The G20 are meeting next week.  This is quite different from the G7 because it includes China.  There are two poles at work in world events: one is the US and its group of allies who undermine US stability and China and its allies who are often commodity countries.  China’s power is based on its previous involvement with the ‘Third World Movement.’  The US is in charge of the post-WWII alliance whereby WWII empires, Germany and Japan, switched gears and became part of the US empire.  I predict that nothing will come out of the G20 meeting except one thing: another vain attempt at regaining the lost status quo.

G20: the schedule of events – Times Online


  • 9am – Gordon Brown and President Obama hold talks, followed by 10am press conference.  The US and UK have been merged into one big global empire since WWII. The UK has been dependent on the US since WWI. Both are now going bankrupt, trying to keep control of the entire planet. Note my earlier story today about how England can’t even pay for the occupation of Afghanistan!
  • World leaders hold bi-laterals in embassies and London hotels. This is fancy talk for ‘real negotiations’ and ‘obvious conspiratorial deals’.
  • David Cameron pencilled in for meeting with Barack Obama. Obama has to assure everyone, he is a puppet.
  • Afternoon – Barack Obama goes for private audience with the Queen. Just imagine if I and the Queen met. I would chastise her for running a bunch of pirate islands. I would also mention previous revolutions and why my ancestors came to the New World after voting to have a previous English king, beheaded.
  • All world leaders, their spouses, finance ministers and central bankers attend Buckingham Palace reception. Note how they are all asked to bow to royalty. This happens all the time. Royals got royal via killing and enslaving people and then hanging out and having children to sit on thrones gotten the nasty way: via war or even nastier, marriages.
  • Leaders go for working dinner in Number 10.
  • Spouses go for separate dinner in Number 10. 
  • Finance ministers and central bankers have dinner at Tate Britain

Thursday – London Summit

  • 7am – leaders begin to gather at ExCel Centre for G20 (Protesters also expected to begin to assemble)  THIS is what they fear.  They prefer their private, secret meetings.  This way, the rabble can’t interfere with deal-making behind everyone’s backs.
  • 8.30am – G20 leaders’ breakfast
  • 9.30am – Leaders’ photo
  • 9.50am – Morning plenary session  Note the lazy schedule.  They mill around, eat for an hour, mill around until the photographers are finished and then, by 10 am, have a 3 1/2 hour speechmaking session.
  • 1.25pm – Lunch
  • 2.30pm – Afternoon plenary session This is super-short, of course, one hour, at best.  Probably less.
  • 3.30pm – Press conferences begin  Not to be drowned out by the screams, sounds of things smashing, chants for people’s heads, tear gas, etc.
Leaders leave Thursday evening or Friday morning  

G20 protesters face police with Tasers – Times Online

SCOTLAND YARD is to deploy officers armed with 50,000-volt Taser stun guns to deal with violent demonstrators planning to disrupt this week’s G20 summit in London.

G20: Met police and protesters fear London marches will end in violence | UK news | guardian.co.uk

Yesterday, the Metropolitan police was understood to have contacted a number of protest groups warning that the main day of protest, Wednesday, 1 April would be “very violent”, and senior commanders have insisted that they are “up for it, and up to it”, should there be any trouble.

I have been in quite a few demonstrations.  Doing them on Saturday afternoon or Sunday is OK with the powers that be. Doing it to disrupt things, no.  I remember the anti-WTO demonstrations on the West Coast beginning in 1970.  The police, who normally stood aside, went after everyone when we did the usual sit-in moves, for example.  Very violent.

The force has refused to rule out the use of anti-terror legislation, with Sir Paul Stephenson, the Met commissioner, conceding that the week ahead, in which President Barack Obama will lead a cortege of other world leaders to the UK, will be the Met’s greatest challenge….

See, dear fellow allies in Britain?  The terror laws are for US. To keep us off the backs of the ruling class.  These laws will not end with Muslims, it reminds us of the old story of, ‘First they came for the COMMUNISTS, then the Jews, then for me.’

