2018: The review, Part 2
07 . 01 . 19
By Ignatius Wilson
Last blog post I began an editorial on 2018. Now, in 2019, let’s complete the recap on stories which were, and some which are ongoing.
Illegal actions uncovered by the Royal Commission into Banking, Superannuation and Financial Services could only have been uncovered in a well-regulated democracy, but as I also touched on last year, our banking services actually stack up quite well against their international competition. And it isn’t just retail (lending) banks that have sipped and sup from the naughty cup.
The central bank of a certain African despot, Robert Mugabe, is a case in point. I wrote on the history of Zimbabwe’s economic woes around the time American President Donald Trump was writing his own woeful history, causing capital markets to fluctuate and damaging international relationships for years to come.
Understanding the role of domestic and international monetary policy in Mugabe’s government gives us great insight into how books can be cooked and why this is done.
Mugabe got two major wins out of doing this. First of all he funneled billions of dollars into accounts he had beneficial ownership of. He owns millions of dollars worth of real estate and other assets in Zimbabwe, Africa and around the world.
Second, he financed a series of foreign wars illegally, the Congolese civil wars. These events happened over the previous decades not the previous twelve months but I wrote on Mugabe’s regime to highlight the corrupting power of money.
In contemporary international economics and politics we looked at the sorry state of Turkey’s currency, the Lira. This had fallen to historical lows since the current President, Recep Tayyip Erdogan, was given serious power as Prime Minister and has controlled the government.
The failed 2016 coup took a bit of strength of the Lira but it is unquestionably the poor economic management of Erdogan’s government, including nepotism and regional militarism, which has really seen the bottom fall out of it.
Trump was supposedly waging a war on Turkey but in fact was treating imports from all nations equally, with increased tariffs, and in fact has not diverged from the trade policy with Turkey of recent times. Both leaders were claiming a war was being waged for political ends, as it made Trump look good in America and gave Erdogan an excuse for the state of Lira,