Western financial imperialism: A new way of colonisation—II

The US Federal Reserve revealed share of US dollar in global trade invoicing was 96pc for America, 74pc for Asia-Pacific region and 79pc for the rest of world during the period of 1999-2019. The US dollar is major currency for foreign reserves across the world. Though countries started to shift from dollar, 47 percent of world foreign reserves are still kept in the US dollars.

The City of London is another instrument being used to control, rather financially colonise, the world. A small city within London led the drive to control the world financially by drafting and implementing a plan stepwise. First, autonomy of City of London was safeguarded. Second, Bank of England, which is situated in City of London, invited banks, bankers and accountants to house in the City. They were assured they will enjoy complete immunity for their actions.

Third, secrecy laws were drafted to protect the interests of global elite. Fourth, Virgin Islands and other places were selected to implement secrecy laws and keep them out of territory of City of London and UK. Islands started to act as conduit of money transfer from the world to City of London. Owning to secrecy laws, City of London has turned these Islands into a place of illegal money.

Having control over financial transactions and power of US dollar, they exploit system in their favour.

They have deployed different instruments to achieve the objectives, and do not care for the laws or norms. In pursuance of their objectives, they have weaponised financial sector. They are using financial power to punish countries which refuse to bow down in front of them or do not agree to their policies. They are using political institutions like UNs and created new tailor-made organisations like FATF (Pakistan is prime example to understand the phenomena) to justify their actions.

They use UN and FATF to impose sanctions and trade wars on the poor and rival countries in the name of self-defined human rights, democracy etc. Cuba is one of victims of this policy since decades.

North Korea and Iran are also going through prolong sanctions. Iraq, Libya and Syria have been destroyed through sanctions and by imposition of war. Unilateral sanctions have destroyed economies and compelled common citizens to live in miserable condition. They even do not spare food and medicine sectors and let millions of people suffer from hunger and bad health condition.

The issue was brought to UN Human Right Council. Unfortunately, major Western countries voted against the resolution as they did not want to lose control over the world. Their efforts to counter the resolution, however, weakened the position of Western countries to impose unilateral sanctions. Russia is a good example to understand the impact.

The US and allies are trying to impose sanctions on Russia, but are not getting desired results as many countries have refused to comply with their policy. Rather, Russian economy is expanding and many Western countries are facing severe economic challenges due to sanctions on Russia. This is entirely a new phenomenon. Tthe Western countries are not prepared for that.

Besides, during the last few years, the world is witnessing a new phenomenon. Many countries across the world started avoiding use of US dollar for invoicing. They prefer to use local currency or Yuan for trade. Janet Yellen, US Secretary of Finance, sees it a major threat to hegemony of US dollar. She was clear sanctions on Russia could not bring perceived objectives.

On the other hand, Ms Christine Lagarde, President of European Central Bank, considers it is a major threat to the Western financial system.

Second, they enjoy complete immunity for their actions. For example, many major institutions and big banks of West have become hub of money-laundering and movement of illegal money. Few years back, a report by Transparency International, UK, had flagged around 86 UK banks and financial institutions for assisting dirty money holders in buying assets. It was very serious finding, but nothing happened. Most recent leaks, FinCEN leaks, mentioned JP Morgan, HSBC, Standard Charted Bank, Deutsche Bank, Barclays Bank and others as a conduit of money-laundering. Panama leaks, Paradise leaks etc. are other documents which show how Western institutions are deeply indulged in money-laundering and illegal money transaction.

The West is the centre of movement of illegal money, but no one questions it, leave alone punishment. The Western countries they do not hesitate to punish other nations like Pakistan for minor mistakes.

FATF, along with other partners, suffocated investment and trade sectors of Pakistan. They systematically killed economic opportunities and prospects of economic growth. It led Pakistan to fall in debt crisis and economic meltdown.

On the contrary, FATF is silent over rampant irregularities and Western banks’ facilitation of money-laundering. They enjoy complete impunity.

(To be continued)