Andrew Dismore MP, who chairs the joint common human rights, said police language in recent days had been “not very helpful”.

“The police have a duty under the Human Rights Act to facilitate protest and not frustrate it. If they act in a confrontational way and use confrontation language, they will start to provoke the kind of behaviour they are seeking to prevent. There may well be a fringe element that want to incite violence. But that doesn’t mean police should criminalise every protester.”

The police criminalize anyone who interferes with the guys who tax us and then, use the money to pay goons to attack us if we protest this cycle of the ruling elites taxing us so they can pass some money to goons to beat us up…

The direct action group Climate Camp – which is organising a mass overnight camp in the Square Mile on Wednesday night – claimed yesterday that it had tried to talk to the Met, but its efforts at dialogue had been ignored. Lawyers acting for the group contacted City of London police on 10 March. In correspondence seen by the Guardian, solicitors said they were “willing to liaise” and requested names and contact details of officers.

Subsequent requests have been made with the Metropolitan police. An email sent from the Met on Tuesday said their request had been forwarded to the operation command unit for consideration….

Every mass demonstration I ever helped to organize was like this.  We couldn’t negotiate with the authorities easily.  It would always end up with us making some threats and the politicians and police making counter threats. I would even say, ‘Obviously, you want a riot.  You know the old Chinese curse about getting your wishes?’

Last night Scotland Yard denied that it had received any communication from the group and said it had been looking forward to hearing from them….

It is really sad, seeing Scotland Yard openly lying.  Did these Sherlock Holmes guys figure out, many organizations keep RECORDS?  I used to record all conversations with authorities and kept copies of all letters and communications with them.  They hate this.  They like to make up stuff as things go along.

There was also anger tonight over the cost of the summit after Foreign Office minister Lord Malloch-Brown disclosed the bill for staging the conference stands at £19m.

But Gordon Brown yesterday urged voters not to be cynical about the outcome of the G20, saying he had not travelled the globe this week simply to publish a communique.

All we will get from this summit is… A COMMUNIQUE!  HAHAHA.  What it says is, ‘Nothing will change except a few items like, we will ask the gnomes to not be so reckless and beg them to follow laws and regulations…etc.’  They actually want to go to the past and continue enjoying infinite money making.

Downing Street aides suggested that there may be a follow-up G20 summit in six months, which may also revisit the issue of whether there should be a further international co-ordinated stimulus in 2010.

When non-imperial nations have financial troubles, they have to tighten their belts, pay off debts and take on onerous terms for bail outs.  People literally starve to death.  But in the case of the over-consuming US, the plan is to give the fattest country on earth which literally has immense people waddling from huge vehicles into huge houses, more credit so they can continue to gorge.  


But this is all falling apart, despite the desires of the G7 nations embedded within the G20.


U.K. Bond Auction Fails for First Time in 14 Years – WSJ.com

LONDON — The U.K. government failed to find enough buyers in a bond auction for the first time in 14 years, underscoring the market distortions caused by the Bank of England’s latest efforts to revive the U.K. economy. Prices of benchmark U.K. government bonds, or gilts, fell Wednesday after the Debt Management Office failed to collect enough bids from investors at an auction of £1.75 billion ($2.57 billion) in 40-year government bonds. The failure will force the government to try again at a later date, or to raise the money by issuing bonds with shorter maturities, which tend to be easier to sell

The very first gilt was issued to pay for the Napoleonic Wars.  It was called ‘gilt’ because it supposedly represented actual gold held by the Bank of England.  Of course, this was a fiction.  But, by claiming the debts were gold, the Crown could fund further empire-building. And the British Empire grew.


Funny, this period of 1812-1914 featured UK workers living in very miserable conditions.  The very rich got very much richer and the poor struggled to survive.  The agricultural lands once inhabited by millions of peasants became sheep and cow grazing lands.  The cities grew and the workers lived in tiny flats and even the children had to toil for a pence so they could eat.


