Two minor points of feedback: - the notification sounds are honestly extremely annoying, please don't :) - it's remarkable how often you use "anyway" to continue your story, which is honestly a bit amateurish and also makes it seem like what you just said doesn't actually matter
Video forgot to mention that the "rising interest rates" should be called US interest rates, and all the pain now are an almost direct result of USD denominated debt and how America' gaming of the USD is wreaking it for everyone. US mismanagement and money printing is now dragging everyone down
Don't blame the Americans when you're the ones who took out debt you couldn't pay back. You couldn't pay back even if the Americans weren't playing with interest rates
@@SelfProclaimedEmperor well the Americans suddenly raised the interests rates from 0%. So if your bank suddenly raise your commitment to 7-10% , would you be able to cope? esp when you are already poor and economy is bad for "menu" people . Don't need to look far, a perfect a analogy is just look at American Joe and Janes struggling paycheck to paycheck. USA and Europe should take a lot of blame. They created the s preconditions for the dismal global outlook today by wantonly printing money. Now that the chickens have come back to haunt them, they took the easy way out by gaming the monetary system for their own gains. And they have the galls to call out Africans who are getting the short end of the American stick? The global South is on the menu, American rate rise only seems to benefit this on the American table. Just reference the red hot American stock market fat cats, and contrast this to struggling blue and white collar American workers
We stopped slavery and traded it for economic exploitation.... Us lending Africa money is like a bank giving a loan to someone you know is terrible with money so they rack up debt.
You don't need to believe what I say. All roads (defaults) lead to the USA. Just ask chatgpt this. ""**Interest rates** play a crucial role in shaping the global economy. How the rise in **U.S. interest rates** impact the world economies?
Kenya issued a $2b bond and they have been paying $100m for the past ten years ...that's already $1b paid in interest and they still have to pay the original 2b...wtf...in total $3b....
Any amount of borrowing is good when you are a corrupt politician that can steal 10% to 30% and have the taxpayers pay the debt and interest instead of yourself. 😢😢😢 It happens everywhere in Africa. Only country that has managed to eliminate corruption is Botswana as they didn't pick socialists or tribal leaders, also Botswana ended the colonial period with good relationship with the west so they kept the trade and businesses going. South Africa had almost no corruption before 1998s but that has changed with later ANC party rule.
For my mortgage for each pound I borrow, I have to pay back £3.?? over 25 years. This is just how long-term borrowing works. Also, for each pound I borrow could be worth £10 at the end. This is what good borrowing does. 😀
Lol, the disclamers were kinda funny. Yeah, we all know "Africa" is not one homogenous nation or country but continent with various cultures. Same like "Europe", "America" or "Asia". But nobody bothers with disclamers around those, for some reason everybody understands its just term used do describe wide area.
Americans think Africa is one country, And Afrocentrics think everyone is the same color as them and everyone who isn't is an invader and think they are the cradle of civilization like Africa and was prosperous cuz of them , they think cuz of them Africa was like Wakanda
Well Americans think Africa is one country, and African centrics think everyone there looks like them and they have very unsavory opinion about those who don't, let's just leave it at that....., and they think that place was some sort of Wakanda utopia before Europeans came
@@Pinkhairedkilla Literally no one says this. People only have issues with *others who don't look like them* due to those people oppressing's them, Just how Palestinians hate Israel for subjugating them in their own land Or British enforcing their rule on Irish people on their own island. * Wakanda utopia before Europeans came* Given almost every region on earth that has fully been underneath european rule has not recovered It's valid really. East Asia is lucky they had Japan their own Imperial super power who didn't do their absolute best to destroy native life and create artificial borders that only ensure war/chaos and preputial ethnic violence
@@kagnetix6674 Ain't no way you are defending Afrocentric 💀 , bro I'm from Algeria, the things I have seen Afrocentric say about us North africans puts Marine Le pen and Eric zemmour to shame. And the silly things they say lmao, like about how Cleopatra is one of them lmao
Ummmmnnn. It's not so simple. Japan is highly develop and yet has a public debt to gdp of 263%, the US debt to gdp is 130% and is flying off the handle. It will reach at lest 150% by the end of the next legislature (regardless of who wins)... Yet people are overly concerned with Africa's debts... Africa has countless unexploded resources and underdeveloped economies that have the potential to grow above 10% per year with a growing population and fast urbanization... I'm not worried about Africa.
Well his first statements were incorrect Europe and especially the US seem to be going in the direction of increasing the interest rates. First comments didn’t age well lol
Just because something is a common practice doesn't mean it isn't fiscally irresponsible. Considering every central government is fiscally irresponsible and that needs to change, not emulated.
Just listening to the intro, it's like deja vu all over again (an old joke for you youngsters out there). African debt, and the debt of underdeveloped countries in general, has been a problem for decades. So has the political instability. The two go hand in hand. Moves by NGOs advocating the forgiveness of African debt have been around since the last millennium.
That's about 3x the total capital flight (including non-west) from 1970 to 2018 according to Boston University. Which years do you say count? Also that all of africa would simultaniously find the political will to lock up private and state investors money in their country is optimistic. If that's a good thing as it'd see everyone be apprehensive to invest in Africa unless there's clear political shifts. If you're not suggesting something so radical you're kinda saying "They should just start doing chip manufacturing, that's a good industry right now".
@@johnbox271 more like India and China. But they are success stories after the fact they protected their country internally from the West to catch up first and usually through extreme socialist/communist measures to try to give them competitive edge. Whereas Neo Colonialism is practiced in most African countries to this day. That doesn’t wash the hands of corrupt leaders but come on it’s not like us living in Western countries don’t have corruption. I’m from US, and my senators are beating Warren Buffet on stock market. Also your argument is a classic straw man argument that is used by colonialism apologists. Using a success story to then beat down everyone and say look he did it why can’t you? Stop blaming what we did to you for 300 years and still kind of doing it to your country today.
