New (financial) World Order

[phirang]

compliments of bob zoellick:


Zoellick said that the crisis is multilayered, involving diplomatic discord over trade, climate change, and energy and agricultural prices. Against those challenges, Zoellick urged "a new multilateral network," or what he called a "steering group" of some 14 or more countries that dominate the world population, economy, carbon emissions, capital markets, and foreign assistance. He said that in addition to the G7 countries, candidates for membership might include Brazil, China, India, Mexico, Russia, Saudi Arabia, and South Africa. The G7 countries are Britain, Canada, France, Germany, Italy, Japan, and the U.S.
He said the number of group members should not be fixed, and that they should meet regularly in person and by video conference. He called it "a Facebook for multilateral economic diplomacy."
"We need this mechanism so that countries are not left to fail, with all the human, economic, and political consequences this entails for both them and their neighbors," Zoellick said.



THis is diplo-code for EXTENDING dollar seignorage... hmm!

http://www.businessweek.com/bwdaily/dnflash/content/oct2008/db2008106_029088.htm


CK Liu shares an insight into Zoellick:


The concept of "stakeholder" in the global geopolitical-economic order advanced by Robert B Zoellick, former US deputy secretary of state and now president of the World Bank, is a solicitation from the US to emerging economic powerhouses to support this Pax Americana. The device for accomplishing this neo-imperialism is a coordinated monetary policy managed by a global system of central banking, first adopted in the US in 1913 to allow a financial elite to gain monetary control of the US national economy, and after the Cold War, to allow the US as the sole remaining superpower controlled by a financial oligarchy to gain monetary control of the entire global economy.

With the help of supranational institutions such as the International Monetary Fund and the Bank of International Settlements, the US aims to negate national economic sovereignty with globalization of unregulated trade conducted under dollar hegemony. Unregulated trade globalization in the 21st century aims to neutralize national economic sovereignty to preempt national development financed by sovereign credit. Trade through export has become the sole operative path for national economic growth in a political world order of sovereign nation states that has existed since the Treaty of Westphalia of 1648. No national domestic economy can henceforth prosper without first adding to the prosperity of US-controlled global economy denominated in dollars.



And from good ol' wikipedia:


Tom Barry, the policy director of the International Relations Center (http://en.wikipedia.org/wiki/International_Relations_Center), has written that Zoellick "regards free trade (http://en.wikipedia.org/wiki/Free_trade) philosophy and free trade agreements as instruments of U.S. national interests (http://en.wikipedia.org/wiki/National_interest). When the principles of free trade affect U.S. short-term interests or even the interests of political constituencies, Zoellick is more a mercantilist (http://en.wikipedia.org/wiki/Mercantilism) and unilateralist (http://en.wikipedia.org/wiki/Unilateralism) than free trader or multilateralist (http://en.wikipedia.org/wiki/Multilateralism)."[21] (http://en.wikipedia.org/wiki/Robert_Zoellick#cite_note-20)
Gavan McCormack (http://en.wikipedia.org/wiki/Gavan_McCormack) has written that Zoellick used his perch as U.S. trade representative to advocate for Wall Street (http://en.wikipedia.org/wiki/Wall_Street)'s policy goals abroad, as during a 2004 intervention in a key privatization (http://en.wikipedia.org/wiki/Privatization) issue in Japanese (http://en.wikipedia.org/wiki/Japan) Prime Minister (http://en.wikipedia.org/wiki/Prime_Minister_of_Japan) Junichiro Koizumi (http://en.wikipedia.org/wiki/Junichiro_Koizumi)'s re-election campaign. McCormack has written , "The office of the U.S. Trade Representative has played an active part in drafting the Japan Post (http://en.wikipedia.org/wiki/Japan_Post) privatization law. An October 2004 letter from Robert Zoellick to Japan’s Finance Minister Takenaka Heizo, tabled in the Diet (http://en.wikipedia.org/wiki/Diet_of_Japan) on August 2 (http://en.wikipedia.org/wiki/August_2), 2005 (http://en.wikipedia.org/wiki/2005), included a handwritten note from Zoellick commending Takenaka. Challenged to explain this apparent U.S. government (http://en.wikipedia.org/wiki/Federal_government_of_the_United_States) intervention in a domestic matter, Koizumi merely expressed his satisfaction that Takenaka had been befriended by such an important figure… It is hard to overestimate the scale of the opportunity offered to U.S. and global finance capital by the privatization of the Postal Savings System (http://en.wikipedia.org/wiki/Postal_savings_system)."[22 (http://en.wikipedia.org/wiki/Robert_Zoellick#cite_note-21)



AAAAAND, from the AEI:

http://www.aei.org/publications/filter.all,pubID.28731/pub_detail.asp


Some wonk-on-wonk action:



