World Financial Crisis (and fallout) Part 4

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thanks

states in the US and Europe may be in great debt, but the private bankers are collectively in hundreds of trillions of debt.   That is the figure -six hundred trillion- that was reported in Senate debates as the amount of speculative cash floating around financial market trading.  The bankers take public debt and leverage and sell it over and over to eachother, increasing exponentially a vast pile of debt for themselves and everyone else.

Currently no civil society groups in Canada except the Committee on Monetary and Economic Reform are actively promoting public/community finance instead of banker rule.  (unless one counts alternative media as 'active civil society'.)

I can understand the frustration of those who are so hurt and angry they condone property damage.  Neither governments, corporations, nor the majority of civil society groups are providing spaces for development of public finance, and the bankers are too lazy to give up their gravy train and do real work.

I don't agree that property damage can be condoned, it's additionally self-defeating and movement-defeating, and adds to the debt burden dropped at our collective feet, but I understand the anger at its root.

 

 

 

Fidel

thanks wrote:
states in the US and Europe may be in great debt, but the private bankers are collectively in hundreds of trillions of debt.   That is the figure -six hundred trillion-

That's insane.  $600 trillion?

thanks wrote:
Currently no civil society groups in Canada except the Committee on Monetary and Economic Reform are actively promoting public/community finance instead of banker rule.  (unless one counts alternative media as 'active civil society'.

 thanks,  is their a consensus among COMER as to what percentage of GCM vs BCM there should be? Should we go back to the way it was between 1938 and 1974 with about one-quarter of the money supply coming from the feds? I noticed COMER and the CAP were somewhat excited when Jack Layton mentioned during the 2004 election campaign that there are better uses for the Bank of Canada. The NDP has tried to get people interested in the banking and finance ripoff in this country and especially since 1991, but I've noticed that very many progressives here don't seem to be interested. GCM was mainly how we used to finance social programs and infrastructure across Canada. And today we have hundred billion dollar infrastructure deficits and private enterprise wanting pieces of the common good hacked off and thrown their way.

If we did have some larger percentage of the money supply as GCM, would kids still be able to finance their expensive sports cars, and would people still be able to mega-borrow for mini mansions and homes costing an arm and a leg to heat and electrify? Canada used to afford a national housing strategy, but it was scrapped in the 1990s. And ever since money creation was fully privatized in Canada, homelessness and lack of affordable housing has become a problem. Markets do not fill the bill for all Canadians. Is there something that runs even deeper and more wrong with our neoliberalized economy and society than most care to admit?

thanks

thank you Fidel for your comment and questions.

There has been debate in COMER regarding percentage of money which should be government created or bank-created.  Some have said it ought to be 50% of each, others that all money ought to be government created.

Questions centre around the fact that banks can use any leverage to expand the money supply, cause inflation and wreak havoc.

Following a meeting once, not of COMER, but a public meeting, in response to the question, a CAP supporter did express the concern that advocating for 100% government-created money (ie. not allowing banks to loan at interest) carried personal risk, in that those who had attempted to introduce similar legislation in the US had been assassinated.

The last time I visited the site of the Committee on Monetary and Economic Reform, i think they had reached a consensus around allowing a percentage of bank-created money, but i'd have to check.  (The site is www.comer.org and i don't have time to search at present.)

In Canada, as you describe, we were able to use the Bank of Canada to provide for public needs, and prime ministers weren't assassinated for that, as far as i know.  I'm not sure of the percentage that private banks enjoyed at that time.

Using the Bank of Canada to create money directly for public needs like public housing, education, health care, reliable pensions, green public infrastructure, (not luxuries), would be cost-effective, without having to cover the profits, inflation and price manipulations of intermediary financiers.

Whether private banks ought to be able to continue to lend privately to individuals for luxuries is a related question-

The main focus i think of monetary reform groups has been on the main source of government funds- from the BofC or private banks.

Presumably the less money privateers had to play with, the less damage they'd be able to do, and we don't really need anyone creating inflation and gaining power with ecologically- and socially-destructive loans.

