to the quarterly issue
of Africabiz Online /free access Synopsis
& RSS Feed edition. Previous issue available at this
for the beginning of the article
The Collapse of a Predatory Economic System: Part IV - Greed, and the Domination of the Many by the Few are the Main Causes of the Financial Crisis
Dr. Bienvenu-Magloire Quenum
Several issues had already been dedicated to the evolving worldwide financial crisis [1, 2, 3 ], and this issue continue the series.
A previous delivery / video by Jonathan Jarvis, available at this link, listed the main financial causes of the current global economic crisis. These are the strict point of view of a financier.
However, this writer/observer think that they are not the only ones to consider. There are many others; and he is strongly of the opinion that greed and the domination drive exercised by the ruling elites in the western part of the world - for several centuries running, should also be taken into consideration as the principal
behavioral causes that triggered the current financial crisis.
Indeed, it is obvious now - for any sober observer - that the humanity is once again at a crossroad. Either economic and political relations between the nations of the world evolve for the better - establishing peace, prosperity, and harmony; or it worsens into bitter disputes; fightings for the control of natural resources, and bickerings about national currency's values - leading to a global devastating war. [Listen to Webster Griffin Tarpley on Jeff Rense Radio - an incisive critic of Anglo-American hegemony, about the on-going currency war, and the implication of the western countries super-rich ruling class in this current economic crisis.]
- Why is the humanity tittering on the brink of the abyss?
So, what brought us to that extremity, when we all know that with the vast scientific knowledge accumulated during the past five centuries, in all lines of life matters; and the abundance of natural resources worldwide available, there is enough to make a better life for every single soul on earth. That is access to clean water, to permanent energy/electricity, good food in abundance, and Health care for every living being.
Yes, one has to ask why we are in this mess; the few having more than needed for a descent life; and the many left fighting a daily survival battle, living on scanty means. The answer is really simple to formulate: Greed, and the absurd behavior of the few to grab everything at sight, and to exercise a dominating power on the masses - worldwide.
Indeed, quoting Andrew Gavin Marshall, from an article published in globalresearch.ca, on March 30,2010, "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."
Above Andrew Gavin Marshall's opinion is totally in line with the one expressed by Walter Rodney in 1972 in his famous, "How Europe Underdeveloped Africa"
The ruling elites in the developed western world - in America, and in Europe, have - since ages - conceived the economic development as a predatory system for the benefit of the few, in detriment of the many.
First, they conceived the national economic development system, to exploit the majority of people in their own countries. They made use of the bondage/serfdom system to enslave farmers and peasants to local lords - before and during the Middle Ages; and submitted workers (children included), during the industrial revolution of the eighteen century, to long working hours (12 to 16 hours per day, Sunday included,) in health destroying environment (mining, and textiles factories. Etc.;) - paying them peanuts.
And second, when freedom fighters and trade unionists started a vigorous counterattack, fighting to improve the working conditions of the masses - claiming for descent salaries, bearable working hours, and social welfare benefits; the ruling elites expanded their economic activities worldwide, in order to increase profits. They made inroad into Africa and Asian countries, and submitted China to the diplomacy of gunboat
Then, when this imperialistic move starts fading away in the 1970s, the ruling elites, led by the Chicago Boys of Milton Friedman, invented the Globalization concept, to maintain, and forcibly enforce the greedy, predatory and plundering economic system on all nations of the world.
Now, this move had also reached its limits, thanks first to the dynamic engineered by emerging nations (China, India, Malaysia, Brazil, India, and others;) and, second, thanks also to the recklessness move of the ruling elites themselves (principally the Neocons) who advocate for, and assist implementing the invasion of Iraq and Afghanistan.
The political and economic boomerang of such a move, is blatantly there for everyone to feel, sense, and appreciate - even to the blinds. That are, the irresistible rise of the Islamic Republic of Iran, and the consolidation of the economic power and might of the People Republic of China; when the leader of the western world, the United Staes of America, is running several trillions of debts - that are daily counting with the increasing expenses to sustain the wars in Iraq and Afghanistan.
