European Union
European Union

In this article, Dr. Mehenou Amouzou surmised the world is and has for some time approached a World War III; not so much from a military perspective but an economic perspective with consequences that are disastrous and detrimental to many industrialized country’s infrastructure and the rest of the world.

European Union
European Union

Several months ago Dr. Mehenou Satu Amouzou wrote an article entitled: “The World Financial Honey Moon is Over: Debt Crisis Continues to Wage War on Economic Policy”. In this article, Dr. Mehenou Amouzou surmised the world is and has for some time approached a World War III; not so much from a military perspective but an economic perspective with consequences that are disastrous and detrimental to many industrialized country’s infrastructure. The ensuing phenomenon may render several Governments unable to feed their own citizenry.


Could Europe and the world financial system survive this financial crisis which Dr. Mehenou Amouzou calls WW3? According to Dr. Amouzou the slight of hope lies solely in the competence of the World’s top leaders and their collective ability to institute economic reform. Several European countries’ citizens struggle to have one meal a day and their hope to live is fast becoming hope to die. Still, other impoverished European countries are met with daily tragedies when at least fifteen people per day find it necessary to commit suicide rather than struggle in a futile attempt to feed their families and continue to live in despair.


These citizens are asked to endure riots and other criminal activities that are clearly becoming viable options and alternatives to the ongoing subpar economic condition that persists. They have no faith in their country’s governing body which has quickly led to chaos. The bad news is the debaucheries that accost these citizens is rarely or never seen because we lack world media coverage that can be used to influence the political decision makers to force them to develop and implement social policy that will provide basic humanitarian necessities that will assist children, women; and old people, but without media coverage to highlight these humanitarian needs, access to basic food to eat once a day becomes a luxury.


When the world economic organizations became aware of the imminent financial crisis, trillions of dollars were injected into certain economies. What was the social impact of this infusion? How has the infusion created wealth or better living conditions for its inhabitants? According to Dr. Mehenou Amouzou some will say without these funds conditions within these countries would be worse. Adversaries may rebut that nothing has changed and will further argue that due to political atrocities these funds have never reached the masses where most needed, but remain concentrated at the top of the social economic ladder. The end result no matter the catalyst the struggle becomes more intense each second that passes by!


This World War III financial crisis raises issues Dr. Mehenou Amouzou believes give rise to the following questions for world leaders: “Is Capitalism still a warranted economic paradigm? Are the fundamental teachings of economic founding father; Adam Smith still applicable today? Lastly, western civilization and its economic policy, is it still the footprint or blueprint for the world to imitate?

Greece has played a very important role in the Western Civilization’s financial and economic implementation; some historians argue Greece was the father of European Civilization. Greece’s financial problem of today is not a reflection only on Greece but all of Western Civilization’s economic and political leaders and their inability to police prevailing downturn economic indicators. For to Dr. Mehenou Amouzou publishing at the beginning of this year where he mentioned how countries like Greece, Italy, Portugal, Spain, Ireland, England, France, Germany and other European countries with weaker economies will face serious fallout from printing more money to finance existing debt. This is a circular reaction and creates inflation, stagflation and a short term supply shock that will cripple the economy in the long run. This approach mirrors credit enhancement, at some point the bill will need to be paid.


Dr. Mehenou Amouzou suggests, we need an immediate reform for the World Banking institutions, International Monetary Fund’s and the Monetary Reform to solve this financial issue. Most of the Central Banks are the sosie of the international Banking Organization which has ruled the international Financial and Economic policy development and implementation for several decades. Because they have been in power for so long their policies are old, outdated and antiquated. The case of Greece, Spain, Portugal, Ireland and Italy, are very poignant issues to be carefully studied and analyzed by some other countries with pitfalls looming in their midst. Consequently, far too often, countries see the trouble from their dormant perches but fail to act in time to thwart the long term ramifications of their misuse and abuse. The countries mentioned above borrowed money to pay for their past debts; debt service and the interests which absorb close to 50% of the current loan force these countries to default on loan payments. Defaults are caused by many variables that constantly repeat themselves. Countries invest in non-productive ventures, swap funds at less than profitable rates and engage in unsavoury practices fuelled by nepotism and cronyism.


Providing an austerity measure can be helpful, however lending institutions find it undesirable to provide a 100% loan with associated with fixed and reasonable interest rates. The aforementioned countries instead receive 50% loans with high interest rates which make it considerably more difficult to manage; thus enabling a potential default. When the country defaults, their credit rating plummets. This causes a circular reaction. Loans again are much harder to receive and are delivered with high interest rates and other associated costs making the loan harder to manage by the country; thus default. This cycle must stop.


These borrower countries are becoming modern slaves to the international lenders. Europe and the USA have injected several trillions of dollars into these economies; where did these funds go? We have no controlling body to monitor and help manage the deployment of development investment funds and further assist in the management of its distribution. Again, this is an old paradigm that has existed throughout history. Why do these same problems persist? If the world’s most prominent financial institutions are not ready to address this cyclical detrimental turbine then I urge you call for world banking reforms. Do our law makers need to go one month without pay for them to feel close to the reality of what is happening?


I ask the question once more. “Are we at the end of the Capitalism, as we know it or are we deviating from our founding father Adam Smith’s vision and definition of pure capitalism? Capitalism at one time was the formula and strategy of choice to achieve Excellence for Westerner Civilization. According Dr. Mehenou Amouzou it has improved the lives of people including capital providers in the forms of loans and equity participation, but also it improved the lives of the workforce and those individuals who sought loans and partners to attain dreams. Both sides of the equation at one time work with harmonious intent until the pitfalls of capitalism became more prevalent. “Wild Capitalism” started to be developed aggressively and the labourer, his dreams and worth became less important. The labourer was forced to accept the take it or leave it attitude of modern corporations, or we (the bank/company) will relocate companies/factories into XYZ countries who will accept the terms presented.


Many times the terms of loans to countries can be manipulated by reducing the cost of labour for production and general maintenance. This tactic lasts usually for a few years, but when labour costs begin to rise companies will decide to relocate into another country to take advantage of their low labour costs; continual exploitation of the man far down the food chain. The worst thing that occurs as these companies search for continual cheap labour and enter the relocation process is the exposure they inherit to counterfeit practices. Currently, there are no laws to protect the business owners or their patents. According to Dr. Mehenou Amouzou the formulation of a good Economic Policy is the only catalyst that can contribute and sustain development in these impoverished countries. From this new dynamic, prosperity of the people will prevail.


Dr. Amouzou received his Master in Business, from the European Advanced Institute of Management, also a Certificate in Finance and Investment in Paris, France. He completed his Post Graduation work in Political Strategy, International Relation and Defense Strategies and earned his Ph.D. in International Finance.


Contribution to this article was made by Byron K. Belser. Mr. Belser assists Dr. Amouzou and holds degrees in Development and economics & Law.

source: msainc

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