There also needs to be a way to integrate better local public/community control over the BofC and perhaps public/community-owned and operated branches of a properly functioning BofC.

I really wish more progressives would advocate use of public/community finance. 

Many groups attending the G8/G20 protests will be lamenting diverse funding cuts.  It would be useful to discuss public/community finance as a way to pay for the critical needs of Indigenous communities, public green energy and conservation, women, immigrants, youth, disabled, seniors, and workers, along with public services for water, sewage, health care, education, housing, and welfare. 

I was thinking that instead of torching private banks, it would be better to convert them to public/community-owned and operated institutions in concert with public use of the BofC for creating money for needs.  Symbolically for a protest event a sign or banner outside could read similarly.  maybe something like 'public money-public bank'.  have to think about it.

maybe you or others have ideas.

 

 

 

George Victor

thanks:

"I really wish more progressives would advocate use of public/community finance. "

 

Right on, thanks. We would have to create some means of doing this, and financial vehicles, say public pension funds at the provincial level. Otherwise the average masses will see it only as a "cost"...and finance capital will be right there to assure them that it is. New Democrats must expand on their chatter about expanding public pensions.

And may I say how re-assuring it is to see advocacy of financial action...something beyond bricks.

George Victor

Eureka, thanks.  In today's Globe op-ed there appears "The 'trill' of investing",  a suggestion that government issue a bond tied to the level of that country's gross domestic product. Mark Kamstra of the Schulich School of Business and Robert Shiller suggest for Canada the issuance of a "trill"...paying the holder one trillionth the annual GDP of Canada in perpetuity ($1.50 currently). They suggest this would diversify government debt obligations and "avoid the sort of financing crises that have more recently thrown markets into turmoil.)

The best use of trills for Canada "might be to fund currently unfunded obligations such as employee future benefits..."

Kamstra "would anticipate a very healthy appetite for these bonds from ma-and-pa investors as well as pension funds seeking safe harbour from the market turbulence of the past few years. "   Whether we should depend on "real economic growth in the Canadian economy" as much as the professor of finance, is questionable.

NDPP

The Worst Money Supply Plunge Since the Depression

http://www.businessinsider.com/money-supply-double-dip-2010-5

"The negative take is that this crashing money supply will lead to both deflation and a double dip recession"

epaulo13 epaulo13's picture

The Eco-Socialist Alternative: Capitalist Destruction or New Civilization?
By Gustavo Fernández Colón - Another Green World, May 28th 2010

The most serious aspect of the crisis facing the global capitalist system is not the bankruptcy of financial corporations, or the global economic downturn, or the discrediting of its institutions of political control. The greatest threat to the continuity of the capitalist mode of production is the environmental crisis caused by the irrational destruction of nature, to the point of jeopardizing the ability of self-regeneration of the ecosystems on which our survival depends.

For many analysts, however, a new long cycle of economic growth would be able to take off thanks to the efforts of countries like China and India, now converted into more desirable markets for transnational capital because of their abundant and “unregulated” cheap labor.

What analysts often do not reveal is that the high rate of GDP growth in China is misleading if one takes into account that the figures do not include the serious environmental and social liabilities generated by the “market socialism” adopted by this nation since 1979. Indeed, since the late nineties, “the World Bank estimated that pollution cost the country the equivalent of 8% of its annual production. That is, the enviable growth in China (...) is almost offset by hidden environmental [and social] costs, such as reduced life expectancy and declining arable land.”[1].....

http://venezuelanalysis.com/analysis/5394

epaulo13 epaulo13's picture

The Eco-Socialist Alternative:

quote:
But despite the dominance of the development ideology, it is fair to say that there have been some significant achievements in the fight to get rid of the legitimating myths of capitalist modernity and lay the foundations for a truly alternative political paradigm. An example is the principle of Good Living, which underlies the constitutions of Bolivia and Ecuador. Good Living or Sumak Kawsay, in Quechua, is a concept from the worldview of the native peoples of the Andes and the Amazon, which refers to community life in harmony with nature and culture or wisdom of the ancestors. It has nothing to do with modern anxiety for “better,” nor with the ideology of unlimited growth and progress. It responds to a world view totally different from the capitalist ethic which encourages us to compete with others to produce and consume more, regardless of why our fellows have to “live evil.” As Leonardo Boff says:

