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 The G20 Summit 15th Nov. 08 (Part I?) on a New World Finance System. What will happen - what would you do ?

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PostSubject: The G20 Summit 15th Nov. 08 (Part I?) on a New World Finance System. What will happen - what would you do ?   Fri Nov 14, 2008 9:30 pm

This G20 Summit tomorrow or "Bretton Woods 2" is fairly historic and has just got a spot on the news. They are talking about more regulation and no jurisdiction escaping it - does that mean the end of tax havens? would that be a bad thing would Switzerland end up as the world's biggest chcolate exporter ?

Brown did I hear wants a Croke-Park load of money to be given to the IMF to stimulate demand all over the place and someone else said China and India should be given some say on the IMF that they didn't have previously (at the expense of the EU I read in the IHT). This could mean that money would be allocated differently to borderline countries - potentially more productively/constructively because the IMF haven't a spotless record on dealing with the finances of emerging nations. They even now have no qualms about turning Iceland into a nation of slaves by whacking an interest rate of 18% on loans of 6 billion to them.

I've a feeling that it might not be a bad thing if a number of currently strong currencies in the world were tied within a floating exchange rate band so corporations looking for bargain could be allowed to do so as well as consumers (driving North for Christmas ... ) but it would deter currency speculators. This would allow business to happen between countries without huge and artificial advantages arising because of advantageous interest rates which turn around and bite you in the long term. That's just one thing and I'm not really that sure what the effects of it would be - at the moment smaller countries can have tax haven status and conversely can be subject to international sharks but perhaps they would be better off being directly associated with other members in a bigger bloc. I haven't thought that out fully so it could be a load of hogwash. The likes of the UK and Denmark have survived well enough upto now outside the Euro or any such system. I suppose what I am talking about is a project like an internation Euro.

What would you do ?

Here is Max Keiser talking about Iceland and the 'Carry Trade'. Interesting and informative and Keiser is a good teacher.

Part I


Part II
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PostSubject: Re: The G20 Summit 15th Nov. 08 (Part I?) on a New World Finance System. What will happen - what would you do ?   Sat Nov 15, 2008 12:09 am

The "G20" is in itself evidence that the world has changed.

As Ivan Yates says, the teutonic plates have shifted.
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PostSubject: Re: The G20 Summit 15th Nov. 08 (Part I?) on a New World Finance System. What will happen - what would you do ?   Sat Nov 15, 2008 12:59 am

Laughing
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PostSubject: Re: The G20 Summit 15th Nov. 08 (Part I?) on a New World Finance System. What will happen - what would you do ?   Sat Nov 15, 2008 7:29 pm

Forget all the Banks and property bubbles the underlying problem is that the worlds economy relies on the west consuming and the rest of the world producing. This would be fine if the West produced sufficent goods to pay for the consumption, but it does not, and hasn't for quite some time.

If someone in Vietnam gets the equivalent of 1 dollar to produce an item. and someone in Europe expects 20 dollars for the same amount of work it means that it is impossible for the western economies to compete. The person in the West simply cannot live on 5% of their income as they have mortgages, and other bills to pay. These are all paid in western currencies and it is the inflated value of these currencies that enabled the unbalanced trade relationships to develop.

The main Western currencies need to lose about 90% of their relative value. At a stroke metal bashing would again be economically viable in Europe and the United States. In addition we would not have the wealth to monopolise world consumption and this would result in a less consumer driven existence and a fairer distribution of wealth. It may also mean an end to the crazy economics where it is cheaper to bin and buy new than fix and make do. We in the West need to be relatively poorer than we are currently.

Will such a realignment happen, NO! Well at least not by design. It may happen by default.

What they are likely to try is a new international trading currency and central bank, but I just can't see that being agreed over the weekend.