Love how you didn’t mention PRIVATE BANK LOANS FROM THE USA that have screwed over Africa for the longest time. You talk about debt traps but don’t mention how the USA has done that to Africa for decades, with private banks.
The actions of private lenders based in the USA and the US government are two completely different things. Private lenders are for-profit entities, of course, they are going to maximize profits where they can. That has nothing to do with the US government. Those private lenders are acting independently.
Financial planning is like navigation. If you know where you are and where you want to go, navigation isn't such a great problem. It's when you don't know the two points that it's difficult
People dont understand that the prices of things are never going back down. This inflation is deeper than we think. Those buying groceries are well aware that the real inflation is much over 10%. The increments dont match our income, yet certain investors still earn over $365,000 in stocks and assets. Wish I could accomplish that.
Very possible! especially at this moment. Profits can be made in many different ways, but such intricate transactions should only be handled by seasoned market professionals.
Love you guys. Just a note: dont put ios ring sounds plz... im only listening to the vid and im constaly looking at my phone seeing why someone messaging me! driving me crazy so much i had to see if its the video. Just using a generic sound pls ahahahahhaha
@@notbfg9000 he meant the sfx at 2:32, not the youtube app sending notifs. and i agree, whenever a video has actual sms rings, discord pings, or (worst of all) alarms, at best it makes me pause and check those weren't actual notifications, or at worse, vietnam ptsd from years of waking up to work to that noise.
@@MemekingJag Ah, the thingy. I don't use crApple so I thought that's just some sound. I do get the feeling, when people put Discord pings in videos it's super weird. Btw pfp is from Last Exile, right?
Given how the entire world trade is based on managing debt and almost everyone even western countries are borderline on recession it makes sense the weaker economies are suffering the most
They're always getting screwed the most. Global economic boom => excess money gets invested in foreign countries. A recession => foreign money leaves. And given that foreign money usually doesn't prioritize long term benefits for that foreign country it's usually not structured in a beneficial way (like China bringing in their own labor force instead of hiring locals)
Siding with China and the West isn’t helping at all either. The West is already losing interest and China’s only going to reinforce Africa’s autocratic side, so it won’t be fair on their people.
A bunch of clips in this video of people protesting were from Nigeria. Nigeria wasn't mentioned and wasn't highlighted at being at risk of default. Also the thumbnail not highlighting Tunisia or Egypt when both were highlighted in the video of being at risk of default.
Funny thing is those protests in Nigeria were for something completely unrelated lol, Nigerias economy is trash but they ain’t suffering from debt at least 😂
@@etrnl_t Yes, that's why I said they need access to ports. They'll have to work something out with their neighbours, like Ethiopia did recently with Somaliland. And basing your economy on one commodity isn't a sustainable way to grow. Diamonds are especially bad, as we can make them synthetically.
@@ArawnOfAnnwn True, but they have a special deal with Debeers, and they have friendly relations with their neighbors. I'm pretty sure they have sufficient port access.
Notice how no one ever talks about democracy, lgbt, human rights or economic turmoil when it comes to egypt 😂😂 No US president calls Sisi a dictator, the EU doesnt call for judicial due process of the thousands of political prisoners and theyre not called out for supporting warlord Haftar against the UN govt of libya. But 100 articles, op eds and video essays about Turkey 😂
@@skp8748nobody attacked turkey, they attacked Erdogan because many journalists are on the payroll of the gulf countries who dont like Erdogan behaving like the ruler of the Sunni world.
@@nuam9906lol just the UAE. Turkey has supported Libya, Somalia and other Muslim African countries... the UAE has funded war in Libya, Yemen, Sudan and Somalia.
@@shafsteryellow no such thing as 'support' in geopolitics, is about power and control, Erdogan would have never wasted money and military resources 'to help'. He wants to rebuild control over the arab world ottoman-style and the gulf is protesting. You complain abiut the UAE because thats what you know publicly, but Saudi Arabia have been spending at least 50x more than the UAE. After Sadam Hussein was overthrown, the biggest benefeciaries were the gulf states, to this day they share control over Iraq with Iran.
@@nuam9906 help is a two way street. You help in order to be helped. Has nothing to do with ottomans. Gulf states run dictatorships and their people have no ability to shape policy. Turkey took in millions of Syrians did the gulf countries? Turkey supported the UN govt in Libya did the gulf? And no it's the UAE specifically MBZ.
Love your stuff, but this was a bit Bush League. No economist in the US is expecting rates to drop soon. Powell even said not to expect them to drop. Pretty big and basic thing you guys completely missed.
If you were to add things up, you will see that China control more African territories and resources than the British and French empires combined. Sh1t is wild over there, I dont understand how the Africans fell for this. They really believed chinaman had other interesets other than money 😂😂😂😂
The sad thing is that this isn’t new. Older viewers will remember the 1990s “Drop the debt” campaign led by Oxfam et al, leading to some $76 billion being written off in about 2003. Unfortunately, with a few honourable exceptions, this led to a mass of new borrowing (“Africa Rising”, remember?) and now we are back exactly where we were a generation ago. I fear that if Africa is bailed out again now we will be back here in in the 2050s. Countries that demand to be treated as equals must be treated as equals, and not get special treatment.
@@skp8748 Often times when debt is restructured, that just means it's forgiven with some conditions. Liquidating assets because of defaults is pretty rare in Africa, at least in the past 50-ish years. This is likely to change soon, because the West and China don't have enough money to keep lending with high risks.
It would be interesting to list the loan volumes to Western World, China and Others. It is said, that most african states can never pay back the loans given from China. But China has still solved it. Africa has to pay with their ore etc. property for defaulting loans. It is the well known Debt Trap policy of China, which even is attempted in Europe: China offered to build the Tallin - Helsinki Tunnel for 20 Billion Euros. But this loan should be saved with property rights on entire Finnish ore etc. properties. But this EU nation Finnland is urgendly required to keep their ore for EU industries instead of throw it away to China to get an unnecessary luxury Tunnel. Similar with the luxury Highway build in Montenegro. So the theme African Debt Crisis gives much more discussion and presentation stuff, than given in this video.
