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Offline Universal Restoration

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A new Global Economic Restructure in 2012
« on: Fri Jun 29, 2012 - 02:33:43 »
January 1st 2012, a public statement to the world was made from a representative of 130 Nations that has allied together to throw down the Cabals bankers (the 1% Elite)  that rules the world.  Now these 130 countries wants to give the power to the people, stop debts, and make a better world.

See the first public statement of the New world Economy restructure Introduction given in a video clip format at cmn.tv/new-world-currency/   

Below is part of the transcript of what is being said

----  Transcript begin ---

A New Global Economic Restructuring
Conscious Media Network has been approached by a representative of global leaders and financiers from 130 nations to broadcast a statement about a new global economic restructuring arising in 2012.

The statement will be delivered via a video-taped interview with a layperson on behalf of the consortium that has been working behind the scenes, on the problem of the unsustainable global economy for the past 8 years. The party who drafted this statement has stated, in response to conspiracy concerns, that “The usual suspects are not the suspects

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A new Global Economic Restructure in 2012
« on: Fri Jun 29, 2012 - 02:33:43 »

Offline Universal Restoration

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Re: A new Global Economic Restructure in 2012
« Reply #1 on: Fri Jun 29, 2012 - 02:47:27 »
611 RESIGNATIONS FROM WORLD BANKS, INVESTMENT HOUSES, MONEY FUNDS

There is a 611 resignations of upper level bankers list compilation available at American Kabuki.  There are much more resignations than what he listed which was what he and others could find on the internet financial news.   Most of these resignation(about 90%) occured mainly after Feb 2012 after the USA has declared their sovereignty at the Hague. 

There is a 61 page thread at Project Avalon Forum on the General Discussion section entitled Massive Bank and High Profile Resignations Across the World.  Beside keeping track of the resignations, that forum did a great job supplying all the latest financial news about the current economic downspiral disaster crash.   
« Last Edit: Fri Jun 29, 2012 - 03:02:55 by Universal Restoration »

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Re: A new Global Economic Restructure in 2012
« Reply #1 on: Fri Jun 29, 2012 - 02:47:27 »

Offline Universal Restoration

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Re: A new Global Economic Restructure in 2012
« Reply #2 on: Fri Jun 29, 2012 - 03:07:55 »
Here’s an very good comment regarding JPMorgan’s recent $2 Billion money bet loss.  It’s written by Michael T. Snyder who is a lawyer and a respected researcher, writer, speaker and activist.

Basically he says that Banks continually makes huge bets like a casino junkie.  When they win, the winning is big.  When they loose, they get the taxpayers to pay for their losses.

If you don't have time to read the whole article, the bolded section at the end is the most important.

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JPMorgan's $2B Loss: A Preview Of The Coming Derivatives Market Collapse
By Micheal T. Snyder May 13, 2012

When news broke of a 2 billion dollar trading loss by JPMorgan (JPM), much of the financial world was absolutely stunned. But the truth is that this is just the beginning. This is just a very small preview of what is going to happen when we see the collapse of the worldwide derivatives market. When most Americans think of Wall Street, they think of a bunch of stuffy bankers trading stocks and bonds. But over the past couple of decades it has evolved into much more than that. Today, Wall Street is the biggest casino in the entire world. When the "too big to fail" banks make good bets, they can make a lot of money. When they make bad bets, they can lose a lot of money, and that is exactly what just happened to JPMorgan.

The bank's Chief Investment Office made a series of trades which turned out horribly, and it resulted in a loss of over 2 billion dollars over the past 40 days. But 2 billion dollars is small potatoes compared to the vast size of the global derivatives market. It has been estimated that the the notional value of all the derivatives in the world is somewhere between 600 trillion dollars and 1.5 quadrillion dollars. Nobody really knows the real amount, but when this derivatives bubble finally bursts, there is not going to be nearly enough money on the entire planet to fix things.

Sadly, a lot of mainstream news reports are not even using the word "derivatives" when they discuss what just happened at JPMorgan. This morning I listened carefully as one reporter described the 2 billion dollar loss as simply a "bad bet".
And perhaps that is easier for the American people to understand. JPMorgan made a series of really bad bets and during a conference call Friday night CEO Jamie Dimon admitted that the strategy was "flawed, complex, poorly reviewed, poorly executed and poorly monitored". The funny thing is that JPMorgan is considered to be much more "risk averse" than most other major Wall Street financial institutions are. So if this kind of stuff is happening at JPMorgan, then what in the world is going on at some of these other places?

That is a really good question.

For those interested in the technical details of the 2 billion dollar loss, an article posted on CNBC described exactly how this loss happened:

The failed hedge likely involved a bet on the flattening of a credit derivative curve, part of the CDX family of investment grade credit indices, said two sources with knowledge of the industry, but not directly involved in the matter. JPMorgan was then caught by sharp moves at the long end of the bet, [it] said. The CDX index gives traders exposure to credit risk across a range of assets, and gets its value from a basket of individual credit derivatives.

In essence, JPMorgan made a series of bets which turned out very, very badly. This loss was so huge that it even caused members of Congress to take note. The following is from a statement that U.S. Senator Carl Levin issued a few hours after this news first broke:

The enormous loss JPMorgan announced today is just the latest evidence that what banks call 'hedges' are often risky bets that so-called 'too big to fail' banks have no business making.
Unfortunately, the losses from this trade may not be over yet. In fact, if things go very, very badly the losses could end up being much larger, as a recent Zero Hedge article detailed:

Simple: because it knew with 100% certainty that if things turn out very, very badly, that the taxpayer, via the Fed, would come to its rescue. Luckily, things turned out only 80% bad. Although it is not over yet: If credit spreads soar, assuming at $200 million DV01, and a 100 bps move, JPM could suffer a $20 billion loss when all is said and done. But hey: At least "net" is not "gross" and we know, just know, that the SEC will get involved and make sure something like this never happens again.

