Monday, December 8, 2008

Breakdown of the Global Monetary System Forecast by Summer 2009

In Memory of John Lennon ("You Say You Wanna Revolution") Revolution #(200)9 When the G20 met in Washington, D.C., on the weekend of November 14-15, 2008, many thought it heralded the end of the Western "monopoly on global economic and financial governance." (Some editing was necessary for legibility - Ed.)

Without a complete overhaul of the system inherited from 1944 by summer 2009, the failing of the current system and that of the United States at the center, will lead the whole planet to an unprecedented economic, social, political and strategic instability, and more specifically to a breakdown of the global monetary system by summer 2009.
I don't think this is what John Lennon and the Beatles in the 60's thought would constitute the nature of the revolution, but 40 years later this is what we're facing. (We miss you John (and George!), and will never forget that you were one of the first to feel the boot of the authoritarian U.S. Government in your face.)
. . . this meeting also clearly demonstrated that this kind of summit is doomed to inefficiency because they concentrate on curing the symptoms (banks’ and hedge funds’ financial difficulties, derivative markets’ explosion, financial and currency markets’ dramatic volatility, . . .) rather than the fundamental root of the current crisis, i.e., the collapse of the Bretton Woods system based on the U.S. dollar as sole pillar of the global monetary system. . . . In light of the technocratic jargon and calendar of the declaration released after this first G20-meeting (totally disconnected from the speed and scope of the unfolding crisis), it is more than likely that the disaster will have to happen for the fundamental problems to be seriously addressed and for the beginning of a reply to be initiated. Four key-factors are now pushing the Bretton Woods II system to collapse in the course of the year 2009: • Fast weakening of the central players: USA, UK • Three visions of the future of global governance will be dividing (the) world’s largest players (United States, Eurozone, China, Japan, Russia (and) Brazil) by spring 2009 • Unbridled speeding-up of the last decade’s (de)stabilizing processes • Increasing number of more and more violent backlashes.
The stealing of the election in 2000 by the current-day U.S. authoritarians has led directly to this moment.
The agitation that has seized global leaders since the end of September 2008 indicates that panic has struck at the highest level. Worldwide political leaders have now understood that the house is on fire. But they have not yet perceived something obvious: that the very structure of the building is involved. Improving fire regulations or reorganizing emergency services will not be sufficient. . . . if global leaders fail to realize . . . and . . . take actions in the next six months, . . . the US debt will implode by summer 2009 under the shape of the country’s defaulting or the dollar’s dramatic devaluation. This implosion will follow closely a number of similar episodes affecting less central countries . . . , including the United Kingdom whose already huge debt is ballooning at the same pace as Washington’s. In the same way as the U.S. Federal Reserve saw, month after month, its primary dealers being swept away by the crisis before it was itself confronted to a real problem of capitalization and therefore survival, the United States in the coming year will witness the implosion of all countries too-closely integrated to their economy and finance, and of their allies financially too-dependent on them.
Read the rest of this eye-opening essay here. "Revolution" in stereo: Have you made your plans for the summer yet? Suzan ____________________

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