    “On the contrary, Good Living Ethics points toward having enough for the whole community, not just for the individual. Good Living is a holistic and integrated human being, immersed in the great earth, which also includes humans, air, water, soils, mountains, trees and animals (...) in deep communion with Mother Earth." [3]

The Good Life is one of the most original conceptions inspiring revolutionary processes taking place in Latin America. Based on this philosophy, it is possible to characterize the fundamental force lines of the transition that will allow us to save civilization from the devastation of capitalism and contribute to the flourishing eco-socialist societies of the XXI Century.

http://venezuelanalysis.com/analysis/5394

Fidel

[url=http://www.globalresearch.ca/index.php?context=va&aid=19455]In Da Bronx: Escaping to my High School Reunion but Not Escaping Our Economic Catastrophe[/url] by Dan Schechter

A very candid report on the fallout

doodle21
George Victor

In a piece from the Wall Street Journal. 

N.Beltov N.Beltov's picture

... in a country that has banned the Communist Youth organization despite having Communists in their Parliament.

Doug

Seems kind of odd for a synagogue to invite an economist to speak to them, but there it is - a good talk from Nouriel Roubini.

 

A Crash Course in the Future of Finance

 

ygtbk

Say what you want about where he gets published, Vaclav Klaus is no dummy:

 

Quote:

It is evident that the euro-the European single currency-and the currently proposed measures to save the euro do not represent any "salvation" for the European economy. In the long run, it can be saved only by a radical restructuring of the European economic and social system. My country had a velvet revolution and made a radical transformation of its political, economic and social structures. Fifteen years ago, I sometimes joked that after entering the EU we should start a velvet revolution there as well. Unfortunately, this ceases to be a joke now.

NorthReport

Who knew! Laughing

 

Is Canada's real estate bubble bursting?

 

 

Shine comes off housing boom

Retreat in May sales signals abrupt shift to a buyers' market

 

http://www.theglobeandmail.com/report-on-business/shine-comes-off-housing-boom/article1591578/

 

 

Probably is a better time to buy some blue-chip stocks, eh!

NDPP

What Happened To the 'Death of the Dollar'? by William Engdahl (2 parts)

http://www.therealnews.com/t2/index.php?option=com_content&task=view&id=...

NDPP

Bilderberg 2010: Plutocracy with Palm Trees

http://www.guardian.co.uk/world/blog/2010/jun/02/charlie-skelton-bilderb...

"the shadowy global elite is meeting in Sitges.."

 

NorthReport

Dow Jones is tanking again today already down 230 points to 10,025!

At its peak the DJIA was at 14,198 on October 11, 2007, so that's a drop of 4,173 or down 29.4% 

 

Caissa

The Canadian economy added 24,700 jobs in May, a robust showing after a massive increase in the previous month.

Economists had expected a more modest increase of 15,000, particularly following April's oversized gain of 108,000.

Despite the increase, the unemployment rate stayed unchanged at 8.1 per cent, Statistics Canada said Friday. That's largely because of growth in the labour force overall, BMO economist Benjamin Reitzes noted.

Read more: http://www.cbc.ca/canada/story/2010/06/04/canada-jobs-may.html#ixzz0ptzfzMxP

remind remind's picture

They are all being hired for security in TO. ;)

 

 

Caissa

Hungary may be the next Greece, participants in financial markets fear.

Their concern was boosted Friday when a spokesman for Hungarian Prime Minister Viktor Orban said the economy is in a "grave" situation, and the previous government had understated the deficit.

"I don't think it's an exaggeration at all" to suggest that the country may default on its obligations, spokesman Peter Szijjarto said, according to media reports.

Read more: http://www.cbc.ca/money/story/2010/06/04/hungary-debt-markets.html#ixzz0puOaPdSl

NorthReport

DJI now trading below 10,000 droping over 260 points so far today.

