Wednesday, August 22, 2018

With Africa potentially being the future of global development, a unified continental currency is a necessity rather than a pipe dream

For all the rhetoric and propaganda placed upon Muammar Gaddafi by the West of his being a dictator and terrorist, the Libyan people had one of the highest standard's of living in the world prior to his assassination.  And at the heart of his murder was his idea of bringing about an African currency that would in a short period of time, make the continent on par with the rest of the world due to the currency's gold backing.

Gold backed currencies are a serious threat to the dollar and to a world that is now run solely by central banks and debt based money.  And with China seeing Africa as the next great place for industrial development, Gaddadi's ideas on money actually could accelerate the continent's place in the global economy.

"Africa has a lot to offer to the world. In fact, as at 2016, only a fifth of our exports were traded on the continent while the rest, 80 percent were sent overseas. All things being equal, a common continental currency would have a strong value considering the world's dependency on Africa for commodities. As for how the rest of the world might react; currencies have a relatively defined value. 
If one currency is appreciating then it is gaining strength against other currencies. Therefore, a currency for which there may very well be a strong demand and consequently strong value might not be received well by those whose currencies currently dominate world trade," said Boamah. 
However, she also warned that world trade is much more than commodity trade as it is also comprised of manufactured goods and other intangibles all of which are markets that Africa does not dominate. "Even in the realm of commodities, prices are set by external bodies over which we have little influence and we trade more off the continent than in it, and unless these factors change the single currency would be very vulnerable to external shocks," Boamah concluded. – All Africa
Through this assessment lies the key, and the reason that cooperation among African nations versus their century's old system of tribal division and separation is vital to their future.  Resources, production, and a strong monetary system... and each of these are very possible through the vast amount of commodities the continent holds, the new partnerships being forged with China to bring in industry and manufacturing, with the only thing remaining being that of a strong, vibrant, and stable currency.

A gold backed one?

Just two decades ago, Rwanda was more known for rampant disease and ethnic cleansing than it was for being a growing metropolis and beacon for economic growth.  However in just a very short amount of time, and with the help of Chinese development/investment, the City of Kigali is working hard towards rivaling even the modern cities of Dubai and Singapore.

While the United States desperately attempts to become better again by going back to old methodologies regarding trade and development at the same time that their own cities (Detroit, Baltimore) fall into chaotic ruin, Africa is blazing a trail that should they be able to overcome their history and division and violence, will quickly grow into one of the leading economies on the planet, especially if they can come together with a continental policy of sound money that works for all.


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