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G-20 to focus on global currencies
Published: 19 June, 2010, 03:15
Edited: 20 June, 2010, 10:12
The G-20 summit takes place in Canada next week, but spats between the United States and China over currency concerns are already taking place.
Is it possible not to interrupt invited to give expert opinion in abrupt and destructive manner?. Also, journalists must stick to facts and minimize spins. These steps need to be taken unless RT is not another Fox Spin Machine serving Russian oligarchs.
What we are seeing in the world today is geopolitical and economic dislocation. Last year in 2009 the G20 was given very good and sound economic advice by GEAB concerning the US Dollar, get rid of it as the worlds reserve currency and discontinue pricing world wide commodities in US Dollars. Instead create a virtual currency from a basket of world currencies, currencies that have value, for the pricing of world wide commodities. Such a currency could not be manipulated by any one state and have a hard value giving the investor, markets and stockbroker more assurance financially and economically. They did not listen, instead they mustered financial packages to prop up unsustainable bankrupt banks, resulting in government debts world wide. Results the public has to pay by tax and austerity measures.The US has gone to war against the Euro in an attempt to discredit it, and bring disharmony and possible fracture of the EU. The EU has taken the bull by the horns, led by Angela Merkel, by creating an EU bail out package, the Euro is slowly regaining ground. We are seeing the UK looking with horror at the debt they have created, where will find it/ who will loan them. In the coming autumn the US will see a similar situation and the maturity of bonds, where will the money come from and who is going to loan them? China? The Chinese have enough US debt already. Why should China remove a tight rein on the value of it's currency to their detriment, especially when the ones who demand this created the present mess in the first place. For the EU some austerity measures are vital for their survival as a group and for the member countries internal economic affairs.The G20 should look at currencies, especially the US Dollar. It should also look at virtual currency for the world stock markets and commodity pricing. This may well give a kick start to the the world economy.
More bailouts, more stimulus, higher currencies... more and more bubbles. Who will jump the ship first and start swimming to sanity?
What money does the US suggest Europe spend in order to avoid austerity? Maybe Europe would still have some if the American government regulated Wall Street properly.
Having a basket of reserve currencies is an absolute necessity to move to. It will bring much greater democracy and stability to the reserve and trading positions. Effectively an automatic hedge will be built into the systetm. However, whilst necessary, it is not sufficient to ensure currency stability, although it will help considerably. The real truth is that while the underlying currencies in the basket are still open to aggressive derivative trades, then it is just as easy for the warfare team to go after them, as it was a single currency. Indeed the 'smart' ones will quickly calculate the hedge model and work against it to force intervention by the central banks of the currency issuers. Basically the situation is more complicated, but derviative trade still wrecks it, in just as easy a manner. It is just now a group is acting, instead of the single nation under attack. So improvement but not fixed, and worse, very easy to get around. The same holds for non reserve currencies, which can still be targeted just the same; there is an argument that the basket will force atacks on these smaller currencies; a, I have locks on my windows, so the neighbour gets burgled approach. But that is not a good situation either. So yes we need a basket, but we need more, and that more is global regulation of the derivative market (foreign exchange in this context). Indeed this is what everyone is going to talk about in G20. Even Obama is on to this one. People are moving past thinking just in trade terms, and now realising that the system needs inbuilt protection against warfare. Finance used to be to support the economy, however, the mechanism of support turned into a cash earner itself, so the traders realised they didn't need the finance model anymore, they could make money from the tools themselves. The sytem moved into virtuality, unrelated with finance, business and economics. Even though its back effects were still real, destroying Finance, business and economics.
Chossudovsky is absolutely spot on, what the US want is to two things. The first is to open China for financial warfare on their currencies, the second is to keep the debt pile mounting for economies around the world to further get them under control. Getting China to float their currency, has nothing to do with competition, that is just the official line. The real end game is to open China for speculative warfare and to introduce immense volatility for profit in the Chinese currency, at the expense of Chinese people, That is the real end game. Then on debt, the world bank is dutifully playing its part to get the tax backed debt cycle built up, they applaud as countries like Spain take on debt and issue copper bottom guarantees that they will tax their populations to death to pay it back. This is the ulimate goal of the new financial order, that countries will enslave their people in debt, with the local admistration being the dutiful debt collector for the financial elite. It is a perfect scheme, they just print paper, from the printing press out the back, get the countries to borrow it, making sure those countries, keep their people in austerity to keep a future income stream guaranteed to the financial elite. 'Good housekeeping' enforced on the people to pay the debt. So G20 is right to look at currencies, but they should do it in a counter speculator/warfare manner. What G20 needs to do is get worldwide laws, limiting the aggregated control over the capital flows on the forex markets. This means limiting transaction funds under a singular political or bodies control both in amount and time. Basically break up and diversify the funds under different minds - democratise the market. With immediate long prison sentences for individuals trading above a certain volume or frequency. There needs to be regulation brought into the market, because at the moment it is just a tool for warfare and fraud, It has nothing to do with investment or free markets.