Chinese debt isn't the problem, private debt is. Heavily indebted countries can't get loans from any govt., including China. So they have to sell bonds to the private bond market (which is mostly western btw). Those come with exorbitant interest rates and shorted repayment periods. In Sri Lanka for example, China accounts for only about 10% of the debts, similar to Japan. But the private sector accounts for nearly HALF their debts. And these private creditors are very loath to forgive or restructure debt.
Nah! That was propaganda created by the west to try and reduce Chinese influence on the continent. The truth is that the debt owed by most African countries to the west is significantly larger than that owed to China., the difference is not even close. It is only that a headline such as 'Kenya receives a loan from the IMF" is not likely to generate as much attention as "Kenya receives a railway line funded by China."
If Nigeria and South Africa aren’t in big debt they need to get their governance in order, fix their countries and invest in the ones around them to fix the continent
I feel like it's mostly due to the high rates paid on us bonds. In the past I would get less than 2% yeald on bonds, so foreign bonds looked appealing. Today I can get almost 6% on us bonds, so why would I put my money into a higher risk country? They better offer a very high rate to compensate for the risk, maybe 8%, 10%+
European countries are developed and don't have basic needs being a dire concern. Even if countries like germany fall into recession there won't be serious issues unlike Kenya where Food/Water/electricty are a problem
In Europe, in the country where I live, the state rarely borrows from banks, mostly from its own citizens. The state pays interest to the citizens and the citizens spend in the state... The question is why African countries do not borrow from their citizens who have money so that the money stays in the state. In such cases, the amount of the debt does not even matter. The same is happening with Japan
For example, the bank gives 1% for a bank deposit. The state gives 3.5%. People are willing to give money to the state because the state gives more and by definition the state is a safer debtor than the bank. The state, even when it goes bankrupt, always has something to sell to repay the debt.
The colonial cry is getting a bit in these days, unless you are talking about France I suppose. Better to look at fair elections and self management of resources. African countries just need a pinch of uninterrupted growth, coups are not always the answer.
yeah, becomes the world monetary system is horrendous. Some countries just point fingers at others, but every government on the planet seems to be at fault for poor management.
I often see many people blame only the "mismanagement" of these african countries for their economic situation, but that's not the whole story. When many african countries got their indipendence, they did manage to start developing their economies through protectionism and subsidies to start building their production base and consumer base. But when war broke out between Israel and its arab neighbors the oil prices (from which most energy was produced) rose and african countries had to find more capital to cover the new costs. When they took loans from the IMF and others they were forced to enact economic changes to cut public spending and open up their markets to imports. Since the economy in this countries wasn't as developed, imported goods were way cheaper and suffocated their developing production sector, leaving many unemployed and without state help, worsening the situation. Many blame "mismanagement" only on the people of these countries, but ignore how much they are still influenced by foreign actors in their decisions and policies. All of this without even mentioning the dictatorships that were supported by the US or ex colonialist powers like France.
Everyone has problems you know.... Literally every country on that planet has problems and crisis that occurs and has to manage those.... What do you think life is easy? Do you think China didn't have problems? Korea? Ecc ecc Always excuses for the same things others have to deal with too. The way you go out of those and manage crisis tell if you are competent.
@@MarketsDriveTheWorldit's easy to talk that way when your ancestors handed you the top position, you'll never know what it's like building a nation from scratch and having much more powerful nations infiltrate and destroy the little progress you have from the inside. What do you know about nation building ?, you never hear indians and chinese who actually built their economies from scratch talk this way. It's always entitled westerners who rely on endless wars and tons of debt to maintain their standard of living who preach about "hard work" 😒.
As much as Malcom X is right that debt is used as a trap to keep down emerging 3rd world economie. However, these African leaders shoulder most of the blame. In my country President Akufo-Addo and Vice President Alhaji Mahamadu Bawu-liar (I refuse to use his proper name). Within 6 years in office multiplied public debt 5X from GHC122 BILLION all the way to GHC 576 BILLION. We've had to devalue our currency just to stay competitive on the international market and pay back our loans. We even had to default on our debts which was the first time since 1978. Until we have competent leadership we'll just keep falling back into the debt trap.
There is truth to that, surely. But it takes away all responsibility on the poor decisions made in these countries as well. Kenya has spent 10 years paying interest on a bond and havent made a dent on their payments. They made that choice, nowhere on earth gets more financial aid than the African continent. If the systems were better, surely that money wouldve made a difference. But it hasnt, trillions of dollars in aid over the years and no significant improvements. As with most places in the world, a lot of people have made bad decisions. Some want to simplify the problem down to "colonialism" and its reductive to the general discussion and just forces further division.
Maybe we should build with the things we've built rather than debt? Might make us more credit worthy in times of crisis and resilient to boom-bust cycles if we paced ourselves with the power of economic reality. That goes for the west even moreso than African countries.
@@mr.x817if you want to go down that road then every country is owed something to another and like the past decades have shown giving money to their corrupt governments doesn’t solve anything.
Funny how Somalia is highlighted even though Somali has gotten all of its debt forgiven and is debt free. People will always hate on Somali. Now that we are on the rise and defeating alshabaab people want to split our country in half bout we have already faced the difficult part of our country collapsing we are here to stay and are drilling oil. We have the 6th highest oil reserves in the world!!
