So, the US Senate approved a revised version of the financial "bail out" plan, involving some $700 billion. Simply put, that is a lot of money. I find it puzzling how the United States government can pledge that much to a private sector financial crisis. There are controversies surrounding why the crisis originally came about, but let's put these moral issues aside.
Let's instead try to assume that this is truly a life-threatening crisis (and in some ways, it might be), and that the Fed is doing what it can to protect its civilians. National security, is what they are calling it.
$700 billions dollars... Just to put things in context: The richest country in Africa by Gross National Product (using Purchasing Power Parity) is South Africa, and their GDP in 2006 was just under $600 billion. Compare this to Tanzania, which had just under $30 billion as their GDP in 2006 (click to view source).
Word. So the Fed is pledging a "rescue" with a cost that adds up to being higher than any African country's GDP. I don't think I have to get into how else $700 can be used, especially in terms of sustainable economic development ventures, or even immediate humanitarian aid.
And you know what struck me as amusingly infuriating this morning? The fact that the world will never see so much money (again, $700 billion... that's NINE zeros) flow into sustainable development ventures in one go. But when there is a military crisis, such as the "pirates" in Somalia (and ask me someday how I think this is really a stand-off between Russia and the US to project their physical power), there is always money pumped into supposedly preemptive measures... again, in the name of National Security.
That is all. I mean, seriously.
Let's instead try to assume that this is truly a life-threatening crisis (and in some ways, it might be), and that the Fed is doing what it can to protect its civilians. National security, is what they are calling it.
$700 billions dollars... Just to put things in context: The richest country in Africa by Gross National Product (using Purchasing Power Parity) is South Africa, and their GDP in 2006 was just under $600 billion. Compare this to Tanzania, which had just under $30 billion as their GDP in 2006 (click to view source).
Word. So the Fed is pledging a "rescue" with a cost that adds up to being higher than any African country's GDP. I don't think I have to get into how else $700 can be used, especially in terms of sustainable economic development ventures, or even immediate humanitarian aid.
And you know what struck me as amusingly infuriating this morning? The fact that the world will never see so much money (again, $700 billion... that's NINE zeros) flow into sustainable development ventures in one go. But when there is a military crisis, such as the "pirates" in Somalia (and ask me someday how I think this is really a stand-off between Russia and the US to project their physical power), there is always money pumped into supposedly preemptive measures... again, in the name of National Security.
That is all. I mean, seriously.
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