While the United States of America struggles valiantly to restore our economic engine the rest of the world looks for a way to jettison the hated US Dollar in favor of a new world reserve currency. The crisis has become a crisis of faith in capitalism itself and no nation on earth personifies the kind of unbridled capitalism that the world is rejecting so much as the United States. Stories of American Wall Street firms taking billions from the government and giving themselves huge bonus’s and golden parachutes while the crisis deepen across the globe is a study of evil the world can’t ignore. The Flood of Dollars unleashed by the Federal Reserve is destroying the confidence in the Dollar and in America itself and the world is looking for a life raft as the American Ship of State sinks. Our system is seen as fundamentally immoral and as we furiously print more dollars and try to borrow more from other nations the world is seeing through our denial and foolhardiness and is forming a plan. It’s still very much under the radar but the number of nations getting on the “dump American Currency” wagon is growing like the number of governments facing civil unrest and the protestors at labor rallies in Paris.
It was one thing to have French President Sarkozy call for a new reserve currency and it was something of a shock to see China agree in principle. It was one thing for the Russians and some of the third world call for a new reserve currency and a new banking, investment and trade apparatus that would be global in scope and free of American domination but when Australia calls for a new reserve currency it’s time to worry. The first story below is from a newspaper in Sydney Australia and like the others that follow is uncut. Read carefully what the new Australian PM is saying about our current financial system and what he envisions taking its place. This is quite serious folks because the momentum for the world to pull the rug out from under the dollar is growing each day and if it happens it’ll take the USA a generation or more to climb out of the hole we’ve dug for ourselves and our great grandchildren. Everything the government is doing right now will magnify the damage if the world dumps its dollars.
The United States of America is not mentioned in Biblical End Times Prophesy and as you read the stories below about Putin’s view of the crisis, the deepening threat of civil unrest in Russia, Europe, and Iceland you’re looking perhaps at the reason why. The United States of America is facing an economic holocaust that will make the Great Depression look like a Folk Dance and our corrupt efforts at a Stimulus Bill (A pork laden Christmas Tree) has no chance of reversing the slide. The only think that might save us now is massive business tax cuts, combined with the low interest rates that might just put us back on track but we have one big impediment to that happening. The Democrats have built a party on class warfare pitting worker against management, to such a degree, that they’re unable to take the only action that might save us all and the future of capitalism in the bargain. Perhaps we’re not mentioned in End Times Prophesy because we tore ourselves apart by our class warfare, greed, and reliance on central banking to such a degree that we were rendered irrelevant in the last days. The next few years will tell the story.
Consider carefully the following stories and consider for yourself the significance of what Australia is saying in the backdrop of Davos and of Sarkozy’s and Putin’s remarks and ask yourself if the hundreds of millions of pork payments to democrat constituent groups makes the world’s point that were “too corrupt to continue.” We came up with the “too big to fail” mantra and we’ve come to this point but what happens if the world decides the USA is “too corrupt to continue?”
The end times seems to be a faceoff between power centers like Russia, the Arabs of the Middle East, China and the Kings of the East and Israel. American leadership is absent in scripture and a careful consideration of the world economic thinking tells a very plausible story why that might be so. America must fall and Europe must rise; it’s not as unthinkable as once it was.
(From The Sydney Morning Herald)
Time for a new world order: PM
Phillip Coorey Chief Political Correspondent
January 31, 2009
KEVIN RUDD has denounced the unfettered capitalism of the past three decades and called for a new era of “social capitalism” in which government intervention and regulation feature heavily.
In an essay to be published next week, the Prime Minister is scathing of the neo-liberals who began refashioning the market system in the 1970s, and ultimately brought about the global financial crisis.
“The time has come, off the back of the current crisis, to proclaim that the great neo-liberal experiment of the past 30 years has failed, that the emperor has no clothes,” he writes of those who placed their faith in the corrective powers of the market.
“Neo-liberalism and the free-market fundamentalism it has produced has been revealed as little more than personal greed dressed up as an economic philosophy. And, ironically, it now falls to social democracy to prevent liberal capitalism from cannibalising itself.”
Mr Rudd writes in The Monthly that just as Franklin Roosevelt rebuilt US capitalism after the Great Depression, modern-day “social democrats” such as himself and the US President, Barack Obama, must do the same again. But he argues that “minor tweakings of long-established orthodoxies will not do” and advocates a new system that reaches beyond the 70-year-old interventionist principles of John Maynard Keynes.
“A system of open markets, unambiguously regulated by an activist state, and one in which the state intervenes to reduce the greater inequalities that competitive markets will inevitably generate,” he writes.
He urges “a new contract for the future that eschews the extremism of both the left and right”.
He mocks neo-liberals “who now find themselves tied in ideological knots in being forced to rely on the state they fundamentally despise to save financial markets from collapse”.
He advocates tighter regulation and policing of global finances, and identifies the immediate challenge as restoring global growth by 3 per cent of gross domestic product, the amount it is expected to fall in 2009. Next week, as Parliament resumes, his Government will chip in with a second economic stimulus package.
Mr Rudd commits to keeping budgets in surplus “over the cycle”, meaning deficits should be temporary. In a further sign the Government is not contemplating additional tax cuts, which would deliver a permanent hit to revenue, he stresses that stimulus measures have to be paid for when the economy recovers.
Mr Rudd singles out Thatcherism as a culprit, as well as the former Howard government. His essay implicitly attacks the Opposition Leader, Malcolm Turnbull, who this week urged the free market be allowed to dictate commercial property values as he slammed a Government measure to prop them up.
Mr Rudd’s essay follows the blast Mr Obama gave Wall Street bankers yesterday for awarding themselves $28 billion in bonuses last year at the same time as they were being bailed out by taxpayers.