I like how pedants have gotten so annoying that news orgs have to put up disclaimers. For the record - you absolutely can talk about "the Africa" as a whole economically or in any other sense same as you can talk about any other delineated area, only thing that matters is if it makes sense. China's population is larger than all of Africa (though not for long), and NAFTA's area is 2/3rds of the area of Africa and you absolutely could talk about "NAFTA's economy" or demographics or whatever, you absolutely can compare, for example, Singapore's economy to all of Africa's it just wouldn't make any sense or tell you anything useful. This "aFrIcA iSn'T a cOuNtRy" is less of some genuine desire for knowledge and more people being desperate to throw others under the bus to show how smart or knowledgeable or whatever they are.
wow, what a shift of blame video. You failed to mention that majority of the bonds were purchased by "private institution" based in London and New York. These western private investors are the one calling these sorry African countries defaults without mercy. China has never called a country defaulted but just kept on extending its loans until these western private creditors triggered the default process. Furthermore in the Zambia case, a lot of the western private creditors are hedge funds and vulture funds who picked up these bonds at the cheap, betting to have a handsome profits and rewards from the restructuring at much higher value. There is nothing wrong with China demanding a larger haircut from these western private creditors but the Paris Club (western govt agencies) is also working for these private creditors after taking in so much political donations
Those notification sounds are killing me, even though I'm not even using an Apple
Stress and anxiety alert ⚠️
Time out
Some ones Bank of America payment is due.
That's intentional in the video 👆🤓
@@TaxEvasionUS😂 ye
That’s the joke. At one point it says “2 billion payment is fuel
I thought I had received a text from Bank of America. I was worried for a second.😅
Wait, are people actually think that's a real notification and not a joke?
yeah please don't use the notification sound again
Don't use ios then
Yes I also like to check my phone every few minutes while listening to news
Two minor points of feedback:
- the notification sounds are honestly extremely annoying, please don't :)
- it's remarkable how often you use "anyway" to continue your story, which is honestly a bit amateurish and also makes it seem like what you just said doesn't actually matter
Video forgot to mention that the "rising interest rates" should be called US interest rates, and all the pain now are an almost direct result of USD denominated debt and how America' gaming of the USD is wreaking it for everyone. US mismanagement and money printing is now dragging everyone down
Don't blame the Americans when you're the ones who took out debt you couldn't pay back. You couldn't pay back even if the Americans weren't playing with interest rates
@@SelfProclaimedEmperor well the Americans suddenly raised the interests rates from 0%. So if your bank suddenly raise your commitment to 7-10% , would you be able to cope? esp when you are already poor and economy is bad for "menu" people . Don't need to look far, a perfect a analogy is just look at American Joe and Janes struggling paycheck to paycheck. USA and Europe should take a lot of blame. They created the s
preconditions for the dismal global outlook today by wantonly printing money. Now that the chickens have come back to haunt them, they took the easy way out by gaming the monetary system for their own gains. And they have the galls to call out Africans who are getting the short end of the American stick? The global South is on the menu, American rate rise only seems to benefit this on the American table. Just reference the red hot American stock market fat cats, and contrast this to struggling blue and white collar American workers
@@SelfProclaimedEmperor you dont know what youre tslking about
@@skp8748 you people can never pay back debt no matter what happens
Having control over your currency is not the same as gaming the USD. When you take on debt you pay back, it's as simple as that.
Our leaders need to start using brilliant 😅❤️From🇿🇲
We stopped slavery and traded it for economic exploitation....
Us lending Africa money is like a bank giving a loan to someone you know is terrible with money so they rack up debt.
I mean china is giving more loans to Africa than US, and at much higher interest rates and worse terms
@@SelfProclaimedEmperor not true
Its not about lending its about the explorative unequal exchange FORCED on african countries
@@shafsteryellow it is true, china loans are 30% of Africa loans while imf is only 25%. China loans are 4% interest vs 2% with imf
@@shafsteryellow no one forced anything, if Africa cannot pay its loans, stop borrowing money and get to work
great stuff
Well run South Africa had relatively low debt.
I love how TLDR completely absolves the west of any responsibility of Africa's crises by omitting key historical events instigated by the west🤣
I was like when did I turn my notification sound on.
Why are countries in crisis put under austerity measures? Isn't that exactly the opposite what a country actually needs?
Just add all Africa's debt to the U.S , pay there's off and only add relatively small amount to ours . We will never pay ours off doesn't matter
I love the logic😂
More on African politics / economics please 👍
You don't need to believe what I say. All roads (defaults) lead to the USA. Just ask chatgpt this. ""**Interest rates** play a crucial role in shaping the global economy. How the rise in **U.S. interest rates** impact the world economies?
Kenya issued a $2b bond and they have been paying $100m for the past ten years ...that's already $1b paid in interest and they still have to pay the original 2b...wtf...in total $3b....
Am Kenyan, and the question is, who tf agreed to such a deal?😂
@@invincirickcorrupted politicians?
That is a 5% bond coupon. Not low but hardly unthinkably high. US 10 year Treasuries in 2014 had yields of around 2.5%.
Any amount of borrowing is good when you are a corrupt politician that can steal 10% to 30% and have the taxpayers pay the debt and interest instead of yourself. 😢😢😢
It happens everywhere in Africa.
Only country that has managed to eliminate corruption is Botswana as they didn't pick socialists or tribal leaders, also Botswana ended the colonial period with good relationship with the west so they kept the trade and businesses going.
South Africa had almost no corruption before 1998s but that has changed with later ANC party rule.
For my mortgage for each pound I borrow, I have to pay back £3.?? over 25 years. This is just how long-term borrowing works.
Also, for each pound I borrow could be worth £10 at the end. This is what good borrowing does. 😀
Lol, the disclamers were kinda funny. Yeah, we all know "Africa" is not one homogenous nation or country but continent with various cultures. Same like "Europe", "America" or "Asia". But nobody bothers with disclamers around those, for some reason everybody understands its just term used do describe wide area.