I sense a buying opportunity soon. Laughing

NorthReport

Down, down it goes, where it stops nobody knows.

DJI closed at 9,931, down 323.

 

epaulo13 epaulo13's picture

Spanish workers strike over cuts

Spanish public sector trade unions are holding strikes around the country in protest against government austerity measures.

Tens of thousands of workers stayed away from work on Tuesday following government plans last month to cut public sector workers' wages by five per cent to reduce the country's large state deficit.

Spain's two largest unions said they believed three-quarters of public sector workers were staying at home, leaving state schools, hospitals and emergency services with minimum staff....

http://english.aljazeera.net/news/europe/2010/06/20106842521933136.html

epaulo13 epaulo13's picture

Public sector strike against austerity in Romania
By our correspondents
9 June 2010

Several hundred thousand public sector workers in Romania participated in a strike against the IMF-imposed austerity program of the conservative government of Emil Boc. It was the largest strike in Romania since the collapse of the Stalinist regime of Nicolai Ceaucescu.

According to the unions 700,000 teachers, health workers, local public transport workers and other employees joined the strike. Many of them continued the strike after Monday or are planning further strikes in the coming weeks....

http://www.wsws.org/articles/2010/jun2010/roma-j09.shtml

NDPP

Markets About to Turn Nasty, 'Buy Barbed Wire and Guns'

http://www.informationclearinghouse.info/article25649.htm

"Look at the current situation. You have Greece, now you have Hungary and huge issues surrounding Spain and Portugal...I don't want to scare anyone but I am considering investing in barbed wire and guns, things are not looking good and rates are heading higher.."

thanks

[earlier thread on financial crisis:

http://www.rabble.ca/babble/international-news-and-politics/world-financ...

___

"The Committee, together with its governing body of central bank governors and heads of supervision, agrees on the need to raise the level, consistency, quality and transparency of the capital base, as well better risk capture."

http://www.bis.org/speeches/sp100608.pdf

from Bank of International Settlements site, speech (June 7-9, 2010) on harmonized financial 'regulations' promoted by Basel Committee and apparently many G20 finance ministers http://www.cbc.ca/money/story/2010/06/07/flaherty-g20-banking-reform.html .

Increasing capital reserve requirements for bankers is often cited as a useful step by progressives.  Bankers have been able in the past to have only a dollar in their account for every thirty dollars they loan out.  The basic practice earlier was one dollar for every nine dollars loaned out, but derivatives trading has ballooned the nine to thirty-plus.  This is how money is created from thin air. 

The idea is to require banks to hold more dollars in their accounts so that they aren't allowed to balloon markets outrageously which then crash.

'Capital base' 'level, consistency, quality, and transparency' mean guaranteeing public loan bailouts for favoured bankers, along  with austerity programs and deficit reduction:  Public money is the capital base.  The certainty of access to public money is to be increased.  'Risk capture' is to legally (or militarily) capture non-compliant states into this harmonized financial regime.

Governments should be creating their own money directly, not borrowing from private banks.

The G20 People's Summit includes a workshop on "Our Little Understood Money System" http://peoplessummit2010.ca/section/23 on Sat. June 19 from 7 to 9 pm at SCC (location acronyms need a map).

G20 Leaders should attend this workshop, along with the three thousand journalists covering the event.

siamdave

THANKS: You might be interested in a copyable PDF going into some detail about what bank-created money has meant to Canada over the last 30 years - in the larger context, allowing private banks to create our money, with no realistic reguation, has been the cause of every economic problem we have seen in the last 150 years and longer. What Happened? http://www.rudemacedon.ca/what-happened.html

NDPP

Japan PM Naoto Kan Warns of 'Collapse' Under Debt

http://news.bbc.co.uk//2/hi/business/10290933.stm

"Japan is 'at risk of collapse ' under its huge debt mountain the country's new prime minister has said.."

thanks

thanks siamdave for the link.  i'll try to check it out.