And yes, the SEC has announced an "investigation" into this 2 billion dollar loss. But we all know that the SEC is basically useless. In recent years SEC employees have become known more for watching pornography in their Washington D.C. offices than for regulating Wall Street. But what has become abundantly clear is that Wall Street is completely incapable of policing itself. This point was underscored in a recent commentary by Henry Blodget of Business Insider:

Wall Street can't be trusted to manage-or even correctly assess-its own risks.

This is in part because, time and again, Wall Street has demonstrated that it doesn't even KNOW what risks it is taking.
In short, Wall Street bankers are just a bunch of kids playing with dynamite.

There are two reasons for this, neither of which boil down to "stupidity."

•   The first reason is that the gambling instruments the banks now use are mind-bogglingly complicated. Warren Buffett once described derivatives as "weapons of mass destruction." And those weapons have gotten a lot more complex in the past few years.

•   The second reason is that Wall Street's incentive structure is fundamentally flawed: Bankers get all of the upside for winning bets, and someone else- the government or shareholders- covers the downside.

The second reason is particularly insidious. The worst thing that can happen to a trader who blows a huge bet and demolishes his firm-literally the worst thing- is that he will get fired. Then he will immediately go get a job at a hedge fund and make more than he was making before he blew up the firm.

We never learned one of the basic lessons that we should have learned from the financial crisis of 2008. Wall Street bankers take huge risks because the risk/reward ratio is all messed up. If the bankers make huge bets and they win, then they win big. If the bankers make huge bets and they lose, then the federal government uses taxpayer money to clean up the mess. Under those kind of conditions, why not bet the farm?

Sadly, most Americans do not even know what derivatives are. Most Americans have no idea that we are rapidly approaching a horrific derivatives crisis that is going to make 2008 look like a Sunday picnic. According to the Comptroller of the Currency, the "too big to fail" banks have exposure to derivatives that is absolutely mind blowing. Just check out the following numbers from an official U.S. government report....

•   JPMorgan Chase - $70.1 Trillion

•   Citibank - $52.1 Trillion

•   Bank of America - $50.1 Trillion

•   Goldman Sachs - $44.2 Trillion

So a 2 billion dollar loss for JPMorgan is nothing compared to its total exposure of over 70 trillion dollars. Overall, the 9 largest U.S. banks have a total of more than 200 trillion dollars of exposure to derivatives. That is approximately 3 times the size of the entire global economy. It is hard for the average person on the street to begin to comprehend how immense this derivatives bubble is.

So let's not make too much out of this 2 billion dollar loss by JPMorgan. This is just chicken feed. This is just a preview of coming attractions. Soon enough the real problems with derivatives will begin, and when that happens it will shake the entire global financial system to the core.

Offline Universal Restoration

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Re: A new Global Economic Restructure in 2012
« Reply #3 on: Fri Jun 29, 2012 - 03:13:32 »
Spain's bailout loan questioned by Britain's Nigel Farage at European Parliament

The UK's Nigel Farage appears before the European Parliament in a short video which you can google on youtube entitled "The Genius of Mutual Indebtedness - Nigel Farage "

He concludes that "the Euro Titanic has now hit the Iceberg and sadly there simply aren't enough lifeboats."

The short speach shows the ridiculous terms of last week end's Spanish bailout. It was actually a 3% loan from the European Central Bank, and he says that 20% of that loan had to come from Italy.

So Italy has to borrow $20 billion at close to 7% interest in order to loan the money to Spain at 3%.

Where's  the wisdom in that deal, especially when Italy appears to be the next in line for a bailout. Perhaps Italy will then get a similar 3% loan, and Spain will have to borrow money at near 7% to loan to Italy???

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Re: A new Global Economic Restructure in 2012
« Reply #3 on: Fri Jun 29, 2012 - 03:13:32 »
Pinterest: GraceCentered.com

Offline Universal Restoration

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Re: A new Global Economic Restructure in 2012
« Reply #4 on: Fri Jun 29, 2012 - 03:15:30 »
Gordon Brown says France and Italy may need bailout

Posted by Linda Joslin on June 15, 2012 at 7:27pm

Gordon Brown has warned that France and Italy may need to be bailed out like Spain because of the unfolding eurozone crisis.

The former UK prime minister said it was not only Greece, Portugal and Ireland facing the threat of euro exit.  But, he added, some of the EU's largest countries such as France, Spain and Italy were also at risk.

Mr Brown also warned that Germany might have to seek additional funding to safeguard its banks.

In a stark warning ahead of next week's G20 summit in Los Cabos, Mexico, Mr Brown said: "The euro area is finally approaching its own day of reckoning."

The former PM said, in a blog for Reuters, that "we are in a downward spiral that shows no sign of ending."

He accused EU leaders of adopting "well-meaning half measures."
"If there is a failure of global leadership next week [at the G20], not only will Europe be condemned to a lost decade but the whole world will pay a fearful price."

The G20 summit is a meeting of 19 countries plus the European Union, which between them account for 80% of global gross domestic product and 80% of global trade.

As host, Mexico's President Felipe Calderon wants the summit to concentrate on how to reduce food price volatility, promote green growth, and boost investment in scientific and agricultural technology.

But in truth, the eurozone crisis is likely to overshadow proceedings, with all eyes on Germany as the potential answer to the region's debt crisis.

Germany 'not immune'

Mr Brown accused eurozone leaders of seeking to "wish away" Spain's banking problems by providing only 100 billion euros of credit when their banks had two trillion euros of liabilities.

Mr Brown also predicted that Italy and France may have to follow Spain in seeking a rescue package for their banks.
"Even German banks," he said, "which are some of the most highly leveraged, are not immune from needing more capital."

Mr Brown said "the final showdown" could be postponed but eurozone leaders had to accept "the inescapable logic" of a fiscal union.


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Re: A new Global Economic Restructure in 2012
« Reply #4 on: Fri Jun 29, 2012 - 03:15:30 »



Offline Universal Restoration

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Re: A new Global Economic Restructure in 2012
« Reply #5 on: Fri Jun 29, 2012 - 03:20:11 »
Silver drachma and a Jubilee(erase of debts) proposed to resolve Greek debt crisis

Max Keiser and Mexican businessman Hugo Price discuss the Greek problem and propose a serious solution.

