Oldspeak:”A little over a week after their explosive interview with trader Alessio Rastani predicting global economic collapse, BBC interviewed IMF advisor Dr. Robert Shapiro. The bailout expert said “If they can not address [the financial crisis] in a credible way, I believe within perhaps 2 to 3 weeks we will have a meltdown in sovereign debt which will produce a meltdown across the European banking system…All those banks are counterparties to every significant bank in the United States, and in Britain, and in Japan, and around the world. This would be a crisis that would be in my view more serious than the crisis in 2008″ – UNLESS the International Banking Cartels are “recapitalized” with hundreds of billions of Euros. Sounds eerily similar to what was said in the lead up and during the last great crash of the global financial system in 08. Only this time there’s even less money for bailouts. I’m sure they’ll get it anyway. All these gloom and doom predictions belie the basic fundamental problem, that no one wants to address. The monetary system is failing, and will keep failing if people insist on making changes around the edges. You can’t have made miniscule changes to regulations to reign in the casino capitalism and expect different results. You can’t keep throwing fiat money at the problem. This economic system is about the furthest thing from true ‘economy’, (thrifty and efficient use of material resources : frugality in expenditures; also : an instance or a means of economizing : saving) there is. It’s driven by a base & immoral concept: Greed. We would do well to implement an economy like that articulated by Dr. Manfred Max-Neef: “based in five postulates and one fundamental value principle.
One, the economy is to serve the people and not the people to serve the economy.
Two, development is about people and not about objects.
Three, growth is not the same as development, and development does not necessarily require growth.
Four, no economy is possible in the absence of ecosystem services.
Five, the economy is a subsystem of a larger finite system, the biosphere, hence permanent growth is impossible.
And the fundamental value to sustain a new economy should be that no economic interest, under no circumstance, can be above the reverence of life.”
If we forgave all debt, reset to zero, retired greed as the dominant value in the world, re-worked the global economy to adhere to these postulates and values, we could focus on collectively preserving and distributing the earth’s finite resources in an equitable way. We’d all be a lot better off.
IMF Adviser Says We Face A Worldwide Banking Meltdown
By Tyler Durden @ Zero Hedge:
In an interview with IMF advisor Robert Shapiro, the bailout expert has pretty much said what, once again, is on everyone’s mind: “If they can not address [the financial crisis] in a credible way I believe within perhaps 2 to 3 weeks we will have a meltdown in sovereign debt which will produce a meltdown across the European banking system. We are not just talking about a relatively small Belgian bank, we are talking about the largest banks in the world, the largest banks in Germany, the largest banks in France, that will spread to the United Kingdom, it will spread everywhere because the global financial system is so interconnected. All those banks are counterparties to every significant bank in the United States, and in Britain, and in Japan, and around the world. This would be a crisis that would be in my view more serrious than the crisis in 2008…. What we don’t know the state of credit default swaps held by banks against sovereign debt and against European banks, nor do we know the state of CDS held by British banks, nor are we certain of how certain the exposure of British banks is to the Ireland sovereign debt problems.”
But no, Morgan Stanley does, or so they swear an unlimited number of times each day. And they say not to worry about anything because, you see, it is not like they have any upside in telling anyone the truth. Which is why for everyone hung up on the latest rumor of a plan about a plan about a plan spread by a newspaper whose very viability is tied in with that of the banks that pay for its advertising revenue, we have one thing to ask: “show us the actual plan please.” Because it is easy to say “recapitalize” this, and “bad bank” that. In practice, it is next to impossible. So yes, ladies and gentlemen, enjoy this brief relief rally driven by the fact that China is offline for the week and that the persistent source of overnight selling on Chinese “hard/crash landing” concerns has been gone simply due to an extended national holiday. Well, that holiday is coming to an end.