It's difficult to understand the options floating around:

Carney and G20 leaders/finance ministers seem to recommending steps like increasing capital reserve requirements, limits to leverage, etc. which progressives have advocated in the past.  The approach, though, is a wishy-washy meandering affair largely determined by private financiers who run central banks, as summarized by Kohn, Chair of the BIS Committee on the Global Financial System and Vice-Chair of the Board of the private US Federal Reserve http://www.bis.org/publ/cgfs38.pdf?noframes=1 .

Some banking lobby groups oppose these requirements. http://www.cbc.ca/fp/story/2010/06/10/3136028.html  Reflexive, maybe a negotiating style, certainly short-sighted.

BIS/G20 measures, which might have helped a decade ago, now seem as effective as arranging deck chairs on the Titanic; the tinkering  ignores the main problem/s of a system wherein every creature on the planet feeds a few lousy bankers.  The human population is bizarrely and increasingly chained to same bankers through pension funds, public-private partnerships, and the rest of it.  The entire ship is sinking in unfathomable debt and G20 leaders and central/bankers seem completely incapable of dealing with reality.

The reality is that the publics of the world cannot be squeezed any more.

A comment yesterday at CBC on Carney's speech http://www.cbc.ca/money/story/2010/06/10/carney-risk-reform.html implied that customer deposits were all that made up capital reserves.  Rather, capital reserves can be composed of any income a financier makes-including interest paid by governments on loans. So maybe banking lobbyists are just faking their opposition- you'd think they'd welcome having more money in the pot.  Guess they can make more short-term cash with low reserves, and lots of derivatives spinning.  They can exit quickly if need be with more in pocket.

I'm just not sure how much is game and how much financiers are really dependent upon states like Greece not defaulting. What's the worst that can happen with defaults?  If all states have to massacre public space and the planet, or default, then its obvious a new financial system is needed, not just an increased capital reserve here or a leverage limit there determined by bankers themselves, even with G20-harmonized direction. 

G20 leaders in cahoots with bankers are resisting public/ community control of finance, even a minor tax.   They are in denial regarding the capacity of peoples and the earth to continue propping up the status quo. 

All nations and Indigenous communities, civil society and local communities need to participate in developing a system that deals fairly with their funds and the earth.

thanks

I read your essay, skimmed parts as its wordy, and see that you focus on the money creation power -shift that happened in the 70's as the main problem. 

The Canadian government gave its own practice of money-creation over to private bankers.  Then government borrowed from private bankers.  Then bankers raised interest rates, and Canada racked up debt. 

To pay off this debt successive governments have slashed all the public programs like health and education that we value, and introduced whatever policy bankers tell it to. 

The power to create money has allowed bankers to control government.

We need to take back our power to create money from the bankers, to regain democracy.

You've talked also about media, and how residents are the ones to make changes.

NDPP

Euro: the Worst Case Scenario

http://www.voltairenet.org/article165569.html

"The Greek budgetary crisis, which has become a crisis of the euro, is not the inevitable result of market self-regulation, but rather the consequence of a deliberate attack. According to Jean-Michel-Vernochet, the crisis was provoked by an economic offensive directed from Washington and London that followed similiar principles to those of contemporary military warfare, employing game theory and a strategy of 'constructive chaos'.."

Doug

BMO: "Go to cash."

 

Bet they won't post that up at their bank branches where they sell mutual funds. Laughing

Doug
epaulo13 epaulo13's picture

Global Research, June 16, 2010
Telegraph - 2010-06-15

Spain has upped the ante in a high-stakes poker game with Germany, pushing for the release of EU stress test results for major banks in a move that risks precipitiating a dramatic escalation of Europe's financial crisis.
 
"We're not afraid of transparency," said the Spanish Banking Association (AEB), saying the full truth would put an end to rumours battering Spain's instutitions. El Pais reported that the government backs the initiative, putting it on a collision course with Germany which insists on secrecy.

Josef Ackermann, head of Deutsche Bank, warned last week that it would be "very dangerous" to publish the results of each bank, fearing that it would trigger flight from weak lenders and set off a chain reaction.