There's a good youtube video of the discussion entitled "Hugo Price and Max Keiser can save Greece, edited for English "

They suggest that Greece sell 5% of its 110 tons of gold and use the proceeds to issue silver drachmas while also printing up a new paper currency. Toward the end of the interview, they include a cancellation of debt to kick off this new revolutionary monetary policy.

Issuing paper drachmas would satisfy the liberal Greeks who like paper in their wallets and who want to support the Babylonian banking system. Issuing silver drachmas would satisfy the conservative Greeks who prefer to keep their savings in silver.

The main difference is that paper money always goes down in value gradually even in the best of times, and over time this "inflation" erodes the value of people's savings. Silver goes up in over time, so their savings would go up over time, rather than down.

What they are proposing is essentially a war on banks and its paper creation, because if people are given two official government-sponsored currencies--one paper and one silver--the people will soon see the value of silver as an asset. The paper debt note will be shunned, while the asset will be put into savings or used on the street to buy goods and services.


This 20-minute interview is a very practical solution to the entire Greek financial crisis.  Also this solution is applicable to any other country. 

We do not need to wait for our government to act and provide a silver currency.  Any individual that acts  to secure their savings by transfering its paper value into silver values will be 1. securing their savings, 2. warring against the Cabals Financial Tyranny.

Keiser says that the silver, because of its true value, is like a silver bullet that is sent directly in the banksters head, or a silver cross that the vampires fear in the sight of it and run away from.

Offline Mick

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Re: A new Global Economic Restructure in 2012
« Reply #6 on: Sat Jun 30, 2012 - 03:21:28 »
As much as I would dearly love to see the changes you describe come to pass, I can think of 101 reasons they won't. Primarily because financial institutions make obscene profits with interest and in fact our entire monetary system is built on interest, and for the 1/10th(it's not the 1%,it's far less), this system is working just fine.

As for bank resignations, we still don't have answers but let me say this; with so much riding in the derivatives market, coupled with the nature of any market requiring a winner and a loser, there will be big winners and big losers. Both would have a strong motivation to resign.

Offline Universal Restoration

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Re: A new Global Economic Restructure in 2012
« Reply #7 on: Thu Jul 05, 2012 - 05:59:57 »
As much as I would dearly love to see the changes you describe come to pass, I can think of 101 reasons they won't. Primarily because financial institutions make obscene profits with interest and in fact our entire monetary system is built on interest, and for the 1/10th(it's not the 1%,it's far less), this system is working just fine.
Mick, You hit the problem dead on.  For sure there are 101 + reasons that it won't, however with the Lord in control, He will defeat all reasons and will succeed to wipe out Mystery Babylon -- the last controlling wordly empire -- before He gives the kingdom to His Saints. 

Below is a study of the Law of Usury done by Stephen Jones :

The Law of Usury
Deut. 23:19, 20 says,

19 You shall not charge interest to your countrymen; interest on money, food, or anything that may be loaned at interest. 20 You may charge interest to a foreigner [nokri], but to your countryman you shall not charge interest. . .

The permission to charge interest to foreigners needs some further explanation, since most people have allowed the Jewish Talmud to have the authoritative word on it. Jewish teaching holds that they can charge interest to non-Jews, and so Christians often apply the same interpretation to themselves, allowing them to rob those not of their particular denomination.

Smith’s Bible Dictionary, under “Stranger,

Offline Universal Restoration

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Re: A new Global Economic Restructure in 2012
« Reply #8 on: Thu Jul 05, 2012 - 06:38:32 »
South Africa filed against the Cabals

News about a 1,100 page notice of motion filed against the criminal daily activities of the South African Standard Bank(owned by the Rothschilds=Cabal) has made it on the mainstream South Africa news station. ABN Digital is Africa’s leading online platform in business, economic and stock market news.

This is great that somehow, the media in Africa was able to allowed this to be aired. All mainstream media is owned by the Rothschilds and is heavily controlled.

South African author, researcher and scientist, Michael Tellinger was behind filing this 1,100 page notice of motion against South Africa’s Standard Bank in the country’s Constitutional Court, accusing the bank of “unlawful and unconstitutional activity

Offline Universal Restoration

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Re: A new Global Economic Restructure in 2012
« Reply #9 on: Thu Jul 05, 2012 - 06:43:24 »
The Canadians Filed against the Cabals

On December 12, 2011 filed by WILLIAM KREHM, AND ANN EMMETT.

Court Case Filed Dec 12, 2011
FEDERAL COURT
B E T W E E N:

COMMITTEE FOR MONETARY AND ECONOMIC REFORM (“COMER

Offline Universal Restoration

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Re: A new Global Economic Restructure in 2012
« Reply #10 on: Thu Jul 05, 2012 - 07:02:34 »
ICELAND. No news from Iceland?… why?

How come we hear everything that happens in Egypt but no news about what’s happening in Iceland:

In Iceland, the people has made the government resign, the primary banks have been nationalized, it was decided to not pay the debt that these created with Great Britain and Holland due to their bad financial politics and a public assembly has been created to rewrite the constitution.

And all of this in a peaceful way. A whole revolution against the powers that have created the current global crisis. This is why there hasn’t been any publicity during the last two years: What would happen if the rest of the EU citizens took this as an example? What would happen if the US citizens took this as an example.

This is a summary of the facts:

2008. The main bank of the country is nationalized.
The Krona, the currency of Iceland devaluates and the stock market stops. The country is in bankruptcy

2008. The citizens protest in front of parliament and manage to get new elections that make the resignation of the prime minister and his whole government.
The country is in bad economic situation.
A law proposes paying back the debt to Great Britain and Holland through the payment of 3,500 million euros, which will be paid by the people of Iceland monthly during the next 15 years, with a 5.5% interest.

2010. The people go out in the streets and demand a referendum. In January 2010 the president denies the approval and announces a popular meeting.
In March the referendum and the denial of payment is voted in by 93%. Meanwhile the government has initiated an investigation to bring to justice those responsible for the crisis, and many high level executives and bankers are arrested. The Interpol dictates an order that make all the implicated parties leave the country.

