Friday, July 01, 2011

Afghanistan: Bank Money Looted says Abdul Qadir Fitrat


OMG! The money is Afghanistan has been looted! Come on, is it really a surprise? Abdul Qadir Fitrat, the Afghan central bank governor (their Ben Bernake), reports first hand of the malfeasance. Let's just say for Abdul to get to where he was, he was not an innocent lamb as self-portrayed. However, kudos for him for coming out.

Crooked businessmen and politicians operating in the dark with access to what is supposd to be the public's money, safely secured in a bank vault. Instead, it's liable to become a personal laundering fund for those in power that deem it to be theirs. Your deposit becomes the bank's money, and for whoever owns the banks or has access to them, it becomes their money. This is how banks end up having no money.

US banks dabbling in mortgage securities, CDOs, and derivatives. In India, the state run bank which is also the largest bank in India, SBI, annually forgives loans to large corporates, industry magnates, politicians, and others in high places. Money laundering and theft comes in many different flavors. Who's really in control? Are there any barriers and regulations? And if the light gets shined, will the money actually be there as said?

Inflation is the barometer of the amount of corruption in any country. High inflation just means larger amounts of money have been looted.

[Youtube] Afghanistan's Banks looted via corruption

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