The Spanish authorities have little to lose by publishing the data given the near paralysis in the country's debt markets. Funding is frozen for much of the private sector.....

http://www.globalresearch.ca/index.php?context=va&aid=19766

Doug

Bloodsuckers found to inhabit Goldman Sachs

 

Obviously a congenial environment.

 

 

Doug
N.Beltov N.Beltov's picture

That's just like the old DDR (East Germany). The DDR had a huge surveillance apparatus whose sheer cost helped topple the Honnecker regime. In California, it's about cutting taxes for the rich and damn the torpedoes.

thanks

I'm trying to find a link at globalresearch.ca to a simulation game they had posted.  it appeared on a link from a thread at babble, and i can't remember which.  can't find it at globalresearch either.  pretty sure it was there.

anyway, the game seemed to be excessively top heavy, too much emphasis on a centralized global solution, but i could be wrong.

money creation power cannot be left to private bankers, nor a few global heads of state, not even the UN where now military is so overused as power.

money creation needs to be a right exercised at the community level.  Some would say the path to that is through use of state money creation first, which can then devolve the power to communities, as states are the only structures currently (?) which possibly have power to reclaim money creation powers from private bankers.  Its been decades though, and still no movement, so communities might as well focus exactly on goals.  Except that while any states allow private money creation, fortunes can be built up and economic/military power acquired over communities with participatory public finance.  Community money creation is needed around the world.

of course at present most people don't even know about money creation problems.  its a large gap.  that's the only reason why the issue can be considered more important than others.  In reality all issues are equally important- ecosystems, Indigenous rights, womens' rights, etc., but it seems so very few know about the money systems which keep inequality and earth destruction in place.

i wanted to see if the game at global research was a useful tool, to save me some time.

probably more useful in any case would be a simple clear 'history of money creation', with a focus on conflicts around this in the last century.  i've seen some of the videos put out on money issues, but some seem to target Jews which is incorrect as those of many races are involved.

probably time in a short workshop would in any case be taken up by practising money creation, with a view to who creates and ensuing power.

 

thanks

"Josef Ackermann, head of Deutsche Bank, warned last week that it would be "very dangerous" to publish the results of each bank"

This statement alludes to the fact that banks are bankrupt, including US-based banks, which are completely dependent upon public money.

That dependence includes interest from governments on loans - loans which were unnecessary as governments could simply have created loans to themselves at no interest, or spent directly.   The author of a sixties' US history book named the practice of government loaning from banks as a subsidy: " It [government] sweetens the disposition of bankers by allowing them to create the credit which it borrows, actually a subsidy." Survey of American History, 2nd Ed., Baldwin-Kelley, American Book Company, 1967, p381. 

Banker-dependence also includes the myriad of public subsidies based on tax breaks, exploitation of people and resources, control of exchanges, etc.

The G20 people's summit hosted a forum noted at http://www.comer.org/hellyerg20.htm, wherein one of the presenters advocated only one third government-created money to two-thirds banker-created money, along with provisions like statutory reserves which would theoretically help control the two thirds power.

Many labour and allied groups are advocating for a Robin Hood tax to curb speculation.

Reserves and financial transaction taxes could be useful, but what if bankers are so indebted that these reserves and taxes will only be squeezed from more public austerity?

Governments, having stupidly given away their power to create money need to reclaim that power, and the entire debt-based global financial system needs to be scrapped. 

I don't understand why unions and other groups, even COMER now, fail to articulate these options. 

Well, maybe i do.  It's because there are still not enough people who know about the possibilities of reclaiming public/community money-creation.  Movements are already established for a transaction/Robin Hood tax, which would at least help the public access the 'very dangerous' information of bankers' books and provide an informed base for scrapping inequities.

COMER's Bank of Canada tutorial and other resources are useful, of course.  And they're dead right on the fact that monetary reform history has been removed from texts in the last few decades- the standard Western Civilization text by Burns, updated by Lerner and Meacham, has no record of monetary policy changes in the last century at all.