Here is the draft for what the G20 have agreed:


FT.com / Global Economy – G20 draft communiqué pledges to avoid protectionism

A 24-point draft communiqué, obtained by the Financial Times, claims that the fiscal expansion already in process will increase global output by more than 2 percentage points and create over 20m jobs. Combined with increased resources for a reformed International Monetary Fund, the fiscal and banking support actions aim to enable the world economy to expand by the end of 2010, the draft said….

Stating that a “global crisis requires a global solution”, the Group of 20 leaders pledge: “We are determined to restore growth now, resist protectionism, and reform our markets and institutions for the future… We are determined to ensure that this crisis is not repeated.” 

Every time financiers create a series of immense debt-based bubbles, they ALWAYS swear, they won’t do it again.  Every time, the desperate people set up rules and regulations to prevent this. Every time, the financiers demolish the barriers via bribes, corruption and conspiracy.  And then make a worse bubble.

Avoiding direct mention of capitalism by name, HAHAHA…or Communism!—the leaders state their fundamental belief in “an open world economy based on market principles, effective regulation, and strong global institutions” to ensure “a sustainable globalisation with rising prosperity for all”…

  1. Hedge funds will be overseen by a stronger Financial Stability Forum (FSF), expanded to include all G20 members and renamed the ‘Financial Stability Board’.  So, they will shut down all the remnants of the old British Empire?  Like, Jersey, Singapore, Bermuda, etc?  Hope Obama mentions this when he is in the Queen’s massive palace.
  2. Tax havens and “non cooperative jurisdictions” will be put under unspecified sanctions, and named and shamed in a separate document to be published at the summit.  Why, pray tell, can’t we know what punishments will be made here?  Eh?  Shaming gnomes is utterly useless. They know no shame, they are creatures of pure impulse and self centered appetites for infinite wealth.
  3. Executive pay and bonuses should “reward actual performance, support sustainable growth and avoid excessive risk-taking”, according to principles laid out by the FSF  HAHAHA.  Gnomes work very hard, pushing debts on everyone and collecting fees for this service.  Note that everyone is very anxious to get them to do this again.  
  4. Banks are told that the quality and quantity of their capital must improve “over time” HAHAHA….don’t hurry!   but that “capital requirements should not be strengthened —WHAT THE HELL?  No wonder they didn’t mention ‘capitalism’!!!!—until a significant and sustained economic recovery is assured and the transition managed to ensure that the extension of credit is not constrained. See?  They want the gnomes to create more credit.  As if, the problem was lack of debt.
  5. ”On currencies, G20 nations pledge to refrain from “competitive devaluation”.  HAHAHA! ZIRP is taking over all systems across the planet.  And everyone has to devalue in order to gain advantage in ‘free trade.’ Since the G20 wants more free trade, this will also continue.
  6. On gold, the IMF is asked to bring forward proposals to use proceeds of agreed gold sales to support low income countries.  And despite a huge campaign for many years, destroying gold as the basis for currency values, after whining about everyone devaluing their currencies for trade advantage, they talk about the IMF selling off all its gold reserves so there is no more gold reserves in the world….except for….CHINA and RUSSIA, two commie giants!
  7. Responding to accusations of rising protectionism embodied in national stimulus packages, the leaders reaffirm the commitment made in Washington last year not to raise new barriers to investment or trade, and not to create new subsidies to exports.   “We will not retreat into financial protectionism,” they say.  Why don’t our own leaders just commit group suicide.  Mix some poison with grape Kool Aid.
  8.  The summit agrees to increase resources available to the IMF, borrowing through the market if necessary. And who will the IMF borrow from? Take a wild guess!  Tokyo and Beijing!
  9. A substantial increase in lending by Multilateral Development Banks is agreed, including funding from export credit and investment agencies.

