Month: August 2023

The Lingering Shadows of Imperialism: Exploitation of African Nations

Posted on by Nkozi Knight

As someone who has served in the military, I’ve had firsthand insight into the geopolitical dynamics that still play out across the globe. One particular issue that has always been close to my heart is the persistent exploitation of African nations by former colonial powers and the United States.

Niger, a landlocked country in West Africa, serves as a stark example. It is the source of 5% of the world’s uranium, a precious resource vital for nuclear energy and weapons. Yet, despite its immense wealth beneath the ground, Niger consistently ranks as one of the world’s poorest countries. This incongruity can be attributed to the continued imperialism and exploitative tactics employed by Western nations.

Historically, countries like France and Great Britain have left indelible marks on Africa, ostensibly ending colonization, but in truth, perpetuating a new form of neocolonialism. France, for instance, still exerts considerable economic influence on many of its former colonies, including Niger. Complex agreements and unequal trade dynamics ensure that while African nations supply raw materials, they see only a fraction of the profits.

The United States, though not a colonial power in Africa, has also been implicated in this exploitative dynamic. The establishment of military bases across the continent serves dual purposes: it’s positioned as a safeguard against extremism and other threats, but it also ensures that the U.S. maintains a stronghold to protect its interests, which often include access to natural resources. During my time in the military, it was evident how strategic positioning wasn’t just about national security, but also about economic leverage.

Furthermore, it’s worth noting that while African countries export raw materials, they often have to import finished products at higher prices, further entrenching them in a cycle of poverty. The revenues from these natural resources, like uranium from Niger, do not equitably benefit the local communities. Instead, profits are siphoned off by multinational corporations and corrupt leaders, leaving the general populace grappling with poverty, unemployment, and underdevelopment.

Addressing this exploitation requires a multipronged approach:

  1. Transparency in Trade Deals: International trade agreements involving African nations must be transparent, ensuring that they benefit local communities as much as they do foreign entities.
  2. Empowering Local Economies: Investing in local infrastructure, education, and healthcare can help African nations process their own resources, creating jobs and reducing dependency on imports.
  3. International Accountability: Global institutions, such as the UN, must hold countries accountable for exploitative practices, ushering in a new era of equitable and fair trade.

While the flags of colonial powers no longer fly over African capitals, the shadows of imperialism linger. It’s a collective responsibility, both of African governments and the international community, to dismantle these remnants of exploitation and pave the way for a brighter, more equitable future for the continent. As someone who has seen the intricacies of this exploitation up close, I urge everyone to educate themselves, advocate for change, and support policies that promote fairness and justice.

Fitch Downgrades U.S. Credit Rating Amid Rising Deficits and Political Turmoil

Posted on by Nkozi Knight

In a recent blow to the United States, Fitch Ratings has downgraded the nation’s credit rating from the highest possible AAA to AA+. The rating agency attributed the drop to increasing deficits and political conflict, which they believe threaten the government’s capacity to service its debts.

This decision was made two months following a last-minute agreement between the Biden administration and House Republicans to temporarily raise the debt ceiling, thereby narrowly dodging a potentially catastrophic federal default.

This isn’t the first time the U.S. has faced such a demotion. Back in 2011, amid a similar crisis regarding the debt ceiling, Standard & Poor’s reduced the United States’ AAA rating. At present, Moody’s Investors Service is the only major credit rating agency that continues to assign the U.S. the top AAA rating.

Despite recognizing the robustness of the U.S. economy and the benefits reaped from the dollar’s position as the world’s primary currency, Fitch expressed concerns about the escalating deficits and both political parties’ reluctance to address long-term fiscal issues. Fitch voiced limited faith in the government’s ability to effectively manage the country’s finances.

In response to the downgrade, Treasury Secretary Janet Yellen criticized Fitch’s decision as “arbitrary” and reliant on obsolete data. She emphasized that “Treasury securities remain the world’s preeminent safe and liquid asset” and affirmed the underlying strength of the U.S. economy.

According to Fitch, the expenditure caps set as part of the recent debt agreement in June merely scratch the surface of the overall budget and do not confront enduring issues, such as financing Social Security and Medicare for an aging populace.

With tax reductions and elevated government expenditure leading to an expansion of deficits in recent years, and coupled with increasing interest rates, the fiscal burden has grown. Government interest payments in the first nine months of the current fiscal year amounted to $652 billion, marking a 25% rise from the same period last year.

Maya Macguineas, the president of the Committee for a Responsible Federal Budget, responded to the downgrade, terming it a “wake-up call.” She stressed the urgent need for fiscal responsibility, stating, “We are clearly on an unsustainable fiscal path. We need to do better.”

The repeated political standoffs over the debt ceiling have not only eroded the faith in U.S. fiscal management but also put the longstanding reputation of U.S. government bonds at risk. For close to a hundred years, these bonds have been considered some of the safest investments globally, primarily because the U.S. seemed unlikely to default on payments.

However, with the recent debt ceiling impasses, there is growing concern that the U.S. might default for the first time. Over a decade ago, S&P pointed out political discord as a significant risk to the country’s governing ability, and many experts opine that the situation has deteriorated since.