But the chances that the Bushies will move in these directions -- steeped as this administration is in unilateral arrogance and laissez-faire ideology -- seem close to zero. Treasury Secretary Paul O'Neill blithely dismisses the current account deficit as a "meaningless concept." (The Economist responded that the consequences of a declining dollar would bring sleepless nights to "a Treasury secretary who knew what he was talking about.") Nor do such worries furrow the brow of U.S. Trade Representative Robert Zoellick, the administration's Doctor Pangloss. Forget about imports, says Zoellick; look how our exports are rising! His approach is akin to measuring your personal solvency by adding up the deposits in your bank account and neglecting the withdrawals.
Most members of Congress seem equally clueless. In the heated debates over putting foreign-trade deals on a "fast track," our unsustainable trade deficit has been virtually ignored. When Sen. Byron Dorgan (D-N.D.) asked his colleagues what share of the GDP the trade deficit had to get to before they'd start to worry, the answer was dumb silence.


http://www.epi.org/content.cfm/webfeatures_viewpoints_falling_dollar
Conclusion: Welcome to World Government, my friends!

[Lukester]

If the core unit of account is mush, and will become yet crappier in it's reflection of USA Inc's balance of payments, the entire scheme's future is mush as well. Like mixing plaster of paris with your cement, to build a tall edifice.

[phirang]

If the core unit of account is mush, and will become yet crappier in it's reflection of USA Inc's balance of payments, the entire scheme's future is mush as well. Like mixing plaster of paris with your cement, to build a tall edifice.


unfortunately, we buy real stuff with mush.

and i'll stick take mush, since the mush is managed by very, very clever and frankly nasty mushmiesters.

[D-Mack]

I heard this G-14 talk everywhere


France wants a G-14
29 September 2008 - Issue : 801



French President Nicolas Sarkozy has called for adding new members to the exclusive G-8 and the UN Security Council so they can more effectively deal with problems that continue to defy efforts by Western governments. Sarkozy said in an address to the UN General Assembly that the UN Security Council, currently with 15 members, and the world’s group of eight leading industrialised nations (G-8) should be enlarged to reflect demands of emerging countries. The G-8 in particular could become the G-14, with new members like China, India, Mexico, South Africa and Brazil, the emerging economic powers among developing countries. The group currently is comprised of the United States, Germany, Italy, France, Canada, Japan, Britain and Russia. Though Russia is a member of the G-8, its relations with the West were stressed over its invasion of Georgia in August and US Republican presidential candidate John McCain had even called for ousting the Russians from the G-8. Italy will host next year’s G-8 summit and will propose a major reform to the group, Sarkozy said. He said the world is still governed by 20th- Century institutions in a 21st-Century world. “Let today’s major powers and the powers of tomorrow unite to shoulder together the responsibilities their influence gives them in world affairs,” Sarkozy said in an address to the UN General Assembly. “To all those who are hesitant, I wish to say that enlarging the Security Council and the G-8 is not just a matter of fairness, it is also the necessary condition for being able to act effectively,” he said.

http://www.neurope.eu/articles/89971.php

[The Outback Oracle]

"He said that in addition to the G7 countries, candidates for membership might include Brazil, China, India, Mexico, Russia, Saudi Arabia, and South Africa. The G7 countries are Britain, Canada, France, Germany, Italy, Japan, and the U.S."


Blimey!!!! Don't tell our PM Kevin Rudd!!!! He thinks he is leading the world on all these fronts!!

[phirang]

I heard this G-14 talk everywhere

France wants a G-14
29 September 2008 - Issue : 801



French President Nicolas Sarkozy has called for adding new members to the exclusive G-8 and the UN Security Council so they can more effectively deal with problems that continue to defy efforts by Western governments. Sarkozy said in an address to the UN General Assembly that the UN Security Council, currently with 15 members, and the world’s group of eight leading industrialised nations (G-8) should be enlarged to reflect demands of emerging countries. The G-8 in particular could become the G-14, with new members like China, India, Mexico, South Africa and Brazil, the emerging economic powers among developing countries. The group currently is comprised of the United States, Germany, Italy, France, Canada, Japan, Britain and Russia. Though Russia is a member of the G-8, its relations with the West were stressed over its invasion of Georgia in August and US Republican presidential candidate John McCain had even called for ousting the Russians from the G-8. Italy will host next year’s G-8 summit and will propose a major reform to the group, Sarkozy said. He said the world is still governed by 20th- Century institutions in a 21st-Century world. “Let today’s major powers and the powers of tomorrow unite to shoulder together the responsibilities their influence gives them in world affairs,” Sarkozy said in an address to the UN General Assembly. “To all those who are hesitant, I wish to say that enlarging the Security Council and the G-8 is not just a matter of fairness, it is also the necessary condition for being able to act effectively,” he said.

http://www.neurope.eu/articles/89971.php


Why is Sarko a friend of the US? ahh ha!

Daddy Warbucks bought him his italian whore wife.

