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The World financial crisis: greed, failed policies, institutionalised corruption.


The World financial crisis: greed, failed policies, institutionalised corruption.

Volumes of books and analyses are being written on the causes, effects and aftermath of the current financial crises which is hitting the world. There is no gainsaying about it than to call a spade a spade as to what can be described as the worst financial debacle after the Great Depression of 1929.

Without mincing words, financial crises have often hit various nations at varying levels but that of USA which has gone far beyond it territorial boundaries is because, the country still largely controls the world economy.

The crisis is mere culmination of greed, failed economic policies, ego-centrism, institutionalised state and international corruption and embezzlement, and aggrandisement of wealth by a few countries and aristocratic class. This implies that actors of both the private and public sector are responsible for the current international financial impasse.

The real problem is that some governments and countries and most especially, business people grouped under multinationals have starched money in assets and in banks and do not want to put in into circulation. They adore their money and also fear that most borrowers, be they as individuals, groups or institutions may not be able refund the money they borrow.

As a result, enough money cannot be put into circulation; money cannot be gotten to carry out projects which will thereby employ people. Others do not have purchasing power and as a consequence, sales in various companies keep dropping and people have to be laid off their jobs. Why produce when there is nobody to buy.

It can also be argued that, this is a manifestation of the failed system of capitalist centre policies of increasing gap between the rich and the poor.

Furthermore, the financial crisis can be attributed to the fact that development or say industrialisation may have reached maximum level among some societies and people and it is now facing a kind of diminishing return. Development need to be extended to other areas/societies to affectively curb it in future.

The solution is just for those holding back money to put in back into circulation so that projects can be carried out. In a country like Cameroon, banks stock billons of dollars but since the people have been impoverished and cannot get bank loans, money keeps “drying” in bank safes while financial crisis depends. The rich get richer and the poor poorer.

What some countries will do and what a lot have been doing, is the printing of additional bank notes and unofficially putting them into circulation under the close watch of financial experts and economists so as to avoid any kind of inflation. This can also be very dangerous.

There is no need writing volumes on it. Let governments and individuals suggest and apply pragmatic solutions. That is far better than developing unnecessary and complicated academic and economic terms and concepts to a problem which can be simply explained.

This is how I see it.

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