In this crisis an assembly is elected to rewrite a new Constitution which can include the lessons learned from this, and which will substitute the current one (a copy of the Danish Constitution).
25 citizens are chosen, with no political affiliation, out of the 522 candidates. For candidacy all that was needed was to be an adult and have the support of 30 people. The constitutional assembly starts in February of 2011 to present the ‘carta magna’ from the recommendations given by the different assemblies happening throughout the country. It must be approved by the current Parliament and by the one constituted through the next legislative elections.

So in summary of the Icelandic revolution:
-resignation of the whole government
-nationalization of the bank.
-referendum so that the people can decide over the economic decisions.
-incarcerating the responsible parties
-rewriting of the constitution by its people

Have we been informed of this through the media?
Has any political program in radio or TV commented on this?
No! The Icelandic people have been able to show that there is a way to beat the system and has given a democracy lesson to the world

Offline Universal Restoration

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Re: A new Global Economic Restructure in 2012
« Reply #11 on: Thu Jul 05, 2012 - 07:04:56 »
Iceland Dismantles Corrupt Gov’t Then Arrests All Rothschild Bankers

Read more google Iceland_Dismantles_Corrupt_Govt_Then_Arrests _All_Rothschild_Bankers


June 20, 2012 - Since the 1900's the vast majority of the American population has dreamed about saying “NO

Offline Universal Restoration

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Re: A new Global Economic Restructure in 2012
« Reply #12 on: Thu Jul 05, 2012 - 07:10:21 »
Iceland's Example to the World

  The people of Iceland have demonstrated what citizens of all nations should do:

Reject the fraudulent idea that debts perpetrated by capitalist leaders should be borne by "the people"

Arrest and convict capitalist leaders who commit political and economic crimes

Negate fraudulent mortgage debt created by capitalist criminals (April, 2012)

"This is awesome. It shows when the people DO STAND UP they have more power and win against the corrupt bankers and politicians of a country. Iceland is forgiving and erasing the mortgage debt of the population. They are putting the bankers and politicians on the 'Bench of the Accused.' Which means I assume they are putting them on trial for corruption.
"Now the rest of people of the world need to start doing the same thing. We all need to stand up and against all the corruption and fraud of the banks and politicians that are puppets of the banks and corporations."

      Whatever fate befalls Iceland in the future, its people have provided an example for citizens the world over to follow. This is a way forward for the American political and economic system. As we'll see in the section of this essay on Iceland's history, Iceland has been controlled and criminally manipulated by a capitalist junta similar to the American cabal, and is still somewhat under the thumb of this junta to this day. Despite, the depredations of the Icelandic junta, however, Icelandic citizens have been able to elect a number of more progressive leaders and reject responsibility for Icelandic capitalist debts.

       The people of Iceland twice voted not to repay international debts incurred by banksters, rejecting the idea that "the people" are responsible for bankster debts.

      Icelandic citizens held a first referendum in the spring of 2009 to decide whether the people should pay for the criminally incurred debts of the banksters and whether their government could impose these debts on the people without their consent. Ninety-three percent voted no!

      In April of 2011 the Icelandic citizens held a second referendum to decide whether to accept or reject a government-concocted agreement negotiated between Iceland, the Netherlands and the UK to pay back the British and Dutch governments for the money they spent to recompense savers with the failed Icesave bank. Covering the debt would have cost Iceland's 317,000 citizens around $17,000 each. Again, they voted to reject the capitalist "agreement;" this time by close to sixty percent (58.9%).

       This rejection of the bankster "agreement" was highly significant since current European governments, pressured by speculators such as Goldman Sachs, JPMorganChase, the IMF, and the European Commission were calling for the imposition of austerity measures on Icelandic citizens, for which they had not voted. After the second Icelandic referendum, even the pro-capitalist Financial Times on 4/13/2011 had to acknowledge that Icelandic citizens had voted to "put citizens before banks."

      To see how and why all this transpired in Iceland, we need to review what capitalist atrocities they had experienced. The economic terrorism visited upon Icelandic citizens is essentially the same as that suffered by American and other citizens throughout the world.

Iceland's History
      "After more than 600 years of foreign rule, Iceland's social structure was the most feudal of all Nordic countries at the beginning of the 20th century. Fishing dominated the economy, generating most of the foreign-currency earnings and allowing the development of an import-based commercial sector. This created urban economic activities: construction, services, light industry. After the second world war the economy grew strongly, because of Marshall Plan aid (there was a large US-Nato military base); an abundant export commodity, cold-water fish, unusually blessed with high income elasticity of demand; and a small, literate population with a strong sense of national identity.

"As Iceland became more prosperous it established a welfare state, in line with the tax-financed Scandinavian model, and by the 1980s had attained a level and a distribution of disposable income equal to the Nordic average. Yet it remained both more regulated and more patron-client-dominated than its European neighbours; a local oligopoly restricted the political and economic landscape.

 "There is a direct line of descent from the quasi-feudal power structures of the 19th century to the modernised Icelandic capitalism of the later 20th century, when a bloc of 14 families, popularly known as The Octopus, were the economic and political ruling elite. The Octopus controlled imports, transport, banking, insurance, fishing and supplies to the Nato base and provided most top politicians. The families lived like chieftains.

"The Octopus controlled the rightwing Independence Party (IP) which dominated the media and decided on senior appointments in the civil service, police and judiciary. The local, state-owned banks were effectively run by the dominant parties, the IP and the Centre Party or CP. Ordinary people had to go through party functionaries to get loans to buy a car, or for foreign exchange for travel abroad. Power networks operated as webs of bullying, sycophancy and distrust, permeated with a macho culture, something like the former Soviet Union.

"This traditional order was challenged from within by a neoliberal faction, the Locomotive group, which had coalesced in the early 1970s after law and business administration students at the University of Iceland took over a journal, The Locomotive, and promoted free-market ideas. Their aim was not just to transform the society but also to open career opportunities for themselves, rather than wait for Octopus patronage. At the end of the cold war their position strengthened materially and ideologically, as the communists and social democrats lost public support. The future IP prime minister, David Oddsson, was a prominent member.