THe older I get, the more I admire Mao and condone Stalin...

[phirang]

"He said that in addition to the G7 countries, candidates for membership might include Brazil, China, India, Mexico, Russia, Saudi Arabia, and South Africa. The G7 countries are Britain, Canada, France, Germany, Italy, Japan, and the U.S."


Blimey!!!! Don't tell our PM Kevin Rudd!!!! He thinks he is leading the world on all these fronts!!

Hey, one thing all these new countries have in common:

they all have lots of dollar reserves!!!

Ahhh... yes!

[babbittd]

The European faction has been talking about this since the U.N. meeting.

Have you all heard anything that amounts to a response from the BRICs? Be it "f' off" or otherwise?

[$#*]

Why is Sarko a friend of the US? ahh ha!

Daddy Warbucks bought him his italian whore wife.

You are wrong. It was Brother Warbucks the one who bought him a a respectable italian wife (his bro is on the Carlyle board and good friend with HB ;) .. this is not a joke)

Hey, one thing all these new countries have in common:

they all have lots of dollar reserves!!!

Ahhh... yes!
But only the Fed can print the dollars ... they are more equal than the other equals.

You are right. This is global financial seignorage ... this is the New World Order!

We are F**KED!!!!

[$#*]

And here is the first sign of a World Central Bank for those who doubted it:

http://www.bloomberg.com/apps/news?pid=20601080&sid=aREZkHrskr_E&refer=asia

The Fed, ECB, Bank of England, Bank of Canada and Sweden's Riksbank each cut their benchmark rates by half a percentage point. The Bank of Japan, which didn't participate in the move, said it supported the action. Switzerland also took part. Separately, China's central bank lowered its key one-year lending rate by 0.27 percentage point.

Phirang was spot on.

[phirang]

The European faction has been talking about this since the U.N. meeting.

Have you all heard anything that amounts to a response from the BRICs? Be it "f' off" or otherwise?

Russia is trying to tell the US to fk off, but the real reason behind their Iceland incursion is to find a new safe-haven to stash their kleptocratic trophies.

Anyone who knows russians know that they don't take their military too seriously... I recall one of my friends saying that during the 80's, he and his friends used to joke about how shitty their military was.

What IS interesting is that it seems China, being the practical nation she is, is taking a middle path: they'll commit a few hundred bill of their 1.8T reserves to a US bailout and are also providing huge incentives and an expanded safety net domesticaly to compel their people to spend.

[phirang]

From a NWO sycophant... note that he's from the Peterson Institute, a Federal Reserve apparatchik.


A master plan for China to bail out America

By Arvind Subramanian
Published: October 7 2008 19:34 | Last updated: October 7 2008 19:34

The financial rescue plan passed by the US Congress is viewed as flawed but necessary to head off panic in financial markets and loss of confidence in the economy. It seems a holding operation, a Plan C or D that might need augmentation via a Plan A.
A vital component of a Plan A is likely to be additional money. For one thing, there is suspicion that the amount of toxic assets (http://www.ft.com/cms/s/0/250d3a04-8a67-11dd-a76a-0000779fd18c.html)is considerably greater than the rescue plan provides for. For another, more money may be required to address the problem in the housing market by providing relief to subprime and marginal borrowers. And finally, further fiscal stimulus could become necessary if recessionary forces take hold.
Where will this additional money – perhaps as much as another $500bn – come from? The US taxpayer is wary (http://www.ft.com/cms/s/0/041645ba-880b-11dd-b114-0000779fd18c.html). Joe Six-Pack has ponied up a lot already, and done so with no great confidence that the money was for a worthwhile cause or that it will be well spent.
Enter China. Ken Rogoff of Harvard cheekily characterised the vast Chinese accumulation of US Treasury bonds over the past five years as the biggest foreign assistance programme in history. Why not push that further? Here is a thought experiment.
The Chinese government could offer to lend up to $500bn (from its current stock of $1,800bn) to the US government for the rescue of its financial sector. Its previous assistance – buying US bonds – was indirect and unconditional. Not so in this case.
China’s loan offer would be direct to the US government to be spent in the current financial crisis. More important, it would come with strings attached. Tied aid, the preferred mode of operation of western donors since the postwar period, would now be embraced by China.
What would be the nature of the strings – or “conditionality” as the US Treasury, a longtime practitioner of this art, has called it? Conditionality as imposed by the World Bank and International Monetary Fund was underpinned by an ideology that favoured markets and globalisation. But there was also an assumption that either borrowing third world governments did not understand their benefits or the reformers there needed a “spoonful of sugar” to help overcome any internal opposition.
China would impose two conditions. First, it would declare that the offer of money was conditional on the US government’s adopting a particular approach to rescuing the banks, namely to favour in the next round the use of government money to recapitalise the banks. Europe has been using this approach and evidence suggests it is the most effective way of dealing with large-scale financial crises.
The US government – like third world governments in the past – has been unable to adopt the most efficient course of action. This stems from an ideological obsession against “socialising” banks or because inducement is necessary to overcome any domestic opposition to it.
The second condition would relate to “social safety nets”, which had become standard embellishments to World Bank/IMF adjustment programmes. China would stipulate that monies be devoted to cushioning the impact on vulnerable homeowners, so that they would not be forced into forgoing the American dream of home ownership. Chinese conditionality on this front would achieve an outcome that several economists on the left and right have argued for on grounds of fairness, and also to address the fundamental problem in the housing market.
For China, this offer of help would have three virtues. First, it would be riding to the rescue of a situation partly created by its own policies of undervalued exchange rates, which led to lax global liquidity conditions. Second, its economic interest would be served because successful US efforts at rescuing its financial sector could help avert an economic downturn, protecting China’s exports, its growth engine.
Perhaps most important, it would seal China’s status as a responsible superpower willing to deploy its economic resources for the sake of protecting the world economy. And if the means for achieving that are by providing the current hegemon with the largest aid package the world has ever seen with a healthy dose of sensible conditionality, well, what could be more statesmanlike than that?
The writer is senior fellow, Peterson Institute for International Economics and Center for Global Development, and senior research professor, Johns Hopkins University