And funding more export credit.  We have unbalanced world trade. NOTHING in the G20 documents deals with this.  There is a timid push to try to bring the many hell holes run by lawless gnomes for evading taxes, controls and restrictions.  But not enough to STOP them. 


They view these sad attempts at stopping the pirates as a temporary set back.  They will resume their push to offshore everything while keeping total control of the biggest military powers on earth.  Note how they deal with pesky demonstrators!  They can and will mow them down just like Israeli Jews mow down unarmed Palestinian mothers and peace demonstrators!


UPDATE 1-Russia wants rouble, yuan, gold in SDR basket | Markets | Markets News | Reuters


Russia supports expanding the IMF’s Special Drawing Rights (SDR) to include the rouble, the yuan and gold, but sees no chance of the G20 Summit accepting a new reserve currency, a Kremlin aide said on Saturday, agencies reported.

“It would be logical for the set of currencies (that make up the SDR) to be expanded, and it could include other currencies, including the rouble, the yuan and perhaps others,” state RIA news agency reported the Kremlin’s senior economic aide Arkady Dvorkovich as saying.

China this week caused a stir ahead of the April 2 Group of 20 meeting of rich and emerging economies when it suggested the world move towards greater use of the International Monetary Fund’s Special Drawing Rights, created by the IMF in 1969 as an international reserve asset.


This had to be looked at carefully.  A new consensus is rising.  The oil export nations will go for this because all of the paper we pay for their resources will end up in the toilet if we all destroy the value of all paper currencies as everyone goes ZIRP.


RPT-EU says G20 not to focus on China financial calls | Markets | Markets News | Reuters


Europe is comfortable with China’s growing world role but believes the G20 summit will be too early to decide on Beijing’s calls for more say in global financial bodies, the EU Commissioner for External Relations said on Sunday.

European Union Commissioner Benita Ferrero-Waldner told Reuters in Beijing that the London gathering of 20 major wealthy and developing powers this week would focus on “concrete results” to revive the global economy, not more distant issues.

China caused a stir ahead of the Thursday summit when it suggested the world move to greater use of IMF Special Drawing Rights as an international reserve currency….The idea of a new reserve currency system based on the IMF special drawing rights has not been entirely knocked down, but many G20 leaders have made clear that for now the U.S. dollar’s status as the dominant reserve unit remains.


And the G20 guys know that the Russian/China joint effort in redesigning the entire floating currency regime and restart the gold basis, is pure hell for the other, gold-selling, fiat nations leaning on the US to protect them.  The EU, UK and US don’t want to focus on ‘distant issues’ because this means, they must talk about who will be running things once the Chinese 50 Year Plan is complete!


Due to allowing pirates and gnomes to ravage the planet, the Chinese 50 Year Plan is actually moving forwards, not backwards!  It is accelerating.  Look at how the G20 ask for the IMF to be recapitalized!  They need to borrow sovereign wealth funds.  Below is a story I wrote on 7/22/2007 [a magic number day!]:


Money Matters: China’s IMF Representative Battles IMF Head



This is pretty firm. China is obviously outraged at the speeding up of the process concerning the way countries report to the IMF and the way the IMF itself is structured. China is no longer the outsider begging to come in, it will be the world’s #3 economy in another mere 4 months or less! This is highly significant.

The fading European powers joined with the US and Japan to attack China’s growing girth. Namely, the world’s strongest currency joined with the world’s two weakest to attack the Bank of China that has the world’s biggest FOREX reserves and a healthy yuan! This is a conspiracy, of course, a hostile conspiracy. When the G8 met this year, they attacked China repeatedly while being totally mum about the dollar and the yen, the Bert and Earnie duo of the developed world.


On 7/17/7, just one week earlier, Japan and China got in a loud snit over the issue of the G7 and G20 constantly harping on the weak Chinese money while Japan got away with making the yen very weak, deliberately.  China said, they would force the Japanese carry trade to unwind and Japan claimed, they would flood China with funny money.  


