Keghart
At the beginning of this spring Armenia’s foreign debt hit the $3.4 billion mark. Armenia owes the World Bank $1.3 billion–38.6 % of the country’s foreign debt. RoA also owes to World Bank-affiliated organizations approximately $1.2 billion. In other words, more than two-thirds of the country’s debt is to the World Bank and its affiliated bodies. Armenia also owes large sums to EBRD, OPEC, the Asian Development Bank, the International Foundation for Agriculture Development, the IMF, Russia, Japan, Germany, USA, and France.
At the beginning of this spring Armenia’s foreign debt hit the $3.4 billion mark. Armenia owes the World Bank $1.3 billion–38.6 % of the country’s foreign debt. RoA also owes to World Bank-affiliated organizations approximately $1.2 billion. In other words, more than two-thirds of the country’s debt is to the World Bank and its affiliated bodies. Armenia also owes large sums to EBRD, OPEC, the Asian Development Bank, the International Foundation for Agriculture Development, the IMF, Russia, Japan, Germany, USA, and France.
Economic genocide has been committed against Armenia since its independence from the Soviet Union. The application of the International Financial Institutions (IFI) structural adjustment programs that have been put in place favor the internationalism of macro-economic policy, under the direct control of the International Monetary Fund (IMF) and the World Bank.
The IMF tightly monitors and provides resources for the reconstruction of Armenia’s Central Bank. This means the IMF, rather than the Armenian government, controls money creation. Thus the IMF is in a position to paralyze Armenia’s financing of real economic development. Incapable of using domestic monetary policy to mobilize its internal resources, the country becomes increasingly dependent on international sources of funding which, of course, increases RoA’s external indebtedness.
Nobel Prize-winning economist Joseph Stiglitz, chief economist of the World Bank until 1999, has said, “National leaders do not usually object to the sell -off of state industries. Instead, they use World Bank demands to silence local critics. The 10 percent commissions paid to local ministers seem to satisfy their dreams of wealth. All they do is shave a few million off the price and wire it to a Swiss bank account. The U.S. Government knows this.” As long as the leaders of the country go along with the loan agreements, they can finance their re-elections.
To put it simply: Armenia’s leaders must sell the assets of the nation to pay (only the interest) on the money they borrow to run the government. Under these conditions Armenia is incapable to build an economy based upon its natural creativeness.
During 65 years of Soviet rule, Armenia was deprived of the power to control its destiny. Now, after two decades of so-called freedom, the IFI are in control of RoA’s destiny. The only difference is that now the population is forced to leave the country, making the Armenian nation’s disappearance feasible. That is the intent of the internationalists. During the last years of the Soviet Union, there were slightly more than four million Armenians in the repubic; now, there are about two million. The remaining population is influenced and contaminated by Western social influences, which slowly affect the character of the nation. “One World Government” is the Western goal. Nationalism is their impediment.
The Armenian government has borrowed such huge amounts of funds from “one-world” banks that it will never be able to repay. The reason the international banks are anxious to loan funds to Armenia is because it enables them to dictate to the country its future.
The constitution of Armenia should state that the government is forbidden to pay interest on foreign borrowed money. As well, there shouldn’t be another entity, such as the “Armenian Central Bank,” which has tentacles in international world banks. The Armenian government should immediately begin printing money and regulating its value relative to gold. Selling control of Armenia’s gold mines was a criminal act. If there is any source of gold left, Armenia should immediately reclaim it with a parliamentary authoritative edict stating, “no mined gold can leave the country.” The precious metal should be stored in vaults secured by the army.
It is difficult for a small nation, such as Armenia, to withstand "One World" forces threatening its existence. One of the predominant methods, used by these forces to weaken Armenia is the elimination of its nationalism. This is done by contaminating the nation’s culture, by deploying money to create greed among its leadership, by stagnating its economy to depopulate the nation, by destroying its Christian religion through the introduction of cults, atheism, New Age movements, world religion, homosexuality and immorality. Once a nation’s moral fiber and identity are in tatters, it becomes a child’s play to erase that nation.
It’s vital and urgent for the Armenian Parliament to print the country’s currency for circulation to the populace, while concurrently reducing the burden of debt created by borrowing from international banking institutions.
Armenia must be the master of its own wealth.