Americans think Africa is one country, And Afrocentrics think everyone is the same color as them and everyone who isn't is an invader and think they are the cradle of civilization like Africa and was prosperous cuz of them , they think cuz of them Africa was like Wakanda
Remember, this video is supposed to be news, so it is supposed to be accessible to everybody
including Americans
Well Americans think Africa is one country, and African centrics think everyone there looks like them and they have very unsavory opinion about those who don't, let's just leave it at that....., and they think that place was some sort of Wakanda utopia before Europeans came
@@Pinkhairedkilla Literally no one says this. People only have issues with *others who don't look like them* due to those people oppressing's them, Just how Palestinians hate Israel for subjugating them in their own land Or British enforcing their rule on Irish people on their own island. * Wakanda utopia before Europeans came* Given almost every region on earth that has fully been underneath european rule has not recovered It's valid really. East Asia is lucky they had Japan their own Imperial super power who didn't do their absolute best to destroy native life and create artificial borders that only ensure war/chaos and preputial ethnic violence
@@kagnetix6674 Ain't no way you are defending Afrocentric 💀 , bro I'm from Algeria, the things I have seen Afrocentric say about us North africans puts Marine Le pen and Eric zemmour to shame. And the silly things they say lmao, like about how Cleopatra is one of them lmao
Ummmmnnn. It's not so simple.
Japan is highly develop and yet has a public debt to gdp of 263%, the US debt to gdp is 130% and is flying off the handle. It will reach at lest 150% by the end of the next legislature (regardless of who wins)...
Yet people are overly concerned with Africa's debts... Africa has countless unexploded resources and underdeveloped economies that have the potential to grow above 10% per year with a growing population and fast urbanization... I'm not worried about Africa.
Those dings kept making me check my WhatsApp over watching the video
Well his first statements were incorrect Europe and especially the US seem to be going in the direction of increasing the interest rates. First comments didn’t age well lol
China: my property is here now.
Just because something is a common practice doesn't mean it isn't fiscally irresponsible. Considering every central government is fiscally irresponsible and that needs to change, not emulated.
its a good thing their citizens have Europe and to run to when the debt collectors come to beat them door to door for debt default.
The notification sounds are really annoying. Please don't put any phone notification sounds, alarms, emergency sirens, etc into your videos
Being in debt for something so fake with no value.
Just listening to the intro, it's like deja vu all over again (an old joke for you youngsters out there).
African debt, and the debt of underdeveloped countries in general, has been a problem for decades. So has the political instability. The two go hand in hand. Moves by NGOs advocating the forgiveness of African debt have been around since the last millennium.
The bill always comes due...
Please stop the notification alerts. Immediately.
This will turn away a lot of viewers, if you continue using this.
What's your problem? Take alert sounds out of your videos. I am triggered.
Maybe if they stopped the 700 billion in flight capital to the west per year, debt wouldn't be a problem.
That's about 3x the total capital flight (including non-west) from 1970 to 2018 according to Boston University. Which years do you say count?
Also that all of africa would simultaniously find the political will to lock up private and state investors money in their country is optimistic. If that's a good thing as it'd see everyone be apprehensive to invest in Africa unless there's clear political shifts. If you're not suggesting something so radical you're kinda saying "They should just start doing chip manufacturing, that's a good industry right now".
They don't even have those 😂😂😂
let's talk about the country with the most debt since we on the topic of debt spirals. united sates of debt.
.
Why say Africa when it is a some countries which happen to be in Africa clearly it’s because of clickbait
Exactly somalias debt to gdp is less than most European countries
Kenya repaid its Euro bond debt.
MLK once said you can’t expect a man to join a race 300 years later and expect him to keep up.
Tell that to Singapore
@@johnbox271 more like India and China. But they are success stories after the fact they protected their country internally from the West to catch up first and usually through extreme socialist/communist measures to try to give them competitive edge. Whereas Neo Colonialism is practiced in most African countries to this day. That doesn’t wash the hands of corrupt leaders but come on it’s not like us living in Western countries don’t have corruption. I’m from US, and my senators are beating Warren Buffet on stock market.
Also your argument is a classic straw man argument that is used by colonialism apologists. Using a success story to then beat down everyone and say look he did it why can’t you? Stop blaming what we did to you for 300 years and still kind of doing it to your country today.
China, South Korea, Singapore and multiple other asian countries joined the race and are now among the top…
Except Asia is doing that and I’m pretty sure MLK was referring to Black Americans not sovereign African nations.
USA didn't join the race until 1776.
Commenting 4 algorithm
Love how you didn’t mention PRIVATE BANK LOANS FROM THE USA that have screwed over Africa for the longest time. You talk about debt traps but don’t mention how the USA has done that to Africa for decades, with private banks.
The actions of private lenders based in the USA and the US government are two completely different things. Private lenders are for-profit entities, of course, they are going to maximize profits where they can. That has nothing to do with the US government. Those private lenders are acting independently.
The solution in a short term is africa accepts the lgbtq community ❤❤
Anti authoritarian policy definitly helps an economy.
😂😂😂😂😂😂😂
FIRST
I just want to point out that according to First Post, over $59 Billion of debt of African nations is by India.
Is africa a country
Who the fuck is this alleged is debt owed too exactly
Me
IMF aka westerns neoliberal order
Nobody:.......
Africa when grain goes up 1 dollar: 💥🔥🔥😠😠😠🛩🛩🛩🪖🤴(repeat)
Financial planning is like navigation. If you know where you are and where you want to go, navigation isn't such a great problem. It's when you don't know the two points that it's difficult
People dont understand that the prices of things are never going back down. This inflation is deeper than we think. Those buying groceries are well aware that the real inflation is much over 10%. The increments dont match our income, yet certain investors still earn over $365,000 in stocks and assets. Wish I could accomplish that.
Very possible! especially at this moment. Profits can be made in many different ways, but such intricate transactions should only be handled by seasoned market professionals.
Finding yourself a good broker is as same as finding a good wife, which you go less stress, you get just enough with so much little effort at things
Brian demonstrates an excellent understanding of market trends, making well informed decisions that leads to consistent profit
I'm surprised that you just mentioned and recommend Mr Brian Nelson. I met him at a conference in 2018 and we have been working together ever since.