The Japanese carry trade unwound very rapidly.  Meanwhile, Rato of the IMF, was sniping at China over their FOREX holdings WHILE IGNORING JAPAN!  Who had, at that time, nearly equal holdings!  China has doubled it, since.


Here we are, two disastrous years later, and the IMF is STILL fending off China!  The US, UK and EU don’t want to let go of their death-grip on the IMF because they use this as a club to punish other nations, destroy other nations, and take over all systems, allowing a flood of locusts to invade any commodity nation that gets in trouble due to bubbles.


New reserve currency idea needs work-German minister | Reuters


Proposals for creating a new global reserve currency to replace the U.S. dollar are gathering momentum but need further examination, Germany’s development minister said on Friday.

Heidemarie Wieczorek-Zeul, Germany’s minister for economic cooperation and development, is a member of a panel of experts established by U.N. General Assembly President Miguel d’Escoto Brockmann to analyze the global financial crisis and recommend reforms.

One of the recommendations in an 18-page report the panel issued this week is to create a new reserve currency system based on the International Monetary Fund’s Special Drawing Rights, or SDRs, to replace the U.S. dollar as the top reserve unit, an idea China supports.

Wieczorek-Zeul said the idea, which the panel’s chairman, Nobel Prize-winning economist Joseph Stiglitz, staunchly supports, needed further development.


This is most dangerous!  Germany was in full accord with the previous 2 years of yapping a China while ignoring Japan and the US.  Now, with Japan collapsing rapidly while the US fusses around, trying to restart lending, Germany is worried that it can’t penetrate the Fortress Japan markets and Japan is unhinged when it comes to its own working class, it won’t be a ‘consumer’ nation for the next 100 years….this leaves China as Germany’s future consumer trading partners.


Germany, like China, yearns for a solid banking system.  To see the Old World Order rise again after nearly a century of being eclipsed, is a most amazing thing.  Again, it pays to think about all of this based on my series, ‘The Cave of Wealth and Death’: Libra holds Her scales and weighs all things against a square of gold.  Paper is like a feather on the other side of Her scales.  All things work only if the paper weighs the same as the gold.  


This is all quite magical, actually.  Paper money backed by gold tends to keep its weight in purchases.  But inch further and further from it, the paper gets lighter and lighter until it becomes worthless.







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Filed under .money matters, Free Trade, gold

42 responses to “G20 MEETING IN LONDON IS A FARCE

  1. if

    Risk of Old Spending Habits
    …Indeed, massive public spending could revive fears of high taxes and inflation, hurting rather than helping confidence, Trichet said. “You have also to reassure your own people that you have an exit strategy, to reassure households that we are not putting in jeopardy the situation of the children, and to reassure businesses that what is done today is not done to the detriment of their own taxation in the years to come,” Trichet said, according to a transcript of the interview on the ECB’s Web site.

  2. March 29, 2009
    “G20 protesters face police with Tasers”
    “SCOTLAND YARD is to deploy officers armed with 50,000-volt Taser stun guns to deal with violent demonstrators planning to disrupt this week’s G20 summit in London”…

  3. jeremy/Nashville

    Since when did protesters become “terrorists?” Free countries aren’t so free after all.

    Also, as a Quaker, I would never bow to the Queen! Ever!

  4. Simon

    20 million jobs
    This is laughable compared to how many jobs already lost
    In fact if you just gave money to small businessmen of the world with tiny capital you can raise 20 million jobs
    A charade about nothing.

  5. Simon

    The communique draft had me in stitches.
    Maybe we can coin a new word from the current state of affairs, just call it ponzism. Rule by those running the biggest ponzi racket. At least the earliest capitalists had to do actual hard work and sell off the slaves, not sitting and playing with computer money.

  6. emsnews

    Ponziism. Which is a form of Naziism. Without the socialist parts for the masses.