"Oddsson, born in 1948 with a middle-class background, was elected as an IP councillor to the Reykjavik municipal council in 1974; by 1982 he was mayor of Reykjavik, leading privatisation campaigns, including selling off the municipality's fishing industry, to the benefit of members of the Locomotive group. In 1991 he led the IP to victory in the general election, and reigned (not too strong a word) as prime minister for 14 years, overseeing the growth of the financial sector, before installing himself as governor of the Central Bank in 2004. He had little experience or interest in the world beyond Iceland. His Locomotive group protégé Geir Haarde, finance minister from 1998 to 2005, took over as prime minister shortly after. These two men most directly steered Iceland's great experiment to create an international financial centre in the North Atlantic, midway between Europe and America.

"The liberalisation of the economy began in 1994, when accession to the European Economic Area, the free-trade bloc of EU countries, plus Iceland, Lichtenstein and Norway, lifted restrictions on cross-border flows of capital, goods, services and people. The Oddsson government then sold off state-owned assets and deregulated labour. Privatisation began in 1998, implemented by Oddsson and Halldor Asgrimsson, the leader of the CP. Of the banks, Landsbanki was allocated to IP grandees, Kaupthing to their counterparts in the CP, its coalition partner; foreign bidders were excluded. Later, Glitnir, a private bank formed from the merger of several smaller ones, joined the league.

"So Iceland roared into international finance aided globally by abundant cheap credit and free capital mobility, and domestically by strong political backing for the banks. The new banks merged investment banking with commercial banking, so that both shared government guarantees. And the country had low sovereign debt, which gave the banks high marks from the international credit-rating agencies. The major shareholders of Landsbanki, Kaupthing, Glitnir and their spin-offs reversed the earlier political dominance of finance: government policy was now subordinated to the ends of finance.

"Oddsson and friends relaxed the state-provided mortgage rules, allowing 90% loans. The newly privatised banks rushed to offer even more generous terms. Income tax and VAT rates were lowered to turn Iceland into a low-tax international financial centre. Bubble dynamics took hold. City planners aimed to move Reykjavik from the trajectory of an ordinary city to that of a world city (despite its small population of 110,000) and approved several grandiose new public and private buildings, saying "If Dubai, why not Reykjavik?"

 "Iceland's new banking elite were intent on expanding their ownership of the economy, competing and cooperating with each other. Using their shares as collateral, some took out large loans from their own banks, and bought more shares in the same banks, inflating share prices. It worked like this: Bank A lent to shareholders in Bank B, who bought more shares in B using shares as collateral, raising B's share price. Bank B returned the favour. The share prices of both banks rose, without new money coming in. The banks not only grew bigger, they grew more and more interconnected. Several dealings of this kind are now under criminal investigation by the special prosecutor, as cases of market manipulation.

"Tiny Iceland soon managed to enter the big-bank league, with three banks in the world's biggest 300 by 2006. The super-abundance of credit allowed people to consume in extravagant celebration of their escape from the earlier decades of credit rationing (on top of the earlier escape from foreign rule as recently as 1944). They saw themselves as fully independent at last, which may explain their happiness ranking. The owners and managers remunerated themselves on an ever-larger scale. The richer they were, the more they attracted political support. Their private jets, roaring in and out of Reykjavik's airport, seemed to be visual and auditory proof to the part-admiring, part-envious population below. Income and wealth inequality surged, helped by government policies that shifted the tax burden to the poorer population. The bankers made large financial contributions to the governing parties and giant loans to key politicians. The leading Icelandic champion of free-market economics declared in The Wall Street Journal: "Oddsson's experiment with liberal policies is the greatest success story in the world."

"In the euphoria, the dangers of a strategy of "economic growth based on vast foreign borrowing" were overlooked. Icelanders lived out the dictum of Plautus, the third century BC Roman playwright, who had one of his characters declare: 'I am a rich man, as long as I do not repay my creditors.'

"In 2006 there were worries in the financial press about the stability of the big banks, which were beginning to have problems raising funds in the money markets (on which their business model depended). Iceland's current account deficit had soared from 5% of GDP in 2003 to 20% in 2006, one of the highest in the world. The stock market multiplied itself nine times over between 2001 and 2007.

"Landsbanki, Kaupthing and Glitnir were operating far beyond the capacity of Iceland's Central Bank to support them as lender of last resort; their liabilities were real, but many of their assets were dubious. In February 2006 Fitch downgraded Iceland's outlook from stable to negative and triggered the 2006 'mini-crisis': the krona fell sharply, the value of banks' liabilities in foreign currencies rose, the stock market fell and business defaults rose, and the sustainability of foreign-currency debts became a public problem, The Danske Bank of Copenhagen described Iceland as a "geyser economy" on the point of exploding.


"The lesson here is instructive across the pond, but it is a chilling one. If the U.S.--or any sovereign for that matter--attempts to restructure their debts, or to force private investors to take a haircut on their own foolish gambles, these international institutions have promised the equivalent of economic war in response. However, the alternative is for representative governments to sacrifice their independence to a cadre of faceless bankers who share no allegiance to any nation.

"It is the conflict that has already defined the beginning of the 21st Century. The question is whether free peoples will choose to remain free, as Iceland has, or to submit."


"Icelandic bankers and politicians brushed aside the crisis. Iceland's Central Bank took out a loan to double the foreign-exchange reserves, while the Chamber of Commerce, run by representatives of Landsbanki, Kaupthing, Glitnir and their spin-offs, responded with a PR campaign. It paid the American monetary economist Frederic Mishkin $135,000 to lend his name to a report attesting to the stability of Iceland's banks. It allegedly paid the London Business School economist Richard Portes £58,000 ($95,000) to do the same for a later report. The supply-side economist Arthur Laffer assured the Icelandic business community in 2007 that fast economic growth with a large trade deficit and ballooning foreign debt were signs of success: 'Iceland should be a model to the world.' The value of the banks' 'assets' was then around eight times greater than Iceland's GDP.

"In the elections of May 2007, the Social Democratic Alliance (SDA) entered a coalition government with the still-dominant IP. To the consternation of many supporters, SDA leaders ditched their pre-election pledges and endorsed the continued expansion of the financial sector.