Keghart
Keghart
11 comments
Birth of the 4th Armenian Republic
The 3rd Armenian Republic is bankrupt. The time for changing of the guard and the birth of the 4th Armenian Republic is near. When this happens, all bets are off, all loans are forgiven and those who have raped and pillaged our nation will be rounded up and punished. Time for the Armenian nation to wake up and do what it has to do so that we have a chance that Armenia with Armenians will remain intact, grow and prosper.
Easy to talk a big game when
Easy to talk a big game when you’re sitting in the US or outside of Armenia. Let me ask, will you personally be on the front lines if Armenia is attacked by azerbaijan? Because that’s what will happen should there be any revolution in Armenia.
Thank you baron Ardavast
Thank you baron Ardavast for your insightful information as always. However, I would hate to see your work become exploited by those representing the Globalist enslavers of humanity – the Western alliance and their tools such as USAID, the IMF and the World Bank. As you see, you have already attracted one of their mini operatives working in the Armenian diaspora by the name of Ara Manoogian. Read his words closely. He is spreading US State Department propaganda against the vulnerable Armenian state. We must all realize that Armenia needs political evolution, not a Western funded revolution.
Despite its problems, most of which are rooted in the Western alliance’s attempts to establish itself in the south Caucasus, Armenia continues to progress, it continues to evolve. Enough of the destructive criticism.
PS: Don’t worry too much about the loans. Soon enough, Armenia will be joining new monetary system that is free of Western control.
Any suggestions?
Thank you Ardavazt for making the case in easy to follow style, choice of words and expressions that people would grasp. Some would say it’s simplistic, but I would argue that the same ideas that are tackled in this brief essay have been presented by others in convoluted arguments heavily loaded with figures and graphs which in the end do not reach the vast majority of people that need to hear it.
As to what should be done about it, people may vary in their opinions which are sometimes heavily laden with rhetoric. It’s our land and our country and we have to be careful of how as a nation we proceed and make a break with this sordid situation. Revolutions have not necessarily brought the desired effects and have been easily manipulated by outside forces in many a country big and small.
People in Armenia seem not to be inclined to make additional sacrifices to stage a peaceful transformation through civic disobedience. Probably the events of the shameful October and the tragic March have had a dampening effect on civic action instead of being causes on their own to stage transformation through disobedience.
Sounds pessimistic? May be. Please, anybody, show us the way if you have one.
No Suggestion and No Pessimism Here.
I admit that I do not know the implication of Armenia’s foreign debt and what it means. It is not unusual for an average American family to go through life paying different loans for banks be it for car, house, repairs, education, health etc. It may also not be unusual for Governments to be also indebted, much like United States of America is.
However,some of the arguments he raises I have long taken issue with and dismissed as hotchpotch are similar to those who believe that there is a sinister group known as illuminati who are the masterminds behind an equally sinister goal of creating a “One World” government through monetary control to do what Ardavazt describes: “contaminating the nation’s culture, by deploying money to create greed among its leadership, by stagnating its economy to depopulate the nation, by destroying its Christian religion through the introduction of cults, atheism, New Age movements, world religion, homosexuality and immorality. Once a nation’s moral fiber and identity are in tatters, it becomes a child’s play to erase that nation.” I bet a good number of the countries indebted to “One World Banks” do not have much of sizable Christians and have population growth issues!.
I am not sure what to make of this article and Nareg has no suggestion but I am more upbeat than pessimistic about the future prospects of Armenia and hence of Armenians.
Very good analysis Mr. Avakian
Very good analysis Mr. Avakian. I share your proposal for a return to some form of a gold standard. Also, Armenia should be mining gold for its state purposes.
Gold is Not Necessarily Golden
Gold Standard
Hello Apel,
I understand your well-written argument and agree that managing debt is one key to a well-run economy. However, with our fully floating fiat system (circa 1971) in conjunction with reckless and excessive financial deregulation, artificially low interest rates and an unregulated shadow banking system stuffing central banks with hundreds of billions of dollars in bad debts, you have the recipe for the end of our Keynesian economic system.
I say with full confidence that the US will need to back its currency in the not too distant future (less than five years). The Fed already has plans for a modified gold- backed system. The US dollar will lose its world reserve currency status and that will result in a much lower value for the dollar, resulting in a substantially higher nominal dollar prices for energy, food, clothing, etc.