[phirang]

... and in this corner, a non-NWO whore:


An Asia bond could save us from the dollar

By Thaksin Shinawatra
Published: October 6 2008 19:37 | Last updated: October 6 2008 19:37

Asia has an opportunity to save itself, and the world economy, from the crushing excesses of Wall Street. China and Japan, with other Asian countries holding substantial surplus reserves, should act now to create an Asia bond to contain the fallout (http://www.ft.com/indepth/global-financial-crisis) from a weak dollar.
I hope my US friends will not see this as an ungrateful act of abandoning a ship in trouble. On the contrary, my plan will keep the ship in service, as it is repaired. This is the best way for countries that have benefited from the American century to repay their debt.
The prosperity in Asia – created by US investment and trade – has spawned problems for the US. East Asia’s current account surpluses have averaged $400bn over the past decade, while the US current account deficit runs at an annual average of $800bn (http://news.ft.com/cms/s/b89f8400-0902-11da-880b-00000e2511c8.html) . Asian countries, other than Japan, accumulated the surpluses largely by supplying cheap goods and services to the US. They can no longer rely on this one major market given that America’s ability to sustain consumer spending is severely curtailed. Having parked most of their surpluses in the currency that was most convertible – the dollar – Asian countries face the prospect of losing as much as the country that issued the currency. Most of Asia’s sovereign surpluses are in US dollar-denominated equity and notes and Treasury bills. Is there a way to protect the value of these as the US economy finds its feet? Asia’s reserves could be turned into Asia bonds that, without losing their value, could be used to stimulate investment and trade in Asia.
An Asia bond would not be a self-centred zero-sum game. It could offer an opportunity for wealth creation across the world. Three billion Asians want their governments to invest their hard-earned surpluses in tangible productive capacity that they can see rather than playing with paper investments, such as esoteric derivatives.
The bond will be denominated in, shall we say, global dollars or “globars” (if you like the allusion to the shiny metal bars that were once the universal standard currency). The International Monetary Fund could play a consultative or managerial role in maintaining the value of this global or offshore dollar while the national currency of the US settles down to a level that suits its economic needs.
What happens if the new US administration is not farsighted enough to agree to a separate standard for external dollars? Asian governments could still issue these bonds incrementally as they accumulate new surpluses. China, Japan, Korea, Singapore and Thailand could agree to pool some of their reserves in a certain ratio into a basket of currencies to issue a bond. The return on this bond will be the same or higher than those on US Treasury bills as the issuers of the bond have a better ability to pay than the US government.
The dilemma for investors is judging political risks in Asia. The Taliban will continue in Afghanistan and Pakistan but these countries’ role in issuing and managing the Asia bond will be nominal. Another poison gas explosion in the Japanese underground will not undermine Japan’s capacity to honour its commitments. Risk is relative. I would rather bet on China’s authorities – who ignored the prediction offered 18 months ago by Hank Paulson, the US Treasury secretary, that they risked trillions of dollars (http://www.ft.com/cms/s/0/9f4f846e-cd0a-11db-a938-000b5df10621.html) in lost economic potential unless they freed their capital markets. That seems wiser than praying to God that the US soon finds a credible model of economic growth and for regulation of financial institutions.
To those familiar with bond markets, this may not seem a revolutionary proposal. It is not. A number of Asian governments issue bonds in their own currencies. Their quality and performance vary. Asian bond returns, taken in conjunction with their volatility, compare unfavourably with their US Treasury counterparts, market by market. However, an aggregate of Asian bonds gives a more positive picture. Part of the problem is the historical perception, perpetuated by rating agencies, that Asian countries are all borrowers, just as the US has become. Now, some of these countries are there to lend. It is time they reaped the premium that is theirs as lenders. The value of their loans will be better protected if they take collective decisions.
Their collective bond could be traded in Tokyo, Singapore and Hong Kong. This bond would contribute to the development of a healthy capital market in the region that can remain stable while the US works its way through its financial crises. The greatest benefit would be that Asia’s surpluses will be recycled into productive assets in Asia.
The writer is the former prime minister of Thailand

[jtabeb]

unfortunately, we buy real stuff with mush.

and i'll stick take mush, since the mush is managed by very, very clever and frankly nasty mushmiesters.

