Introduction
Talking and writing about money in a personal way can be challenging at a time it requires expertise to do so. Nevertheless my concern and its expression through the title question is rather a confirmation that a major shift in our (diaspora) thinking of effort, work and reward in Europe and US has occurred in a radical way albeit latent. Events of 2007-2008 alerted everyone that the erstwhile economic normal has vanished. The main question remains if we (I mean adults, parents) have received the new economic lesson and its implication for the future especially when it comes to hard-earned cash.
The Old Known
Ever since the dawn of man in East Africa and with distribution of various people across the world, man in various communities have consolidated the art of wealth accumulation, monetary exchange and interaction, and investment management. Call it whatever you like, each community or peoples have articulated market and economy as can be observed in their on-going survival and or prior to their genocidal extinctions. Economy, market and capital (ism) is nothing foreign to most of the world’s peoples; what is different is application, purpose and motivation. The over-arching argument of all at the base level is that investment is a risk and if an investor fails to obtain returns, then loss accumulates. The reverse holds for returns and profits. No one needs Adam Smith or Dr Karl Marx for enlightenment.
It was also a known fact the banks are a sources of wealth creation or substantial income accumulation for individuals, families, institutions and the state through interest-yielding instruments. This is based on the ground that interest rate as national policy appreciates that citizens and people (not select classes) are the highest (potential) wealth of nations/states.
The New Known
The reality arrived in 2008 masked as global economic bubble burst accelerate by global banking elite virulent machination of US housing market. Sadly this is part of the truth which commenced earlier with Reaganomics, and earlier by delinking of US dollar from gold in the 1970s. In a simple language, at this time the interest of the powerful global political elite converged with those of the powerful global money/banking elite. In Gramscian conclusion, it is a re-hashing of merging of state interest with those of the corporate world.(1) Recent increases in domestic energy prices in the face of UK government platitudes is a classic example. Sadly many in the diaspora ‘believe’ it is a sound economic/fiscal policy. Genocide without firing a shot!
For these select (poor) performers, the world is the only geography of interest with states as convenient appendages for realising tactical and strategic objectives. Backed with deadly military power, any state that obstructs this plan is reduced back to Neolithic age. Examples litter the highway of mangled conventional wisdom!
This implies that politicians of Europe and US answer only to their co-elites. The people or citizens have vanished. The banks are free to mess up ordinary peoples’ deposits including losing it without compensation to owners. Failed banks in contrast to the old known become too big to fail. Responsible individuals within failed banks are sacrosanct and rewarded with huge bonuses while failed banks are recapitalised with public fund. With US leading the way, the so-called developed world finessed their emporium of virulent capitalism by unleashing austerity on powerless, confused and raped populations accompanied by the media cabal.
Real Outcomes
When you reward a bandit, he comes for more. When the bandit is too powerful, then he drafts the enabling laws. So this is the state of event in the self-inflicted declining US-dominated geopolitical and geo-economic space. (2)
First of all the banks have changed. With Central banks moving away from managing the national economy to now making cheap money available, accelerated by money printing to enable money elite consolidate their destructive speculations. Commercial banks are reduced to accomplices of national rapes and manipulations that leave populations and cities impoverished, mangled, wasted and demoralised. European and North American banks no longer serve as points or sources of wealth accumulation, income aggradation and safe deposit management for ordinary people. Underpinning the whole edifice is low (0%) interest rate across the board only accessed by a privileged few and austerity unleashed on the majority.
Implications
As for many diaspora working very hard under challenging circumstances, there is a reality which most of them confront but seem unable to admit. That is the fact that so-called development of the developed Europe and North America has hit the buffers, in a sense the centre is not holding. No shaking! Remember Fela’s song, “Army robber…”! Then the army was in power in Nigeria, hence the government was stealing from the state according to the lyric. Fast forward the same lyric to post-2008 Europe and North America.
Now, have we bordered to unpack the meaning of 0% interest rate plus austerity for individuals and families? We read and hear it so much that its serious daily impact is lost. For starters, you cannot save money in a bank. Secondly, your work time is shortened. Thirdly, income diminishes aggressively as days go by. Have you guessed or thought that a possible correlation exists between 0% interest plus austerity and criminality in the society? The challenge of making ends meet for families is getting increasingly savage.
Now the questions! Do you in good conscience believe that your hard-earned money is safe in any bank? Can you advise your child that banks are safe depositories for hard-earned cash? Will you deny that the pillow you sleep on offers better service than today’s banks?
With common people devastated and their hard-earned money dissolved through collective punishment via low interest rate, the door to income aggradation through bank instruments is closed. Survey banks in UK and confirm if any product offers up to annual return of 5%? If you deposit 1000 units of any currency in any European bank in January 2013, are you certain that at least 50 units will be added as interest? This is your hard-earned money.
Considering the fact that many diaspora possess an insincere image of their ontology and their original geography, I am hamstring in offering fresh ideas. Somebody gave me a serious warning, which is that one mustn’t assume individuals/families want to improvement their lives. However for the sake of the children I’ll pose a few questions. Read these questions back to yourself as if your child is asking them. Does your homeland offer viable investment opportunities? Does commercial banks in your homeland offer better return on deposits of their instruments? Does your homeland’s central bank offer better returns on treasury bills/bonds?
Conflict of denying Change
Change is complicated even when one is at the centre of it. Diaspora or being one is part of complicated and complex change. The wear-and-tear naturally wants one to settle for the initial consolation prize. In truth very little matters! Nevertheless consider seriously your sacrifice, effort and deprivations. Consider current and future state of your hard-earn cash in Europe and North America. Convergence of political and money interest means that citizens/people have much to lose.
Perfect example is the recent past economic 2013 debacle in Cyprus. For the first time European Union approved official stealing of peoples’ bank deposits in the name of haircut. The dirty part of it was the mainstream media insincerity in refusing to add the preceding adjective, ‘imposed’ haircut. It was done under duress, imposed by force, stolen by legal impunity. A collorary is that Greece is currently and for a long time will be ‘living in bondage’ under the Troika! Remember a Nigerian film with similar title! Whether its presence in Europe is a geographical accident is a debate for another day! Portugal and Ireland are also European too.
It was a first and so will happen again. The colour of one of your passports, if it is red will not guarantee your protection. As Ndigbo home in, “The manner a quail is savagely dealt with will be template for dealing with the chicken”.
Notes:
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