New World Order: Global co-operation, nationalisation and state intervention
http://en.wikipedia.org/wiki/NationalizationNow it is clear, America and UK’s nationalisation of the banking industry, government now has greater access to our financial identities (an idea being picked up in other territories). With the astonishing cost to the taxpayer being spun to us as ‘public ownership’ how can we be sure the powers-that-be don’t get access to our personal financial details. With ‘money laundering’ legislation used more for tax avoidance reasons than terrorist or drug dealing prevention we should shake-in-our-boots at the thought of banks being in the hand of politicians. I am no conspiracy theorist – more of a believer in the ‘law of unintended consequences – but big brother wants to get bigger. The Bear Stearns buyout, government orchestrated to prevent the investment bank’s total collapse, also generated work for a number of US-based law firms. Other headline-grabbing deals in the UK include the nationalisation of troubled mortgage lender Northern Rock, a process that pulled more than a dozen, fisticuffs-happy law firms into the fray. In December 2007, British banking giant Barclays filed suit against Bear Stearns, alleging fraud, conspiracy and breach of fiduciary duty, and accusing the Wall Street bank of misrepresenting the performance of its hedge funds. Linklaters stepped up on behalf of Barclays, a longstanding client—which later prompted another longstanding client, JPMorgan (who bought Bear Stearns in March), to drop the firm from its list of preferred advisersLondon law firms are sticking more tacks on the world map, as emerging markets become the new focus for revenue growth.As law firms seek new ways to raise capital, recent UK legislation is rapidly changing the landscape. Approved by Parliament in late 2007, the Legal Services Act will allow non-legal businesses to take stakes in law firms. As companies (ie, insurers) consider the acquisition of law firms, firms are themselves pondering initial public offerings. The prospect of law firms listing on a stock exchange became a reality in May 2007, when Australia’s Slater & Gordon became the first law firm in the world to go public.In May 2008, the lord chief justice appeared on Vogue’s web site—yes, Vogue—donning the new standard-issue robes to be worn starting in October 2008. Designed by Betty Jackson, the new “Continental-style” black robes are an attempt to give judges a more modern look.So you see the new world order is planed state intervention. A new social rule for the elite to have complete autonomy over capitalism. They have planed this end game to perfection, and we have blindly taken leave of our senses.
If i was an American, i would pack my bags and leave.
I am from Europa and am already preparing.
I’m afraid the epidemic seems to be global, there are no "uncharted territories" where one can escape to and be free…. We have to stand and fight.
The British government faces an excruciating choice. It cannot let Royal Bank of Scotland and its fellow mega-banks go to the wall. Yet it risks being swamped by the massive foreign debts of these lenders if it takes on their dollar, euro and yen exposure by opting for full nationalisation. Britain has foreign reserves of under $61bn dollars (£43.7bn), less than Malaysia or Thailand. The foreign liabilities of the UK banks are $4.4 trillion – or twice annual GDP – according to the Bank of England. The mismatch is perilous.It is why sterling has crashed 10 cents from $1.49 to $1.39 against the dollar in two days. The markets have given their verdict on Gordon Brown’s latest effort to “save the world”.If Britain walked away from UK banks’ $4.4 trillion of foreign liabilities – worth eight times Lehman Brothers – it would destroy the credibility of the City and take the whole world into deeper depression.
“The UK cannot go down that route because it would set off an asset price death spiral,” said Marc Ostwald, a bond expert at Monument Securities. “The Western banking system is already on life support. That would turn it off altogether.”
Jim Rogers: ‘Sell any sterling you might have. It’s finished’
They don’t know what they’re doing, do they? I am of the opinion they know exactly what they are doing! With every step taken by the Government as it tries frantically to prop up the British banking system, this central truth becomes ever more obvious.Yesterday marked a new low for all involved, even by the standards of this crisis.
Britons woke to news of the enormity of the fresh horrors in store. Despite all the sophistry and outdated boom-era terminology from experts, I think a far greater number of people than is imagined grasp at root what is happening here. If this is the way to implement a new world order, then it will be born from this economic catastrophe.
Just a thought –
What if this crisis (or some other) does end up in some kind of New World Order? If said NWO resembles anything like the cooperative communities Chris addresses in CC, albeit on a global scale, is that necessarily a bad thing?
I am of course assuming that the minor issues of "who’s in charge", jingoism, racial and religious intolerance and sectarianism (not a complete list by any means) are easily overcome.
I’m not a conspiracy theory guy, but my guess is it’d be a bad thing. If it wasn’t, it wouldn’t be so hush-hush.
I don’t like the idea of “plans” that the people have no say in.
Question what you think you know about this financial crisis.
Are we in the eye of the storm? and will the next coming month show us true turmoil.
Economy in free fall in fourth quarter…
It is the first time world leaders will get together to discuss the deepening crisis.
The discourse being made in the news is highly suggestive that plans are being made to sure-up the foundations for a new financial order. This notion of a new world order has wide and reaching implications, for the moment it is those who are out of work who will find themselves questioning everything and then some.
