Archive for the ‘Financial crisis’ Category
The financial system established in England after 1688, based on usurious lending to the state by private bankers, is reaching its final blowout in the form of a series of devastating bubbles and a massive bailout of the financiers with public money. But the issuance of money doesn’t have to be in the hands of a private consortium: another credit system is possible.
Posted by smeddum on April 26, 2009
| Gold – The Yuan Goes Global – Consequences! |
By: Julian D. W. Phillips, Gold/Silver Forecaster – Global Watch –GoldForecaster.com
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— Posted Sunday, 26 April 2009 | Source: GoldSeek.com
For years now we have been warning of the decline of the $ as the globe’s reserve currency. The threat is not so much that the monetary policies of the U.S. are cheapening the worth of the $, but that these are pressing so many other nations to search for ways to avoid the US $ in international dealings. China has now taken a momentous, structurally adjusting step to change matters in their favor.
The bulk of international trade transactions have nothing to do with the U.S. except through the use of the $ to denominate their trade. Approximately 75% of global trade is denominated in the U.S. $ in this way. But the volatility of the U.S. $ has distorted and damaged, this aspect of global trade. Thus has been created an ideal environment for gold to rise as its importance in the changing global monetary system grows again. Read the rest of this entry »
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Posted in Financial crisis, Multipolar world | Tagged: China, gold | Leave a Comment »
Posted by smeddum on April 24, 2009
The prospect of the UK losing its AAA sovereign credit rating, resulting in higher interest rates for companies and households, moved a step closer after ratings agencies voiced fears about the UK’s vast public debt burden.
By Philip Aldrick and Rowena Mason
Last Updated: 10:10AM BST 24 Apr 2009
Moody’s and Standard & Poor’s are reviewing the UK’s rating in light of the Chancellor’s revelation in the Budget that national debt will reach £1.4 trillion over the next five years. Spain, Ireland, Greece and Portugal have already been downgraded. Read the rest of this entry »
Posted in Financial crisis | Tagged: bankrupt Britain | Leave a Comment »
Posted by smeddum on April 19, 2009
Temporary nationalisation is fairer to tax-payers than taking on €90bn of toxic loans, they argue
Julia Kollewe
Guardian
17 April 2009
A group of leading economists is urging the Irish government to ditch its “bad bank” plan in favour of a temporary nationalisation of the financial sector.
In an opinion piece in The Irish Times, 20 of Ireland‘s leading academic economists argue that the government has got it badly wrong. Read the rest of this entry »
Posted in Financial crisis | Tagged: Ireland | Leave a Comment »
Posted by seumasach on April 17, 2009
The next stage of the crisis will result from a Chinese dream. Indeed, what on earth can China be dreaming of, caught – if we listen to Washington – in the “
dollar trap” of its 1,400-billion worth of USD-denominated debt (1)? If we believe US leaders and their scores of media experts, China is only dreaming of remaining a prisoner, and even of intensifying the severity of its prison conditions by buying always more US T-Bonds and Dollars (2).
Posted in Financial crisis | Tagged: financial collapse, US debt default | Leave a Comment »
Posted by smeddum on April 16, 2009
The Crisis That Could Bring Down Obama
Goldman Sachs reports better-than-expected profits this quarter. Wells Fargo cleared record profits last week. The President, understandably, points to signs of hope and encourages Americans to be optimistic about the economy. But when do we move from healthy confidence to a confidence game? The banks are reporting profits thanks to massive infusions of taxpayer bailout funds. It’s simply silly to be lulled by cheery-sounding reports when the institutions are actually insolvent. At some point we have to take a clear-eyed look at the massive failure of our financial system. Ignoring it won’t make it go away. Read the rest of this entry »
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Posted by seumasach on April 13, 2009
Migrant workers hit hardest by economic slump
Guardian
12th April, 2009
The queue snaked through the city centre: hundreds of desperate people waiting patiently for a food parcel filled with basics such as bread, beans and sugar.
Read the rest of this entry »
Posted in Financial crisis | Tagged: economic collapse | Leave a Comment »
Posted by seumasach on April 10, 2009
Here is some cheering news: as suspected Brown’s much vaunted global stimulus amounts to practically nothing. William Buiter has done us the honour of putting his considerable expertise to debunking this particular piece of New Labour hype. As we have predicted for some time institutions like the IMF are now blocked from the point of view of the machinations of Brown’s New World Order brigade. It remains for Washington and London to desist from further, fruitless attempts to impose their hegemony and instead dismantle their empire, and for new global leadership to emerge based on the rising poles to the South and East, such as China, Iran and Bolivarist South America.
From:
William Buiter
Mavrecon
8th April, 2009
The global stimulus associated with the increase in IMF resources agreed at the G20 meeting earlier this month will be negligible unless and until these resources actually materialise. The statements, declarations and communiqués of the G20, including the most recent ones highlight the gaps between dreams and deeds.
Read the rest of this entry »
Posted in Financial crisis, Multipolar world | Tagged: G20 summit, new global leadership, new world order | Leave a Comment »
Posted by smeddum on April 7, 2009
The Dirty Little Financial Secret
The Reality no one Wants to Address
by Gilles d’Aymery
(Swans – April 6, 2009) Last week, US Treasury Secretary Timothy Geithner unveiled the administration’s latest plan to deal with the financial tsunami, the Public-Private Investment Partnership (PPIP). The stock market soared. Meanwhile, President Obama flew to London to attend the two-day G-20 summit, which, at its conclusion, issued an optimistic communiqué that emphasized the commitment of the respective governments to stabilize the global economy, get back on the road to growth, and create jobs. The market responded with mitigated zeal. The pundits claimed that at long last the bottom had been reached and the worst of times was finally behind us. Time to invest again, they trumpeted. Never mind that the real economy lost over 600,000 jobs in March and that it keeps deteriorating at a fast pace. Hope springs eternal. However, in light of the sheer magnitude of numbers involved in this worldwide financial crisis, the chances that the PPIP plan and the decisions taken by the G-20 will succeed are unfortunately close to nil. The numbers speak for themselves. Read the rest of this entry »
Posted in Financial crisis | Tagged: hyperinflation | Leave a Comment »
In These New Times 