Fernando Fuster-Fabra's Blog

DAVOS, A STANDING ECONOMIC VIP ARMY | January 27, 2010

I believe that banking institutions are more dangerous to our liberties than standing armies.
Thomas Jefferson

With Improve the State of the World: Rethink, Redesign, Rebuild” as theme of this 40th session and French President Nicholas Sarkozy delivering the opening address, the Davos Forum sets off to straighten some of the mistakes committed by the very economic frontrunners of globalisation that triggered off this and other economic crises in the last two decades.

Are the economic think tanks that have controlled the destiny of Mankind since the Allied victory in World War II now thinking of “rethinking” globalisation? I must say that it’s too late to think anew the very same thoughts that have prevailed since the global crisis burst wide open the financial and construction bubbles generated by no other than the leading financial institutions in the developed world. Wall Street and The City entities, brokers & intermediaries were up front making fortunes on the basis of foreign exchange, CDS’s and hedge funds whilst sinking further in the rut underdeveloped economies in Asia, Latin America & Africa.

Many have been the summits of world leaders with no results. One is the forum for the wealthy for their “rethought vision of world economics”. I doubt that it is because the wealthy and powerful wish to “redesign” the distribution of wealth, much less to “rebuild” Haiti with their earnings in 2009.

I suspect that Davos is another luxurious VIP summit to talk at leisure how to go about new ways of earning more and caring less for the needy.

Moreover, Davos has put the Obama Administration on dead centre of the bulls-eye of its contained fury. Never has a U.S. President been so belligerent with banking institutions. True to say too, never before has the U.S. Administration had to shell out such sums to refloat banks that didn’t manage their profits properly and paid enormous bonuses to incompetent managers.

At the end of the Bush Administration, French President Sarkozy spoke at the Washington G-20 Summit of the “re-foundation of capitalism”. All 2009 passed and no action in such sense was taken. On the contrary, the “old ways of the all-power bankers” have resurrected from a low profile to come back with more force. More large bonuses and back to conventional banking the world over with only the unemployed and poor sank in stress and misery.

What will Davos apport as conclusions this time? Will it be new forecasts of dangers up ahead? We have already had 40 sessions of such silly chatter. It’s time for action and it won’t be these economic bigots who will offer the right path towards worldwide economic stability.

Fernando Fuster-Fabra, Madrid


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