TheGlobalBankingFinancialCrisis'sandItsImpactonDevelopingNations:CaseStudy Africa

(1888PressRelease)TheGlobalBankingFinancialCrisis'sandItsImpactonDevelopingNations:CaseStudy Africa. Forseveraldecadesthepublichaswitnessedtheshiftofworldglobaleconomicpoliciesfromcountries' productionandstableeconomicindicators,towildcrazyspeculationsandmarketderivativescreatedtohide therealcauseofeconomicinstabilitywhichistheprintingofthefiascomoneyandfiscalpolicy!Plainly statedwecannotcontinuetorunandhide,theproblemwillnoteradicateitself.Wehavenoother alternativethantofacewhatrulersofglobalizationhavecreatedandtheconsequences. TheFEDandtheBankofJapan,havefordecades,pioneeredthepremisethattostabilizeaneconomymore moneymustbeprinted.Thisextramoneycanbeusedtofightinflationandothereconomicpitfalls.The EuropeanCentralBankhasfollowedthecausewithcompetitionandevensurpassedothersinthelast20 yearsbyitscreationandprintingofmoneytobecomeoneoftheApexPrintingHousesfollowedbytheBank ofChinaforthesamereasonspreviouslymentioned. Thiscentralbankmoneymanipulationhasbeenaschemewiththeconsequencespostponedforlater.During thisprocess,theSocialSecurity'sretirementfunds,pension'sfundsandotherequityfundshavemadeit possibleforgovernmentstoborrowmoneyusingthesegovernments'controlofcertainmunicipalitiesand countriesascollateraltoguaranteepayment.Howcanagovernmentwhoisinsolventguaranteepaymentto otherinstitutions?Theseschemeshavebeengrowinganddevelopingacrosstheworld. Asaresultoftheselendingpractices,manyCentralBanksaroundtheworldareandhavebeenbecoming verypowerfulandoftenoverseegovernmentactivityinborrowingnations.Itisgoodtohavethe independenceofanyCentralBankbutwhenindependencegrowsintoownershipbyaprivategroup,with differentgoals,interestsandagendasthatarenotcompatiblewiththeborrowingcountrythendisparity results.ThishascreatedafundamentaldivergenceontheEconomyandtaxpolicieswiththeirconsequences aremacroeconomicandconcerntheinterestsofall.Historyhasrepeateditselfonmanyoccasions.For instance,the20072008crisesunofficiallystartedin2003to2004,duringthattimemostoftheWallStreet bankersandmajorbanksaroundtheworldwereawarethatafinancialdisasterloomedinimmanency.Even thenbankersandfinancialprofessionalsknewtherewastobeaWorldFinancialTsunamisthatwould swallowpeoplearoundtheworld'slifesavings,homes,retirementsandhope. During20032004alltheindicatorsforeconomicperformanceareintheredbuttheinvisiblehandbehind thesceneshowstheDOWJONES,DAX,CAC40andmanyotherindexesarehighinperformance.Thishas createdanillusioninalotofpeople'smindsthatprosperityisevidentsotheynaturallyareproudtobepart ofthemoderndaycapitalism;howeverthissocalledsourceofwealthisanillusionanddeprivation.These samebankswerethesourceofthefinancialcrisiscausingseveralmillionpeopletolosetheirjobs,pensions, homesandeveryotherassettheyownedbutthebanksaretoobigtofail?Whyarethesebankstoobigto fail?Whoarethesourcesoftheproblems?Asareward,thesesamebanksandinsurancecompaniesreceived 1.5trillionUSDfromtheUSAandfinancialinstitutions.EuropeandJapancontributedseveraltrillionsalso. Again,whyarethebankstoobigtofail?Historically,governmentshaveimplementedprogramstostimulate