The more I read and look at the events of the past 8 years like the pieces of this puzzle they are all coming together. Or should I say being disposed of. Please don’t misunderstand, the American financial crisis has been mounting colossal amounts of dept for years. Just as Chris Martenson has described it would the house of cards are falling. The US dollar and with it Sterling are bilateral partners in crime. Please read the following news articles for this week.
GORDON Brown was last night accused of “losing his marbles” after hailing Britain’s bloodbath of job cuts as the “birth pangs of a new global order”.
The New World Order is upon us, full of hope, promise and a fair amount of fear. In our recent discussion regarding the direction of our country, we noted the risks of catering to conventional wisdom and the implications for the U.S. dollar.
By definition we know the monopoly creation of fiat money does not exist. And if gold is not a requirement to insure the bank, have we all been led up the garden path "Yes". I say this because Damnthematrix has so correctly defined the true status of the world’s gold supply. There is not as much of the stuff as we would think there to be. So just how does the financial system, or be it the cartels of this world. How do they manage to suppress and manipulate Gold so well? Where does financial manipulation, or be it shadow banking begin and end? Or are we all just a small part of hole, the worlds pyramid scheme, growing in mass? You see no one can believe growth can be sustained indefinitely. But every one attempts to subscribe to this crazy notion.
"When the Treasury tells a bank to pay a penny a share versus its old dividend, you know who’s calling the shots," says Jon Bruss, an old-hand banker and founder of Fortress Partners Capital Management in Wisconsin, according to Bloomberg.
"It may not be de jure nationalisation but I think it’s de facto nationalisation."
Ignore the italics; state-control by law is coming regardless – soon and everywhere.
Starting in the US, Larry Summers’ letter to law-makers last week guarantees nationalisation by default, by making good on the myth that private investors control how publicly-quoted corporations behave.
Promising to be the very best head of Barack Obama’s National Economic Council he ever could be, Summers vowed to cap and cancel dividends to banking stock-holders if their bank requests two dollops or more of federal assistance. So, as the last fortnight’s trade shows, those banks crying "Help!" will see whatever risk-capital still remains flee, meaning the state will have to step in again with more aid, guaranteeing no return-on-investment to free-market cash, sparking a last panic out of the bank’s issued share capital, and leaving the feds to step in and acquire the whole bank.
Private investment isn’t being crowded out, so much as thrown out the window. But it’s not just this capital re-structuring which will surely end with outright state ownership. Standing surety for depositors’ cash makes it a dead-cert as well – or so we guess here at BullionVault – for all but the smallest, most boring (and therefore most innovative!) groups.
Deposit insurance is one thing, but stumping up hard cash in the event of a bank-run would now be quite another joy-ride entirely. Because one run would beget more runs elsewhere. And meeting the cash call all in one go would bankrupt the entire state at a stroke.
For example, household cash balances at UK banks now total almost £1 trillion – nearly twice the government’s entire 2008 budget; other financial firms are owed a further £880bn by the banks; and non-financial firms hold £375bn on deposit. So, in the event of a banking collapse, full nationalisation would seem the cheap option (in the short-term, at least) ahead of paying out on the FSCS. Meeting the statutory promise, with little or no cash cushion to help, the state would need to find something like 1.8 times a full year’s GDP. A fire-sale of ‘assets’ would only cause a further meltdown in stocks, housing and credit. Trying to raise the cash by selling new gilts would prove risible. (The UK’s going to have trouble raising £118bn for its operational deficit alone in 2009.) Whereas deferring the hit, by taking it onto the state’s balance-sheet for some indefinite settlement, at least keeps the sovereign solvent today.
And what does that world look like? Iceland is first to find out, that tiny island of 305,000 souls. Its banking sector – with risk ‘abolished’ and thus merely transmuted, just like everywhere else – built up what looked like assets worth some €100 billion by 2007. Yet the central bank only had €2 billion in foreign currency reserves, as the Wall Street Journal noted last autumn, "meaning it was effectively unable to fill its role as lender of last resort" when foreign lenders – the true deus ex machina for any national economy – baulked at fresh loans.
Come the crunch, Iceland’s banks found themselves without a back-stop. The safety-net of government aid simply didn’t exist; the holes between the strings were too big. And in a nation of just 305,000 people, the problem all governments face became plain to see. Because the Treasury, state, government, sovereign – whatever you want to call that leviathan supposed to exist outside of the day-to-day flux, secure and securing against all possible outcomes – is only ever identical with the population. National resources can never be greater than the nation itself.
Defending bank savers against bank default means using bank savings as their own guarantee. Because where else will the money come from? Now the risk of default stands so plainly in front of the entire industrialised world, it certainly won’t come from that rare beast known as banking-stock shareholders. Those few stock-holders still in are being chased away.
Fancy a loan, comrade?
Is Government preparing to force by the rule of law banks must lend money? Keep an eye open for what is about to happen. And then take stock of unforeseen circumstances because of this action.