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Posted: Sat Sep 10, 2005 12:23 am
by optimist_1
Globe who build this Capitalism Empire.
Africa is just getting ripped from its Resources Nigeria should already be rich. The oil
Posted: Sat Sep 10, 2005 12:24 am
by Globetrotter-
Kamal,
The problem is not lending but what is done with the money that is lent. Many african nations and the third world borrowed money but this money did not end up in projects that had a feasible outcome. Instead, it went to the pockets of greedy leaders, buy arms, fight wars , concubines and to finance the lifestyles of a few.
Inflation happens everywhere . Rich nations go through inflations.
Writing off debt is a futile thing. I think the third world should be forced to pay. It is about learning. This might bring accountability in future.
Posted: Sat Sep 10, 2005 12:27 am
by Globetrotter-
Optimist, Africa has what economists call a resource and leadership curses. Nigeria is rich in oil but poor in all other senses of the world.
Why should africans be so stupid to allow for empires to steal their resources??? Hell no, the problem is an endogenous one: It is a pathological problem rampant in the third world. The blame game would never take us anywhere.
It has been nearly 40 years since most countries on this earth gained independence and the economic conditions are worser!!!
Blame it on the leaders, people and institutions!
Posted: Sat Sep 10, 2005 12:57 am
by gurey25
The root cause of unbalance in the world and the divide between the rich and poor is interest.
Posted: Sat Sep 10, 2005 1:01 am
by Globetrotter-
Gurey, do you mean INTEREST RATES? How so?
Posted: Sat Sep 10, 2005 1:22 am
by gurey25
Interest rates are not linked to real goods or services, and thus artificial.
The monetary system we all live in based on interest and the fractional reserve system.
For example
Money is created when banks lend it into existence
. When a bank provides you with a $100,000 mortgage, it creates only the principal, which you spend and which then circulates in the economy. The bank expects you to pay back $200,000 over the next 20 years, but it doesn't create the second $100,000 - the interest. Instead, the bank sends you out into the tough world to battle against everybody else to bring back the second $100,000.
So some people have to lose in order for others to win. Some have to default on their loan in order for others to get the money needed to pay off that interest.
Those able to compete meaning those who work either very hard, have advantages with education, established wealth will do well, those who dont get screwed.
Rich get richer, poor get poorer.