Busted: Bankers and The Global Economy

February 15, 2009

Rome: Central Banking, Finance See Crisis in Power

banking-goldNew U.S. Treasury Secretary, policy maker for the International Monetary Fund and former Federal Reserve presidential drone Timothy Geithner claims that the world faces the worst economic and financial crisis in decades . In his mind, government, facing growing domestic unease over the millions of jobs being lost, must respond forcefully. Geither has reassured the concerned central bankers and panicked finance ministers at the crisis meeting in Rome that President Barack Obama has ensured that implementing the new stimulus package would be done in a way that respects America’s international obligations.

“We are confronted with a broader and deeper slowdown than has been experienced in decades,” said U.S. Treasury Secretary Timothy Geithner at the G7 Economic Crisis Summit this weekend in Rome. “We will work closely with our colleagues in the G7 and the G20 to build consensus on reforms that match the scope of the problem revealed by this crisis.” Mr. Geithner working to win the hearts of skeptical fellow bankers and finance ministers as they seek to stabilize their own interests and continue to propel globalism and the power of central bankers to new heights. They want a new “Bretton Woods” monetary agreement that promises to change the world and build a New World Order.

At the same time, Geithner has admitted his lack of original thinking. He revealed to G7 ministers that he wants to “get it right” before launching the U.S. stimulus and bailout program so that he would not need to shift strategy midstream, while requesting their thoughts on U.S. strategy. Geithner is apparently still thinking inside the box of Wall Street training to the chagrin of his globalist friends. In fact, few of them are thinking outside of any box beyond their own self-interest.


Fearing a resurgence of protectionism and an obstacle to globalism, crisis talks ended in Rome Saturday with a unified pledge to do all that can be done to combat recession without distorting the myth of global free trade.

The media has proclaimed that Treasury Secretary Timothy Geithner came to the Rome this weekend to prove to Group of Seven colleagues that he was up to the job of fixing the U.S. financial system. The only item that he proved was that he is one of them, a brotherhood of bankers in lockstep meeting where control of the banking economy firmly rests: the halls of Rome and the Vatican.

Deutsche Bank Securities chief economist stated: “It’s not big enough. There are few details. The administration is trying to buy time and they don’t get the fact that we need to get something yesterday.” The underground criticism is that the Federal Reserve and the U.S. Government are not playing into the hands of globalists and Roman-based central bankers fast enough. In the meantime, Geithner is speaking out of two sides of his mouth. ~ E. Manning

June 22, 2008

A Tough Message for Wall Street

Wall Street enters the summer season with investors in a sour mood because they don’t want to face reality, a reality that banking profit-pushers and investors created. For months, every qualified economic expert has pointed to an eventual rise in interest rates by the Federal Reserve. Economic policy makers have been looking at this summer as a prime time for change. Reality was predicted long ago. Wall Street crooks are educated trash that need a real education in economics called reality.

It isn’t that low interest rates have done much good. Mainly, these low interest rates have supported the bankers’ bottom (more…)

June 21, 2008

Slow Growth to Tame Inflation

Inflation is on the rise around the world, even more so than is being commonly reported by government agencies and central bankers. The finger of blame usually falls on two fronts. “World events cause inflation.” “Politicians cause inflation.” What most world citizens and media pundits alike fail to recognize is that central bankers are a principle cause for inflation.

In Britain, politicians claim a 60% price rise in food commodities, an 80% increase in oil and a 160% surge in the wholesale price of gas. As the while, the political powers claim that inflation is still close to their 2% target. What baulderdash!

The British bankers claim that (more…)

June 15, 2008

The Pressure of Global Inflation

“Elevated commodity prices, especially of oil and food, pose a serious challenge to stable growth worldwide, have serious implications for the most vulnerable, and may increase global inflationary pressure.” says the G8 central banking community. At the same time, U.S. Treasury Secretary Henry Paulson said the high oil price “brings the risk that the slowdown in our economy is going to be prolonged”.

Henry Paulson admitted that the United States has experienced a “sharp rise” in inflation. The U.S. position increasingly appears to be seeking to put a floor beneath the dollar’s fall to protect the U.S. economy from increased inflationary pressures from rising import prices. Just how the Treasury Department and the Federal Reserve are going to accomplish this feat remains to be seen. One truth seems certain: inflation won’t be affected by lowering interest rates.

April 9, 2008

Fed: Global Economic Outlook

Filed under: banking, central bank, federal reserve, investment, money — Tags: , , , , , , , , , , — digitaleconomy @ 2:32 am

In the major advanced foreign economies, the growth rate of gross domestic product declined in the fourth quarter. The source of the slowdown has varied substantially across economies. In the Euro area and in the United Kingdom, output was restrained by a softening in domestic demand. In contrast, Canadian domestic demand continued to increase at a very strong pace, but because of an offsetting steep decline in net exports, real GDP rose only modestly. Japan was the exception among the advanced foreign economies to the pattern of slower growth; real GDP there strengthened in the fourth quarter with higher domestic spending and continued strength in exports.

