Controlling World Finances. Part Three.

In considering the concept of each country nationalising its banks, I feel that it is essential to remember that the World Financial Armageddon (WFA) was caused, primarily, by the senior personnel in banks and financial institutions. They were aided and abetted in creating that calamity by weak, non existent, non- enforced or disregarded regulations. Very early warnings of the dangers that led to the WFA were ignored by most of the personnel and governments concerned and they should accept some some of the blame. Some shrewd personnel may have quietly noted the danger warning, or even seen the impending danger themselves, and taken steps to heed it. One example of the dictum "if it looks too good to be true be very careful" was observed by a financial officer in a South Coast Council when he withdrew a large investment with an Icelandic bank in time to avoid the drama there and saved his council at least one million pounds.

As the problem in Greece developed it was mooted that two or three other Euro zone countries could be close to the "tipping point". A report today, 06/05/2010, from a credit rating organisation named several countries whose rating was at risk,one of them being Britain. If we had converted to the Euro we may well have been approaching problems such as Greece is experiencing. Ironically, I think, the fact that the "Square Mile" handled a large percentage of the world's finances, both normal, wildly speculative or toxic, made the UK more susceptible to the WFA that it helped to create. As the world's finances were deployed into a self- destruct mode it would be interesting to know who pushed the button or instantly sensed that it had been pushed.

I propose to labour a point which I am sure needs considering in today's context . When I left the UK in April 1952 to take up a position in a British "colony" in Central Africa I did not know one family here that owned a refrigerator and I only knew one that had a phone in their house. Some 53 years later my wife and I returned to live in the UK early in 2005. By the end of that year I could state for certainty that the thing that had impacted on me the most was the AFFLUENCE here.The number of people/families that owned or were buying houses, to many of the younger families this affluence must have been the norm. To me though, in no particular order, 53 years down the line I could see, wall to wall carpeting, central heating, wall between front room and backroom demolished to make one larger room, double glazing, refrigerators, washing machines, even washing up machines, video players, DVD players, large TV sets in main room, smaller one in bedroom, garages often with room above, conservatories, many quite large, built on brickwork extensions where space available, very expensive furniture, designer kitchens and bathrooms, up to three cars per family, many of them only two or three years old and top of the range to boot, fantastic motorcycles, boats and jet skis, modern land line phones in most houses, state of the art mobile phones, often in near constant use, electric gizmos, even toothbrushes, practically instant ready cooked meals, frequent eating out, plenty of bottles of wine at home, holidays ever further away from home, cruises on luxury liners from port A---- to Port ----Z, latest sports equipment you name it, and many other perks that I have not mentioned or do not even know about. Then multiply these "aids" to living by the number of other developed countries to arrive at the size and multiplicity of economic factors that "drive" our modern world. Let me make it clear that in no way do I begrudge these attributes to an enjoyable life, the majority of people work long and hard to acquire them for themselves and/or family. However I feel that they need to be factored in to boom or bust economics in some way that smooths out such drastic highs and lows.

Another thing that has surprised me is the throw away syndrome, probably easily justified on a local economic scale, but just looking at what can be seen in skips outside a house being renovated makes me think how most of the "throw aways" would be greatly appreciated by many families in poorer societies, this reasoning can also be applied to some fly tipping. Thank you.
This blog will be continued in Controlling World Finances. Part Four.

Frederick W Gilling. Thursday 06 May 2010