Monday, 13 October 2008

Market Rally and New Bretton Woods

Dear Readers!

Two items today.

1. Predicted Stock Market Rally today, Oct. 13, 2008

Given my understanding of politics and the game that is played by the elite, I predict a rally in shares and a big rise in the global indices today! If there is no security threat this week,we will see rising share prices and market recovery throughout the week.

So it is a good time to make quick money, but be careful and be warned, the next chrash is already prepared...

2. A new Bretton Woods

Here is an article I have found, proposing an alternative monetary system since the late 90's. It is an interesting read...

On February 15-17, 1997, an Appeal to President Clinton was adopted by acclamation at the semi-annual conference of the Schiller Institute, calling on him to convoke a New Bretton Woods conference. Initiated by Helga Zepp LaRouche and Ukrainian economist and parliamentarian Natalya Vitrenko, the call was endorsed by hundreds of world leaders, including three former heads of state: Jose Lopez Portillo, former President of Mexico (1976-1982), Gen. (ret.) Joato Baptista de Oliveira Figueiredo, former President of Brazil (1979-1985) and Godfrey Binaisa, former President of Uganda (1979-1980).

The appeal urged the U.S. President to ``use the Powers of the Presidency of the United States, to convoke, on an emergency basis, a new international Bretton Woods conference, to replace the present bankrupt monetary system with a new one. A global debt reorganization, the establishment of fixed-parity exchange rates and a new set of trade and tariff agreements, are the absolute precondition for stability in world economic and financial relations, which is required for a return to economic growth.''

April 7, 2000, the Schiller Institute escalated with a call to form an Ad Hoc Committee for a New Bretton Woods global financial system. That call incorporated the text of a resolution, introduced on March 16, 2000, on the floor of the European Parliament by 23 Italian Senators, calling for a new Bretton Woods conference along lines advocated by LaRouche. It has been endorsed by hundreds of leading figures internationally.

On Oct. 19, 2000, 25 Italian Senators, one-quarter of the Italian Senate, introduced a motion to bind their government to seek a summit to save the world from the ``devastating effects'' of today's speculation-driven global economic system. The Senate move came one week after Lyndon LaRouche visited
Rome, where, in testimony before an informal hearing of the Italian Chamber of Deputies Foreign Relations Committee, LaRouche elaborated the concepts embraced in the Senate motion.

What Is a New Bretton Woods Financial System?

The original Bretton Woods system came into being at a conference of 44 nations beginning on July 1, 1944, in Bretton Woods, New Hampshire, convened on the initiative of U.S. President Franklin D. Roosevelt. On July 22, the group agreed to create an International Monetary Fund (IMF) and a Bank for Reconstruction and Development, later known as the World Bank. The main purpose of these institutions was to deal with the economic problems of the European countries that had been devastated by war. They began to function in early 1945, as World War II was nearing its end.

1. The core of the new system was the arrangement for fixed currency parities, which would make it possible to revive world trade. The value of the dollar was pegged to a specific weight of gold, and, until the end of the 1960s, it functioned as the accepted substitute for gold. Exchange rates of other currencies were to be changed in relation to the dollar or gold, only as a measure of last resort, after national policy measures had been exhausted. Long-term investment and trade could thus be undertaken on a stable currency background, and risk of dramatic currency losses and speculation was nonexistent at that time.

From the beginning, however, there were clashes between the "free-trade" colonial policies of the British delegation, and the concepts of President Roosevelt, who had told Britain's Sir Winston Churchill as early as 1941 that the United States was not going to fight the war in order to restore Britain's colonies. After Roosevelt's death, unfortunately, his understanding of postwar economic policy was abandoned by successive Presidents (with the exception of John F. Kennedy), and the IMF and World Bank increasingly came to play the role of instruments of neo-colonial looting, on behalf of the British-based financier oligarchy. When President Nixon finally took the dollar off its gold backing in 1971, the Bretton Woods system became defunct.

In calling for a New Bretton Woods, Lyndon H. LaRouche, Jr. has specified five steps that must be taken today:

1. Governments must not attempt to bail out the speculators. Let the derivatives market and other paper values collapse as they may: it's only paper! The only necessary action of government on this account, is to protect people, productive enterprise, and useful trade in hard commodities and science-related services.

2. The credit and issued public Treasury debt of national governments must be protected at all costs; otherwise, the necessary measures of economic recovery and growth would not be possible.

3. There must be no mass evictions, or breaks in continuity of operations of essential production and distribution of goods and essential services. During the 1929-31 Depression, terrible blunders were imposed upon the
Hoover administration by Andrew Mellon et al. This must not be repeated today, in any country.

4. The President of the
United States must act in concert with other governments, to put the existing financial and monetary system into bankruptcy, and to put a new world monetary system into place.

5. A global recovery program must be adopted to foster immediate recovery in world hard-commodity trade, and to provide an urgently wanted general stimulant for the private economies of the participating nations. The core of such a recovery program is the Eurasian Land-Bridge, creating corridors of high-technology infrastructural and industrial development, with "spiral arms" extending to
Africa and the Americas.

While I think that many of those suggestions are wise, we must keep in mind that whatever man does to resolve the selfmade crisis's, he will not succeed, because "it does not belong to the man that is walking even to direct hist step".

We must look to Jesus and his Kingdom as the only source of permanent solutions for our kind.


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