It is an undisputed fact that most, if not all African and Caribbean countries have little or no control over their currencies. Currencies are controlled by outside countries generally from Europe. As the value of the local currency is manipulated, the locals are able to purchase less with their currency while outsiders who come on vacation and or look to purchase land or start businesses are able to come in and take economic control of the country to include the number of jobs and control of goods and services. The only way a country can gain and maintain its economic freedom is by controlling its own currency! (can’t gain your economic freedom if you do not control your own currency.)
Definitions
What is currency in finance? Is currency different from money? The Oxford dictionary defines currency as: a system of money in general use in a particular country; while Wikipedia states that: currency in the most specific sense is money in any form when in use or circulation as a medium of exchange, especially circulating banknotes and coins. https://en.wikipedia.org/wiki/Currency It is therefore safe to say that the terms currency and money can/may be used interchangeably.
- Money definition – Anything of value that serves as a generally accepted medium of financial exchange.
- Currency – A generally accepted form of money, including coins and paper notes, which is issued by a government and circulated within an economy. Used as a medium of exchange for goods and services, currency is the basis for trade. In addition to the metal coins and paper bank notes, modern currency also includes checks drawn on bank accounts, money orders, travelers checks, and will soon include electronic money or digital cash.
- Fiat money is money that derives its value from government regulation or law. The term derives from the Latin fiat, meaning “let it be done” or “it shall be [money]”, as such money is established by government decree. Where fiat money is used as currency, the term fiat currency is used. Fiat money originated in 11th century China, and its use became widespread during the Yuan and Ming dynasties. The Nixon Shock of 1971 ended the direct convertibility of the United States dollar to gold. Since then all reserve currencies have been fiat currencies, including the dollar and the euro.
Devaluation
Although there are several means employed in the undermining of “Third World countries” economies, devaluation is the chief strategy applied as it pertains to the manipulation of their currencies. With the inability to produce all they need for sustainable development, most African and Caribbean countries turn to developed or “First World countries” for assistance. This assistance is given with certain stipulations which generally centers around control of their currencies. Instead of strengthening or sustaining the value of less developed countries so as to make their currencies stable, thereby more attractive to large investors, they encourage and aid in the devaluation of their currencies. In this way small investors can invest their small amounts of capital while demanding substantial returns. Due to the devaluation of their currencies, these countries are now mired deeper in debts and more obligated to developed countries. Organizations like the IMF, IDB and the World Bank, pertaining to the organization to which these countries are most indebted, step in and dictate the terms by which these countries are to operate economically. It does not matter how much hardship the citizens experience as these countries are now dependent on these organizations, therefore, they have to acquiesce to their rules. Devaluation of a country’s currency not only creates financial instability, it takes away it’s independence and weakens its economy.
Manipulation of Smaller Economies by First World Countries by Trade.
While there are several ways in which developed countries can undermine the economies of smaller countries, the most common and less obvious means is by trade. If smaller economies do not have freedom of trade , they have no control over their economy, over their financial independence. Most African and Caribbean countries are victimized and manipulated by Europe and the USA due to their inability to manage their currency. International organizations such as the IMF, European Common Market and the IDB at some time or another, have all played roles in the devaluation of the currencies of these countries.
Any country outside of these developed, so-called First World countries that tries to control their currency is doomed to fail; not because it is impossible but rather because the “super powers” / governments and organizations combined, or political oppositions within these countries form alliances with leaders of powerful developed to undermine and discredit their leaders.
Leaders Who Have Tried to Control Their Countries’ Currencies and Failed.
We need to step back and take an unbiased view of leaders who have tried to strengthen their countries’ economical status by taking control of their currencies.
- President John Tyler (the 10th President of the United States From 1841 to 1845) vetoed the act to renew the charter for the Bank of the United States. He became very unpopular after this and was rumored to receive many threatening letters until his death. He died friendless and broke.
- Abraham Lincoln – President Abraham Lincoln (16th President of the United States from 1860 till his assassination in 1865) approaches the big banks in New York to try to obtain loans to support the ongoing American Civil War. As these large banks were heavily under the influence of the Rothschilds, they offered him a deal they knew he could not accept, 24% to 36% interest on all monies loaned. Lincoln was very angry about the high level of interest so he exercised his presidential rights and printed his own debt free money and informed the public that that was now the legal tender for both public and private debts. He was later assassinated.
- While control of oil was a factor in Iraq’s invasion, President Sadaam Hussein had made the decision before this historical event that Iraq would eventually stop taking payments for oil in US dollars. This information has not been given much exposure in mass media. We all know about his end.
- Muammar Gaddafi of Libya tried to unite Africa under one currency, the African “Danari backed by gold. Although control of oil was a factor as well, neither the US Federal Reserve, The World Bank nor the IMF wanted to let any country or continent control their currency and spread this idea to others, therefore, a vendetta was launched against Gaddafi which eventually led to his demise.
- In 2017 president Nicolas Maduro of Venezuela, announced that the country would launch the Petro crypto currency dollar backed by the country’s resources; most notably oil. https://en.wikipedia.org/wiki/Petro_(cryptocurrency) Venezuela has been in economic disarray not long after this announcement most notably due to “outside influences” with the US being the leading influencer of discontent among the people.
While political differences may have influenced some of the decisions made by these leaders, we all need to look at the bigger picture as it pertains to currency, economic dependency, natural assets and the current values of these countries currencies. We need to look at the countries that have gained the most whether by trade or control of assets, and the current status of these countries in comparison to when they had full control of their currencies in years gone by.
