Europe became strong economically as a result of brilliant strategies of the de’ Medici family. He created a global banking system while using the Church. Cosimo de’ Medici began in Northern Italy simply because this was where all of the business was. Before this there had been barter trade taking place, and not such as the reputable banking system that de’ Medici envisioned. He used the Church as it was the only trustworthy organization there is at the time. The way he created this banking system was by infiltrating the Church. He used former pirate, Baldassarre Cossa to be effective his way up the holy hierarchy until he became pope John XXIII. De’ Medici could do while he pleased understanding that he your head of the Church on his side anf the husband did. He opened offices throughout Europe and Africa where people could conduct business, whether it was banking or trading. This was more practical and efficient. With this system new ideas were introduced, for example the numerical system. The ten symbols above all the concept of zero. The concept of accounting, credit, and corporation were all unknown until on this occasion. Also bills of insurance were introduced which can be like checks. All of these new ideas and inventions changed Europe. China, The Ottoman Empire and Africa can’t come take on Europe’s riches. The Catholic Church even partnered with all the merchants given that they might make money. With Europe’s riches came Europe’s power.
First somewhat background for the G20 and why it is important to determine what they’re doing. G20 may be the Group of Twenty Finance Ministers and Central Bank Governors from twenty economies, comprising of 19 countries plus the European Union. They formed in 1999 however the Heads of States began Summits in 2008.
In addition, in the last 10 years, because of excessive money printing resulting in a runaway way to obtain money, we have seen an unprecedented bursting of bubble after bubble… first the tech industry bubble burst, then a telecom industry bubble burst, the housing business bubble burst, last but not least an investment banking industry (including AIG) bubble burst exposing the general Global Financial Crisis.
The Fed has taken the opposite route from the European banks I wrote about last week. Banco Santander and Banco Bilbao Vizcaya Argentaria announced newly optimistic assumptions regarding the degree of risk attached to their assets to be able to bolster their unique numbers. The Fed’s tests will force banks to check out themselves without any rose tinting. As Karen Shaw Petrou, managing partner at Federal Financial Analytics, told Bloomberg: “The Fed’s credibility like a tough guy cannot be challenged according to this [test].” (1)
Right thinking Nigerians have remained apprehensive on the issue as a result of power of religion to create division. The planned introduction of Islamic banking model into the Nigerian financial landscape is one of the conditions that have raised a lot dust as result of the word “Islamic” that is certainly coupled to the name. The things that happen in america on day after day have made the proponents of an individual and indivisible nation under the name “Nigeria” to possess a rethink. As a result, you will find there’s debate around the issue of “nomenclature” whether or not the proposed non-interest banking should maintain the name “Islamic Banking”. Pundits have said that the phrase “Islamic Banking” is only going to succeed in stoking the fires of mutual distrust inside a peculiar religion-sensitive environment like Nigeria. It is also seen that adopting the controversial name will be a grave violation in the nation’s secular status.