  7. nah

    makes you wonder how long until protesting the corportate takeover of government makes you a labeled terrorist by your government handlers… what a trip, to be frank i always thoght there wasnt much in protesting the G20 or G8 or G7 or whatever… but now its clear we are governments subjects not democracys rulers
    bow down to the arrogant, insolvent, institutionalized agents of your wealth

  8. CEO Nutcracker


    Gordon “Bail ’em out” Brown’s ” Global New Deal” got smacked down by Merkel and some G20 gnomes. Right on, Angelica!!!!


    She’s just won alot of respect around the world. Obama better take note!

  9. CEO Nutcracker

    From the TImes UK:

    “The draft stated that Britain wanted a “$2 trillion” global fiscal stimulus. However, the figure appeared only in brackets, indicating agreement on the package had yet to be reached.”

    They were probably hoping to hike it up to $4T if, like in the US, no one blinked!

    The Times UK:

    “Angela Merkel, the German chancellor, last night led the assault on the prime minister’s “global new deal” for a $2 trillion-plus fiscal stimulus to end the recession.

    “I will not let anyone tell me that we must spend more money,” she said. ”

    OH, Okay. I see. Ante up G20 friends! Hand over your serfdoms $2 tril to us London Banksters ( who came to London from Wall St. during the Bush yrs. to set up this PONZI scheme) and for toppers…. you all can “Eat cake”.

    At this moment, Banana Ben is firing up the printing press and telling Gordie boy not to worry, the Americans (unlike the Germans) won’t get their dead asses off their sofa over another lousy $2 Tril!

  10. KenC

    You can not ride a broken bicycle or a horse with broken legs. Ounce the damage is done it is done and what they are trying to KEEP going is broken, corruption has killed the system and they want more of the same behavior that broke the horses legs it will not work!I hope everyone is ready for a barter system and I would suggest everyone wearing suits should be very worried…

  11. KenC

    http://www.theatlantic.com/doc/200905/imf-advice A good link and article for you to explore Elaine I would love to read what you thought of it 🙂 as always I respect your work and effort thank you for it 🙂

  12. All they have to do to create a new reserve currency is to demand payment for goods in that countries currency. As i sort of understand it this is not done because speculators can raid each others currencies and create chaos. Henry Lui has said that China could do this at any time.

  13. PLovering

    Harvard Professor, Noel Ignatiev, founded “Race Traitor” — a journal whose express purpose is to abolish the white race.
    Professor Ignatiev quote:
    “we intend to keep bashing the dead white males, and the live ones, and the females too, until the social construct known as ‘the white race’ is destroyed, not ‘deconstructed’ but destroyed.”

  14. Matheus

    If they don´t get a new currency, what will happen to the world Elaine ? Everybody gets hiper-inflation ?
    ELAINE: What is that? We all become hippies and smoke pot? 🙂

  15. Hey ,maybe the IMF can sell their gold at Cash4gold.

  16. JT

    If we get a new currency = the west will have a huge depression (15% interest rates) or hyperinflation.

    Any sort of real money is a terrible idea. Or anything even priced in anything else than dollars.
    Maybe they indeed will give IMF gold to China and Russia and cheap as Elaine says. That´s all we have left :).
    It may buy us 10 more years and that´s enough for western politicians.

    I´m sure we will opt for 10 more years of the same old stuff, we will throw 100 million western workers overboard and sail on with fewer and fewer people on board.

    And we shouldn´t worry. Even if they decide on a new world currency, they wont have a press conference and tell the public.
    That´s not how it´s done :D.

  17. emsnews

    ALL currency changes are UNILATERAL and SUDDEN. The day before, the entities will tell everyone, they wouldn’t even dream of doing whatever they plan to do and then, they do it!
    The history of this sort of dirty business is long and nasty. There is usually NO DEBATE and Parliament and Congress, normally, have zero say in these matters. Bankers use the Prime Ministers or the Presidents to do these things. Again: NO WARNING. This includes outright confiscation of gold in the US, just for one huge example. Or the day Nixon and Burns cut the gold connection.

