and used to ensure strict control.
Simultaneously, the United Kingdom, the declining empire, struggled to maintain its share if not influence. John Keynes negotiated the interests of the United Kingdom with Mr. White. John Keynes was rejecting proposal after proposal presented by the United States. Mr. White had to close the proposal cycle by saying, “we will try to produce something Your Highness can understand”. It was a polite no to further meet UK requirements.
Thus, John Keynes could not get what his declining kingdom demanded of him. This has caused the UK to seek alternatives to retain parts of its lost glory.
The ruling elite of the UK came up with the idea of financial control to rule the world. It was presented as an alternative to physical colonization.
It has been suggested that financial control will ensure a new way to colonize countries. The City of London (Lesser City of London) wrote the plan and executed it systematically to ensure the success of the plan. First, the autonomy of the City of London was safeguarded. Second, the Bank of England, located in the City of London, invited banks, bankers and accountants to settle in the city.
They have been assured that they will enjoy full immunity for their actions. Third, secrecy laws were drafted to protect the interests of the ruling elite, the business community and the banks. Secrecy laws were seen as a key to attracting accountants and money.
Fourth, the Virgin Islands and other locations have been selected to enforce secrecy laws and keep them out of the territory of the City of London and the United Kingdom. New institutions were established and City of London banks began to open their branches in these locations. The islands began to serve as a money transfer conduit from around the world to the city of London.
The Bretton Wood Institutes, the American and British financial systems have forged a partnership to govern the world. It was revealed in 2010 that the UK and the US control 25% and 19% of global transactions respectively.
Further analysis revealed that the Virgin Islands and Cayman Islands secrecy laws help illegal money flow freely. These are the haunts of corrupt elites in poor countries. They have become the hub of corruption money. Multinational corporations treat and bribe the elite of poor countries through these banks.
These islands have also become havens for tax evasion. It deprives countries of the financial resources necessary to run the country. These places also facilitate money laundering. It is unfortunate that illegal money is funneled into the City of London or the United States through these banks.
The Panama Papers, Paradise Leaks, FinCEN leaks, etc., all indicated the involvement of major Western banks like JP Morgan, HSBC, Standard Chartered Bank, Deutsche Bank and Barclays Bank, etc. in money laundering. These are just a few examples. There are many other institutes.
To further strengthen control, the United States, together with the United Kingdom and its Western allies, continued to reform the IMF and the World Bank. The IMF, which was created to help countries manage their balance of payments, has turned into a ruling body to control economies by weaving a debt trap.
The IMF has strengthened its role through central banks. Central banks are used to guide decision-making and bring about desired economic, social and political changes. This is why the IMF and the West are focusing on the autonomy of state banks and major appointments. The recent episode in Pakistan can be cited as an example.
The United States and the United Kingdom also use financial power to punish countries that refuse to bow by imposing economic sanctions. The dominance of the financial system helps to compress the flow of transactions and financial resources.
This encourages the world to limit trade and economic ties with the targeted country, which ultimately leads to the drying up of foreign exchange reserves. It forces countries to bow to the West.
Economic sanction has become one of the most sophisticated tools to punish and bend countries. The West uses it quite frequently against poor, resource-rich, and rival countries. It emerged as a new colonization tool, sucking up resources and destroying rival countries. Iraq, Libya, Iran, North Korea, etc. are striking examples. Russia is the latest victim on this front. Russia is an interesting case study. Although economic sanctions have been imposed, Western interests are protected by allowing energy trade.
From the above discussion, it can be inferred that the real tool of global governance is financial control which was designed by the US and UK. It is widely used to control the world and all threats to the system have been eliminated. This led to many conflicts and wars.
Therefore, it is seen as a permanent threat to world peace and sustainable development. The dream of lasting peace and development can only be realized by eliminating this system.