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01 April, 2017

Evidence that CIA was behind IMF on pursuing global economic conditions compatible to the neoliberal doctrine

CIA Files

In the newly released archive of 13 million pages by CIA, we found a memorandum showing that CIA was actually intervening directly on global economic issues, behind IMF.

The letter from the then Director of Central Intelligence, William J. Casey, to the National Intelligence Officer for Economics, dates back to 1983 and gives a sort of guidance on how specific threats for the world trading system should be dealt.

Protectionism was considered a major threat, but also, even the austerity imposed by IMF(!)

The letter also mentions that the "strong" countries should help the weaker ones to resist protectionism, open markets, i.e. to adopt the globalist neoliberal perception for trade and economy. Note that Casey was Reagan's choice for the post of Director of Central Intelligence. Recall that under the Reagan-Thatcher era, the West experienced the hard onslaught of the neoliberal doctrine towards massive privatizations, deregulation, tax reliefs for the rich, and progressive degeneration of the social state. It seems that the CIA was essentially the coordinator behind IMF towards those policies.

Key parts:

  • We should take a broad look at the threats to that system [world trading system], i.e., the burden of debt, protectionist developments, austerity imposed by IMF and the economic downturn, lower oil prices as they impinge on the financial stability of the Mexicos, the Nigerias, the Egypts, and indirectly by reducing the capability of the rich oil countries to extend aid on Pakistan, Morocco, and Sudan in financial stability terms and on Iraq in military security terms.

  • What are the responsibilities of the strong countries to help to carry the weaker ones during the transition, i.e., resist protectionism, open markets, provide economic assistance, fund the IMF, lead in getting debts rescheduled, etc. The OGI is contracting out a paper on the world financial system structure and fragility. The concepts in that should help sketch out the paper on the pressures of the world trading system today and how the rich countries can discharge their need and responsibilities to keep it going. To what extent can the ability of the larger countries to contribute to this process be quantified even in broad general terms?

Recall that, another report two years later, shows that CIA was monitoring IMF's changing policy to enforce strict conditions and austerity on indebted countries that could cause political unrest, and essentially was giving instructions towards the restriction of such a type of unrest.

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