• Submitted by: admin
• Caribbean
• Destinations
• Havana
• history
• international
• personalities
• Business and Economy
• Politics and Government
• 03 / 06 / 2009

---

Fernández Reyna told participants that the current global economic downturn has uncovered the bankruptcy of a system that is threatening world economic stability, social peace and national governments. “The way in which the US government created fictitious wealth is unexplainable.”

During his address, the Dominican president also described how rich countries, with the US leading the way, have attempted to contain the crisis by injecting resources to the tune of US$ 8 trillion.

“How can it be explained that 8 trillion was not enough to stop the crisis? —asked Fernández—; that sum represents an investment 20 times greater than all the foreign debts of Latin America. and greater than the total cost of the World War II, the Marshal Plan for rebuilding post-war Europe, than the wars in Vietnam, Afghanistan and Iraq.”

The Dominican president said that one of the dark financial instruments responsible for the crisis, the Credit Defaults Swaps (CDS), is equivalent to US$ 60 trillion, or, equivalent to the combined worldwide Gross Domestic Product (GDP). He added that the magnitude of the problem is even more obvious when looking at the group of derivative markets, which the CDS belong to, that totals US$ 480 trillion, eight times the worldwide GDP, an absurd figure.

“This is why regulation and transparency, which groups like the G-20 are calling for, are valid. Nevertheless, they will not be able to revert the crisis on their own or reinstall confidence. A new international financial structure is needed, that must be built not only by the G-7, G-8, or G-20, but also by all the world’s countries that are now being affected because of mistakes made by the global elite.

“What’s needed is a G-192. There is a series of questions that must be asked: Why does the president of the World Bank always have to be from the United States? Why does the managing director of the IMF have to be European? Does this mean that someone from Latin America, the Caribbean, Asia or Africa cannot manage these institutions?

“Even though we are going through dark times of great distress and uncertainty, we cannot allow hope to die. As has happened before, we will also overcome the current crisis; just as every morning, day overcomes night.”

(PL)