The Global Banking Financial Crisis's and Its Impact on Developing Nations: Case Study Africa

Topics: Central bank, Monetary policy, Developing country Pages: 10 (3195 words) Published: September 28, 2013
The Global Banking Financial Crisis's and Its Impact on Developing Nations: Case Study Africa

(1888 PressRelease) The Global Banking Financial Crisis's and Its Impact on Developing Nations: Case Study Africa.

For several decades the public has witnessed the shift of world global economic policies from countries' production and stable economic indicators, to wild crazy speculations and market derivatives created to hide the real cause of economic instability which is the printing of the fiasco money and fiscal policy! Plainly stated we cannot continue to run and hide, the problem will not eradicate itself. We have no other alternative than to face what rulers of globalization have created and the consequences.

The FED and the Bank of Japan, have for decades, pioneered the premise that to stabilize an economy more money must be printed. This extra money can be used to fight inflation and other economic pitfalls. The European Central Bank has followed the cause with competition and even surpassed others in the last 20 years by its creation and printing of money to become one of the Apex Printing Houses followed by the Bank of China for the same reasons previously mentioned.

This central bank money manipulation has been a scheme with the consequences postponed for later. During this process, the Social Security's retirement funds, pension's funds and other equity funds have made it possible for governments to borrow money using these governments' control of certain municipalities and countries as collateral to guarantee payment. How can a government who is insolvent guarantee payment to other institutions? These schemes have been growing and developing across the world.

As a result of these lending practices, many Central Banks around the world are and have been becoming very powerful and often oversee government activity in borrowing nations. It is good to have the independence of any Central Bank but when independence grows into ownership by a private group, with different goals, interests and agendas that are not compatible with the borrowing country then disparity results. This has created a fundamental divergence on the Economy and tax policies with their consequences are macroeconomic and concern the interests of all. History has repeated itself on many occasions. For instance, the 2007-2008 crises unofficially started in 2003 to 2004, during that time most of the Wall Street bankers and major banks around the world were aware that a financial disaster loomed in immanency. Even then bankers and financial professionals knew there was to be a World Financial Tsunamis that would swallow people around the world's life savings, homes, retirements and hope.

During 2003-2004 all the indicators for economic performance are in the red but the invisible hand behind the scene shows the DOW JONES, DAX, CAC 40 and many other indexes are high in performance. This has created an illusion in a lot of people's minds that prosperity is evident so they naturally are proud to be part of the modern day capitalism; however this so called source of wealth is an illusion and deprivation. These same banks were the source of the financial crisis causing several million people to lose their jobs, pensions, homes and every other asset they owned but the banks are too big to fail? Why are these banks too big to fail? Who are the sources of the problems? As a reward, these same banks and insurance companies received 1.5 trillion USD from the USA and financial institutions. Europe and Japan contributed several trillions also. Again, why are the banks too big to fail? Historically, governments have implemented programs to stimulate banks by giving them short term loans to create jobs. These loans many times have proven to be lip service.

If the Central Banks of countries were truly independent and not owned by private organizations, the outcome would be different resulting in public friendly economic and tax policy; a paradigm...
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