"Though they had survived 2006, Landsbanki, Kaupthing and Glitnir had trouble raising money to fund their asset purchases and repay existing debts, largely denominated in foreign currencies. So Landsbanki pioneered Icesave, an internet-based service that aimed to win retail savings deposits by offering more attractive interest rates than high-street banks. Established in Britain in October 2006, and in the Netherlands 18 months later, Icesave caught the attention of best buy internet finance sites and was soon flooded with deposits. Millions of pounds arrived from Cambridge University, the London Metropolitan Police Authority, even the UK Audit Commission, responsible for overseeing local government funds, as well as 300,000 Icesave depositors in the UK alone.

"Icesave entities were legally established as branches, rather than subsidiaries, so they were under the supervision of the Icelandic authorities, rather than their hosts. No one noticed that the Icelandic regulatory agency had a total staff, including receptionist, of only 45 and suffered high turnover as many went on to join the banks, which offered better pay. No one worried much that, because of Iceland's obligations as a member of the EEA deposit insurance scheme, its population of 320,000 would be responsible for compensating the depositors abroad in the event of failure. Landsbanki's shareholders reaped the short-term profits while most Icelanders didn't know anything about Icesave at all.

"The second 'solution' to difficulties in raising new funds was a way to get more access to liquidity without pledging real assets as collateral. The Big Three sold debt securities to a smaller regional bank, which took these bonds to the Central Bank and borrowed against them, without having to supply further collateral; they then lent back to the initiating big bank. The bonds were called 'love letters' -- mere promises. By participating in this game and accepting as collateral claims on other Icelandic banks the central bank was conniving in the banks' strategy of gambling for resurrection.

"Then the banks internationalised the process: the Big Three established subsidiaries in Luxembourg and sold love letters to them. The subsidiaries sold them on to the Central Bank of Luxembourg or the European Central Bank and received cash in return, which they could pass back to the parent bank in Iceland or use themselves. The OECD calculates that just the domestic love letters, between the CBI and the Icelandic banks, incurred losses to the CBI and the Treasury of 13% of GDP (OECD Economic Surveys: Iceland, June 2011).

"The Icelandic banks fell two weeks after Lehman Brothers. On 29 September 2008, Glitnir approached Oddsson at the Central Bank for help with its looming liquidity problem. To restore confidence, Oddsson instructed the Central Bank to buy 75% of Glitnir's shares. The effect was not to boost Glitnir but to undermine confidence in Iceland. The country's rating plunged, and credit lines were withdrawn from Landsbanki and Kaupthing. A run on Icesave's overseas branches began. Oddsson moved on 7 October 2008 to peg the krona to a basket of currencies at close to the pre-crisis value. With the currency tumbling and in the absence of capital controls, the foreign-exchange reserves were exhausted: the peg lasted for only a few hours, just long enough for those in the know to change their money out of the krona at a much more favourable rate. Inside sources indicate that billions left the currency in these hours. Then the krona was floated, and sank. On 8 October the then UK prime minister, Gordon Brown, froze Landsbanki's UK assets under the anti-terrorism laws. The stock market, bank bonds, house prices and average income went into free-fall.


"The IMF arrived in Reykjavik in October 2008 to prepare a crisis-management programme, the first time the Fund had been called in to rescue a developed economy since Britain in 1976. It offered a conditional loan of $2.1bn to stabilise the krona and backed the British and Dutch governments' demands that Iceland should honour the obligations of the European deposit-guarantee scheme and recompense them for their bailouts of Icesave depositors.

 
"Iceland's normally placid population erupted in an angry protest movement, principally targeted at Haarde, Oddsson and the IP, although the SDA's foreign minister Ingibjorg Gisladottir was considered tarnished too. Thousands of people assembled in Reykjavik's main square on freezing Saturday afternoons between October 2008 and January 2009, banged saucepans, linked arms in a circle around the parliament building to demand the government's resignation, and pelted the building with food.

... cont. Part 2 on next post

Offline Universal Restoration

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Re: A new Global Economic Restructure in 2012
« Reply #13 on: Thu Jul 05, 2012 - 07:12:08 »
..... continuing Part 2...

 Iceland's History

"In January 2009, the IP-SDA coalition broke. To date, Iceland is the only country to have shifted distinctly to the left after the financial crisis. An interim SDA-LGM (Social Democrats-Left Green Movement) government was formed in January 2009 to lead until April's election. In the election the IP was reduced to 16 seats, despite the overwhelming bias of the electoral system in its favour, its worst result since its formation in 1929.

"The SDA-LGM government came under immediate pressure to repay the Icesave debt; much of the IMF loan was withheld until Reykjavik agreed. The new government was also divided on whether to apply for full membership of the EU and Eurozone, with most of the SDA strongly in favour. After long negotiations, the government presented the terms they had agreed on the Icesave debt to the parliament in October 2009: £5.5bn ($7.8bn), or 50% of Iceland's GDP, was to be paid to the British and Dutch treasuries between 2016 and 2023.

 
"The party's health minister resigned in protest, five dissidents refused to vote with the government. The bill was forced through on 30 December 2009, against high feelings in the country. On 5 January 2010 President Grimsson announced that he would not sign it into law, out of respect for the national sentiment. In the ensuing referendum the bill was decisively rejected. In the May 2010 Reykjavik municipal elections, the SDA slumped to 19% and a comedian was elected as the city's mayor. In October protests resumed, and the coalition conceded the election of a constitutional assembly to draw up a new constitution (the existing one having been inherited from Denmark on independence in 1944). When the election was invalidated by the Supreme Court, the assembly was reconvened as a constitutional council appointed by parliament.

"The deal on the table in this April's second Icesave referendum involved substantial concessions on the part of the British and Dutch governments. After the no vote, the disagreement may have to go to international courts.