Love you guys. Just a note: dont put ios ring sounds plz... im only listening to the vid and im constaly looking at my phone seeing why someone messaging me! driving me crazy so much i had to see if its the video. Just using a generic sound pls ahahahahhaha
That's on youtube not on TL;DR.
maybe the notifications are real, you should check them
@@notbfg9000please explain your well-thought-through observation
@@notbfg9000 he meant the sfx at 2:32, not the youtube app sending notifs.
and i agree, whenever a video has actual sms rings, discord pings, or (worst of all) alarms, at best it makes me pause and check those weren't actual notifications, or at worse, vietnam ptsd from years of waking up to work to that noise.
@@MemekingJag Ah, the thingy. I don't use crApple so I thought that's just some sound. I do get the feeling, when people put Discord pings in videos it's super weird. Btw pfp is from Last Exile, right?
Given how the entire world trade is based on managing debt and almost everyone even western countries are borderline on recession it makes sense the weaker economies are suffering the most
They're always getting screwed the most. Global economic boom => excess money gets invested in foreign countries. A recession => foreign money leaves. And given that foreign money usually doesn't prioritize long term benefits for that foreign country it's usually not structured in a beneficial way (like China bringing in their own labor force instead of hiring locals)
Siding with China and the West isn’t helping at all either. The West is already losing interest and China’s only going to reinforce Africa’s autocratic side, so it won’t be fair on their people.
as long as mismanagement continues the spiral will continue
The legacy of colonialism still felt
@@wile123456yeah no it can’t just be bc of corrupt leadership and entrapment loans from china. nooooo it must colonialism…
Ya, f*ck that!! Lots of places were colonized and are doing just fine today. Colonization is nothing more than an excuse.@@wile123456
@@wile123456 They somehow don't seem to feel that legacy as much in Asia though...
@@jdjphotographynlbecause they never had successful communism.
You checked your phone too. Don't lie.
Several times
I did.
Pissed me off tbh
😂😂
I am on Android and I still checked my notifications 😭😭😭
A bunch of clips in this video of people protesting were from Nigeria. Nigeria wasn't mentioned and wasn't highlighted at being at risk of default. Also the thumbnail not highlighting Tunisia or Egypt when both were highlighted in the video of being at risk of default.
Yep. Which completely counters the whole disclaimer at the beginning. Apparently black people protesting serves the story regardless.
Funny thing is those protests in Nigeria were for something completely unrelated lol, Nigerias economy is trash but they ain’t suffering from debt at least 😂
black people = africa.
Stock footage is the lazy way to make a point
I'm from Tunisia and we're not really in any risk of defaulting since we payed 90% last year and this year
In the words of Michael Che: “I don’t owe China sh**”.
Its so sad to hear this more if you are Coming from Zambia, where I'm now
Stay strong
good luck bro
So happy Botswana is going to be okay!
Botswana needs access to ports. And a more diversified economy. Without either it'll plateau eventually.
@@ArawnOfAnnwn Bro they're landlocked, and they have diamonds
@@etrnl_t Yes, that's why I said they need access to ports. They'll have to work something out with their neighbours, like Ethiopia did recently with Somaliland. And basing your economy on one commodity isn't a sustainable way to grow. Diamonds are especially bad, as we can make them synthetically.
@@ArawnOfAnnwn True, but they have a special deal with Debeers, and they have friendly relations with their neighbors. I'm pretty sure they have sufficient port access.
💎 are flown not shipped
didn't Somalia get pardoned and got its arms embargo lifted
Yep Somalias debt to gdp is 0.6% whereas Venezuela is like 240%, Greece 150%, india 82% and kenya 70%
Kenya is soon to default
The size of the recently agreed IMF loan with Egypt is 8 billion, not 3 billion
Notice how no one ever talks about democracy, lgbt, human rights or economic turmoil when it comes to egypt 😂😂
No US president calls Sisi a dictator, the EU doesnt call for judicial due process of the thousands of political prisoners and theyre not called out for supporting warlord Haftar against the UN govt of libya.
But 100 articles, op eds and video essays about Turkey 😂
@@skp8748nobody attacked turkey, they attacked Erdogan because many journalists are on the payroll of the gulf countries who dont like Erdogan behaving like the ruler of the Sunni world.
@@nuam9906lol just the UAE. Turkey has supported Libya, Somalia and other Muslim African countries... the UAE has funded war in Libya, Yemen, Sudan and Somalia.
@@shafsteryellow no such thing as 'support' in geopolitics, is about power and control, Erdogan would have never wasted money and military resources 'to help'. He wants to rebuild control over the arab world ottoman-style and the gulf is protesting. You complain abiut the UAE because thats what you know publicly, but Saudi Arabia have been spending at least 50x more than the UAE. After Sadam Hussein was overthrown, the biggest benefeciaries were the gulf states, to this day they share control over Iraq with Iran.
@@nuam9906 help is a two way street. You help in order to be helped. Has nothing to do with ottomans. Gulf states run dictatorships and their people have no ability to shape policy. Turkey took in millions of Syrians did the gulf countries? Turkey supported the UN govt in Libya did the gulf?
And no it's the UAE specifically MBZ.
Debt to gdp ratio of 70%? Sounds good from a British perspective. 😅
Or to greeks
Love your stuff, but this was a bit Bush League.
No economist in the US is expecting rates to drop soon. Powell even said not to expect them to drop. Pretty big and basic thing you guys completely missed.
Remember that meme
"China gives us loan, while Western gives us lecture"?
Just go take more loan from China. 😏
If you were to add things up, you will see that China control more African territories and resources than the British and French empires combined. Sh1t is wild over there, I dont understand how the Africans fell for this. They really believed chinaman had other interesets other than money 😂😂😂😂
3:38 Why is 2035 censored lol
Quick fix, they wrote 3035 🙃
It's all so tiresome.
