View Full Version : EU leaders push for new framework to oversee world financial system

mick silver
14th November 2008, 09:21
European governments have demanded rapid steps towards a new system for "global governance", which would transform the failed rules and institutions of the world financial system.

European Union heads of state and government, meeting in Brussels yesterday, made it clear that they intended to seize the financial crisis agenda at a world summit in Washington next week and not to wait for the lead of the American President-elect, Barack Obama.

The 27 EU nations agreed to present a common front at the Washington G20 summit next Friday and Saturday, calling for – among other things – an "early warning system" for crises and more transparency in financial institutions to prevent catastrophic problems from building up in future.

They will insist that specific proposals for the strengthening of the International Monetary Fund and new global rules, or principles, to govern financial markets and restrain short-term speculation should be presented to a second world summit at the end of February – just after Mr Obama takes over.

"There is a pretty detailed common position from Europe," said President Nicolas Sarkozy, who holds the EU presidency until the end of the year. "We will be defending a common position, a vision ... for restructuring our financial system."

Having led the way – after a halting beginning – in its emergency response to the banking crisis last month, the EU now believes that it has an opportunity to blaze the trail in the long-term reform of global financial rules and institutions. Whether Mr Obama and his team agree remains open to question.

Asked whether it would be better to wait until Mr Obama took office on 20 January, President Sarkozy said that the financial and economic crises were now so severe that the world "cannot wait, not even for the world's largest economy."

After the brief informal summit in Brussels, the Prime Minister, Gordon Brown, also said that the EU was determined to build on the "leadership" it had shown in the banking crisis. "You cannot govern the financial world of 2008 with the institutions created in 1945," Mr Brown said.


mick silver
14th November 2008, 09:25
Oct. 30 (Bloomberg) -- The International Monetary Fund's chief, Dominique Strauss-Kahn, said the Group of 20 countries that will meet in Washington on Nov. 15 in the wake of the financial and economic crisis, needs a ``new global regulation strategy,'' Le Monde quoted him as saying in an interview.

Strauss-Kahn said the system should provide a new short- term liquidity facility, increase funding for the IMF, monitor the new regulatory bodies that will be created as the crisis strains economies, Le Monde reported.

He said the IMF expects global expansion of 3 percent in 2009, with no growth in the ``advanced economies'' and 6 percent to 7 percent growth in emerging countries.

Market volatility may ``quiet down'' since the U.S. and European rescue plans announced in the last weeks ``are solid,'' he told the daily newspaper.

The G20 includes China, Brazil, Russia, South Africa, Australia, Saudi Arabia, Canada, South Korea, Japan, Turkey, Germany, France, The United States, the U.K., Mexico, Italy, India, Indonesia, Argentina and a European Union representative.


mick silver
14th November 2008, 09:26
Sarkozy calls for end to dollar’s world reserve status as powerbrokers meet to finalize building blocks of new world economic order

Paul Joseph Watson
Prison Planet.com
Friday, November 14, 2008

Powerbrokers attending this weekend’s watershed G-20 conference will set in motion plans for a new world economic order, the end of the dollar as the world reserve currency, and the centralization of financial power into an internationalist inner circle of regulators completely above oversight or accountability.

French President Nicolas Sarkozy has already fired the opening salvo before the meeting even begins, with his call for the dollar to be demoted as the world reserve currency.

“I am leaving tomorrow for Washington to explain that the dollar cannot claim to be the only currency in the world…, that what was true in 1945 can no longer be true today,” Sarkozy stated yesterday.

Economy Minister Christine Lagarde echoed the call and suggested that the Euro could replace the dollar, but that the changeover would have to be gradual so as to reduce volatility.


“The stronger the euro, the more attractive it will be in many ways,” Lagarde told Reuters today, “It should be as gradual as possible because we don’t want at this very moment of high volatility on many markets, a major shift that would clearly induce yet more difficulties and volatility,” she added.

According to a CNN report, we learn that the agenda this weekend will be the creation of a “new global network of regulators - regulators that would presumably have power over U.S. banks,” a top down planned economy controlled by faceless international financial dictators, in addition to an increase in powers for the IMF and World Bank.

Naturally, this will be a catalyst for the wholesale looting of the taxpayer on an unprecedented and global scale. With the Federal Reserve and the U.S. Treasury already having blazed the trail, stealing trillions of dollars in the name of bailing out the economy for the greater good while in fact hoarding all the cash for themselves, the G20 will seek to codify this grand theft larceny as a routine function of global governance.

Which is why CNN’s claim the the U.S. will seek to oppose centralization of global banking power is complete bunkum. The Fed and the U.S. Treasury has set the example, with the full support of President elect Obama, for the economic raping of the people on a scale never before witnessed. Lame duck George W. Bush’s rhetoric of warning that “government intervention is not a cure-all” is nothing more than a thin veil to mask the fact that the U.S. and the EU are in lock step on this agenda.

That agenda will be challenged by Russia and China who, aware of the fact that they have been largely frozen out of the global elite’s plans to create a new world order, have argued for a multi-polar economic system as oppose to the uni-polar plans scheme pushed by the U.S., France and Britain.

For the true purpose behind the meeting, we need look no further than the comments of Baron David de Rothschild, who this week said that the crisis will be a prelude to a new world order and a new form of global governance.

Likewise, British Prime Minister Gordon Brown also this week called for the new financial architecture to be built around the premise of “global governance,” that is, more power in fewer hands and more decisions being made by fewer people.

IMF chief Dominique Strauss-Kahn echoes the same sentiment, telling Le Monde of the need for a “global regulation strategy” as a tool of global governance.

Sarkozy last weekend correctly summarized the mission as a charter for new “global governance” in the French government’s official proposal but Germany, apparently wary of letting the cat out of the bag, demanded that this term be removed from the official wording.