"Right Now" seems to be missing in your first sentance:D

[jtabeb]

You are wrong. It was Brother Warbucks the one who bought him a a respectable italian wife (his bro is on the Carlyle board and good friend with HB ;) .. this is not a joke)


But only the Fed can print the dollars ... they are more equal than the other equals.

You are right. This is global financial seignorage ... this is the New World Order!

We are F**KED!!!!

No, we are not F**KED, the dollar has to survive for us to be F**KED.
The Dollar is dead soon, again don't like to time constrain my positions.

I'm sure gold rubles and golden dinars would golden/silver yaun will all compete well with palladium/gold/silver/platinum dollars. This is true capatilism founded on sound money. That's good in my book, not bad.

Just in case you doubt me, the first country that plays the "metalic currency card" is the forcing function. AND, He who plays it first, gains the most. SO my bet is we "stupid americans" are going to lay waste to the FIAT system before anyone else does.

Hudson is right, we play for our own financial intrests and screw everyone else in the process. So we are right on track. I DON'T think we will NOT ACT in a manner that is finacially adventageous to us as americans.

Everyone take a vallium and call me in 12 months. :)

P.S. If you are renting right now, GO BUY A HOUSE, yes NOW!

[jtabeb]

And here is the first sign of a World Central Bank for those who doubted it:

http://www.bloomberg.com/apps/news?pid=20601080&sid=aREZkHrskr_E&refer=asia



Phirang was spot on.

Nice TAG-team!

[jtabeb]

Why is Sarko a friend of the US? ahh ha!

Daddy Warbucks bought him his italian whore wife.

THe older I get, the more I admire Mao and condone Stalin...

Then McCain is you man!:)

[phirang]

Then McCain is you man!:)

No, I'm an anarcho-communist, not a facist.

sheesh.

[grapejelly]

No, we are not F**KED, the dollar has to survive for us to be F**KED.
The Dollar is dead soon, again don't like to time constrain my positions.

I'm sure gold rubles and golden dinars would golden/silver yaun will all compete well with palladium/gold/silver/platinum dollars. This is true capatilism founded on sound money. That's good in my book, not bad.

Just in case you doubt me, the first country that plays the "metalic currency card" is the forcing function. AND, He who plays it first, gains the most. SO my bet is we "stupid americans" are going to lay waste to the FIAT system before anyone else does.

Hudson is right, we play for our own financial intrests and screw everyone else in the process. So we are right on track. I DON'T think we will NOT ACT in a manner that is finacially adventageous to us as americans.

Everyone take a vallium and call me in 12 months. :)

P.S. If you are renting right now, GO BUY A HOUSE, yes NOW!

You know, you may have some good points here.

Look at how the "we guarantee our banks to xxx amount" is driving money from one banking base to another. Money is fleeing to where it is perceived as being safest.

But that also shows confidence in government is still very high. That isn't going to disappear overnight.

[grapejelly]

No, I'm an anarcho-communist, not a facist.

sheesh.



Hoppe Rules!

[we_are_toast]

Anyone who knows russians know that they don't take their military too seriously... I recall one of my friends saying that during the 80's, he and his friends used to joke about how shitty their military was.



Do you think the Georgians know Russians?

[phirang]

Do you think the Georgians know Russians?

The chechens sure did...

Lemme ask Imam Shamil...:eek:

[$#*]

No, we are not F**KED, the dollar has to survive for us to be F**KED.
The Dollar is dead soon, again don't like to time constrain my positions.

I'm sure gold rubles and golden dinars would golden/silver yaun will all compete well with palladium/gold/silver/platinum dollars. This is true capatilism founded on sound money. That's good in my book, not bad.
Gee ... I wish I were such an optimist. I personally believe it's too late and nothing can stop them now form creating a World Central Bank controlled by the Fed (or better said by those who control the Fed.)

Jtabeb, I really do hope you are right and I'm wrong.

[$#*]

Well it seems that Sarko wants a new wife (the current one probably has too much mileage :)) He actually said it:

http://www.bloomsberg.com/apps/news?pid=20601068&sid=aIcEL0jjSK74&refer=home

French President Nicolas Sarkozy (http://search.bloomberg.com/search?q=Nicolas+Sarkozy&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1), who convened the Oct. 4 meeting, called for a global summit ``as soon as possible'' to implement ``a real and complete reform of the international financial system.'' He said ``all actors'' must be supervised, including credit-rating firms and hedge funds. Executive-pay systems must also be reviewed, he said.
``We want a new world to come out of this,'' Sarkozy said.

