Hasan Yaşar Özfidan Writes...  hasanozfidan1@hotmail.com

   27.11.2008.

RADICAL SOLUTION TO THE GLOBAL FINANCIAL CRISIS!

             Today, financial crisis experienced in the United States and its world reflections are being mentioned and discussed frequently throughout the world. Primarily, I would like to state here that the United States did not enter into a Crisis in just 1 Day! The United States is in its current situation as an accumulation of its wrong policies in domestic and foreign economic, political and military fields for long years.

           Although this called to be a financial crisis, I disagree with this expression. Economy and finance are interlocked. I think that the crisis in the United States is the crisis the United States entered into in financial sector after its recession in the economic field as a result of its wrong economical policies. In other words, it is in general an economic crisis. This crisis, just contrary to the US, will be influencial firstly in the financial sector in the world and then it will be generalized as an economic crisis.

           I have previously mentioned about the reasons why economy policies of the US are wrong and about what will be its consequences in the US, in detail and clearly, in my article titled “Future of Dollars” long years ago on 14.06.2003.  I also brought up this article of mine periodically. You may have access to one of such articles of mine at:  http://www.ekonomikcozum.com/koseyaz/kosehas/Dollar-Insist-On-My-Thought-About-The-Future-Of-Dollar.htm   Again, in a section of my article of 17.10.2003 titled “Just the Time to Remove Zeros from Turkish Lira”, I mentioned about the economic crisis in Argentina. Some scientists also quoted my comments in this article in their articles as the scientific explanation to the economic crisis in Argentina. You may also have access to this article of mine at http://www.ekonomikcozum.com/koseyaz/kosehas/liradan-sifir-atmanin-tam-zamani.htm   I consider it beneficial to share this section of my article where I mentioned the economic crisis in Argentina:

           “There have been unsuccessful operations to remove zeros from local currencies in Latin American countries, especially in Argentina. This is because Argentina first indexed its local currency to Dollars, and it applied consistent money policies and became successful in the beginning. However, afterwards it diverged from consistent money policies and this fell into today’s situation. Factors lying behind this are the local currency indexed to Dollars, passing excess amount of money into circulation on the basis that it has been indexed to dollars; in other words, printing money without counterpart. In order to avoid this situation, it had to avoid from printing money without counterpart and passing excess amount of money into circulation, or to allow Peso to lose value by passing excess amount of money into circulation. However, this is not what was done. As a result, people headed towards dollars rather than Peso. The Central Bank fell into a state of inability to meet the demands towards dollars, and the crisis broke out. Therefore, I strongly argue against indexing Turkish Liras to foreign currencies.”

              In the US, based on my grounds in my article titled “Future of Dollars”, excessive amount of money much above the economic power have been published, and the excessive amount of money have been passed into circulation in world countries through exportation. It is automatically clarified here as to why dollar was at lower levels previously.

                In the light of all these information, I consider it useful to mention some issues which are frequently concerned about in these days. I would like to clarify the questions confusing you currently, such as “Why American Dollar is rising while there is financial crisis in the US and world?” or “Why the declared inflation data are low while there is financial crisis in the US and world?”. These clarifications are totally mine and they include my observations.

            For the increase in dollars, wrong political moves as I explained in my article titled “Future of Dollars” in order to increase internal dynamism of the US did not come with a result; and today’s environment of crisis has appeared. As a result of this crisis, there has been decrease in importation in connection with the economic recession and consequently dollars have been offered to foreign markets. And this decreased the liquidity of dollars being circulated in other countries, and value of dollars has increased in international level. As a result of decreased liquidity of dollars, people headed towards local currencies of some countries which receive credit in trading volume of the world; and the value of currencies of such counties increased. (Argument of Hasan Yaşar Özfidan.)

           Again the reason why inflation is low in the US is due to decrease in purchasing power of US people and the deceleration in consumption. (Argument of Hasan Yaşar Özfidan.)

           After discussing the past and current situation, now I would like to mention about what should be done in the future, especially in near future, against the global crisis that is affecting the world rapidly. These clarifications are also totally mine and include my personal opinions.

           I argue that, as I mentioned early here, economy and finance are interlocked; and “Economic Power = Financial Power should be directly proportional with each other”. And this is the root of the entire fault. Although the US, which has given weight on importation despite its economic construction for years, lost its power in the economical field, it has been considered as the leader in finance sector as if its internal dynamisms in economic filed are sound, or rather world countries had a mistake by giving particular importance to the finance sector of the US which lost its economical dynamism. According to my opinion as “Those who have the economical power should also have the financial power”, financial sector should head towards to and focus on the state being the most powerful in economy throughout the world. (Argument of Hasan Yaşar Özfidan.) China, being the most powerful country in the world economically and shaking the world markets with the products it exports, should also be the center of finance sector, and the markets should focus thereon. Hereafter, world countries should return to Chinese currency Yuan rather than dollars; and the data in China should be considered as the exchange market and finance sector.  I believe that therefore, we will recover from the economical crisis, which is just being experienced throughout the world, in a short time with least damages.

Sincerely,

Hasan Yaşar Özfidan.

Lawyer - Economist

Researcher   Writer.

E-mail: hasanozfidan1@hotmail.com

You may also find my awarded studies at: www.ekonomikcozum.com

And my columns at:      www.haberx.com

                                   www.malihaber.com

CIRCULATION: *

- Belgium  (To  the  President of  European   Commission.)

- China  (To  the  President  of  China.)

- England  (To  the  Her  Majesty  Queen.)

- Japan  (To  the  Emperor  of  Japan.)

- Switzerland  (To  the  World  Trade  Organization.)

- Turkey  (To the President   of  Turkey.)

- Turkey  (To  the  Prime  Minester  of  Turkey.)

- Turkey  (To  the  Director  President  of  World  Bank.)

- Turkey  (To  the  Resident  Coordinator.)

- U.S.A.  (To  the  next  President  Barack  Hussein  Obama.)

- U.S.A.  (To  the  President  World  Bank  Group.)

- U.S.A.  (To  the  IMF  Managing  Director.)

- U.S.A.  (To  the  Secretary  of  General  United  Nations.)

- To some related organizations and the media throughout the world.

ENCLOSURE: 

1-  Article  Title  “Radical  Solution  to  Global  Financial  Crisis.”

2-  Article  Title  “I insist on   my  thought  about  the  future  of  the  dollar.”

* List of circulation has been issued in alphabetical order on the basis of titles of countries.