"When a Congolese drives he does alot of damage"
Very much 😢
The sad thing is that this isn’t new. Older viewers will remember the 1990s “Drop the debt” campaign led by Oxfam et al, leading to some $76 billion being written off in about 2003. Unfortunately, with a few honourable exceptions, this led to a mass of new borrowing (“Africa Rising”, remember?) and now we are back exactly where we were a generation ago. I fear that if Africa is bailed out again now we will be back here in in the 2050s. Countries that demand to be treated as equals must be treated as equals, and not get special treatment.
africa will not be bailed out again
Well the continent is so much more developed that any bailouts will split on political lines, so it will be different for each country
Foreign powers keep extracting resources from Africa for too cheap. This debt forgiveness is just to keep the governments running that allowed that
Lmao the fake saviour complex 😂😂
Debt isnt forgiven its restructured.
@@skp8748 Often times when debt is restructured, that just means it's forgiven with some conditions. Liquidating assets because of defaults is pretty rare in Africa, at least in the past 50-ish years.
This is likely to change soon, because the West and China don't have enough money to keep lending with high risks.
It would be interesting to list the loan volumes to Western World, China and Others. It is said, that most african states can never pay back the loans given from China. But China has still solved it. Africa has to pay with their ore etc. property for defaulting loans. It is the well known Debt Trap policy of China, which even is attempted in Europe: China offered to build the Tallin - Helsinki Tunnel for 20 Billion Euros. But this loan should be saved with property rights on entire Finnish ore etc. properties. But this EU nation Finnland is urgendly required to keep their ore for EU industries instead of throw it away to China to get an unnecessary luxury Tunnel. Similar with the luxury Highway build in Montenegro. So the theme African Debt Crisis gives much more discussion and presentation stuff, than given in this video.
Chinese debt isn't the problem, private debt is. Heavily indebted countries can't get loans from any govt., including China. So they have to sell bonds to the private bond market (which is mostly western btw). Those come with exorbitant interest rates and shorted repayment periods. In Sri Lanka for example, China accounts for only about 10% of the debts, similar to Japan. But the private sector accounts for nearly HALF their debts. And these private creditors are very loath to forgive or restructure debt.
Unlike China, the IMF gives free money!
Nah! That was propaganda created by the west to try and reduce Chinese influence on the continent. The truth is that the debt owed by most African countries to the west is significantly larger than that owed to China., the difference is not even close. It is only that a headline such as 'Kenya receives a loan from the IMF" is not likely to generate as much attention as "Kenya receives a railway line funded by China."
😂 you know nothing
3:44 Personally I wouldn't worry about the bond payments due in 3035, I know they say think long term but that's a bit extreme 😂
The west will always view Africa as one country. So ignorant.
One mine
That's so sad for the African people. They are suffering from this economic mismanagement by their government.
Is africa a country?
Whos the president of africa 😂
If Nigeria and South Africa aren’t in big debt they need to get their governance in order, fix their countries and invest in the ones around them to fix the continent
You didn’t mention $50bn in int’l flows (70% FDI) into Egypt even though this is now weeks old, and this video is posted today.
I feel like it's mostly due to the high rates paid on us bonds. In the past I would get less than 2% yeald on bonds, so foreign bonds looked appealing. Today I can get almost 6% on us bonds, so why would I put my money into a higher risk country? They better offer a very high rate to compensate for the risk, maybe 8%, 10%+
Keyna seeking support with a Debt/GDP of 70%... how does that reflect on European countries with Debt/GDP rates of over 100%?
European countries are developed and don't have basic needs being a dire concern. Even if countries like germany fall into recession there won't be serious issues unlike Kenya where Food/Water/electricty are a problem
European countries pay a lower interest rate on their debt.
European countries usually don't have problem paying debt on time, even if debt is higher.
In Europe, in the country where I live, the state rarely borrows from banks, mostly from its own citizens. The state pays interest to the citizens and the citizens spend in the state... The question is why African countries do not borrow from their citizens who have money so that the money stays in the state. In such cases, the amount of the debt does not even matter. The same is happening with Japan
For example, the bank gives 1% for a bank deposit. The state gives 3.5%. People are willing to give money to the state because the state gives more and by definition the state is a safer debtor than the bank. The state, even when it goes bankrupt, always has something to sell to repay the debt.
Talk about neo colonialism
Are you implying that Africa's debts that they took out should be wiped clear because it's Africa?
The colonial cry is getting a bit in these days, unless you are talking about France I suppose. Better to look at fair elections and self management of resources. African countries just need a pinch of uninterrupted growth, coups are not always the answer.
Is the whole world in debt?
yeah, becomes the world monetary system is horrendous. Some countries just point fingers at others, but every government on the planet seems to be at fault for poor management.
Which should tell you that Africa's core problem is a different one.
Global debt is around $305 trillion
Yes. Nature will soon "put the world in Chapter 7 Bankruptcy."
@@everypitchcounts4875 True, but global asset value is estimated to be over 1k trillion, so the debt is only a third of the asset value.
Africa has constant civil war coup problem
Is africa a country
I often see many people blame only the "mismanagement" of these african countries for their economic situation, but that's not the whole story.
When many african countries got their indipendence, they did manage to start developing their economies through protectionism and subsidies to start building their production base and consumer base. But when war broke out between Israel and its arab neighbors the oil prices (from which most energy was produced) rose and african countries had to find more capital to cover the new costs. When they took loans from the IMF and others they were forced to enact economic changes to cut public spending and open up their markets to imports. Since the economy in this countries wasn't as developed, imported goods were way cheaper and suffocated their developing production sector, leaving many unemployed and without state help, worsening the situation.
Many blame "mismanagement" only on the people of these countries, but ignore how much they are still influenced by foreign actors in their decisions and policies. All of this without even mentioning the dictatorships that were supported by the US or ex colonialist powers like France.
Everyone has problems you know.... Literally every country on that planet has problems and crisis that occurs and has to manage those.... What do you think life is easy? Do you think China didn't have problems? Korea? Ecc ecc
Always excuses for the same things others have to deal with too.
The way you go out of those and manage crisis tell if you are competent.