"Very dangerous" indeed.

 

 

 

 

epaulo13 epaulo13's picture

Spain Plays High-Stakes Poker Game with Germany as Borrowing Costs Surge

by Ambrose Evans-Pritchard

quote:
Spain was pummeled yet again on Tuesday as credit default swaps (CDS) measuring bond risk on Spanish debt jumped to 245 basis points, approaching an all-time high.

Default insurance for Greece rocketed after Moody's downgraded it to junk on Monday, forcing bond indexes to sell up to €20bn of Greek debt. Ireland and Portugal also jumped sharply, with mounting credit stress in Belgium following the electoral triumph of Flemish separatists.

An auction of Spanish debt yesterday underlined how fast the situation is deteriorating. Yields on one-year debt reached 2.45pc compared to 0.9pc as recently as April, suggesting that the markets do not view the EU's €750bn rescue shield as credible.

Francisco Gonzalez, chairman of BBVA, stunned investors earlier this week by admitting that "the majority of the Spanish companies and financial groups are shut out of the international capital markets".

He said the country's external debt had reached €1.5 trillion or 147pc of GDP, much of it on short-term maturities. "This debt has become our most overwhelming problem, since €600bn falls due this year," he said.

Analysts say the call for release of the stress test results is a veiled attack on Germany, retaliation for German media reports – fed by sources in Berlin – claiming that Spain is about to tap the EU's bail-out fund.

http://www.globalresearch.ca/index.php?context=va&aid=19766

Doug
Fotheringay-Phipps

As It Happens had an interview tonight with David Blanchflower, a former Bank of England exec billed as one of the few people to foresee the credit crunch. He sketched the outlines of a double-dip recession that is now forming in Europe and may spread to Britain. Then, when prodded, he allowed in measured, affable tones that he thought this budget was "the worst macro-economic mistake" in recent history. That got my attention. I can only hope that the disastrous results of this budget become plain before anyone tries anything similar here.

epaulo13 epaulo13's picture

Australian government targets diabetes sufferers to cut health costs
By John Mackay
23 June 2010

Nearly three months ago, as part of its cost-cutting health “reform” agenda, the Australian government announced a plan to shift diabetes patients onto a “managed care” system. There are concerns among doctors that diabetes sufferers are being made a test case for a new scheme to ration access to medical care.

In effect, Prime Minister Kevin Rudd’s diabetes plan is a trial for broader steps to erode the 35-year-old Medicare public insurance system, under which patients are meant to be able to see General Practitioners (GPs) without charge, and with no limit on the number of visits. By signing up to “personalised care plans” with GPs, however, diabetes patients will only receive care within a capped annual budget....

http://www.wsws.org/articles/2010/jun2010/diab-j23.shtml

NorthReport

You don't want to know what Soros is forcasting. Get your pension plans and other investments out of the stock market.

Doug

epaulo13 wrote:

In effect, Prime Minister Kevin Rudd’s diabetes plan is a trial for broader steps to erode the 35-year-old Medicare public insurance system, under which patients are meant to be able to see General Practitioners (GPs) without charge, and with no limit on the number of visits. By signing up to “personalised care plans” with GPs, however, diabetes patients will only receive care within a capped annual budget....

 

Sounds to me like they're moving from a pay-per-service model to a capitation model for health care - that's a good thing.

Fidel

[url=http://beforeitsnews.com/news/82/106/Michael_Hudson:_Europe_s_Financial_... Hudson: Europes Financial Class War Against Labor, Industry and Government[/url] Guns 'n Butter (audio only)

"Europe’s Financial Class War Against Labor, Industry and Government" with Dr. Michael Hudson. Economic crisis in Europe created by predatory lending; European Central Bank stranglehold on the Eurozone; the Euro; foreign banks decimate Greece’s social structure; Marx’s industrial capital versus fictitious capital; Latvia as a model for the rest of Europe; Hudson’s financial and fiscal plan for Latvia; the Cold War and its ruinous effect on progressive economic thought."

thanks

as noted here

http://www.rabble.ca/babble/international-news-and-politics/self-determi...

