I say : When you see the likes of Siemens and Lloyd's move their liquidity out of France and French Banks.....Does that give you a hint ? -- A communiqué from the finance ministers and central bankers of the IMF's member states, released after Saturday's meetings, reiterated the need for urgent action from the eurozone and set a deadline of mid-October for reforming the bailout fund. G20 sources said the meetings had ratcheted up the sense of alarm over the crisis, saying "there's been a very visible shift in pace, mood and urgency", but there was a sense of exasperation among non-eurozone members about the lack of concrete action. A clearly exasperated Canadian finance minister, Jim Flaherty, told journalists: "We've been talking about Greece since January 2010." European ministers had to endure an ear-bending from their counterparts in the rest of the world this weekend. George Osborne used his statement to the IMF committee to press Europe to accelerate measures to transform the single currency into a fully fledged fiscal union. "The eurozone should follow the remorseless logic of monetary union through progress on institutional reform, greater fiscal integration and coordination of budget policies," he said. Ministers from the G20 group of major economies have called for an urgent ratification of the 21 July agreement, brokered by Angela Merkel and Nicolas Sarkozy, to beef up the powers of the EFSF. Osborne warned on Friday that Europe has just six weeks to resolve its political crisis. Insiders say there is disarray among Europe's leaders about the best way to contain the fallout from a Greek default. The European Central Bank would have to play a major role in any rescue package, but so far has intervened only reluctantly. Its president, Jean-Claude Trichet, has repeatedly insisted that a Greek default is unthinkable.
Access Investments-Building Awareness - European Union-ROMANIA
Sunday, September 25, 2011
EU is run by unelected commissioners, the MEP's are just front men, window dressing to give the appearance of democracy.
I say : When you see the likes of Siemens and Lloyd's move their liquidity out of France and French Banks.....Does that give you a hint ? -- A communiqué from the finance ministers and central bankers of the IMF's member states, released after Saturday's meetings, reiterated the need for urgent action from the eurozone and set a deadline of mid-October for reforming the bailout fund. G20 sources said the meetings had ratcheted up the sense of alarm over the crisis, saying "there's been a very visible shift in pace, mood and urgency", but there was a sense of exasperation among non-eurozone members about the lack of concrete action. A clearly exasperated Canadian finance minister, Jim Flaherty, told journalists: "We've been talking about Greece since January 2010." European ministers had to endure an ear-bending from their counterparts in the rest of the world this weekend. George Osborne used his statement to the IMF committee to press Europe to accelerate measures to transform the single currency into a fully fledged fiscal union. "The eurozone should follow the remorseless logic of monetary union through progress on institutional reform, greater fiscal integration and coordination of budget policies," he said. Ministers from the G20 group of major economies have called for an urgent ratification of the 21 July agreement, brokered by Angela Merkel and Nicolas Sarkozy, to beef up the powers of the EFSF. Osborne warned on Friday that Europe has just six weeks to resolve its political crisis. Insiders say there is disarray among Europe's leaders about the best way to contain the fallout from a Greek default. The European Central Bank would have to play a major role in any rescue package, but so far has intervened only reluctantly. Its president, Jean-Claude Trichet, has repeatedly insisted that a Greek default is unthinkable.
Subscribe to:
Post Comments (Atom)
8 comments:
well...how about this ....Britain is not a member of the European Financial Stability Fund (EFSF) - which was set up last year to "preserve financial stability of Europe's monetary union" by providing temporary financial assistance to eurozone countries in difficulty.
Most of the money in the new rescue package would come from the EFSF - limiting Britain's involvement. The fund is currently valued at £350billion, but would need much more cash pumped into it from its members states.
Britain's banks, moreover, are not among the most exposed to Greek debt.
The deal would also use cash to buy up the government bonds issued by Italy and Spain - which are currently going unsold and adding to the peril surrounding the eurozone's third and fourth largest economies.
In total it would amount to euro 2 trillion - £1.75 trillion.
Any agreement, according to experts, would be similar to the proposal made to eurozone nations by Tim Geithner, the US Treasury Secretary, earlier this month.
Germany - the key player in the eurozone - initially rejected the suggestion but is understood to have been sparked into action on a variation of the plan by the recent turmoil on world financial markets.
Last night George Osborne, the Chancellor, attempted to play down suggestions of an imminent deal. He said: "No-one here has put forward a plan for that. Greece has got a programme and needs to implement it."
For the finance ministers and central bank governors from the world’s leading 20 countries who were dining in the hall that night, however, the 1970s minimalism was wholly appropriate. Talk could turn to austerity without the jarring distraction of vaulting chandeliers and priceless art.
For George Osborne and Charlie Bean, the Bank of England deputy Governor who was standing in for Sir Mervyn King, there was an added poignancy. The construction of meeting hall A and B was reputedly financed by the interest payments Britain made on the £3.9bn IMF loan the country took in the dark days of 1976 – the era of the three day week and 25pc inflation.
Some 35 years on, though, and it wasn’t the UK that was the focus of attention, but the eurozone. As the 40 delegates round the table tucked into their goats cheese tart starter, main of poached fish and dark chocolate tart with crème anglaise dessert, policymaker after policymaker voiced their frustration about the lack of political will in Europe to resolve the sovereign debt crisis.
Time is running out, they said, and patience is wearing thin. Sitting opposite Osborne was Ben Bernanke, chairman of the US Federal Reserve, who had been feeling the pressure personally.