Early first-quarter economic indicators for advanced foreign economies pointed to slowing growth. Growth slowed a bit in emerging markets, though it continued to advance at a fairly strong rate. In emerging Asia, the pace of real GDP growth picked up in the fourth quarter in China and South Korea, but it softened in most other countries. The rate of increase in economic activity slowed in Brazil, Mexico, and several other countries in Latin America in the fourth quarter, but remained generally strong.

The outlook for the United States is seen as negative and fragile. The Fed reported problems of declining asset values, credit losses, and strained financial market conditions could be quite persistent, restraining credit availability and economic activity, delaying and dampening economic recovery.

March 4, 2008

Stagflation is in the Air

The United States economy has steadily lost steam and appears to be stalled. Prices have shot upwards at the fastest pace in thirty years. Energy prices further threaten the equilibrium of an already shaky national platform along with unprecedented spending on the Iraq and Afghanistan fronts.

bernanke-stagflation.jpgThe Fed doesn’t readily admit it, but the United States has sufficient inflation from continually extending credit to the government to the tune of 16 billion monthly for the two wars the Bush Administration has been fighting. The Fed has been pumping credit into the U.S. system for the last 5 years at an unprecedented rate. The government has earmarked the maximum amount of money available for a stimulus plan. The stimulus plan is already enhancing inflation, which in turn, will further devalue the dollar and its buying power when Americans need the buying power most. Whether the stimulus spending deflects economic stagnation remains to be seen. Stagflation, a combination of stagnation and inflation threatens the job market, industry and the entire economy as higher prices and declining demand result from consumers as they cut back their spending because of higher prices and shrinking paychecks. The Fed’s situation is already compounded by the banking liquidity crisis and the mortgage crisis. Right now, about $60 billion a month is being loaned on a short-term basis to banks that qualify by having enough collateral. The U.S. government has put the burden of nurturing the economy fully on the shoulders of the Federal Reserve. High gas and food prices, the effect of the housing bust, the credit crunch and a tougher job market put more pressure on the Fed.

stiglitz.jpgNobel-prize winning economist Joseph Stiglitz stated that the war has greatly contributed to the slowdown. “To offset that depressing effect, the Fed has flooded the economy with liquidity and the regulators looked the other way when very imprudent lending was going up. We were living on borrowed money and borrowed time and eventually a day of reckoning had to come, and it has now come.” The war is touted by Stiglitz as the reason for the credit crunch that exists in the United States, since $3.3 trillion have been invested in the Iraq War alone. While this might be considered a matter of perspective to some degree, the effect of the war cannot be ruled out when weighing the factors of the U.S. economy.

The sage advice of the past has been to “start saving” to prepare for stagflation. The reality is that saving money is not a complete answer to this complex set of economic circumstances. The value of money along with the buying power of the dollar is down. Your savings are already worth less than when you socked them away.

Concern yourself with reigning in spending. The sages recommend start paying off credit card balances and other bills in the biggest chunks possible. That might be good advice for those in good financial shape. Better advice is to be sure that you are not at the mercy of electronic money, debt cards and the banking system. Start setting cash aside in the event of an emergency. Refuse to use the bank as a tool to float your money. The bank, along with reckless spending, is part of the problem. If the bank can’t charge you, they can’t bankrupt you. If you can’t make a payment, sock aside everything you can in a safe place and don’t spend it to make yourself feel better. Make plans, but don’t be willing to put yourself under the bus financially to make a creditor happy. Set money aside. The worst part of stagflation is that circumstances make money harder and harder to save. The more cash you have to call on in an emergency, the less desperate or destitute you’ll be. These are short-term plans for success in your fight against stagflation.

E Manning

March 2, 2008

A Toxic Economic Mix?

Some economists predict that “stagflation” may be reappearing after 3-decade hiatus. The United States is facing a toxic economic mix it hasn’t seen in three decades: Prices are speeding upward at the fastest pace in a quarter century, even as the economy loses steam.

The economy clearly stalled in the final three months of last year and probably is barely growing or even shrinking now. That’s the stagnation ingredient. A slowdown tends to quiet inflation, but prices continue to rise. The unique factor in play is the ongoing $12 billion expenditure on the Iraq War coupled with another $4 billion on Afghanistan. This, my friends, is a MONTHLY expenditure.

Nobel-winning economist Joseph Stiglitz says: “To offset that depressing effect, the Fed has flooded the economy with liquidity and the regulators looked the other way when very imprudent lending was going up. We were living on borrowed money and borrowed time and eventually a day of reckoning had to come, and it has now come.”

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