The government of Kenya is on the brink of losing its strategic Mombasa port to Chinese Parasite Guild usurers. Classic bankster-style loans using the port as collateral were utilized for the development of the rather speculative Standard Gauge Railway (SGR). Also on line for privatizing through collateral seizure is the Inland Container Depot in Nairobi, which receives and dispatches freight hauled on the new cargo trains from the seaport.
The guild takeover would force thousands of port employees and management to work under the Chinese lenders. The Chinese are notorious for putting workers back on the plantation and bringing in Chinese managers. This will be a set back for any budding middle class in Kenya.
Management changes would immediately follow the port seizure since the Chinese would naturally want to secure their interests. Furthermore, revenues from the port would be directly sent to China for the servicing of an estimated Sh500 billion ($5 billion US) lent for the construction of the two sections of the SGR.
Conquest by Loan Shark Colonialism
In September 2018, Chinese banking interests seized Zambia’s Kenneth Kaunda International Airport over debt repayment. Once again, the trick was to collateralize the profitable airport to finance a money-losing rail line (SGR), which reported a Sh10 billion ($100 million USD) loss in its first year of operation.
Next up for Chinese collateral scarfing in Zambia is ZESCO, the national electric company.
The Zambia state-owned TV and radio news channel ZNBC is already Chinese-owned. The long-term outcome will be the biggest loss of national sovereignty since independence.
In a wash, rinse, repeat of Argentina and Latin America economic hitman model, the government has all but expelled an IMF official, accusing him of fostering “negative talk” and destabilizing market conditions. Zambia allocated $500 million USD to external debt service in 2018.
Pakistan, which is already $5 billion in the red to China and looking for another billion in loans while simultaneously anticipating IMF support to stabilize its currency. The $57 billion China-Pakistan Economic Corridor, a series of port and rail improvements associated with China’s One Belt One Road infrastructure push, has led to massive imports of Chinese equipment and materials, swelling Pakistan’s current account deficit. Pakistan’s Gwadar Sea Port, which is strategically placed west of India has been parasite guilded for these loans.
China has taken it’s debt trap diplomacy to Turkey, as that country buries itself into a deeper economic and currency crisis.
Sri Lanka is being picked over as well. With $13 billion in external debt to China, that country too has been forced to pony over their major port at Hambantota. The IMF has been criticized for giving a billion-dollar loan to facilitate this debt trap.
Djibouti, home to the US military’s main base in Africa, looks about to cede control of another key port to a Beijing-linked company.
All these countries will get the short end of the stick as the small print utilizes the standard parasite guild method – debt servicing and defaults are arbitrated solely in China. And seizing collateral at discounted levels is just the first step, as the states involved are left with deficiencies to pay.
Read “The Parasite Guild“
You think this is only Chinese parasite guildism? Think again- Anglo-American-Jewish banksters are jumping into the fray. From Ft.com:
Hundreds of billions of dollars China has committed to trade and infrastructure projects across much of central and south-east Asia, the Middle East, Europe and Africa has whetted the appetite of big western banks with operations in those areas, such as Citigroup, HSBC and Standard Chartered.
Same banks run by David Cameron’s great-grandfathers, what a coinkydink.