Should the global financial system be tweaked?

It is tough for any country to overcome its own financial crises

Do you have any issues with the global financial system? Do you think it needs some rewiring, some changes top to bottom? Can entrepreneurs and forward-thinkers really thrive in such a system? Given the system’s recent tumultuousness, the answer may be yes. If the answer is truly yes, Turkish President Abdullah Gul might be onto something. Yes, you heard right – Turkish President Abdullah Gul.

Gul recently spoke at the opening ceremony of the International Forum on Financial Systems at Wow Convention Center in Istanbul. He declared, “The international economic system seems to almost to act on a balance of economic terror.” Because of the globalized and close relationships between the world’s various economies, when one thing happens in one nation, it is bound to have an impact on other countries. Gul specifically cited the fallout in the American mortgage sector back in 2008. This crisis swept through Europe, distorting markets, and before long negatively touched every nation on earth. It was a case of unhealthy dominoes.

It is tough for any country to overcome its own financial crises, let alone one that’s speedily moving across the globe like some disease. Countries are stretched so thin by global crises that they barely have the strength to combat domestic economic issues. In these instances, the global system hampers growth worldwide or is, in other words, not conducive to raising the prosperity level of societies, as evidenced by the fact that only one percent of the world’s population has an iron grasp on 40 percent of the world’s wealth!

The global economic system should in fact create more jobs, prosperity and income for the vast majority of us. That seems like common sense. Instead, it’s utilized to support those titans of money, already in place at the top of the food chain. This blatant disproportion, in Gul’s eyes, creates social unrest in every country.

Whether you agree with Gul or not, it is clear that the global system is, at best, faulty. The 2008 financial meltdown that shook the world to its very core is evident of this. A revised system that would limit risk for entrepreneurs and developing countries could be a good idea. What’s best for the economy as a whole? A system that creates more jobs, prosperity and income or a system that holds the world hostage?

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