Yup. This is the New World Order.

[jtabeb]

Gee ... I wish I were such an optimist. I personally believe it's too late and nothing can stop them now form creating a World Central Bank controlled by the Fed (or better said by those who control the Fed.)

Jtabeb, I really do hope you are right and I'm wrong.

Well, if there are no absolutes, I'm wrong and you are right. If there Are absolutes them I'm right and you are wrong.

So we just have to anwser the question "Are there absolutes?" and we will have our answer.:)

[jtabeb]

No, I'm an anarcho-communist, not a facist.

sheesh.


I personally am a "Marx constrained, Hard-money capitalist" with a stong libertarian streak tempered with a touch of liberal-social underpinnings.

[rj1]

No, we are not F**KED, the dollar has to survive for us to be F**KED.
The Dollar is dead soon, again don't like to time constrain my positions.

I'm sure gold rubles and golden dinars would golden/silver yaun will all compete well with palladium/gold/silver/platinum dollars. This is true capatilism founded on sound money. That's good in my book, not bad.

Just in case you doubt me, the first country that plays the "metalic currency card" is the forcing function. AND, He who plays it first, gains the most. SO my bet is we "stupid americans" are going to lay waste to the FIAT system before anyone else does.

For a country to be a member of the IMF, they're not allowed to have a metal-backed currency. It has to be fiat.

[phirang]

Well it seems that Sarko wants a new wife (the current one probably has too much mileage :)) He actually said it:

http://www.bloomsberg.com/apps/news?pid=20601068&sid=aIcEL0jjSK74&refer=home



Yup. This is the New World Order.

Oh, now it's THE G20: wow, we're getting EVEN more people invited to the bailout ball!


Paulson Says U.S. to Use All `Authorities' in Crisis (Update3)

By Simon Kennedy and Rebecca Christie
http://www.bloomberg.com/apps/data?pid=avimage&iid=i.J1p5GybPj0
http://images.bloomberg.com/r06/news/enlarge_details.gif (http://www.bloomberg.com/apps/news?pid=photos&sid=a8K_FK2KJ0uE)

Oct. 8 (Bloomberg) -- Treasury Secretary Henry Paulson (http://search.bloomberg.com/search?q=Henry+Paulson&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1) said he's considering plans to pump capital into U.S. financial institutions and pledged to use everything under his power to stem the worst credit crisis since the Great Depression.
The Treasury, Federal Reserve and Federal Deposit Insurance Corp. will ``use all their authorities to promote the process of repair and recovery and to contain risks to the financial system that might arise from problems at individual institutions,'' Paulson said at a press conference today in Washington.
Paulson stressed that the legislation Congress passed last week to rescue financial institutions gave him broad authority that he intends to use, beyond buying mortgage-related assets on banks' balance sheets. He indicated that an option available may be boosting bank capital with federal injections.
``It is the policy of the federal government to use all resources at its disposal to make our financial system stronger,'' Paulson said. ``We will use all of the tools we've been given to maximum effectiveness, including strengthening the capitalization of financial institutions of every size.''
Paulson said the U.S. rescue program won't save all banks.
``One thing we must recognize -- even with the new Treasury authorities, some financial institutions will fail,'' Paulson said. Instead, regulators will take measures to limit the systemic risk from any single bank failure, he said.
Paulson spoke two days before finance ministers and central bankers from the Group of Seven industrial nations gather in Washington for their first meeting since the financial crisis deepened last month.
G-20 Meeting
Paulson didn't rule out unveiling new programs following the meeting while noting it might ``not make sense to have identical policies'' because each countries' circumstances are different. U.K. Prime Minister Gordon Brown (http://search.bloomberg.com/search?q=Gordon+Brown&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1) has suggested authorities act to guarantee lending in the interbank market.
``There may be areas to coordinate,'' said Treasury Undersecretary David McCormick (http://search.bloomberg.com/search?q=David+McCormick&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1). ``There is a bias to cooperate when it makes sense.''
Beyond the G-7 talks, McCormick said this weekend would feature a ``special meeting'' of finance officials from the Group of 20, which combines developed and emerging economies. ``We're reflecting a reality of the global economy,'' he said of the talks.
President George W. Bush (http://search.bloomberg.com/search?q=George+W.+Bush&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1) signed into law on Oct. 3 a measure that gives Paulson the authority to purchase as much as $700 billion in mortgage-related assets from financial institutions saddled with illiquid debt.
`Major Downturn'
Since then, the Standard & Poor's 500 Index (http://www.bloomberg.com/apps/quote?ticker=SPX%3AIND) is down about 10 percent, credit markets have tightened further and, earlier today, central banks around the world collaborated to cut interest rates in an unprecedented move to stem the crisis.
``Patience is also needed because the turmoil will not end quickly and significant challenges remain ahead,'' Paulson said. ``Neither passage of this new law nor the implementation of these initiatives will bring an immediate end to current difficulties.''
The Treasury this week is recruiting asset managers and other staff to carry out the rescue plan, which will be administered by a newly formed Office of Financial Stability in the Treasury's headquarters in Washington.
The global economy is headed for a ``major downturn,'' the International Monetary Fund said in its World Economic Outlook released earlier today.
Global growth is projected at 3 percent next year, down from 3.9 percent this year, the IMF said. In April, the IMF predicted a 25 percent chance of worldwide growth at or below 3 percent, which it said was ``equivalent to a global recession.''
``The turmoil is a global phenomenon,'' McCormick said in a statement. ``We are all affected by it, and strengthened international collaboration is needed now more than ever to find collective solutions to achieve stable and efficient financial markets and restore health to the world economy.''