"The cost of losses on loans and guarantees, added to the cost of restructuring financial organisations, brings the total direct fiscal costs of the crisis to about 20% of GDP, higher than in any other country except Ireland (OECD Economic Surveys, Iceland, June 2011). But the postponement of major public spending cuts until this year [2011] has given the economy breathing space; and the sharp devaluation has helped to generate a trade surplus for the first time in many years. So far, Iceland has experienced smaller falls in GDP and employment than big public-spending slashers like Ireland, Estonia and Lithuania. The unemployment rate, only 2% in 2006, has been between 7% and 9% since 2009; but the rate of outmigration, of Icelanders and other European workers (predominantly Polish), has been the highest since 1889. However, the SDA-LGM government has announced drastic cuts in public spending for 2011 and beyond. Local governments have no budget for fresh projects. Hospitals and schools are cutting salaries and sacking employees. The freeze on house repossessions expired in 2010.

[video:youtube]http://www.youtube.com/watch?feature=player_embedded&v=bLjIn0HAcr4#![/video]

"The IP-SDA government's decision to provide unlimited bank deposit guarantees illustrates its debt to the financial elite. Had it limited the guarantee to 5m krona ($70,000), it would have protected the entire deposits of 95% of depositors; only the wealthiest 5%, including many politicians, benefited from the unlimited guarantee, which now means further constraints on public spending.

"Iceland's tiny scale seemed to make it easier to challenge the government's denial of the impending crisis, but the opposite was true. The Oddsson government undertook an extreme privatisation of information. Iceland's National Economic Institute had a reputation for independent thinking, and Oddsson abolished it in 2002. From then on the banks, international rating companies and the Chamber of Commerce provided almost the only information and running commentary on the state of the economy, present and future.

"Paradoxically, a number of critical reports were published when the bubble was in the early stages, including one by the CBI. But by 2007-08, when the dangers were acute, reports, including those by the IMF, became noticeably softer in tone. It seems that the official financial institutions, as well as bankers and politicians, understood that the situation was so fragile that just to speak of it might trigger a run on the banks.

"In October 2010 the parliament decided to charge Prime Minister Haarde for breach of ministerial responsibility. The permanent finance secretary Baldur Gudlaugsson (former member of the Locomotive group) has been given two years in prison for using inside information for his personal advantage while selling his shares in Landsbanki in September 2008. But the special prosecutor in charge of the investigation of the banks has been working with a team of 60 lawyers and others for the past two years and has so far brought no charges. Meanwhile Oddsson was appointed in September 2009 as editor-in-chief at Morgunbladid, the leading Iceland daily, and orchestrated coverage of the crisis. A commentator said that was like appointing Nixon editor of The Washington Post after Watergate. Iceland's elite looks after its own." 1

Capitalist Retaliation

      When a nation such as Iceland goes up against the global capitalist cabal, we can expect it to retaliate in any way possible. As of September, 2011, two cabal retaliatory operations have been launched against Iceland:


Israeli Zionists falsely accuse Icelanders of racism

The current cabal U.S. puppet regime is planning economic sanctions against Iceland, using the excuse of whaling irregularities


Lessons Still To Be Learned

      The Icelandic example is one of genuine significance: citizens in all countries besieged by international capitalist vultures should refuse to bail them out when their criminal operations threaten the entire economy. But Iceland's example is also one of only partial success: 


-The Icelandic people failed to extricate themselves from their capitalistic economy

-They failed to eradicate their capitalist ruling junta

-They failed to institute a cooperative commonwealth economy for the benefit of all citizens--even though their writing a new constitution gave them the perfect opportunity to do so
     
We can certainly take an important lesson from what Icelandic citizens have been able to do. But, in echoes of Lincoln's great address, it is for us to be dedicated to the unfinished work which the Icelandic people so nobly advanced. It is rather for us to be here dedicated to the great task remaining before us--the replacement of fascism and predatory capitalism with a cooperative commonwealth polity that shall initiate a new birth of freedom through a government of the people, by the people, for the people.

Offline Universal Restoration

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Re: A new Global Economic Restructure in 2012
« Reply #14 on: Thu Jul 05, 2012 - 07:13:51 »
The five biggest US banks preparing to go out of business

By David Henry and Dave Clarke

NEW YORK/WASHINGTON | Wed Jun 27, 2012 4:29am EDT

(Reuters) - Five of the biggest banks in the United States are putting finishing touches on plans for going out of business ...

The plans, known as living wills, are due to regulators no later than July 1 under provisions of the Dodd-Frank financial reform law designed to end too-big-to-fail bailouts by the government. The living wills could be as long as 4,000 pages....

JPMorgan Chase & Co (JPM.N), Bank of America Corp (BAC.N), Citigroup Inc (C.N), Goldman Sachs & Co (GS.N) and Morgan Stanley (MS.N) are among those submitting the first liquidation scenarios to regulators at the Federal Reserve and the Federal Deposit Insurance Corp, according to people familiar with the matter.

The five firms, which declined to discuss their plans for this story, have some of the biggest balance sheets, trading desks and derivatives portfolios of financial institutions in the United States.

Offline Universal Restoration

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Re: A new Global Economic Restructure in 2012
« Reply #15 on: Thu Jul 05, 2012 - 07:19:45 »
Fed Audit Legislation Passed by House Oversight Committee

By Joshua Zumbrun - Jun 27, 2012

"A U.S. House committee approved legislation introduced by Representative Ron Paul that would subject the Federal Reserve to an audit of its activities, including monetary policy decisions.

The House Oversight and Government Reform Committee in Washington approved the bill today in a voice vote. The bill now advances to consideration in the full House.

Paul, a Republican from Texas and author of the book “End the Fed

Offline Universal Restoration

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Re: A new Global Economic Restructure in 2012
« Reply #16 on: Thu Jul 05, 2012 - 07:23:17 »
]Slovenia May Ask for Bailout in July, Prime Minister Jansa Says

"Slovenia may ask for an international bailout if lawmakers fail to adopt legislation next month that would limit public spending, Prime Minister Janez Jansa said in an interview with a local radio station." ...


---------------

Now Is The Time To Prepare For The (Next) French Bailout Of Their Banking System & Potential Bailout Of France

"French bank Italian Exposure: As Italy pops with outrageous funding yields (just like Greece), France will be forced to bailout its banks once again, leaving the socialist country facing the dilemma of potentially having to ask for a bailout itself. As you may know from my previous writings, the French banking system is bigger than France itself so a true bailout cannot practically come from within."