banksbygivingthemshorttermloanstocreatejobs.Theseloansmanytimeshaveproventobelipservice. IftheCentralBanksofcountriesweretrulyindependentandnotownedbyprivateorganizations,the outcomewouldbedifferentresultinginpublicfriendlyeconomicandtaxpolicy;aparadigmgovernments arenotcurrentlypracticing.Thestimulusfundsshouldgodirectlytothetaxpayer,thissmalladjustment wouldhelptorelaunchtheeconomiesoftheUSA,EuropeorJapan.Conclusively,thestimulusmoney receivedbybanksandinsurancecompaniesalternativelybelongtothetaxpayer,sofarbanksreceivethese fundsandstilltractionpersistscreatingadownwardspiralfortheworse. Today,centralbankersaremorepowerfulthantheheadsofstateassuchcentralbankersplayavery importantroleintheshapeandcomplexionoftheworld'seconomy.Centralbanksarelikeotherinstitutions whichareinthebusinesstomakeprofits,butthefalloutandconsequencesaregrosslydifferent.Sincelast DecembertheUSFederalReservepostedcapitalas$54billionand$3.57trillioninassets.Thisislessthan 1.513%cashtoassetorliquidityratioanditbecomesworseeverymonth;theEuropeanCentralBank 3.68%,BankofJapan1.93%,BankofEngland0.8426%andBankofCanada0.531%.In2008when LehmanBrothersfiledforBankruptcy,theyhadalmost$691billionofassetsand$22billionofequity;this representsanaverageof3%equitytoassetratio. EachoftheseCentralBanks:TheEuropeanCentralBank,BankofJapan,BankofEngland,andBankof Canadaareinaverage,belowthelevelofLehmanBrotherswhenitfiledforbankruptcy;thisshould concludethatthesecentralbanksdaysarenumberedandbankruptcyisimminent.Evidencesupportingthis conclusionisbasedonthepresumptionthattheaforementionedcentralbank'scorrespondinggovernments aresobroketheyareunabletobailout,letalonesupportanything,includingtheseCentralBanks.Except thebankofChinawhichisabovethesecentralbanksratioscontinuestomaintainitseconomygrowthbutis hinderedbybaddecisionsthegovernmentmadeafewyearsago.Chinadecidedtodevelopandbuild severalresidencesandcommercialbuildingswhichwerefinancedbycertainStatesorRegionsbecausethese areasflourishedandmaintainedacommercialsurplus.Theseresidencesandcommercialbuildingarenot occupiedoralmostempty. AccordingtoDr.MehenouAmouzoutheBankofChinaidentifiedtheneedtostabilizeitseconomyby riddingitselfoftoxicpolicies.Oneofitsfirstrestructuringprogramswasoverhaulitscredit/loanprogram andcorrelateittotheneedsofthegeneralpopulation.BankofChinastartedtoliquidatedollarsandEuro fromitsreservesbysellingthemtobuygold,silver,agriculturelandandnaturalresources.BankofChina hasover1500tonsofgoldandcontinuestobuygoldwithUSDandEurotofurtherriditselfofthelibelous currenciestominimizetheriskassociatedthereinwhichcouldaffectthedevelopmentandeconomic expansionbycausinginsolvencyforthecountry. Afterfocusingandanalyzingtheconsequentialimpactthatthepowersincontrolofglobaleconomicpolicy havecreatedfordevelopedcountriesonepondersincompleteapprehensiontheeffectthispolicywillhave ondevelopingcountries;anuclearholocaustcomestomind.Severaldevelopingcountrieseconomic intellectsstillbelievetheimpactwillnotapproachacrisis;Dr.MehenouAmouzoucallsthisapproachna ve. Instead,hebelievestheimpactwillbemonumentalandaffectgenerationsformanyyearsifnotstifledand managednow.

