Does the United States truly believe in the equality among the countries in the world? By watching Inside Job, Why We Fight, and Life and Debt, we can know more details about how the United States exerts its power in the international economic system. As we can see, America almost dominates the whole system.
The document Inside Job illustrates the US economy and how it affects the whole world. In order to understand the financial crisis in 2008, it is important to understand the Subprime System. First, the home buyers borrow money from lenders, mostly is for buying houses. They pay their mortgages to the lenders. Since it takes too long to get all the money back, the lenders sell the mortgages to investment banks. JP Morgan is one of the famous investment banks. To earn profit, the investment banks sell the mortgages and other loans and debts together to investors, which become CDOs. They even hired rating agency such as AAA to promote the CDOs. It is a risky investment, so investment banks and investors will buy insurance from insurance agencies. Once the investment failed, the insurance agencies have to pay them money. The investment bank will ask the lenders to sell more houses so they can have more income. However, the buyers can't afford that much, which makes the banks have to take back the houses. Since there are too many houses have been taken, the prices go down, and number of investments decreases. This is how the crisis occurred. All the famous investment banks are located on Wall Street. Wall Street is the heart of the world economy. This is how the US power controls the international economic system. Every change on Wall Street will affect the whole world. America encourages deregulation because it wants the whole world becomes a big market so that it is easier to control and can earn profit all over the world. Also, when the US economy collapsed, everyone suffers at the same time. Everyone live and die together.
The document Inside Job illustrates the US economy and how it affects the whole world. In order to understand the financial crisis in 2008, it is important to understand the Subprime System. First, the home buyers borrow money from lenders, mostly is for buying houses. They pay their mortgages to the lenders. Since it takes too long to get all the money back, the lenders sell the mortgages to investment banks. JP Morgan is one of the famous investment banks. To earn profit, the investment banks sell the mortgages and other loans and debts together to investors, which become CDOs. They even hired rating agency such as AAA to promote the CDOs. It is a risky investment, so investment banks and investors will buy insurance from insurance agencies. Once the investment failed, the insurance agencies have to pay them money. The investment bank will ask the lenders to sell more houses so they can have more income. However, the buyers can't afford that much, which makes the banks have to take back the houses. Since there are too many houses have been taken, the prices go down, and number of investments decreases. This is how the crisis occurred. All the famous investment banks are located on Wall Street. Wall Street is the heart of the world economy. This is how the US power controls the international economic system. Every change on Wall Street will affect the whole world. America encourages deregulation because it wants the whole world becomes a big market so that it is easier to control and can earn profit all over the world. Also, when the US economy collapsed, everyone suffers at the same time. Everyone live and die together.
The document Why We Fight is about the US military industry and the military actions around the world. After 911, America sent troops to Iraq to start the Iraq War. The US government mislead the public by propaganda, emphasizing they are fighting for freedom and democracy. More and more money is spending on military, which lead to the military-industry complex. The government earned a lot of profits by selling the weapons, so they can produce better weapons from the product competitions. These advantages provide America the absolute power to dominate the world by military. Not just by military, America controls many states also by economic. Although America promotes free market, it is actually economic colonialism. Since America's troops are everywhere, numerous wars were fought. But that's what the governors want. Wars are profits for them. They get rich in other countries.
The document Life and Debt is describing the situation is Jamaica after independence. After the British left, international institutions forced Jamaica to open its market to US goods. Since US subsidized their goods, Jamaica's goods can't compete, which destroyed the local industry. Although they borrowed loans from IMF, but the amount of restrictions makes the use of money ineffective. Another problem is that the low wages jobs were taken to another countries, which reduce the labors' income. America forced LEDCs, such as Jamaica, to open their markets. However, the subsidies provide America the absolute advantage. The only way for LEDCs is to borrow money from IMF, but US has 75% votes in IMF. They will give them the loans with many restrictions that still ensure the benefits of America. This is how the United States dominates the market in other countries.
The United States or the Western powers have the goal of dominate the world by economic and military. They forced countries to open markets and use subsidies to defeat others' goods so they earn more profits. Their income is from all over the world by investment banks selling CDOs, and strong military also help them earn profits while controlling other countries.
The United States or the Western powers have the goal of dominate the world by economic and military. They forced countries to open markets and use subsidies to defeat others' goods so they earn more profits. Their income is from all over the world by investment banks selling CDOs, and strong military also help them earn profits while controlling other countries.