London G20 Summit: Last chance before global geopolitical dislocation

17 posts / 0 new
Last post
fujisan's picture
fujisan
Status: Gold Member (Offline)
Joined: Nov 5 2008
Posts: 296
London G20 Summit: Last chance before global geopolitical dislocation

London G20 Summit: Last chance before global geopolitical dislocation


London G20 Summit: Last chance before global geopolitical dislocation

Open letter to the G20 leaders, published in the Financial Times' worldwide edition on 03/24/2009

London G20 Summit: Last chance before global geopolitical dislocation
Ladies and Gentlemen, 

Your next summit takes place in a few days in London; but are you aware that you have less than a semester to prevent the world from plunging into a crisis that will take at least a decade to resolve, accompanied by a whole series of tragedies and ferment? Therefore, this open letter by LEAP/E2020, who saw the arrival of a « global systemic crisis » as early as three years ago, intends to briefly explain why it happened and how to limit further damage. 

If indeed you began to suspect the onset of a sizeable crisis less than a year ago, LEAP/E2020, in the second issue of their « Global Europe Anticipation Bulletin » (GEAB N°2), anticipated that the world was about to enter into the « trigger phase » of a crisis of historic proportions. Since then, month after month, LEAP/E2020 has relentlessly continued to produce highly accurate forecasts of the development of this crisis with which the world is now struggling. For this reason, we feel entitled to write you this open letter which we hope will aid you on the choices you will have to make in a few days. 

This crisis is getting more and more dangerous. Recently, in the 32nd edition of its Bulletin, LEAP/E2020 raised an alarm of direct concern to you, the leaders of the G20. If, when gathered in London next April 2nd, you are not able to adopt a number of bold and innovative decisions, focused on the essential issues and problems, and to initiate them by summer 2009, then the crisis will entail a « general geopolitical dislocation » by the end of the year, affecting the international system as well as the very structure of large political entities such as the United States, Russia, China or the EU. Any chance for you to control the fate of the 6 billion inhabitants of the world will then be over. 

Your choice: a 3- to 5-year crisis or a decade-at-least long crisis? 

Until now you have merely been concerned with the symptoms and secondary effects of this crisis because, unfortunately, nothing prepared you to face a crisis of such an historic scale. You thought that adding more oil to the global engine would be enough, unaware of the fact that the engine was broken, with no hope of repair. In fact, a new engine must be built, and time is running out, as the international system deteriorates further each month. 

In the case of a major crisis, one must get to the heart of the matter. The only choice is between undertaking a number of radical changes, thus greatly shortening the duration of the crisis and diminishing its tragic outcome or, on the contrary, refusing to make any such changes in an attempt to save what is left of the present system, thus extending the crisis’ duration and increasing all the negative consequences. In London, next April 2nd, you can either pave the way for the crisis to be solved in an organised manner in 3 to 5 years, or drag the world through a terrible decade. 

We will content ourselves with giving you three recommendations that we consider strategic ones in the sense that, according to LEAP/E2020, if they have not been initiated by this summer 2009, global geopolitical dislocation will become inevitable from the end of this year onward. 

LEAP'S THREE STRATEGIC RECOMMENDATIONS 

1. The key to solving the crisis lies in creating a new international reserve currency! 

The first recommendation is a very simple idea: reform the international monetary system inherited post-wwii and create a new international reserve currency. The US Dollar and economy are no longer capable of supporting the current global economic, financial and monetary order. As long as this strategic problem is not directly addressed and solved, the crisis will grow. Indeed it is at the heart of the crises of derivative financial products, banks, energy prices... and of their consequences in terms of mass unemployment and collapsing living standards. It is therefore of vital importance that this issue should be the main subject of the G20 summit, and that the first steps towards a solution are initiated. In fact, the solution to this problem is well-known, it is about creating an international reserve 
currency (which could be called the « Global ») based on a basket of currencies corresponding to the world’s largest economies, i.e. US dollar, Euro, Yen, Yuan, Khaleeji (common currency of oil-producing Gulf states, to be launched in January 2010), Ruble, Real..., managed by a « World Monetary Institute » whose Board will reflect the respective weight of the economies whose currencies comprise the « Global ». You must ask the imf and concerned central banks to prepare this plan for June 2009, with an implementation date of January 1st, 2010. This is the only way for you to regain some control over currently unwinding events, and this is the only way for you to bring about shared global management, based on a shared currency located at the centre of economic and financial activity. According to LEAP/E2020, if this alternative to the currently collapsing system has not been initiated by this summer 2009, proving that there is another solution than the « every man for himself » approach, today’s international system will not survive this summer. 