MostoftheWesternBanksareapproachingpenurioustimesinlargepartbecausetheyhousemoretoxic assetsontheirbooksperpetratingastrongbalancesheetwhilestavingoffdisaster.TheseWesternBanks affectmorethanWesterncivilization.ManyAfricancountrieshave90%ormoreoftheircountries'reserve fundsdepositedintotheWesternBanksmostlyduetotheirpaternalrelationwiththecolonizer. Questionably,theseWesternBanksremainloyaltotheirhistoricalcreatorsinstitutingpoliciesadvantageous, beneficialandprofitseekingforindustrializedcountries.AtthesametimeWesternBanksoverlook evaluation,comparisonanddiversificationofeconomicpolicytofurtherdestructandannihilatetheworking classgeneralpopulationsofdevelopingcountries.Inshort,thepaternalcountriesdonotwanttoinstitute policythatwillcreateselfsufficiencyinsubordinatecountries. Thecrisisthatofficiallystartedin2007and2008,thatwhichwashighlypublicizedasaglobalnightmarein themediawasportrayedasinconsequentialtoAfricancountries;theywereunaffected.Infact,thiswasnot thecase,itisacompletefabricationandthisfabricationcausedtheworldtooverlookanalready impoverishedAfricannation.Africawasdepictedasmaintainingmorethan$200billiondollarsondeposit whilethecrisisof2007affectedmostoftheworldasadownwardcatastrophe.Onlytheinsidersand economicintellectualspeeredthroughthemazeoffogsetforthbythemediatorealizethe$200billionthat wasqualifiedwasinfactonly3%cashand97%investmentintoxicassets;theverysameassetsthat affectedandcausedchaosinmostallothernationsbecausetheassetscouldnotbeliquidated. Themedia'sfalseadvertisementwillhavealongtermeffectonAfricannationsandotherdeveloping countriesbecausethefalseadvertisementgrosslyfailstoindicateandnotethereservefundphenomenon. CountrieslikeAfricannationsarelivingoffofreservedfundsmuchlikethebodylivesoffitselfwhenwe havenofoodtoeat.Soonthecountrylikethebodywillbecomeweakanddisfigured,bloatedand dysfunctional.Essentially,developingcountrieswillbecomedearthasthereservesbecomedepletedand insolvencypersists.Wheninsolvencyoccurs,mainlyduetomismanagementandbullyingbyWesternBanks andpoliticalaffluent,willthesedevelopingcountriesbereimbursed?Itishighlyunlikelythesedeveloping countriessupportedtheirreserveswithastructuredinsuredfinancialvehicle. AccordingtoDr.Amouzou,PresidentofMSAInvestmentTrade&Management,developingcountrieswill faceinsurmountablechallengesintheverynearfuture,someare: Depletionoftheirreservefundsandcreditstagnation;creditstagnationortheinabilitytoreceivefunds frominstitutionswillultimatelyhavetheimpactofincreaseddebtbecausethedepletionwillmakeitmore difficultforthecountrytoserviceinstitutionslikeCommercialBanks,PrivateorIMFinthecircular conundrum.WilltheWorldBanksbedissolvedorwilltheystillproviderevolvingcreditafterthebank Tsunamiscrisis? Definitelythereservefundsfordevelopingcountrieswillatsomepointinthenearfuturedisappearbutwith theirdemisecomesacatastrophicconsequence;whilethecreditdissipates,theassociateddebtwillrevolve causingserioussocioeconomicproblems.Furtherpoliticalinstabilityindevelopingcountrieswillreinforce diversionbetweennationsencouragingdisorder,dysfunctionanddisparity;essentiallythehavesandhave notswillbeatodds.Thehaveswillbereluctanttobailoutthehavenotstosolvetheproblemscreatedby theGlobalEconomicFinancepolicies.