The best thing that individuals and countries (including Armenia) can do is to transfer, as much of their wealth, into gold and silver. The best thing that Armenia can do is tell the banks to take a hike and default on whatever debt it has. Once the dram is backed by gold, it will go up in value. Gold mining in Armenia today should be for the state. It is a national security issue. Citizens whose leaders don’t understand this dynamic will experience a declining standard of living.
The game is already over from the perspective that the US and Europe will choose money printing over structural reform. Armenia should nationalize its gold mines, INVEST in developing more. Move to a modified gold standard and tell its debtors to take a hike (just like Iceland).
Failure to take actions similar to what I am describing will have long-term negative effects on Armenia. On an individual note, to my fellow Diasporans, protect your wealth.
David Krikorian
Forty-Niners
And please, let us not cheapen the use of the word Genocide. I do not think any institution-forced funds down Armenia’s throat. I agree that Armenia is the most indebted nation in the Caucasus, more so than Georgia and Azerbaijan. Let us help Armenia manage its debt and use it wisely to create wealth, instead of chastising it for borrowing money and taking the liberty of characterizing it as “economic genocide”!!!!.
“Western Social Influences”?
While Mr. Avakian’s assessment of the Armenian debt problem has merit, it is discouraging to read yet another anti-western diatribe on this website. I am a harsh critic of the type of economic globalization that leaves nation-states seemingly paralyzed when it comes to meeting the needs of their citizens. Avakian rightly notes, however, that like most developing countries, Armenia has a "comprador class" that is only too eager to participate in the plunder.
But when it comes to "Western social influences," which Avakian thinks have "contaminated" the remaining population of Armenia, he reveals a social conservatism that I, as an Armenian, refuse to identify with. His concerns with "atheism…homosexuality and immorality," suggest that he thinks these are entirely new, and moreover, western phenomena. Homosexuality is common to all nations, all states, and all cultures. So is atheism. And some of us consider neither to be the abominations that Avakian suggests they are. Atheism, specifically, was spread by the Soviet Union, not by the west. As for other "Western social influences", Armenia should be so lucky as to be influenced by such ideas as women’s equality, critical thinking, social justice, democracy, transparency, accountability, and tolerance of other ethnic groups, religions, and sexual orientations. It sounds like Avakian supports an "Armenian culture" that resembles Arab tribal culture more than anything else!
Armenia has always occupied a geographic and cultural space between east and west, and will continue to do so for the foreseeable future. The economic values Armenia has bought into are regrettable, as is the glee with which those that have profited from the plunder flaunt their gaudy wealth on the streets of Yerevan. But Avakian’s social vision of Armenia is horribly flawed. Moreover, if he is really a Christian, his harsh judgments of everyone who lives differently than he does would seem foreign to Jesus, the compassionate revolutionary, who taught us to love, and not to judge.
Amot.
Armenia – Few of its Enemies
I just happened to read an article by Ardast Avakian in the May 26, 2011 issue of Nor Gyank weekly titled: Armenia – A Few of its Enemies.
I say with some confidence that he is the one and the same author of this article in Keghart.com as well, even though in Nor Gyank the name is spelled as ArdavaSt but in Keghart.com it is spelled as ArdavaZt.
His recommendation to the Armenian government in the Nor Gyank article is to be weary of “One Worldism” and beware of organizations such as: USAID, IMF, World Council of Churches among the many he lists that he claims are created for the purpose of eradicating nations.
In the Nor Gyank article he lists the following as the few of Armenia’s current enemies: Levon Der-Bedrossian, Robert Kocharian, Richard Giragossian, Vartan Oskanyan, Tigran Sargsyan, Raffi Hovannisian, Arthur Javadian, who he claims is half Jewish, I guess as an implied justification for his anti-semitism. He conveniently forgets Azerbaijan. He surely notes these for the misguided cause he espouses to liberate Armenia from the few enemies he lists. After all, his namesake, our legendary Ardavast will liberate Armenia once unchained.
Ardavast capitalized his one liner conclusion of his Nor Gyank article claiming- I CRY FOR ARMENIA.
My suggestion to Ardavast is to spare the tears he sheds for Armenia in Livonia, MI and to spare us readers from such articles.
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