  18. JSmith

    In today’s news… Rick Waggoner is out as head of GM, to be replaced by a director (Kent Kresa),and former COO Frederick Henderson.
    That’s strange… in teh finest tradition of something-or-other, isn’t that job supposed to go to the president’s brother-in-law, or maybe a cousin?

  19. Bear of Little Brain

    Houston, the Debt Donkey has a problem…

  20. emsnews

    No one wants to be President of GM. Any more than anyone wants to be President of AIG.

  21. emsnews

    And the Toyota family still owns Toyota, by the way. They do believe in real dynasties in Japan.

  22. nah

    This possible role for Fannie and Freddie
    government must make up 92% of the worlds population… makes you wonder if any of these guys have any intention of paying off thair debts… or if not do they really think they can get away with cheezy cheese credit forever

  23. nah

    jump start my heart

  24. Bear of Little Brain

    You are the Tee-Shirt Slogan King! Love it. 😆

  25. nah

    Off-Balance-Sheet – Now CREDIT CARDS
    I believe when institutionalized credit businesses play grab ass they call it ‘U.S. Financial Technology’… and without it we cant compete as a nation
    To knowingly lend into financial dogma that creates loopholes allowing for technically savvy liar loans ‘or liar borrowers’ is the future of U.S. enterprise
    Responsible people didn’t bite off more than they can chew… Our leaders have been snorkeling in the Bahamas while earning $500k a year

  26. nah

    i live in a dark cave with U.S. flags on the walls and credit cards stapled to the ceiling
    and wear a fuking funny T-Shirt

  27. MikeM

    That article in the Atlantic posted by KenC is typical of what the media throws at us from all sides now.
    “Typically, these countries are in a desperate economic situation for one simple reason—the powerful elites within them overreached in good times and took too many risks.”
    This is like discussing credit markets, detached from debt analysis. To broaden the view, this is helpful: Confessions of an economic hitman http://www.youtube.com/watch?v=yTbdnNgqfs8

  28. Bear of Little Brain

    “and wear a fuking funny T-Shirt”
    Sorry. No offense intended. 😦

  29. Bear of Little Brain

    “Germany, like China, yearns for a solid banking system.”
    That may be true for Germany. As for China, just whose banking system is it for which they wish solidity?
    Every now and then I have come across articles that are quite sceptical of the solidity of Chinese banks, others which maintain that the growth of the last few years has left a vast surplus of over-capacity in all areas, and especially commercial property. On Chinese banks, here’s a quote from the blog of Michael Pettis, currently living and teaching in China
    “…in December the CBRC required that the big five banks raise their loan loss provisions from 100% to 130% of the loans in the bottom three of the five credit categories. Off the top of my head I think the second category – “special mention” loans – comprises roughly three times as many loans as the bottom three categories combined, and many analysts assume that anywhere from one-half to all should properly be classified as doubtful or impaired. Given the huge growth in lending and lax lending standards during the past few years (during what had to be a great time to be a banker), I think skepticism about the quality of bank portfolios is very much in order.”
    FWIW, my take on the current Chinese position is that the rulers are probably very frightened that an economic collapse could bring about their overthrow. All these calls for a new reserve currency may be a political ploy to put pressure on the USA, while in private they negotiate for the US to continue to prop up the rapidly-cooling Chinese economy (as if it’s even possible). Unless they are very clear just what they want to do with their relatively massive stimulus, they may only end up with even more empty buildings and unneeded factories, etc., and will have only put off the day of reckoning.
    Mao may have been referring to the US when he gave us the Chinese-derived phrase, “paper tiger”, but it remains a Chinese concept.
    This is not to say that economic power is not moving eastward, just that it is not likely to be a smooth transition.
    As an aside, the US/China relationship often reminds me of a pair of scorpions, locked in a deadly embrace: neither daring to let go of the other as they circle to obtain the advantage for their sting.
    Should be an interesting week. I see da Boyz are trying to get gold under control today. How surprising. Can’t have all the Good and Great embarrassed by the barbaric relic. Or was it all that good news? 🙄
    Still looks like we’re sliding down the tube to me

  30. Bubba

    The “authorities” are dead men walking, and they know it.

