Princes of the Yen is a confronting documentary based on professor Richard Werner’s book with the same title. This documentary explores how central banks and the IMF deliberately have created economic bubbles with subsequent crises as a mean to pressure politicians to implement changes.
Here is a trailer for this documentary
Here the full documentary:
There are several issues raised in this documentary, too many to discuss them all. But we would like to high light the following ones.
From minute 12 onwards Werner explains that post-war growth in Japan was due to window guidance by the Bank of Japan instead of interest rate policy, as most central banks (e.g. FED and ECB) do to today. Though this policy was quite effective, it was abolished under pressure of financial interests.
From 1.08 onwards the South-East Asian crisis is discussed. In the early 1990s the IMF had lobbied South-East Asian countries to liberalize their credit regulations to ease access for foreign investors – though the countries involved had no need for foreign capital.
However, instead of creating economic growth these policies resulted in increased currency speculation. As a result exchange rates went into a different direction as was desired and forcing the South-East Asian countries to intervene by buying back their own currencies and hence depleting their foreign reserves.
Around 1.14 it described how the finance minister of Thailand went to Japan, which held a substantial dollar reserve, for financial help. Though the Japanese were willing to do so, the US and the IMF forced them to back off. Thailand had to be rescued by the IMF, though Japan had more dollar reserves than the IMF.
This allowed the IMF policies upon Thailand but also other South-East Asian countries. Though these policies were counter-productive, which the IMF did know, they were nevertheless pursued – for the sake of foreign interests.
Our conclusion is that if space settlers really want to implement social reforms, become sovereign and obtain real liberty, they should stay out of imperialist institutions such as the IMF, WTO and the UN. Those organisations have proven to be hostile to democracy and national sovereignty, that they do not care about the public welfare at all.