"Protecting Bahamian banking system from next global collapse" is the title of an article found in the "Tribune Newspaper" in the Bahamas.
I like this article.
You don't have to be an economist to read an article like this one. Anyone with a desire to learn can spend some time here...
...Personally I would say - Not just for the Bahamian banking system but also for the banking system of those countries whose economy depends upon the stability of the another country.
Published On: Monday, July 18, 2011
By JOHN TOMLINSON
From a speech delivered to the Nassau Institute
WITH the current threats to the state of world economies:
They remain holding massive levels of sovereign debt.
Massive levels of toxic mortgages still remain on their books. A new avalanche of foreclosures is heading in their direction.
In Europe, Greece approaches another bail-out, Portugal is receiving one and other countries are on "watch." The world is awash with debt: sovereign debt, corporate debt and personal debt are each at record and barely manageable levels.
No banking system is currently risk free. That includes the Bahamian banking system. Although it, along with Canada, managed to survive the downturn of 2007/2008 reasonably well, as the Bahamian banking system is currently structured, it too, is subject to failure. The next international banking collapse, however, is likely to be massively larger and more severe.
Can we protect our banks and our deposits? Yes, I believe so.
Before we attempt to look at solutions, however, I would like briefly to review the history of money and banking so that we may better understand what needs to be done.
Historical Perspective
God did not create money. Man did. Money is not some God-given inexplicable entity over which we have no control. Man created money in response to having settled on the land and making human beings dependent on exchange for survival.
If there are problems with money we can and must sort it out ourselves. One of the requirements for any fair market is an accurate measure of exchange value. We need to know what the fair value of the product of our own expenditure of energy is compared to the fair value of the product of someone else's energy. Tags: Protecting Bahamian banking system from next global collapse
You don't have to be an economist to read an article like this one. Anyone with a desire to learn can spend some time here...
...Personally I would say - Not just for the Bahamian banking system but also for the banking system of those countries whose economy depends upon the stability of the another country.
Published On: Monday, July 18, 2011
By JOHN TOMLINSON
From a speech delivered to the Nassau Institute
WITH the current threats to the state of world economies:
- Sovereign debt at levels unprecedented,
- Governments unable or unwilling to deal with levels of expenditure,
- Taxpayers beginning to revolt,
- Gold at an all-time high, and
- Highly destructive natural disasters on the increase, who knows what event is going to trigger the next collapse? We can only be confident that something will.
They remain holding massive levels of sovereign debt.
Massive levels of toxic mortgages still remain on their books. A new avalanche of foreclosures is heading in their direction.
In Europe, Greece approaches another bail-out, Portugal is receiving one and other countries are on "watch." The world is awash with debt: sovereign debt, corporate debt and personal debt are each at record and barely manageable levels.
No banking system is currently risk free. That includes the Bahamian banking system. Although it, along with Canada, managed to survive the downturn of 2007/2008 reasonably well, as the Bahamian banking system is currently structured, it too, is subject to failure. The next international banking collapse, however, is likely to be massively larger and more severe.
Can we protect our banks and our deposits? Yes, I believe so.
Before we attempt to look at solutions, however, I would like briefly to review the history of money and banking so that we may better understand what needs to be done.
Historical Perspective
God did not create money. Man did. Money is not some God-given inexplicable entity over which we have no control. Man created money in response to having settled on the land and making human beings dependent on exchange for survival.
If there are problems with money we can and must sort it out ourselves. One of the requirements for any fair market is an accurate measure of exchange value. We need to know what the fair value of the product of our own expenditure of energy is compared to the fair value of the product of someone else's energy. Tags: Protecting Bahamian banking system from next global collapse