If some of the G20 states think that it is better to maintain the privileges related to the « status quo » as long as possible, they should meditate the fact that, if today they can still significantly influence the future shape of this new global monetary system, once the phase of global geopolitical dislocation has started they will lose any capacity to do so. 

2. Set up bank control schemes as soon as possible! 

The second recommendation has already been mentioned many times in the preliminary debates to your upcoming summit. It should therefore be easy to adopt. It is about creating, before the end of this year, a scheme of bank control on a global scale, suppressing all the system’s « black holes ». A number of options have already been suggested by your experts. Make up your mind now: nationalize financial institutions as soon as is necessary! It is the only way to prevent a new episode of massive indebtment by them (the kind of episode which significantly contributed to the current crisis), and to show to the general public that you have some credibility to deal with bankers. 

3. Get the IMF to assess the US, UK and Swiss financial systems! 

The third recommendation relates to a politically sensitive issue, which cannot be ignored. It is essential that, no later than July 2009, the imf presents to the G20 an independent assessment of the three national financial systems at the heart of the current financial crisis: US, UK and Switzerland. No sustainable recommendation can be efficiently implemented as long as no one has any clear understanding of the damage caused by the crisis inside these three pillars of the global financial system. It is no longer time to be polite with the countries located at the centre of the current financial chaos. 

Write a simple and short statement! 

Finally, please allow us to remind you that your task is to restore confidence among 6 billion people and among millions of public and private organisations. Therefore do not forget to write a short statement – no more than 2 pages, presenting a maximum of 3 to 4 key ideas that non-experts can read and understand. If you fail to do so, no one will read what you have to say apart from a narrow circle of specialists, therefore you will not revive confidence among the general public and the crisis will be doomed to get worse. 

If this open letter helps you to feel that History will judge you according to the success or failure of this Summit, then it has been useful. According to LEAP/E2020, your citizens will not wait any longer than a year before they judge you. This time at least, you will not be able to say no one warned you! 

Franck Biancheri 
Director of studies of LEAP/E2020, www.leap2020.eu 
President of Newropeans, www.newropeans.eu

 
DrKrbyLuv's picture
DrKrbyLuv
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 1995
Re: London G20 Summit: Last chance before global ...

1. The key to solving the crisis lies in creating a new international reserve currency! 

The
first recommendation is a very simple idea: reform the international
monetary system inherited post-wwii and create a new international
reserve currency...
managed by a « World Monetary
Institute » whose Board will reflect the respective weight of the
economies whose currencies comprise the « Global ». You must ask the
imf and concerned central banks to prepare this plan for June 2009,
with an implementation date of January 1st, 2010. This is the only way
for you to regain some control over currently unwinding events.

This is not a solution, it is simply the consolidation of the international central banking scheme to become the rulers of the world.  Why do we need the usurious central banks at all - they have created this mess.

The United States has been paying money to the private Federal Reserve (through bond interest) to issue our currency and to control our monetary system.  They have failed at both miserably and should be immediately fired.

Under this scheme, we can never pay down the national debt which is around $11 trillion dollars and struggle to simply pay interest, which was over $400 billion last year alone.  This was with an effective interest rate of around 3%  which most likely will increase - if it doubles, and it may, our interest suddenly approaches $1 trillion dollars.  We are trapped in perpetual debt - this is the problem and any solution must address this key concern. 

If you want a real solution, consider that we owe the Federal Reserve almost $5 trillion of our national debt.  The United States government has the power and authority to issue it's currency direct, free from any interest or debt.  We have the power to create the $5 trillion dollars for free, then we could use the money to extinguish their debt - both the debt and the money would effectively cease to exist. 

This is not a financial crisis but an appalling power grab.  Will we allow the central banks to control our financial destiny or will we stand tall and take our nation back?  I've said this before and will say it again - our nation has subjugated the control and creation of our money to private banks thus relinquishing our national sovereignty; effectively becoming a client state.  Neither a Democracy nor a Republic may exist when the greatest power of the nation is held in the hands of private banks.

America has become an oligarchy (a government ruled by a powerful few) versus a republic (a government limited by law) as the international bankers continue their tyranny and class economic rape while the public sits by numb - this crisis is a wake up call!

