Saturday, October 25, 2008

[so predictable] world financial reform

Finance pow-wow:

Ending a summit in Beijing, they also urged the International Monetary Fund (IMF) to play a greater role in helping countries hit by the market turmoil.

And while we're there, we'll institute UN control of international relations, WTO control of trade and WHO control of global health. As Shakespeare once wrote: "feeding on that which doth preserve the ill".

They're nothing if not predictable, these people.


Anonymous said...

And on a wild and windy weekend, here comes father xmas with news of far greater tribulations for mankind.

Not that I agree with all the details, but the general direction, - I agree with.

(James, - as far as I am aware, now no sovereigns in UK).

Oh, well.

Hope you read my latest post from Jim Willie.

Here's some more. You may recall I said this a few months ago, I think to CU, here.


Anonymous said...

As a point of principle, it is not usually the debtors that dictate the terms of an agreement.

It is the creditors.

Figure out who they are, and you get a different picture of the world that's on its way to greet us!

(In the main, they like gold, - - should be interesting!)

Anonymous said...

Here it comes.

And not so subtle this time

And still no mention of the Yen Carry Trade!!

Anonymous said...


Now, who are those creditors who call the tunes???????

Anonymous said...

Dear Ambrose sorts it out again.

Perhaps an alternate European view.

Here, and a MUST READ!

Looks like Incapability Browns bailout may not be enough.

Where was the oversight?

Sterling in the basement

Austria’s bank exposure to emerging markets is equal to 85pc of GDP – with a heavy concentration in Hungary, Ukraine, and Serbia – all now queuing up (with Belarus) for rescue packages from the International Monetary Fund.

Exposure is 50pc of GDP for Switzerland, 25pc for Sweden, 24pc for the UK, and 23pc for Spain. The US figure is just 4pc. America is the staid old lady in this drama.

Amazingly, Spanish banks alone have lent $316bn to Latin America, almost twice the lending by all US banks combined ($172bn) to what was once the US backyard. Hence the growing doubts about the health of Spain’s financial system – already under stress from its own property crash – as Argentina spirals towards another default, and Brazil’s currency, bonds and stocks all go into freefall.

Broadly speaking, the US and Japan sat out the emerging market credit boom. The lending spree has been a European play – often using dollar balance sheets, adding another ugly twist as global “deleveraging” causes the dollar to rocket. Nowhere has this been more extreme than in the ex-Soviet bloc.

The region has borrowed $1.6 trillion in dollars, euros, and Swiss francs. A few dare-devil homeowners in Hungary and Latvia took out mortgages in Japanese yen. They have just suffered a 40pc rise in their debt since July. Nobody warned them what happens when the Japanese carry trade goes into brutal reverse, as it does when the cycle turns.

The IMF’s experts drafted a report two years ago – Asia 1996 and Eastern Europe 2006 – Déjà vu all over again? – warning that the region exhibited the most dangerous excesses in the world.


Well, well, hoodathunkit!

Hungary stunned the markets by raising rates 3pc to 11.5pc in a last-ditch attempt to defend the forint’s currency peg in the ERM.

It is just blood in the water for hedge funds sharks, eyeing a long line of currency kills. “The economy is not strong enough to take it, so you know it is unsustainable,” said Simon Derrick, currency strategist at the Bank of New York Mellon.

Hmm, shades of UK ejection,
No learning curve.
Where is the oversight?

Romania raised its overnight lending to 900pc to stem capital flight, recalling the near-crazed gestures by Scandinavia’s central banks in the final days of the 1992 ERM crisis – political moves that turned the Nordic banking crisis into a disaster.


Russia too is in the eye of the storm, despite its energy wealth – or because of it. The cost of insuring Russian sovereign debt through credit default swaps (CDS) surged to 1,200 basis points last week, higher than Iceland’s debt before Götterdammerung struck Reykjavik.

The markets no longer believe that the spending structure of the Russian state is viable as oil threatens to plunge below $60 a barrel. The foreign debt of the oligarchs ($530bn) has surpassed the country’s foreign reserves. Some $47bn has to be repaid over the next two months.

Traders are paying close attention as contagion moves from the periphery of the eurozone into the core. They are tracking the yield spreads between Italian and German 10-year bonds, the stress barometer of monetary union.

The spreads reached a post-EMU high of 93 last week. Nobody knows where the snapping point is, but anything above 100 would be viewed as a red alarm. The market took careful note on Friday that Portugal’s biggest banks, Millenium, BPI, and Banco Espirito Santo are preparing to take up the state’s emergency credit guarantees.

Hans Redeker, currency chief at BNP Paribas, says there is an imminent danger that East Europe’s currency pegs will be smashed unless the EU authorities wake up to the full gravity of the threat, and that in turn will trigger a dangerous crisis for EMU itself.

“The system is paralysed, and it is starting to look like Black Wednesday in 1992. I’m afraid this is going to have a very deflationary effect on the economy of Western Europe. It is almost guaranteed that euroland money supply is about to implode,” he said.

A grain of comfort for British readers: UK banks have almost no exposure to the ex-Communist bloc, except in Poland – one of the less vulnerable states.

The threat to Britain lies in emerging Asia, where banks have lent $329bn, almost as much as the Americans and Japanese combined. Whether you realise it or not, your pension fund is sunk in Vietnamese bonds and loans to Indian steel magnates. Didn’t they tell you?


Blood in the streets.
Civil disorder.
Pensioners starving.
NHS??, You jest, - Go see the tooth fairy.

Hang the Bankers high, every last f*cking one of 'em.
Start with the Rothschilds and their spawn.

The Grand European Scheme?? TOAST!, and that's good, long term, but...

Ex member states do their own thing.
International blood in the streets.

All broons new laws fall into focus.

You stooopid B*stards.

Anonymous said...

The techniques explained fully in the book mentioned to Sean Jeating, "Confessions of an Economic Hitman" seem to have been learned by the entire banking world, and applied simultaneously.

If the "Masters of the Universe" can find a safe haven for their finances, and wait out the coming collapse, they will be able to pick up GLOBALLY PRIME ASSETS, INTERNATIONALLY, at pence in the pound, - - say 10 pence.

The politicians are obliging by using taxpayer funds to bail-out these parasites, which will only make the situation for the public far worse, long term, but also serve to underwrite the success of the Rothschilds, et al, in their grand scheme of control.

Welcome to the NWO.

Post Democratic High Tech Feudalism.