Billions and billions of dollars has been frozen in Gadaffi’s accounts in USA, UK, Austria, even Switzerland. And Switzerland existence is based on its liability as „keeper of your money, who ever you are“. That was a good thing for the world stability. But this is about Gadaffi’s money. Maybe it will be given to the rebels in Libya.
Everybody is familiar with the fact that dictators and leaders of unstable economies keep their money ( and we are talking about amounts that can be measured with GDPs of majority of world countries ) in foreign banks, in countries that have stable economies. Everyone wants his money safe and sound, that’s natural, and dictators are not different. Even if they promote their countries progress or development, or rise of investment rating, they feel that their money is safest in USA, UK, Swiss banks etc. So, we can just imagine how much dictators’ ( when I say dictator, I know that the term is not correct, because I cannot say that, for example, Saudi royalty are „dictators“, but I haven’t found the best term until now) money is on USA or Swiss bank accounts. This money is, certainly, very important factor of financial market in developed economies. Huge amounts of money, injected in financial markets all over the world! Huge amounts! Imagine what will happen if dictators stop transferring their billions and billions of dollars and euros from „undeveloped“ to „developed“ economies? I guess that every dictator will rethink his future moves, because he could, also, be in Gadaffi’s situation. Will they take the risk? Or they will found the other solution? I think that this could have a great impact on world financial markets in future.