Larry

suesullivan's picture
suesullivan
Status: Gold Member (Offline)
Joined: Oct 6 2008
Posts: 305
Re: London G20 Summit: Last chance before global ...

I've been reading this group's reports since Davos linked to them in a daily digest some weeks or months past. I'm both fascinated and alarmed to realize there have been voices predicting this crises, and the potential enormity of it, in Europe as well for years.

These folks don't strike me as trying to further some aim of global domination by international banksters.

strabes's picture
strabes
Status: Diamond Member (Offline)
Joined: Feb 7 2009
Posts: 1032
Re: London G20 Summit: Last chance before global ...
Quote:

These folks don't strike me as trying to further some aim of global domination by international banksters

Even though that's precisely what it is on its face--1 global bank with 1 world currency for global monetary control?   I mean, that's in the report.  I guess you're just saying you think it's a good thing, whereas others who point it out think it's not.  I would recommend researching the history of reserve banks and whether they're good or bad for the people living under their control...should be a good indicator whether setting up an even bigger monetary system would be good or bad.

fujisan's picture
fujisan
Status: Gold Member (Offline)
Joined: Nov 5 2008
Posts: 296
Re: London G20 Summit: Last chance before global ...

UPDATE 1-US' Geithner, Bernanke reject new global currency idea | Deals | Regulatory News | Reuters

 WASHINGTON, March 24 (Reuters) - U.S. Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke on Tuesday dismissed suggestions by leading emerging economies that the global economy move away from using the dollar as the main reserve currency.



Anyhow, the G20 is already annonced as a total fiasco.
 
A few days ago, several UK officials already blamed China as responsible of G20 failure, predending they are against more regulation! Ridiculous! "do not bite the hand that feeds"...
DrKrbyLuv's picture
DrKrbyLuv
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 1995
Re: London G20 Summit: Last chance before global ...

fujisan

A few days ago, several UK officials already blamed China as
responsible of G20 failure, predending they are against more
regulation! Ridiculous! "do not byte the hand that gives"...

You have hit on a major problem, why does the US accept loans from China when we already have the power to create the money ourselves?  Our government is too corrupt to establish our national financial sovereignty - politicians instead accept bribes from bankers to perpetuate the shell game of debt.  This is a scam that needs to be investigated criminally. 

As far as China and Russia's request to drop the dollar as the international currency - I don't blame them one bit.  The US has abused it's international currency status since the 1970s when the dollar was unpegged.  That said, the solution is not to replace the worthless fiat currency with another fiat currency.  International trade would be far better served with redeemable currencies that are backed by silver and gold and totally free from debt. 

Larry 

BillNowotney's picture
BillNowotney
Status: Member (Offline)
Joined: Mar 24 2009
Posts: 1
Re: London G20 Summit: Last chance before global ...

FORGET THE G-20!!!

These guys are proving to be bigger idiots by the day. Banks and big governments create the problems so let's solve the problems by giving the banks and governments even more power? Insane! Moronic!

Just say NO to idiots and morons! Just say NO to expanding the powers of governments.

Get rid of the IMF!

 A GLOBAL CURRENCY TO BE ADMINISTERD BY A CONSORTIUM OF GLOBAL CENTRAL BANKS IS GOING TO MAKE THE PROBLEM EVEN WORSE!!!!!!

THE USA MUST ABOLISH THE FEDERAL RESERVE BOARD, WITHDRAW AND QUIT SUPPORTING THE IMF, AND GET RID OF BIG GOVERNMENT!!!

 

 

 

Brandon's picture
Brandon
Status: Martenson Brigade Member (Offline)
Joined: Oct 6 2008
Posts: 145
Re: London G20 Summit: Last chance before global ...
DrKrbyLuv wrote:

...That said, the solution is not to replace the worthless fiat currency with another fiat currency.  International trade would be far better served with redeemable currencies that are backed by silver and gold and totally free from debt. 

Larry 

 

I'm sure this has been disussed on other threads...perhaps it should be it's own thread...but Larry, you are certainly familiar with Bill Stills' 'The Money Masters'.  My question is have you seen the other talks by him?  I've been intrigued by his view that backing a currency by gold is exchanging one evil for a slightly lesser evil...one form of control for another.  In some ways the history, as he presents it, supports his view. His views on fiat currency are not as negative as his views on fractional reserve banking.  Few and far between Alex Jones' rants, he explains some other thoughts in an interview with Jones...but he isn't given a whole lot of opportunity to speak in this particular clip.