US private bankers and the US dollar rule, and the G8/G20 are complicit through the Financial Stability Board.

Following US House/Senate meetings that concluded Thursday, Obama announced that,

"We’ll make our financial system more transparent by bringing the kinds of complex deals that help trigger this crisis, like trades in a $600 trillion derivatives market, into the light of day.  We’ll enact the Volcker Rule to make sure that banks protected by the safety net of the FDIC can’t engage in risky trades for their own profit...No longer will we have companies that are “too big to fail”.  " http://www.whitehouse.gov/blog/2010/06/25/president-commends-congress-fi...

The reason there will be no companies "too big to fail" is because competitors will be wound down and the toxic gaming of remaining large private Federal Reserve banks will remain.  An 'emergency lending program or facility' will support financiers.

At babble earlier the loan bailout program was described in the Senate bill at section 1155.  The side-by-side comparison with the House bill states that Senate section 1155 is opposite House Title 1, B, Section 1109 which is found on page 117 at

http://financialservices.house.gov/Key_Issues/Financial_Regulatory_Refor... .

Public loan bailouts are available, for those the Federal Reserve bankers self-determine are 'solvent', but the private Federal Reserve banks get their money by loaning to government, (remember the bank-created money scheme vs. government-created money) so the public will actually pay twice - on past bailouts which now prop up the private banks which make up the FDIC, and again through loan facilities.  The intravenous flow of blood from donor to recipient is made permanent, until the donor public dies.

The toxic derivatives gaming of private Federal Reserve banks is not deemed risky because 'supervisors' will receive reports "regarding covered transactions upon the release of the information regarding such covered transactions by the Board of Governors of the Federal Reserve System as provided by Section 11(s) of the Federal Reserve Act."

http://financialservices.house.gov/Key_Issues/Financial_Regulatory_Refor... (related House amendment offers. Other amendments at http://financialservices.house.gov/Key_Issues/Financial_Regulatory_Refor...).

Reports are produced by the Federal Reserve banks, regarding their own 'stability', using general summaries of asset or collateral positions, but transaction records themselves are to be kept confidential (p.7 line 7 of House pdf above) unless determined by said Federal Reserve that it's ok to release details.  Circular secrecy.

The G8/G20 and the global public can only be sure that the private banks of the US Federal Reserve will continue with derivatives trading, the specific transactions will remain private (unless the G20 implement a Robin Hood tax), and the public will give transfusions until it passes out.

Continuing on this path, all states will be required to squeeze residents dry through austerity. 

The system is crashed already, the bankers are simply trying to get the last few dregs of public juice before the entire structure is revamped.

The fences at the G Summits are banker safety nets.

 

thanks

the House Financial Services site posted an update with Senate offers;

http://financialservices.house.gov/Key_Issues/Financial_Regulatory_Refor...

but the mandatory report disclosure referenced in the original text of the Financial Stability Act still does not include specific transactions.

Senators have mentioned removing Freedom of Information Act exclusions, to allow public access, but they've only offered to order a 'study' of the issue, of course conducted by the Fox-in-Hen-House Federal Reserve.

 

George Victor

Doug wrote:

epaulo13 wrote:

In effect, Prime Minister Kevin Rudd’s diabetes plan is a trial for broader steps to erode the 35-year-old Medicare public insurance system, under which patients are meant to be able to see General Practitioners (GPs) without charge, and with no limit on the number of visits. By signing up to “personalised care plans” with GPs, however, diabetes patients will only receive care within a capped annual budget....

 

Rudd is no more.   Australian Labour has caved on  the question of heavy taxation of natural resources.  Rudd is terminated. Unions demand that the heavy taxation of mining exports be dropped, and Rudd's attempt to require the mining industry to pay for environmental costs is dropped.   Labour again  undermines attempts to bring environmental demands to the fore.  The 70s re-visited ( de-javu all over again.).

 

Sounds to me like they're moving from a pay-per-service model to a capitation model for health care - that's a good thing.

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