Mega-Trend: New-Colonialism

New colonialism is another mega-trend in macroeconomics. In the olden times the Europe invaded in 18th century and the 90% of the world was owned by Europe and they basically converted the whole world into their factories. They use India to supply raw material to the England and to buy finished products product from England. So these economies were destroyed and replaced by the economy which is basically a dependent economy and used as a unit to serve England and the colonizers. Today we are living in the same world. Basically today what happens is, unlike colonies where they had governors and foreign troops, now they give massive loans i.e. to developing countries. These loans are used as salaries to the government, to the other leaders, to politicians and they are all receiving salaries in the form of loans and they pay back by extracting taxes from the population and paying the interest.