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The Collapse of a Predatory Economic System: Part II - The Fire Is Spreading
Dr. Bienvenu-Magloire Quenum
About 340,000 Britain's and the Netherlands' citizens have had saving-deposits with the IceSave Banks. When the banks collapsed during year 2008's fall - the beginning of the international financial crisis, the two creditor-countries compensated their people, and then demanded the Iceland government to pay the money back.
The Icesave debts' repayment, under IceSave Bill approved by Iceland's parliament, would be costing something around US$15,000 a year for each one of the 320,000 people on the island, till 2024. This was unacceptable for the majority which on March 6, 2010 overwhelmingly voted against the repayment bill.
- A Stepping Stone for the End of a Predatory International Financial System
The astounding result of the vote (96% of the constituency rejecting - in principle - the repayment bill) is the expression of the sovereign rights of people vis-à-vis both their own government and the "international community". Its impact would, doubtless, be felt around the world for the very near future.
Indeed, the overwhelming margin result of the referendum reflected Icelanders' simmering anger at bankers and politicians as the country struggles to recover from a financial meltdown.
President Olafur R. Grimsson - who sparked the referendum by refusing to sign the repayment deal agreed by Iceland's parliament - said, "Icelanders resented having to pay for the actions of a few greedy bankers."
"He also said, however, "the British and Dutch would get their money back eventually." Further stating, "the referendum was not about refusing to pay back the money [...] Iceland is willing to reimburse those two governments, but it has to be on fair terms."
- The Fire of Protest Is Already Spreading
Before the referendum was held, creditors' negotiators were intransigent requesting Iceland government to accept repayment without making amendment to terms agreed upon, that set repayment interest rate at 5.4% on due value - and this without any grace period.
And they have also used any possible diplomatic avenue, political and economic pressure to stop the referendum.
Indeed, they know perfectly the outcome. They know that the people of Iceland would express their sovereign right to control the evolution-trend of their economy, and most important, by rejecting the repayment bill terms, Icelanders would be setting example for other developing countries of the world submitted to the same dicta.
Now, these same people are striking a more conciliatory tones, lowering the interest rate and proposing repayment grace period. This not because of any sudden empathy for the plight of the Icelanders, but because the fire of protest is spreading into the developed countries circles - in Greece, Portugal - and soon in other big powers of the club, which are also in dire economic straights.
Yes, developing countries are no more the only ones submitted to stupid financial rules that set loan repayment's interest rates to level that impoverish people, ruin the economy and enslave nations. They are no more the only ones which hard built assets, public companies in strategic sectors such as agribusiness development, and utilities, are sold for peanuts to greedy so-called investors - coming from the western world.
- The System Has to Change and Will Change
The declaration of an Icelander stating, "I was one of the 60,000 people who asked him (Iceland President) to reject the compensation bill. What was on offer - something like 5.5% interest rates - was unacceptable. It would have put too big a financial burden on us. It would have meant the British and Dutch governments could come here and take over our natural resources. I hope we can reach a fair deal soon. I have five children - too much debt will be bad for their future. Taxes are already higher and they've cut back on healthcare. [Source]" - is conform to the state of developing world's people.
As the Icelander that made above statement, a sober observer of the economic stage worldwide can clearly see that the financial international system, as in operation since four centuries - and dominated by the powers of the day, has gone berseck and cannot be sustained anymore. A system in which 15% of the people of the world have "everything" and the 85% remaining "nothing," - not having access to drinking clean water, not having two meals a day- cannot be sustained anymore.
Indeed, as stated by Andrew Gavin Marshall, "the western nations of the world have built their great wealth and societies on the exploitation and plundering of the people and resources of the rest of the world. The wealth, freedom, and structures of our societies have been built on the starvation, robbery, deprivation and murder of millions upon millions of the world’s people, both historically and presently."
The following listing of YouTube videos add more pictures to Andrew Gavin Marshall's statement as per previous paragraph 1, 2, 3, 4, 5, 6, 7].
The middle classes of the developed countries had been made to believe that the prosperity of the nations they belong to was also their prosperity. But now, these middle classes people are experiencing what developing countries's people have experienced since ages, that is not to be in the position to make ends meet, losing jobs or living in fear to lose jobs, and not to have a permanent solid state shelter. In a nutshell, they now live by the day as developing world folks, thanks to the predatory financial system's deeds and mischief.
- Which Solution?
So, now that the devious system hit home - the western world - completing a full circle to hunting the land of the same people who, centuries ago staged it to plunder the rest of the world, there is great hope that the solution is not far away.
Indeed, does anyone really think that farmers - in France for example - would stay put selling crops half of the production cost; and when visiting the supermarket find out that the same produce is sold 10 times the price it had been swindled from them? Anyone who does not see that such predatory business and financial practices are spell for revolts, riots and revolutions, is just burying his head into sand. The awakening is fast coming and it would be a worldwide conflagration!
Last delivery of this series, to be posted on July 15, 2010 would explore solutions.
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 28 years consulting practice in African countries.
He is the author of Africans,
Stop Being Poor! and the editor in chief of Africabiz
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