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The End of an Era: Part I: The Collapse of a Predatory Economic System
Dr. Bienvenu-Magloire Quenum
In a previous issue the reason Iceland is currently in economic straight jacket had been exposed. Briefly stated, Iceland banking system harnessed itself to Wall Street and the financial center of the City of London, to indulge in and promoting unbelievable financing schemes, in order to maximize profits, not only for the benefit of locals but also for foreign investors - particularly in the United Kingdom, Germany and in the USA.
That is, the growth rate of the economy progressively shifted from a sound "manufacturing" base, to relying on volatile financial services.
The Debasement of the Deregulation / Globalization Scam
In Iceland, historically and for centuries, marine resources (fisheries and allied agribusinesses, particularly animal husbandry), and mineral resources (ferrosilicon, and diatomite) exploitation driven the economy and established the country in a prosperity zone for decades running, in the range of High Income Countries (HIC) bracket - US$5,000 to US$9,999.
So, for the staunch promoters of free market doctrine, the followers of Milton Friedman "diabolical" economics encapsulated in tow books (1) - The Theory of Consumption Function, and (2) Capitalism and Freedom, Iceland has everything, high standard of living, performing infrastructure, educated people, and is small enough to become the test proofing ground model for the ultimate extension of the deregulation capitalism into the developed countries - after the devastating "success" already attained with the underdeveloped world. (Scroll downward to visualize the YouTube Video about Globalization).
Starting from mid-1980, the prosperous "tiny" country's banking system was deregulated, and started indulging in all kinds of financial services matching Wall Street and the City of London traders's sulfurous practices. (See Jonathan Jarvis's Video here available) The country per capita GNP progressively moved from HIC value above outlined, to Very High Income Countries (VHI) bracket, from US$10,000 to US$19,000 and beyond.
Icelanders, beginning of year 2008 were listed among the top ranking of the wealthiest people in the world, with a Parity Purchasing Power of US$36,000.
And the crisis hit heavily in October 2008. Overnight, Iceland's economy collapsed, and is since then melting down day after day. (Click on the following green link by answers.com that provides all necessary explanations about the IceSave saga).
So, now the model is glaringly a failure for everyone to see.
Iceland became the first nation in Western Europe since the 1970s to receive a loan from the International Monetary Fund, amounting to $2.1 billion. Iceland received bailout loans from other nations as well, which together with the IMF funding totaled some $10 billion. Keep in mind that $10 billion corresponds to more than half of Iceland’s GDP - the equivalent for the U.S. would be $7.2 trillion worth of loans. [Source]
The Failure of the Deregulation/ Globalization Scam Was Evident Before the Misfortune of the Icelanders
Iceland is making news all over the mainstream international media. However, the failure of the system / Deregulation/ Globalization was evident for developing countries, in Asia, Africa and Latin America "ages" before the collapse of Iceland's economy in the end of year 2008.
Developed countries's leaders just turn a blind eye not to see it. But it was there as shown on the video at the left side of this paragraph dating back to 2007.
Now the big powers, the USA, The European Union' countries, China, Russia are feeling the heat. We have seen a lot of bailouts and handouts of astronomical amount of money (coming from thin air, not related to productivity activities but just being scriptural financial manipulations of currencies) put hastily in place to save the dying and failed system.
From time to time we are told that the economy is recovering - as the indexes of the majors financial centers in New york, London, Frankfurt, Tokyo, Beijing and so on show astounding gains. Where these gains are coming from? Certainly they do not represent the bottom lines from productivity activities as unemployment worldwide is on a steady and progressive rise between 20 percent (in developed countries) and 80 percent in the developing nations.
This year 2010 is doubtless the reckoning year for a predatory capitalism system. We shall see soon if huge bailouts and handouts to the same banking institutions, which sucked dry the blood of the economy worldwide can assist the predatory system regenerating itself.
About the author: Dr.
Bienvenu-Magloire Quenum is the principal/
managing director of Dr. Quenum & Associates, IBC. He is an experienced Investment & Business
Planner with 25 years consulting practice in African countries. He is the
editor in chief of Africabiz Online
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|MORE ON THE FINANCIAL CRISIS
|1- Financial Shock: A 360º Look at the Subprime Mortgage Implosion,
and How to Avoid the Next Financial Crisis
by Mark Zandi (Hardcover - Jul 19, 2008)
2- The New Paradigm for Financial Markets:
The Credit Crisis of 2008 and What It Means
by George Soros (Hardcover - May 5, 2008)
3- Manias, Panics, and Crashes:
A History of Financial Crises (Wiley Investment Classics)
by Charles P. Kindleberger, Robert Aliber, and Robert Solow (Paperback - Oct 4, 2005)
4- Chain of Blame:
How Wall Street Caused the Mortgage and Credit Crisis
by Paul Muolo and Mathew Padilla (Hardcover - Jul 8, 2008)
5- Understanding Financial Crises
(Clarendon Lectures in Finance)
by Franklin Allen and Douglas Gale (Hardcover - May 17, 2007)
6- The Subprime Solution:
How Today's Global Financial Crisis Happened, and What to Do about It
by Robert J. Shiller (Hardcover - Aug 24, 2008)
| 7- The Trillion Dollar Meltdown:
Easy Money, High Rollers, and the Great Credit Crash
by Charles R. Morris (Hardcover - Mar 3, 2008)
8- Empire of Debt:
The Rise of an Epic Financial Crisis
by William Bonner and Addison Wiggin (Paperback - Oct 6, 2006)
9- Financial Crisis, Contagion, and Containment:
From Asia to Argentina
by Padma Desai (Hardcover - April 21, 2003)
10- America's Financial Apocalypse:
How to Profit from the Next Great Depression
by Stathis (Paperback - Nov 14, 2006)
11- Crash Proof:
How to Profit From the Coming Economic Collapse (Lynn Sonberg Books)
by Peter D. Schiff and John Downes (Hardcover - Feb 26, 2007)
12- Bad Money:
Reckless Finance, Failed Politics, and the Global Crisis of American Capitalism
by Kevin Phillips (Hardcover - April 15, 2008)
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MISCELLANEOUS SERIES: - STRAW AS RAW MATERIAL TO PRODUCING BIO-GAS/ BIO-FUEL
A previous delivery of this series, available here, briefly described the potential of hey/straw as raw material to producing energy/electricity and a table exposes sorghum plantations' yield with regards cultivars/species. Here is exposed the production of electricity using sorghum straw/hay/sticks as fuel/raw material/feedstock. The current delivery gives tips, links and briefs about how to use straw/ biomass to generate bio-gas and manufacture bio-fuel.
here to read more about the matter
Control Your Desktop
THE CHOICE OF AN OPERATING SYSTEM
It all started with the release of Windows 95 - in 1995; a century ago - computer timing. And afterwards Windows 98, Windows 2000, Windows Me, Windows 2003, XP, VISTA, and now Windows 7 - released in year 2009, which is the current buzz in the cyberspace.
Windows 95 was an instant success, as it was a huge improvement from the "archaic" Windows 3.1. The other operating systems listed above were also quickly accepted by the computing community - though without the excitation - people lining up in front of computer-shops and malls, since midnight - the day before the release to be sure to get a copy of Windows 95. Remember?
more on the matter visit this link