Thursday 29 January 2009

In the News today!

Markets fell again today amongst more uncertainty in the banking community. Watching the chaos with the banks is like a virtual rollercoaster ride, yesterday up today down - I am curious to see what tomorrow will bring….

For once there is some good news in Zimbabwe, the ‘government’ has seen the light and are allowing businesses and people to trade with forex. For years the government has been losing out on taxes – how can you tax a bartering system? Well you cannot! There is no way to document getting your house painted or roof repaired for the other party to service your car in return. Mugabe & his fighters fought the Rhodesians so ‘his people could be free’ but who is there now to save the Zimbabweans from Mugabe?

With the whole world in various stages of turmoil and the first world countries needing to keep their resources close to home what happens with regards to aid? Historically these countries have been the first to step up offering assistance to the poorer nations in times of need. However, everyone is in need at the moment. Europe & America cannot, in good conscience send money out when they will be having issues of their own. With this in mind I wonder if it will incentivise the African communities to pull together and feed their starving?

Either way I view aid as a catch 22 – the more it is given to Africa (for example) the less likely Africa is ever going to be able to stand up and be counted. There is no reason for such a rich continent to be reliant on anyone else.

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