AfterthecollapseoftheFinancialbankingsystem,wearegoingtohearagainfromthemediaandnewsthat theOccident(TheClubofRome,ClubofParis,IMF,WorldBank;BilateralAgencies;etc.)arepreparing severalmeetingstohelpthedevelopingcountriesthatareaffectedbythecrisis,tocutinhalfthedebt service,toforgetthemcompletelyortocutdowntheprincipalofthedebtsinhalf?Itisanintellectual screw,scam,crime!Didthewesterner'sGovernmentthroughtheirbankersreimbursetheDeveloping countriesforthelostfundsdepositedintotheircountries?Whoisgoingtoberesponsiblefortheselosses? AtthesametimeWesternbankswillrevolvethedebtownedbythesecountriesandholdthemhostageby exorbitantinterestrates;theproverbialdoublestandardthatwillspiralthesecountriesintoamodern slaveryparadigm! ThissituationhaspreviouslyoccurredduringWorldWarsIandIIandtheassociatedaftermath.Duringthese warswhileAfricancountrieswerenotphysicallyinvolvedinthewarstheyaremanipulatedbyWesterners whohavetransferredthedebtofthesewarsintodevelopingcountries.Thisdonebycapturingand mobilizingtheirresources,foodandmanpowersothattheyaredeliveredtotheWesternerstosupportits survival.HowmanypeopleindevelopingcountriesneedtodiesothattheWesternersmaylive? Itseemsthatdevelopingcountrieswillonceagainhavetoassumethefalloutofmismanagementandflawed policyandpreparetopayorfinancethelossofWesternBankandGovernmentsagain.Thissituationis goingtoputthecontinentsofdevelopingcountriesbackonehundredyears;thisisnotdevelopmentits counterdevelopment.SomeAfricanleaderslackvisionandconfusedevelopmentinitiativesintheir countriesaspersonalachievement;thisonemanshowattitudeoftenleavesthegeneralpopulationintotal abjectpoverty. StatedbyDr.MehenouAmouzou,thealternativechoicefordevelopingcountriesistogiveinstructionand directorderstothereservesfundsManagerstheyarewillingtobuy;gold,silverandothernaturalresources. Theyshouldfurtherrequestthesepreciousmetalsbetransferredandholdtheminsafekeepingintheirown countries.Asasecuritymeasure,tohedgeagainstlossthedevelopingcountryshoulddiversifyandhold someoftheirreserveinothercurrenciesforexampleSingaporeDollar,HongKongdollar,Norwaycurrency. BankofChinahasbeenusingitsreservefundsinUSD,YENandEUROtobuyalotofgoldandprecious stonesinanticipationthenexteconomicTsunamiandthebankruptofseveralbanksandGovernments! AfricanGovernmentsmustbeawareandcognizantofthecurrenteventstopreparethemselvesforthe backlashofWesternBanksimproprieties.WesternBankswillneveradmitwhatishappeningnowandhow longthesebanksaregoingtoholdonbeforetheyannounceimminentbankruptcy.Ofcoursewiththis announcementcivilunrestwilloccursoAfricancountriesmaybefacedwithriots;theultimatesocio economicconsequence.ItwillbenavefortheseDevelopingcountriestostillbelieveinaSantaClause Economy. Developingcountries'banksneedtoadoptaconservativemoderateapproachintheirbankingpractices. Sincetheirindependencedevelopingcountries'bankingpracticesseldomchangetoaccommodatetheir countries'specificinterests.Tothedevelopedworldtheirbanksarejustdepositorybanks,collectingfunds forWesternBanksforanominalfee(5/6%)peryearthenmakethesefundsavailablefortheWesterners Bankstomanage.ThesameWesternBankstradeonthesefundsonaverageof24hoursdailywithabasic