BOOOO!!! ARE WE SCARED SHITLESS YET? WE BETTER ACT FAST OR ELSE!

:rolleyes::rolleyes::rolleyes:

[metalman]

Oh, now it's THE G20: wow, we're getting EVEN more people invited to the bailout ball!



BOOOO!!! ARE WE SCARED SHITLESS YET? WE BETTER ACT FAST OR ELSE!

:rolleyes::rolleyes::rolleyes:

riiiight. a global financial system based 100% on speculation and winner take all and free flows of capital...

ask the koreans and thais other asian countries that are still licking their wounds from the raids on their currencies before big al instructed them to keep a year's currency reserves in store to defend against the next attack.

now a crisis that hits the g7 and it's 'can't we all just get along' and maybe sing kumbaya. shit.

[jtabeb]

For a country to be a member of the IMF, they're not allowed to have a metal-backed currency. It has to be fiat.

Got a ref? Asking, not baiting.

[BrianL]

"P.S. If you are renting right now, GO BUY A HOUSE, yes NOW!"

Is this an inflation call or do you see something else coming? ie Are you thinking paying back debt will be easier or are you thinking rent goes up?

If the dollar did die, what happens to outstanding dollars people are holding? What happens to debt in dollars? Sorry if thats a basic question - I looked into that in the past.

[jtabeb]

"P.S. If you are renting right now, GO BUY A HOUSE, yes NOW!"

Is this an inflation call or do you see something else coming? ie Are you thinking paying back debt will be easier or are you thinking rent goes up?

If the dollar did die, what happens to outstanding dollars people are holding? What happens to debt in dollars? Sorry if thats a basic question - I looked into that in the past.


The actions required to put a floor in the restate market have mostly been taken, a few remain.

For my mom who is a fixed income retiree and who rents, this was the signal I needed to be able to tell her go get a house. Yields may rise, prices may fall yet further, rents will most likely go up, but her payment will remain the same, which is the biggest fixed recurring expense she has. She sold her old house in 2005 and put the proceeds into gold. Now she just pays rent, my call to her was it's time to pay a fixed cost mortgage again as her rent was starting to go back up again, not good when your income is a fixed payment.

That's my call. Fix a payment on a 30 yr fixed if you rent, prices may still get cheaper but payments will stay the same or go up from here on mortgages and rents I think.

[phirang]

I've been following the news like everyone else, and I think the US leveraged has dissipated:

1) US will get bailed out, but will lose equity in banks as a result.
2) US may have to make certain concessions, like compelling the EU to kill RIO BHP merger and allow FDI from SWF's in more value-added sectors than just consumer finance and mortgages...

Basically, what the NeoCons wanted and what the Chinese and Arabs fantasized over is going to meet at a happy medium... i.e. both parties will remain dissastisfied, but a perturbation outside this equilibrium would make the deal too one-sided.

[D-Mack]

Behind the Panic: Financial Warfare and the Future of Global Bank Power

by F. William Engdahl


What’s clear from the behavior of European financial markets over the past two weeks is that the dramatic stories of financial meltdown and panic are deliberately being used by certain influential factions in and outside the EU to shape the future face of global banking in the wake of the US sub-prime and Asset-Backed Security (ABS) debacle. The most interesting development in recent days has been the unified and strong position of the German Chancellor, Finance Minister, Bundesbank and coalition Government, all opposing an American-style EU Superfund bank bailout. Meanwhile Treasury Secretary Henry Paulson pursues his Crony Capitalism to the detriment of the nation and benefit of his cronies in the financial world. It’s an explosive cocktail that need not have been.