The IMF forces policy that is designed to ensure failure & western dependence.
@@Jay...777😂😂😂no one force you to take money. 🤡🤡🤡🤡🤡
We are tired of incompetents always finding ways to blame others.
It’s weird how you failed to mention the disastrous dictatorships supported by the Soviet Union and its allies.
@@MarketsDriveTheWorldit's easy to talk that way when your ancestors handed you the top position, you'll never know what it's like building a nation from scratch and having much more powerful nations infiltrate and destroy the little progress you have from the inside.
What do you know about nation building ?, you never hear indians and chinese who actually built their economies from scratch talk this way.
It's always entitled westerners who rely on endless wars and tons of debt to maintain their standard of living who preach about "hard work" 😒.
The USA governments has $35 trillion of debt.
they can print
womp womp
Three letters: IMF😏
They cripple the bird's wing, and then condemn it for not flying as fast as they.
Malcolm X
As much as Malcom X is right that debt is used as a trap to keep down emerging 3rd world economie.
However, these African leaders shoulder most of the blame.
In my country President Akufo-Addo and Vice President Alhaji Mahamadu Bawu-liar (I refuse to use his proper name). Within 6 years in office multiplied public debt 5X from GHC122 BILLION all the way to GHC 576 BILLION.
We've had to devalue our currency just to stay competitive on the international market and pay back our loans.
We even had to default on our debts which was the first time since 1978.
Until we have competent leadership we'll just keep falling back into the debt trap.
Malcom x even wanted separation between black and white people..... 😊😊
Most of them were tribal and didn't even had the wheel before Europeans but they like to dream about wakanda.
Read the accounts of what there was.....for management...... 💀 You won't like it. And then read the opinions of Malcom x on separation.
There is truth to that, surely. But it takes away all responsibility on the poor decisions made in these countries as well. Kenya has spent 10 years paying interest on a bond and havent made a dent on their payments. They made that choice, nowhere on earth gets more financial aid than the African continent. If the systems were better, surely that money wouldve made a difference. But it hasnt, trillions of dollars in aid over the years and no significant improvements. As with most places in the world, a lot of people have made bad decisions. Some want to simplify the problem down to "colonialism" and its reductive to the general discussion and just forces further division.
As Christopher Hitchens once said "turn off that fucking cellphone, you have no idea how unimportant your message really is."
its part of the video
Does Africa ever get a break?
no, it will never get a break as long as the african youth keep these corrupt coward politicians *alive*
Why can't they keep borrowing from China?
the belt and road project will help the african nations..😏
Except it barely goes to africa its mostly in central asia and eastern europe and surrounding areas and the indian ocean and countries nearby
BRI is another option but charge much higher interest and end up with roads that are never maintained
A world of debt?
please stop adding those message pings in your videos
I'm very interested in having such information at my finger tips. Where can I get my hands on such information.. ??
Maybe we should build with the things we've built rather than debt? Might make us more credit worthy in times of crisis and resilient to boom-bust cycles if we paced ourselves with the power of economic reality. That goes for the west even moreso than African countries.
this charity had to stop at some point
Tell your colonizers give us our reparations. The amount we “borrow” isn’t equal to lives they took & resources they stole.
@@mr.x817if you want to go down that road then every country is owed something to another and like the past decades have shown giving money to their corrupt governments doesn’t solve anything.
I bet you donate billions in aid annually, oh lord desperate drive. we should name the capital city of Africa after you.
First pay reparations for barbary slave trade.@@mr.x817
@@mr.x817cry more, you were always poor and non existent in human civilization.
Funny how Somalia is highlighted even though Somali has gotten all of its debt forgiven and is debt free. People will always hate on Somali. Now that we are on the rise and defeating alshabaab people want to split our country in half bout we have already faced the difficult part of our country collapsing we are here to stay and are drilling oil. We have the 6th highest oil reserves in the world!!
It's all vibes here 😂🔥💯😂
No it's not
Don't accept credit.
the ping notification noises included in the video were very annoying
Unfortunate
👍👍
Yet China is their ally remember Akon city 🤷♂️
China is the biggest trading nation in the world
Literally unequal exchange. Its feature not a problem of capitalism.
what is your solution?
Fully-automated World Wide Luxury Gay Space Communism.
Change can happen slowly or violently. They must pick.
@@chunkykong1976Dedollarisation
Exchange looks equal, just some don't bring much of value...
Please dont use notification sounds anymore.
Egypt will never collapse. We are with it, especially the Gulf countries. Last month, twenty billion were pumped into Egyptian banks
Egypt will never collapse but Egyptians will . Your currency is in a free fall
Thanks china
Has nothing to do with china
I like how pedants have gotten so annoying that news orgs have to put up disclaimers. For the record - you absolutely can talk about "the Africa" as a whole economically or in any other sense same as you can talk about any other delineated area, only thing that matters is if it makes sense. China's population is larger than all of Africa (though not for long), and NAFTA's area is 2/3rds of the area of Africa and you absolutely could talk about "NAFTA's economy" or demographics or whatever, you absolutely can compare, for example, Singapore's economy to all of Africa's it just wouldn't make any sense or tell you anything useful. This "aFrIcA iSn'T a cOuNtRy" is less of some genuine desire for knowledge and more people being desperate to throw others under the bus to show how smart or knowledgeable or whatever they are.
wow, what a shift of blame video. You failed to mention that majority of the bonds were purchased by "private institution" based in London and New York. These western private investors are the one calling these sorry African countries defaults without mercy. China has never called a country defaulted but just kept on extending its loans until these western private creditors triggered the default process.
Furthermore in the Zambia case, a lot of the western private creditors are hedge funds and vulture funds who picked up these bonds at the cheap, betting to have a handsome profits and rewards from the restructuring at much higher value. There is nothing wrong with China demanding a larger haircut from these western private creditors but the Paris Club (western govt agencies) is also working for these private creditors after taking in so much political donations