What are your thoughts?

strabes's picture
strabes
Status: Diamond Member (Offline)
Joined: Feb 7 2009
Posts: 1032
Re: London G20 Summit: Last chance before global ...

In addition Brandon, there is so much concentration of gold now in the hands of the bankers that a gold standard would give them probably even more control than they have now with our fake money system.

fujisan's picture
fujisan
Status: Gold Member (Offline)
Joined: Nov 5 2008
Posts: 296
Re: London G20 Summit: Last chance before global ...

Larry,

I too would like all CB unable to create any money "out of thin air". I would also add neither should any Govt, since History prooves Govt always abuse their power.

Now, I believe the LEAP made proposals Govt & CB could "reasonably" consider. A gold standard is more than probably a banned option for Govt & CB.

However, they proposed giving more power to the IMF which is a unelected supra-national entity. It just sounds N.W.O. to me. History proved the IMF (and World Bank and WTO) are economic weapons in the the hands of the so-called "developped" countries to dominate and destroy economics of so-called "emerging" countries. For examples Argentina & Turkey were both self-sufficient and properous until the IMF came to "help" them fix their "debt problem".

DrKrbyLuv's picture
DrKrbyLuv
Status: Diamond Member (Offline)
Joined: Aug 10 2008
Posts: 1995
Re: London G20 Summit: Last chance before global ...

Brandon said (Post 7)

I'm sure this has been discussed on other threads...perhaps it should be
it's own thread...but Larry, you are certainly familiar with Bill
Stills' 'The Money Masters'.  My question is have you seen the other talks by him
I've been intrigued by his view that backing a currency by gold is
exchanging one evil for a slightly lesser evil...one form of control
for another.  In some ways the history, as he presents it, supports his
view.

Brandon I totally agree with you and Ben, money should not be controlled by those who own the relatively scarce gold reserves. 

Ben Still from the "Money Masters"

Beware of calls to return to a gold standard. Why? Simple. Because
never before has so much gold been so concentrated outside of American
hands. And never before has so much gold been in the hands of
international governmental bodies such as the World Bank and
International Monetary Fund. In fact, the IMF now holds more gold then
any central bank.

Likewise, beware of any plans advanced for a regional or world currency
- this is another international banker's Trojan Horse - a deception to
open the national gates to more international control.

I should have been more clear - thanks for pointing that out.  I think international trade could be conducted with precious metals as a direct or indirect (redeemable paper currency) medium.  But, I would not recommend having a national currency based solely on a precious metals - I'd mix some government issued currency through secured loans only - available for business and private use.  The debt based currency would extinguish as the loans were paid off.  In addition, a permanent currency, backed by precious metals, could be offered.

As far as international trade, gold and silver are already used on a much smaller basis through networks like James Turk's GoldMoney.  You may keep an allocated gold account in one of several repositories, and the custodian will move gold / silver from one account to another.  You can draw a check at any time in the currency of your choosing.  Nations could maintain accounts that could insulate everyone from the financial state of their trading partners.

fujisan said (Post 9)

I too would like all CB unable to create any money "out of thin
air". I would also add neither should any Govt, since History
proves Govt always abuse their power.

Now, I believe the LEAP
made proposals Govt & CB could "reasonably" consider. A gold
standard is more than probably a banned option for Govt & CB.

However,
they proposed giving more power to the IMF which is a unelected
supra-national entity. It just sounds N.W.O. to me. History proved the
IMF (and World Bank and WTO) are economic weapons in the the hands of
the so-called "developped" countries to dominate and destroy economics
of so-called "emerging" countries.

fujisan - your words are right on the mark.  Do you think there is an adequate amount of gold to fund international trade? 

I also agree that the IMF and WTO have a terrible track record in ruining third world economies through the burden of debt that can never be paid and it ends up impoverishing the people and costing them their natural resources.

Larry 

 

xraymike79's picture
xraymike79
Status: Diamond Member (Offline)
Joined: Aug 24 2008
Posts: 2040
Re: London G20 Summit: Last chance before global ...

Did Leap20/20 foresee that Europe would be in much worse shape that the U.S. It's obvious that Leap20/20 is a politicaly motived Eurocentric group.

xraymike79's picture
xraymike79
Status: Diamond Member (Offline)
Joined: Aug 24 2008
Posts: 2040
Re: London G20 Summit: Last chance before global ...