profitof1%perweekorbetter.Inonemonthitwillbe4%andintheyear48%ofthecapitaldeposit,in exchangeof5%to6%interestperyear.DowehavetoblametheWesternBanks?Idonotthinkso,butthe developingcountriesneedrealleadership;aleadershipthatiscomfortableandpreparedtotransactwith developedcountriesonanevenplayingfield.Nolongercandevelopingcountriessitideallybyandaccept theminimumcontributionsfortheirprolificinvolvement.ThesedevelopingcountriesareneededbyWestern Bankssotheyshouldbecompensatedatfairmarketvalue. Developingcountriesaremovingintherightdirection,theysendtheircountrymentoWesternUniversities tolearnvarietiesofsubjectsincludingeconomicpracticestobecomeleadersintheirhomecountries.Butfar toooften,thesecountrymenlackleadershipcharacteristicsandfallpreytotheirwesterncounterparts.These leadersshouldtrusttheirabilitiesanddesignastrategicplanofimplementationthatwilltakeadvantageof theirnaturalresourcesandofferthemtotheworldatafairpricebasedonprevailingthemarketvalue.This approachDr.Amouzoumaintainswillbetheonlyhopeforthesecountriestobecomeeconomicpowerthey arepoisedtobecome.Itisverysadthatthesedevelopingcountriescontinuetowaitforassistanceandaidin theformofgrantsandloansfromwesternerstodeveloptheirownbudgetsthatwillultimatelyleadtotheir liberation.Thismeansnoaidorassistancetodevelopingcountrieswithouthighassociatedcostsofcapital. Westernsdonotwantdevelopingcountriestobecomeliberated;thiswillprovetobecostlyforwesternersin thelongrun.Rightnowtheyachieveawindfallfromcurrentpractices. Whydoesonegovernmenthavetorelyonanothergovernmenttoprovidebasicneedstoitspeople?It seemssomegovernmentsofdevelopingcountriesacceptorevendowngradetheirworthintheglobal economy.Assuch,theyprovetobeincapabletomanageandtoleadtheirpopulationintoeconomic prosperity.Itisabsurdforsomeoftheseautocratleaderstoruntheircountriesupsidedown.Theruthless arereelectedinperpetuitybecausethecountryisvulnerabletopenetrationbyindividualpowermongers. ThemainissueandmostviablepointIwishtoconveyinthisarticleistheneedfordevelopingcountriesto ridthemselvesofsubjugation.Theyneedtostopbeggingforhelpandhelpthemselves;theyhavethetalent andresourcestoselffulfilltheirinitiatives.Currently,theyembarrassthemselvesandtheentirecountryby lackofvision,leadershipandoverwhelmingcorruption.Developingcountrieshavetheresources;the populationisveryyoungandenergetic.Theydonotneedanyfinancialassistanceoreconomicaid.These countriesneedtorelyonthemselves,declarewaroncorruption,notaselectivecorruptionwarbutthey needtodestabilizetheopposition.Agoodgovernmentneedsagoodoppositiontohelpbalancethepower structureandmaintainasystemofchecksandbalanceswhereeverybodyisaccountableforthewellbeingof itscitizens. OnlyindevelopingcountriesdoyouseeseveralONG'S,European&otherAfricandelegationsthatcome, watchandrecommendthattheelectionwasdoneincalmandpeace!Dodevelopingcountriesneedother countriestomentorandconsultthemaboutelectoralorganizing?Insomeareasorganizinganelection soundslikecivilwarandhostiletakeoverwheretheincapablegovernmenthasruledthecountrywithself interest,nepotismandcronyismallattheexpenseofthegeneralpopulationbringmiserytothepeople.If developingcountriescannotorganizethesebasicsinfrastructuralnecessities,thenhowcantheyleadwith forwardthinkingvision?Rulingacountryfortenyearsdoesnotmeanyouaretalentedoryouareperfectto servethecountry'sinterest.Ifyoutryandfail,leavethepostandletmorecapableindividualslead.

Thecurrentbankingfinancialcrisisisimminentandatthefrontdoorofdevelopingcountries.Theymustbe consciousandsteadfastintheireconomicapproachtostability.Thiswillbringdignity,respect,andself sufficiencytotheirchildren,grandchildrenandgreatgrandchildrenandridthemoftheperceptionofbeing amarginalizedmunicipalityinamarginalizedcountryonamarginalizedcontinent. FormoreinformationfromDr.Amouzoupleaseseehispreviousarticles: TheEconomicDeclineoftheUSAEmpire:TheAirplanewithoutthePilot

"ThePerspectiveonGlobalEconomicandFinancialStatusfor2013anditsimpactonthefutureofthe globaleconomy?"

"CouldtheWorldandtheEuropeanFinancialSystemsSurviveThisWorldWarIIIFinancialcrisisoritis theendoftheWesternCivilizations?" "CorruptionandDevelopmentintheDevelopingCountries" "TheWorldFinancialHoneyMoonisover:DebtCrisisContinuestoWageWaronEconomyPolicy"

"EuropeanCentralBank'sOutrightMonetaryTransactions(OMT):TheBazookaApproach" CONTRIBUTIONS: Dr.AmouzoureceivedhisMasterinBusiness,fromtheEuropeanAdvancedInstituteofManagement,alsoa CertificateinFinanceandInvestmentinParis,France.HecompletedhisPostGraduationworkinPolitical Strategy,InternationalRelationandDefenseStrategiesandearnedhisPh.D.inInternationalFinance. ContributiontothisarticleandtheaforementionedserieswasmadebyByronK.Belser.Mr.BelserassistsDr. Amouzou;heholdsaMastersofArtsdegreeinDevelopmentEconomics&aLawdegree. RaymondBernhardWestfromWestInternationalPetroleumLLC&FundacionParaisoSinFronteras ###