    The violence that will be unleashed across the globe will be unprecedented, and the PTB will not be immune.

    When it’s all over, the current PTB, will be no more than dead, or paupers.

  31. PLovering

    Big Summit Meeting at Jekyll Island this weekend.
    Timmy Turbo was there, and John McCain. Lots of heavy hitters.
    Busy little airport was crammed with traffic.
    Not a peep in the MSM.
    Good place from which to close down the FED.

  32. emsnews

    Um, who is the source? I see in the news, sports going on there as well as a spring festival.

  33. Simon

    I have just made my application to 30 credit cards
    If we cannot stop the ZIRP we must learn to take advantage of this
    While we can 🙂

  34. Simon

    There are lots of faux-Orientals living in Philippines or Japan or China or whatever and making all sorts of comments about locals thinkings its 1907 or 1807 while pretending to be experts it’s no longer funny.
    The best way to understand a country is probably being there yourself.

  35. PLovering

    Source for Jekyll Island Summit Meeting was local radio.
    Island was full of Lizards for the weekend.

  36. payAttention

    “it reminds us of the old story of, ‘First they came for the COMMUNISTS, then the Jews, then for me.’”

    Actually not so old. This is a rebuke to the German Catholics complicity with the National Socialists under Pacelli’s tutelage. Perhaps spoken by a martyred Bishop.

    Incidentally, I thought the story of Pegasus falling after a fly’s bite to be apocryphal, though common. I will stay with my less spoken version of Perseus riding him to Ethiopia to save Andromeda.

    “Funny, this period of 1812-1914 featured UK workers living in very miserable conditions. The very rich got very much richer and the poor struggled to survive. The agricultural lands once inhabited by millions of peasants became sheep and cow grazing lands. The cities grew and the workers lived in tiny flats and even the children had to toil for a pence so they could eat.”

    Actually you are describing the Enclosure laws that aggregated the common lands unto the crown. The process predates by many years the Napoleonic wars and had its trial run in Ireland, as the lands became fenced. The desperate famines are result of the commoditization of the stead’s local farm and the introduction of unicrop farming.

    “The very first gilt was issued to pay for the Napoleonic Wars. It was called ‘gilt’ because it supposedly represented actual gold held by the Bank of England. Of course, this was a fiction. But, by claiming the debts were gold, the Crown could fund further empire-building. And the British Empire grew.”

    That was a gamble that paid off. As you know, Iraq and Afghanistan are not promising, at present.

  37. 31 March 2009
    “The G20 summit started to go badly wrong for British Prime Minister Gordon Brown last week when the governor of the Bank of England, Mervyn King, took the unprecedented step of overruling official government policy”
    “Brown was effectively put on notice by King that Britain could not afford to build up any more government debts without facing the danger of a collapse of the pound”…
    “They are in total…PANIC MODE”
    March 29, 2009
    “*****US Banks Operating Without Reserve Requirements*****”…

  38. April 1, 2009
    “The G20 Meetings: The European Union is in Tatters”…

  39. emsnews

    Thanks for the links. I was very, very busy today so haven’t had time to write or do anything. Just built a new bedroom for the attic. Using mostly scavenged materials. Collecting materials takes a long, long time.

  40. CK

    The only thing better than scavenging is selling the stuff one scavenges and living low and narrow on the proceeds,

  41. “There was a 5% chance that it would fall to the UK to host this particular G20 meeting”…

  42. Pingback: The EU, US and UK Are Going Bankrupt, Not China | Culture of Life News

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