In a message to Mr Obama and the US Congress, Mr Rudd counselled against erecting trade barriers. “Soft or hard, protectionism is a sure-fire way of turning recession into depression as it exacerbates the collapse in global demand.”
The message was reinforced in Davos yesterday when the Trade Minister, Simon Crean, described the “buy American” provisions of the new Obama stimulus package as “very worrying”. “On the face of it, it looks like it contravenes commitments made to the World Trade Organisation,” he said.
with Paola Totaro
This story was found at: http://www.smh.com.au/articles/2009/01/30/1232818725574.html
(From the BBC)
Putin urges reserve currency move
Russian Prime Minister Vladimir Putin has told the Davos economic forum it is dangerous for the world to over-rely on the dollar as its reserve currency.
He called for a range of reserve currencies and said he envisaged the emergence of several strong regional currencies in the future.
He advised against isolationism and state economic control as ways out of a “perfect storm” in the world economy.
And he warned against military spending as a way to boost economic growth.
Mr Putin, who became prime minister last year after two presidential terms which saw rapid economic growth in Russia, was addressing the World Economic Forum on its first full day of business.
“Excessive dependence on what is essentially the only reserve currency is dangerous for the world economy, therefore it would be expedient to encourage an objective process for the emergence of several strong regional currencies in the future,” he said.
Countries issuing such currencies should, he argued, show more policy openness.
The US dollar continues to dominate official foreign exchange reserves, accounting for 63.9% in 2007 compared with 25.5% for the euro and 4.7% for sterling.
Mr Putin said some protectionism might be inevitable amid a global crisis but he urged against “isolationism and unrestrained economic selfishness”.
He said that Russia opposed spending more money on defence as a way to boost economic growth, as this only aggravated the problem.
Russia’s prime minister also called for a return to “balanced” world energy prices and a new international legal framework for energy security.
He wished US President Barack Obama’s new team “success”, hoping for constructive co-operation between Washington and Moscow.
Story from BBC NEWS: http://news.bbc.co.uk/2/hi/business/davos/7857005.stm
(From the BBC)
Crisis may ‘spark social unrest’
Europe faces the risk of more social unrest unless measures are taken to quickly tackle the global economic crisis, France’s finance minister says.
Christine Lagarde said trust in the financial system needed to be restored.
Leaders needed to send a clear, understandable signal to ordinary people about how governments were intending to act, she added.
She said that action should be taken by the G20 summit taking place in London in April.
“We’re facing two major risks: one is social unrest and the second is protectionism,” she told the World Economic Forum in Davos.
“We need to restore confidence in the systems and confidence at large,” she added.
On Saturday, hundreds of people demonstrated in Geneva and Davos to protest against the World Economic Forum.
Carrying banners reading “you are the crisis” and throwing snowballs at security guards, the demonstrators said those at the forum were not qualified to fix the world’s problems.
Governments in France, Russia and Iceland have faced angry protests from citizens upset by their handling of the economic crisis.
French rail and air services were disrupted on Thursday as huge crowds took to the streets.
Iceland’s coalition government collapsed on Monday under the strain of the financial crisis.
Story from BBC NEWS:
Published: 2009/01/31 16:39:36 GMT
© BBC MMIX
Something from Ron Paul just for fun
The World’s Reserve Currency
by Ron Paul
The financial press reported last week that the euro, the new currency created only five years ago and used by most European nations, has supplanted the U.S. dollar as the most widely used form of cash internationally. There are now more Euros in circulation worldwide than dollars.
This alone is not necessarily troubling, as the dollar remains the world’s most important reserve currency. About 65% of foreign central bank exchange reserves are still held in dollars, versus only about 25% in euros. And the European Central Bank faces the same inflationary pressures that our own Federal Reserve Bank Governors face, including a growing entitlement burden that threatens economic ruin as both societies age. European politicians want to spend money just as badly as American politicians, and undoubtedly will clamor to inflate – and thus devalue – the euro to fund their creaky social welfare systems.
Still, the rise of the Euro internationally is another sign that the U.S. dollar is not what it used to be. There is increasing pressure on nations to buy and sell oil in Euros, and anecdotal evidence suggests that drug dealers and money launderers now prefer Euros to dollars. Historically, the underground cash economy has always sought the most stable and valuable paper currency to conduct business.
More importantly, our greatest benefactors for the last twenty years – Asian central banks – have lost their appetite for holding U.S. dollars. China, Japan, and Asia in general have been happy to hold U.S. debt instruments in recent decades, but they will not prop up our spending habits forever. Foreign central banks understand that American leaders do not have the discipline to maintain a stable currency. When the rest of the world finally abandons the dollar as the global reserve currency, both Congress and American consumers will find borrowing money a more expensive proposition.
Remember, America can maintain a large trade deficit only if foreign banks continue to hold large numbers of dollars as their reserve currency. Our entire consumption economy is based on the willingness of foreigners to hold U.S. debt. We face a reordering of the entire world economy if the federal government cannot print, borrow, and spend money at a rate that satisfies its endless appetite for deficit spending.
At some point Americans must realize that Congress, and the Federal Reserve system that permits the creation of new money by fiat, are the real culprits in the erosion of your personal savings and buying power. Congress relentlessly spends more than the Treasury collects in taxes each year, which means the U.S. government must either borrow or print money to operate – both of which cause the value of the dollar to drop. When we borrow a billion dollars every day simply to run the government, and when the Federal Reserve increases the money supply by trillions of dollars in just 15 years, we hardly can expect our dollars to increase in value.
January 2, 2007
Dr. Ron Paul is a Republican member of Congress from Texas.
Click this link for the final nail in our coffin: http://www.glennbeck.com/content/articles/article/198/20816/
Click the picture of glenn in front of a chart. Its an amazing vidio