How the war on terror contributed to the credit crunch and to the crisis of the Euro
COPRESENTED WITH THE ITALIAN INSTITUTE OF CULTURE
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Loretta Napoleoni, Italian economist and terrorist financing expert
The response of George Bush to 9/11 triggered a chain of events which led to the credit crunch and to the current crisis of the Euro. In a globalised economy new economic inter-dependencies exist among countries that need to be taken into consideration not only when developing economic policies but also when implementing key foreign policy decisions.
As American troops prepare to leave Iraq, the economic consequences of the 'preventive' strike against Saddam Hussein will continue to play a big role in the deepening of the US economic crisis. European leaders are equally confronted with a solvency crisis triggered by the decision of the US to fund the war on terror by flooding the world with Treasury bonds. A new world order is emerging, one where the West will no longer have a hegemonic role.
Loretta Napoleoni is the best-selling author of Rouge Economics, Terror Incorporated and Insurgent Iraq. She is an expert on financing of terrorism and advises governments and international organization on counter-terrorism. As Chairman of the countering terrorism financing group for the Club de Madrid, Napoleoni brought heads of state from around the world together to create a new strategy for combating the financing of terror networks.
As an economist she worked for several banks and international organizations in Europe and the US. In the early 1980s she worked at the National Bank of Hungary on the convertibility of the forint that became the blue print for the convertibility of the ruble a decade later.
Ms Napoleoni work appears regularly in many journals and publications, including several European newspapers. She lectures regularly on the financing of terrorism across the world and teaches a course on “the Shadow Economy” at Judge Business School in Cambridge University.
Loretta Napoleoni’s books have been translated in 18 languages including Chinese and Arabic
Loretta Napoleoni is in Australia as a guest of the 2010 Melbourne Writers' Festival