If the doom-and-gloom armagedonists dreams were to come true, gold would, for the most part, not be of much value to the ordinary citizen. All one has to do is look at the history of Argentina and Zimbabwe: a bartering system involving a life-sustaining service or good in exchange for another. Actually oil would have a much better chance of becoming a currency than gold. This happened in Zimbabwe:

 http://www.mg.co.za/article/2008-08-07-petrol-coupons-the-new-currency-in-zimbabwe

 Farmers will actually make out the best:

   For Wary Argentines, The Crops Are Cash

Published: Sunday, December 1, 2002

http://www.nytimes.com/2002/12/01/business/business-for-wary-argentines-...

So my advice to all of you gold bugs, that includes you Chris Martenson, is not to expect gold to be more than a static investment over time. The mining companies appreciate your patronage though.

"Over
the years, gold has not been a good investment. Actually over the past
200 years, its returns have barely kept up with inflation. Its dismal
returns negate any benefit the portfolio receives from so-called
reduced volatility. Furthermore, if one holds gold physicals, they
would incur an additional cost which would lower returns even further." ---
Andy Abraham

 

 

 

Montana Native's picture
Montana Native
Status: Silver Member (Offline)
Joined: Mar 17 2009
Posts: 166
Re: London G20 Summit: Last chance before global ...
xraymike79 wrote:

If the doom-and-gloom armagedonists dreams were to come true, gold would, for the most part, not be of much value to the ordinary citizen. All one has to do is look at the history of Argentina and Zimbabwe: a bartering system involving a life-sustaining service or good in exchange for another. Actually oil would have a much better chance of becoming a currency than gold. This happened in Zimbabwe:

 http://www.mg.co.za/article/2008-08-07-petrol-coupons-the-new-currency-in-zimbabwe

 Farmers will actually make out the best:

   For Wary Argentines, The Crops Are Cash

Published: Sunday, December 1, 2002

http://www.nytimes.com/2002/12/01/business/business-for-wary-argentines-...

So my advice to all of you gold bugs, that includes you Chris Martenson, is not to expect gold to be more than a static investment over time. The mining companies appreciate your patronage though.

"Over the years, gold has not been a good investment. Actually over the past 200 years, its returns have barely kept up with inflation. Its dismal returns negate any benefit the portfolio receives from so-called reduced volatility. Furthermore, if one holds gold physicals, they would incur an additional cost which would lower returns even further." --- Andy Abraham

 

X-Ray,     Gold is money and nothing else......J.P. Morgan qoute.            Gold has been money for thousands of years.

Stocks and Fiat have their days in the Sun. It will likely now be Golds turn to shine. Here is a Zimbabwe video ive seen circling several forums, apologies to those who have already seen it. 

Cheers, TJ

britinbe's picture
britinbe
Status: Gold Member (Offline)
Joined: Dec 28 2008
Posts: 381
Re: London G20 Summit: Last chance before global ...

I wonder whether folks will remember this summit and where they where......... a JFK or 9/11 moment.........or whether it will just be another understated news item on any of the mainstream media channels.......

I suspect the later

xraymike79's picture
xraymike79
Status: Diamond Member (Offline)
Joined: Aug 24 2008
Posts: 2040
Re: London G20 Summit: Last chance before global ...

 "Stocks and Fiat have their days in the Sun. It will likely now be Golds
turn to shine. Here is a Zimbabwe video ive seen circling several
forums, apologies to those who have already seen it. 

 I would have to direct you to this comment by another member:

"From the video, it seems to me that the gold is being dug to buy
imported goods. I don't see any exporting goods in their situtation.
When all the gold is used up, what will there be left? They say they
can't grow food there, so if not gold any longer nor food, then what
will they make? That remains a problem unsolved."

You have your mind and your body to farm and create through manual labor. This is why the Barter System would ultimatley prevail as the norm in a post "fiat-money-system." Gold is finite and hard to get to, especially for the general population. Gold is also a product of a very ecologicaly damaging mining industry. There's an article about this in the current Mother Jones magazine. All that glitters is not gold.

Cheers

fujisan's picture
fujisan
Status: Gold Member (Offline)
Joined: Nov 5 2008
Posts: 296
Re: London G20 Summit: Last chance before global ...

UN & Stiglitz are also calling for another global reserve currency, but under control of all 192 UN countries.

 AFP: UN panel touts new global currency reserve system

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Login or Register to post comments