Two days earlier, he had unveiled “operation twist” – a quantitative easing-lite operation to switch $400bn of central bank funds from short-dated government debt into long-dated treasuries. The idea was to bring down long-term interest rates and so ease the pressure on US homeowners, one quarter of whom are in negative equity.
Talk of bank re-capitalisation and bail-out funds misses the critical point. Permanent growth is not possible in a finite world.
Blaming banks and speculators is too superficial an analysis, it's like blaming the postman for the electricity bill. Financial markets are just conveying information that infinite growth isn't possible in a finite world.
Assets, e.g stocks & bonds, have been valued on the assumption of permanent economic growth and we're starting to hit the limits of what's possible in a finite world. Therefore growth will be much harder or even impossible and markets will re-value assets downwards.
That's the overall picture, the messy details are things like stock market plunges, debt defaults and so on. Politicians are only dealing with the symptoms of reaching the point of inflection in the logistic curve for global economic growth. They're trying to get the world back to the days when growth was exponential. Ultimately that's not possible.
IF this crisis was going to be stopped, the Euro elite would have acted before now. As observed, a political problem has created an economic crisis.
Sometimes it is better - when analysing a situation - to look at what has NOT happened and IMHO the crisis is not resolvable. A Greek default will not happen for the reasons set out in this very thoughtful article:
http://blogs.telegraph.co.uk/f...
And there we have it - the Euro Rabbits are caught in the headlights of an oncoming car crash and they know there is precious little they can do about it.So sit back, take whatever defensive posture you want as we are in for a ride of a lifetime.
Once politicians rise to this level, their egos are so highly inflated that they no longer see the greater good; call it hubris, for that's what it is. One brave politician (oxymoron), of whatever hue, and from whatever country, must take the vital decision to do something for the greater good rather than be influenced by the impact that decision might have on their chances at the next election.
But in that event, an even greater problem exists. The lumpen-electorate, who would have to bear the brunt of that decision, would never understand why such drastic action has to be taken and will then vote in those who promise to wave a magic wand to make it all better again. Political will, therefore, is a pipe-dream.
“Fourty million people could be put back into poverty if we don’t succeed”
in averting recession,"
Truly pathetic, cynical, shameful.
You should have THOUGHT about this BEFORE, Mme Lagarde, when you and others in the European elite were racking up VAST debts. You as a Finance Minister share your part of the responsibility.
Let's get this clear; IT WAS NOT THE PLEBS, was it?
Once again, my recent habit of asking, after every pronouncement by Lagarde or her IMF, "How does this benefit French banks?" is proven wholly justified. It seems that the entirety of the exercise is centered around the part-nationalization (or rather, further nationalization) of the French banks and ensuring that the entirety of the market is tamed so as to protect them at all costs. The rest is simply details.
''The German parliament still has to vote through changes to the function of the EFSF agreed on July 21, so the proposal is being denied but – sources said - is in the works.''
I doubt if the German parliament will vote the July 21 changes through in the light of this proposal, especially as not voting them through stops this proposal in its tracks.
''...and Greece subjected to a new IMF-led austerity programme,''
And what do you think the Greek people will do? Simple. They will rebel. Then what will the global dictators (IMF, World Bank, EU) do? Shoot them? That hasn't worked for the Arab dictators...
This is all about global dictatorship versus national democracy. I know which side I am on. I'm not at all sure about the Telegraph, particularly its, er, global banking correspondent. Oh
The concrete block that looks like a prison was the right place for these financial fraudsters who have yet to be punished for their failures.
A few innocents may have been present at this last supper, but the rest remind me of the story about the boy who cried 'wolf'.
They cajoled and coerced the village of taxpayers and investors to come to their aid - and then mocked everyone by repeating their bad behaviour since 2008.
They socialised their 'losses', and enjoyed their private profits whilst giving little to the honest people, business and some bankers of integrity who bailed them out.
Now, they cry 'wolf' again. This time, the village is likely to ignore them.
This time, the wolf really is coming for them.
That wolf is corporate socialism.
It has been shorn of its sheep's clothing: the false promise of democratic accountability.
It is obvious that these people seek domination, not democracy nor mark to market integrity.
The wolf is them, and now they must rely on each other. That is their great fear.
The village is likely to ignore them, and likely punish them for their cynical ways.
I see no reason why these people are allowed to behave like gangster banksters, demanding: give us your money or else...
I will sell until some honest accounts return, and prices reflect real production, jobs and growth...rather than this fantasy finance concocted by central banksters, and their pretty political pets - all corporatists; the financial alchemists, not the true business, worker and wealth creators.
Real money for real people who want real jobs, and a stable future. That is the 21st century revolution in the making, in my opinion.
Greece and the entire Eurozone can still be saved if its members can find the political will to let the private banks go bankrupt. There is no need for these states to ruin themselves and their economies trying to pay the liabilities of banks that are many times the value of their economies let alone their state budgets thanks to the excesses of the world historic Ponzi scheme which collapsed in 2008. Without this ludicrous burden Greece and the rest of them could still avoid default, balance their budgets and create new democratic banks as the basis of a new departure and beginning for the European economy. The problem is the politicians are in the pockets of the bankers and their super wealthy creditors who are prepared to destroy entire economies rather than take haircuts on their losing bets. But it is only the matter of a small political decision to overturn the ongoing bailout begun in 2008 and avoid European and global depression from which it is difficult to envisage an escape
Post a Comment