Stock market falls of 7 to 10% a day make for dramatic news headlines and serve to foster a broad sense of unease bordering on panic among ordinary citizens. The events of the last two weeks among EU banks since the dramatic state rescues of Hypo Real Estate, Dexia and Fortis banks, and the announcement by UK Chancellor of the Exchequer, Alistair Darling of a radical shift in policy in dealing with troubled UK banks, have begun to reveal the outline of a distinctly different European response to what in effect is a crisis ‘Made in USA.’

US Goldman Sachs ex CEO Henry Paulson, as Treasury Secretary, is not stupid or incompetent. Quite the oppositie. There is serious ground to believe that he is actually moving according to a well-thought-out long-term strategy. Events as they are now unfolding in the EU tend to confirm that. As one senior European banker put it to me in private discussion, "There is an all-out war going on between the United States and the EU to define the future face of European banking."

In this banker’s view, the ongoing attempt of Italian Prime Minister Silvio Berlusconi and France’s Nicolas Sarkozy to get an EU common ‘fund’, with perhaps upwards of $300 billion to rescue troubled banks, would de facto play directly into Paulson and the US establishment’s long-term strategy, by in effect weakening the banks and repaying US-originated Asset Backed Securities held by EU banks.

Using panic to centralize power

....

http://www.globalresearch.ca/index.php?context=viewArticle&code=ENG20081009&articleId=10495

[phirang]

Behind the Panic: Financial Warfare and the Future of Global Bank Power

by F. William Engdahl


What’s clear from the behavior of European financial markets over the past two weeks is that the dramatic stories of financial meltdown and panic are deliberately being used by certain influential factions in and outside the EU to shape the future face of global banking in the wake of the US sub-prime and Asset-Backed Security (ABS) debacle. The most interesting development in recent days has been the unified and strong position of the German Chancellor, Finance Minister, Bundesbank and coalition Government, all opposing an American-style EU Superfund bank bailout. Meanwhile Treasury Secretary Henry Paulson pursues his Crony Capitalism to the detriment of the nation and benefit of his cronies in the financial world. It’s an explosive cocktail that need not have been.

Stock market falls of 7 to 10% a day make for dramatic news headlines and serve to foster a broad sense of unease bordering on panic among ordinary citizens. The events of the last two weeks among EU banks since the dramatic state rescues of Hypo Real Estate, Dexia and Fortis banks, and the announcement by UK Chancellor of the Exchequer, Alistair Darling of a radical shift in policy in dealing with troubled UK banks, have begun to reveal the outline of a distinctly different European response to what in effect is a crisis ‘Made in USA.’

US Goldman Sachs ex CEO Henry Paulson, as Treasury Secretary, is not stupid or incompetent. Quite the oppositie. There is serious ground to believe that he is actually moving according to a well-thought-out long-term strategy. Events as they are now unfolding in the EU tend to confirm that. As one senior European banker put it to me in private discussion, "There is an all-out war going on between the United States and the EU to define the future face of European banking."

In this banker’s view, the ongoing attempt of Italian Prime Minister Silvio Berlusconi and France’s Nicolas Sarkozy to get an EU common ‘fund’, with perhaps upwards of $300 billion to rescue troubled banks, would de facto play directly into Paulson and the US establishment’s long-term strategy, by in effect weakening the banks and repaying US-originated Asset Backed Securities held by EU banks.

Using panic to centralize power

....

http://www.globalresearch.ca/index.php?context=viewArticle&code=ENG20081009&articleId=10495


Now what about that LIBOR... interesting how the G20 meeting is before the settlement of the really ugly CDS'.

[BiscayneSunrise]

The chechens sure did...

Lemme ask Imam Shamil...:eek:

After action reports coming from the battlefield in South Ossettia indicate the Russians were the gang that could barely shoot straight;ie. Ancient technology, poor battle planning, dysfunctional command and control, a shocking amount of friendly fire incidents.

If the battle had been US vs. Russia, it would have lasted all of 10 minutes, with Russian forces left behind as smoking holes.

[phirang]

After action reports coming from the battlefield in South Ossettia indicate the Russians were the gang that could barely shoot straight;ie. Ancient technology, poor battle planning, dysfunctional command and control, a shocking amount of friendly fire incidents.

If the battle had been US vs. Russia, it would have lasted all of 10 minutes, with Russian forces left behind as smoking holes.

Chechnya is still a liability for Russia: Kadyrov is despised.

CIA is planning a field day if Russia doesn't play nice with the G20.

[VIT]

After action reports coming from the battlefield in South Ossettia indicate the Russians were the gang that could barely shoot straight;ie. Ancient technology, poor battle planning, dysfunctional command and control, a shocking amount of friendly fire incidents.

If the battle had been US vs. Russia, it would have lasted all of 10 minutes, with Russian forces left behind as smoking holes.

To BiscayneSunrise:
You are not exactly right about 10 minutes, 20-30 minutes this is about time when ICBMs from both sides hit each other. Do not forget it.

Why Russia is against missile system in Eastern Europe :confused:. Somebody someday could decide to go nuclear :(