Posted BY: Eamon McKinney
The West is facing a systematic crisis both economically and socially and it appears to have no solutions but more money printing and war. Neither of which will help.
While most of the world’s attention is focused on the Ukraine, there are events happening in Sri Lanka that should alarm everyone. Sri Lanka is a small independent island nation off the southern tip of India. Relatively insignificant in the global context it may prove to be the “canary in the coal mine” that portends a wider global and economic crisis.
A long corrupted and badly run country, it has announced that it can no longer meet its international debt obligations. Like so many others, Sri Lanka was devastated by Covid, without tourism and trade its lacks the foreign currency essential to pay its debt. With some $56 billion in foreign debt it has been forced to return to the IMF to seek further loans to pay for imports of food, energy and medicines.
Chaos and riots are widespread throughout the country and on Monday Prime Minister Majinda Rajapaska stepped down. The resignation failed to quell the riots and protestors are also demanding the President, Gotabaya Rajapaska, the former P.M.’s brother also step down. On Tuesday 10th, the Government ordered troops to shoot anyone looting public property. The Government also ordered thousands of Army, Navy and Air Force to patrol the streets of Colombo, the capital. Eight people are reported dead and more than two hundred wounded. Houses belonging to the Rajapaskas and other Ministers were torched. It is not the country’s first economic crisis, but is by far its worst and the long beleaguered people have reached breaking point. There are shortages of everything, inflation is rampant and the healthcare system has broken down. Enter the IMF.