U.S. Debtor Meets G20 Creditors at the Dollar's Funeral - by Jim White
The initial comments and press conference so far at this early preliminary point do not impress anyone. UK Prime Minister Gordon Brown and US President Barack Obama initiated events with a press conference. Another between Obama and Russian President Dmitri Medvedev is in progress. So far, the statements by Obama seem trivial but laced in words to acknowledge the severity of the situation. Obama has stated that the US will listen and learn, but not pass up the opportunity to lead. He seems unaware that US leadership has failed before, during, and after the crisis began. His body language to me looked nervous, defensive, and out of his league. To date, most US-based stimulus, rescue, nationalization, and funding has been confiscated and directed toward the precise perpetrators.
US syndicates remain beneficiaries and administrators, while regulators and law enforcement chase advocates of free markets. Worse, the negligent, responsible, and corrupt remain in charge within the US Dept Treasury, as representatives from monoliths Goldman Sachs and JPMorgan themselves. Reform is impossible with these people still in charge. Nothing has changed on the power structure inside the USGovt, nor the controlled funnel of hundreds of billion$ in funds. The US president does not seem to understand that the global financial system designed atop the US Dollar has broken irretrievably, and must be scrapped, not adjusted.
The Chinese are leading a movement to create an Emergency Fund for the Assn of Southeast Asian Nations (ASEAN), one which will assist in defense of any hot money attacks against a smaller Asian nation. In 1997, the Asian Meltdown was triggered by hot money attacks waged against Thailand and South Korea. My personal belief is that the Emergency Fund will blossom into a pan-Asian Regional Bond Fund for economic development. The Asian-only fund will essentially serve as a gigantic regional savings account, free from Western control and pressures, independent from Western currency risk, and operate as a regional economic development fund.
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