The question is what should individuals do. Firstly you need to be out of currencies that are most likely to lose value. However whilst it is all very well moving savings to Swiss Francs and the Yen, if tumbles do start will these currencies hold their value against commodities? YoungDan thinks Gold and Silver, which is fair enough and may well prove right. Looking into the future I think that energy, raw materials, food and land are the places be. I am virtually certain that the reduction in the cost of many commodities cannot continue.
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PostSubject: Re: The G20 Summit 15th Nov. 08 (Part I?) on a New World Finance System. What will happen - what would you do ?   Sat Nov 15, 2008 9:21 pm

Squire wrote:
Forget all the Banks and property bubbles the underlying problem is that the worlds economy relies on the west consuming and the rest of the world producing. This would be fine if the West produced sufficent goods to pay for the consumption, but it does not, and hasn't for quite some time.

If someone in Vietnam gets the equivalent of 1 dollar to produce an item. and someone in Europe expects 20 dollars for the same amount of work it means that it is impossible for the western economies to compete. The person in the West simply cannot live on 5% of their income as they have mortgages, and other bills to pay. These are all paid in western currencies and it is the inflated value of these currencies that enabled the unbalanced trade relationships to develop.

The main Western currencies need to lose about 90% of their relative value. At a stroke metal bashing would again be economically viable in Europe and the United States. In addition we would not have the wealth to monopolise world consumption and this would result in a less consumer driven existence and a fairer distribution of wealth. It may also mean an end to the crazy economics where it is cheaper to bin and buy new than fix and make do. We in the West need to be relatively poorer than we are currently.

Will such a realignment happen, NO! Well at least not by design. It may happen by default.

What they are likely to try is a new international trading currency and central bank, but I just can't see that being agreed over the weekend.

The question is what should individuals do. Firstly you need to be out of currencies that are most likely to lose value. However whilst it is all very well moving savings to Swiss Francs and the Yen, if tumbles do start will these currencies hold their value against commodities? YoungDan thinks Gold and Silver, which is fair enough and may well prove right. Looking into the future I think that energy, raw materials, food and land are the places be. I am virtually certain that the reduction in the cost of many commodities cannot continue.

The plates are shifting, all right. I agree with you. The banking crisis is happening because it was much easier to run out a massive line of credit instead of dealing with the political and economic reality of relatively reduced productivity in the west. The biggest danger looks like being resource wars. Personally I'd much prefer an orderly retreat to a more modest and sustainable existence.
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PostSubject: Re: The G20 Summit 15th Nov. 08 (Part I?) on a New World Finance System. What will happen - what would you do ?   Sun Nov 16, 2008 1:02 pm

"Restore Growth": The Bearded One sums it up in 1 minute 43 seconds

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PostSubject: Re: The G20 Summit 15th Nov. 08 (Part I?) on a New World Finance System. What will happen - what would you do ?   Mon Nov 17, 2008 12:02 am

Saw this earlier on the Pin and Rhonda15 has posted it on the p.ie site. Max Keiser ranting about the G20 summit, his voice still unbroken. He says Ireland will go back to the pre-bubble times which was what ? I had a good job then, houses were cheap, there were no Polish immigrants, there were no skyscrapers in Cork ...

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PostSubject: Re: The G20 Summit 15th Nov. 08 (Part I?) on a New World Finance System. What will happen - what would you do ?   Mon Nov 17, 2008 12:24 am

"Its like an intervention" ( Smile ) Catastrophic market fundamentalism....!
Arrests are needed. The perpetrators like Paulson will go to jail.
The dollar is "funny money".

The big money these days must be in being a "financial analyst"
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PostSubject: Re: The G20 Summit 15th Nov. 08 (Part I?) on a New World Finance System. What will happen - what would you do ?   Mon Nov 17, 2008 4:42 am

No major initiative proposed, unless they are keeping it quiet. Could also mean not a lot of agreement on what needs to be done, or US unable to commit because of the change in administration. Perhaps also some countries are playing this for political advantage?

The danger of major global recession has probably just become more probable.
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