Offline Universal Restoration

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Re: A new Global Economic Restructure in 2012
« Reply #17 on: Thu Jul 05, 2012 - 07:33:25 »
The severity of the Barclays Libor Scandal Explained

Here's the best explanation I came across done by Matt Taibbi and comfirmed by Dennis Kelleher.  Right now I can only provide the youtube video title 'The mob learned from Wall Street': Eliot Spitzer on the 'cartel-style corruption'  I will come back and modify this post with a written description from Matt Taibbi.

Offline Universal Restoration

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Re: A new Global Economic Restructure in 2012
« Reply #18 on: Thu Jul 05, 2012 - 07:52:55 »

LIBOR Banking Scandal Deepens; Barclays Releases Damning Email, Implicates British Government
POSTED: July 4, 11:35 AM ET


This Libor-manipulation story grows crazier with each passing minute. We have officially disappeared now down the rabbit-hole of the international financial oligarchy.

Former Barclays CEO Bob Diamond is testifying before parliament in London today, and that's sure to bring some shocking moments. But there's already been one huge stunner[An incriminating memo is examined in another report]. In advance of that testimony, Barclays released an email from October 29, 2008, written by Diamond to then-Chairman John Varley and COO Jerry del Messier (who also stepped down yesterday). The email from the CEO to the other two senior Barclays execs purports to detail the content of the conversation Diamond had with Bank of England deputy governor Paul Tucker that same day.

In the email, Diamond essentially tells the other two execs that he has been given permission by Tucker – encouraged, actually – to rig Libor rates downward. What’s even worse is that Diamond’s email suggests that Tucker was only following orders, i.e. that Tucker had received phone calls from "a number of senior figures within Whitehall" – that is, the British government – expressing concern about Barclays' high Libor rates. Tucker in this version of events was acting as a middleman for the British government, telling Diamond to fake his borrowing rates in order to preserve the appearance of financial stability, for the good of Queen and country as it were.

[email provided at Matt Taibbi TAIBBLOG]


Again: Libor, the London Interbank Exchange Rate, is the rate at which banks borrow from each other. A huge percentage of the world’s variable-rate investments are pegged to Libor. When Libor rates are high, it suggests that the banks’ confidence in each other is low, and high Libor rates are generally an indicator of shaky financial health among the banks. If the banks manipulated Libor, they did it to make themselves look healthier, but this had the consequence of affecting hundreds of trillions of dollars’ worth of financial products worldwide.

During the crash of 2008, governments understandably would have been concerned about high Libor rates – high rates and a lack of confidence in banks threatened economic stability – but the notion that governments would have encouraged banks to fake those rates would have been beyond unthinkable even a decade ago.

Back to the email. Diamond’s version of the conversation with Tucker, if true, is mind-blowing. To paraphrase, Diamond said that Tucker started off by asking Diamond why other banks were reporting such low borrowing rates relative to Barclays.

Diamond apparently deadpanned that his bank’s problem was that it was reporting the real numbers, while all the other banks were lying. "I asked [Tucker] if he could relay the reality, that not all banks were providing quotes at the levels that represented real transaction," Diamond wrote.

Tucker then steered Diamond to crime using the painfully oblique manner of an English gentleman trying to engage a prostitute without using any dirty words. He told Diamond that "while he was certain [Barclays] did not need advice,

Offline winsome

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Re: A new Global Economic Restructure in 2012
« Reply #19 on: Thu Jul 05, 2012 - 10:21:32 »
Bob Diamond denies that Tucker asked him to fiddle the Libor Rate.

Offline FireSword

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Re: A new Global Economic Restructure in 2012
« Reply #20 on: Mon Jul 09, 2012 - 10:43:47 »
"And the world will look at you and they shall say, 'we thought it was the end, we thought that the economy would crash.'" And God said, "Watch Me now as I will raise up this economy, and America shall once again rule as they are supposed to.

"There is a banking system that shall crash. And they shall say, 'but it is so big, how can this happen in America?'" And God said, "It shall crash, it shall crash and there shall be a shaking just for a short moment in time. But there is something happening called a 'Damascus Road Conversion' of three major networks in this country.

"While I was praying again this afternoon, the Lord told me to remind the people that there are two great banking systems that will fall, not to fear, no recession. He said, "Do not listen to the powerful force of prognostication, the force of prognosis, and the media that are dictating how you are supposed to feel about the future." He said, "Let this be a sign to you: two great banking systems will fall, but it is not something that will destroy this Nation." He said, "It is the bear and it is the lion."

And I said, "Lord, what are You talking about? I can't get up there and tell these people that there's going to be a break in the banking system," and He said, "Good riddance to bad rubbish or to junk. In other words, I've got to do a bit of removing, so I can take you to that higher place. There will be no recession!"


And God said, "Who rules the nations? Who is He that rules the nations? They will say, 'it's costing the government billions of dollars to erect what has fallen." But God said, "Do you not understand that sometimes these things happen because men have relied on filthy lucre, men have relied on as their power and as their strong-arm finances, silver and gold? They have relied upon oil; they have relied upon earth and soil. And this has been their strength.

"Now, once again, I will introduce Myself starting in Wall Street and going through the Stock Exchange and on the Northeast of America to the Midwest and down to the South I will introduce Myself as the strength of this Nation again," says the Lord of Hosts!

"This will go from strength to strength and men who relied upon the rising of their funds, now, they say, 'where do we go, where do we go?' Where can they go but to the Lord? Where can they go but to the Lord? For I have already determined it - that My Church will not go under because I am building My Church and the gates of hell shall not prevail against it," says the Lord!

For God said, "They could not rely upon Greenspan; they could not rely upon men of great financial integrity. I will take even the wealthiest and the richest and the most powerful and I will cause them to say, 'we have nowhere to go.'" God said, "Do not concern yourselves saints of the Most High God. For even as Daniel prospered in Babylon and Joseph prospered in Egypt, so shall ye prosper as you sing in the presence of those," God says


 

     
anything