In other words, the invasion of foreign countries sucked dry the blood of the American economy. Any other attempt to explaining the debt, pointing finger at the unfair value of some emerging countries national currency, is just a deliberate smoke screen, that does not stand sober analysis.
So, due to the economic policy enforced by western ruling elites over centuries, we are now witnessing - particularly in the western developed nations, this very financial crisis, with flagging national economy, that results in the daily loss of social benefits gained by the masses over centuries - and their accelerate impoverishment. And in fact the progressive disappearance of the middle classes in the Americas, and Europe. No need to give figures. Everyone, reading and listening to mainstream media, is aware.
- What a waste of available financial resources!
A report published by the Strategic Foresight Group in India in a book entitled, Cost of Conflict in the Middle East, calculates that conflict in the area over the last 20 years has cost the nations and people of the region 12 trillion U.S. dollars. The Indian report adds that the Middle East has recorded “a high record of military expenses in the past 20 years and is considered the most armed region in the world.”
Just imagine if that amount of staggering money had been spent on rural and urban infrastructure, dams and reservoirs, desalination and irrigation, forestation and fisheries, industry and agriculture, medicine and public health, housing and information technology, jobs, equitable integration of cities and villages, and repairing the ravages of wars rather than on arms that can only create destruction.
- Globalization is a gigantic failure, and the world is at a crossroad
So now, the humanity is at the crossroad once again. Either the western ruling elites abandon the greedy Globalization concept - which simply amounts to the hold-up of the world economy by the few, or the chaos would spread as bush fire, triggering the collapse of the whole global economy.
Indeed, as explained in a previous delivery, everyone is now fending for oneself, and a currency war is raging right now. (See an article published by Joe Weisenthal on October 5, 2010, in businessinsider.com, titled, "Gold Goes Berserk, As Japan Unveils The Mother Of All Quantitative Easing Schemes." You can also listen to Webster Griffin Tarpley on Jeff Rense/ video above;) and take stock of the following statement made by Tim Geithner, Obama's treasury secretary, during the IMF annual meeting at Washington, D.C., on October 9, 2010:
"The United States believes that global re-balancing is not progressing as well as needed to avoid threats to the global economic recovery [...] Our initial achievements are at risk of being undermined by the limited extent of progress toward more domestic demand-led growth in countries running external surpluses and by the extent of foreign exchange intervention as countries with undervalued currencies lean against appreciation."
As previously stated by this writer, and highlighted by Webster Griffin Tarpley in this video, Geithner's statement is simply a smoke screen to make others accountable for the consequences of the reckless foreign policy implemented by the ruling elites in America and Europe; to invading other sovereign nations.
Now that the boomerang is hitting hard, would the ruling elites in America and Europe persist experiencing the predatory system encapsulated in the Globalization concept, or would they accept to shed the "diabolic" concept, and quickly undertake a global reshuffle of the world financial system, in close partnership with emerging nations, to engineering the emergence of prosperity worldwide?
Time is ticking by, and the answer is not so far around the corner towards the end of this 2010s decade - the latest; as exposed by Webster Griffin Tarpley in this video, and in an article published on October 5, 2010 by Philip Aldrick, Economics Editor / telegraph.co.uk, titled, "Banks 4 trillion debts are Achilles heel of the economic recovery."
Anyway, in the opinion of this observer, the choice is, as here briefly exposed, limited to throwing away the Globalization concept. And if you are still in doubt about the seriousness of the situation, go watch, and listen to this video
Listen carefully to the end of the message - that sounds apocalyptic - speaking of buying land for food security. That will be our concern for the next delivery (available on January 15, 2011) discussing about why Africans should be careful selling their land for nothing to foreign entities/corporations, which plan to develop industrial plantations to producing bio-diesel.
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
|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)
We invite you to contribute to AFRICABIZ ONLINE MONTHLY ISSUE -
with articles related to "How Africa Could Bridge The Developing
feedback / objection / contribution is welcome. Visit WorldWide
and choose General
Information (as topic) to
create a thread for discussion. On the top of the WorldWide BizCenter page,
there is a HELP link to assist you making an efficient
use of the discussion board. This
link also is useful
thanks for subscribing to Africabiz. See you here on January 15, 2011
Click for email address