Posted by mb50
Wednesday, May 09, 2012 – by Staff Report
Never Mind Europe. Worry About India …The economic slowdown in India is one of the world’s biggest economic stories, but it is commanding only a modicum of attention in the United States … It may not even look like a slowdown because by developed standards, India’s growth — estimated by the International Monetary Fund at 6.9 percent for 2012 — is still strong. But a slowdown it is: the economy has decelerated from projected rates of more than 8 percent, and negative momentum may bring a further decline. The government reported year-over-year growth in the October-through-December quarter of only 6.1 percent. What is disturbing is that much of the decline in the growth rate is distributed unevenly, with the greatest burden falling on the poor. If the slower rate continues or worsens, many millions of Indians, for another generation, will fail to rise above extreme penury and want. The problems of the euro zone are a pittance by comparison. – New York Times
Dominant Social Theme: Hmm, it seems the BRICs are having problems.
Free-Market Analysis: We’ve been banging on about a worldwide slump for years now, ever since it occurred to us that once Europe and the US “went out” in 2008, from an economic standpoint, the BRICs were all that was left.
And the BRICs are more like the proverbial straw hut these days.
China, of course, has certain problems but it’s Brazil and India that are the countries attracting the most attention.
Brazil is in the news (from our standpoint) because of a coming devaluation in Argentina that may have a significant impact on the dollar economy of both Brazil and the “Switzerland of South America,” Uruguay.
Now India is beginning to receive mainstream news coverage as well. This is only to be expected.
The elites that want to run the world are seemingly building a worldwide economic depression – a fact that cannot be gainsaid if one understands that the world’s economy is an entirely artificial one these days.
There are now, after about 100 years, perhaps 150 central banks in existence – and this gives the tiny handful of dynastic elites that control them tremendous power.
Such monopoly central banking – printing money from nothing – allows the elites that control these banks to create tremendous booms and then busts that centralize more and more power in fewer and fewer hands.
That seems to be what’s going on now. It suits the purpose of the power elite to create a further global slump that will then result in further global governance and even a single worldwide currency (now apparently being planned).
The world is basically a three-legged stool, supported by Europe, the US and the BRICs at this point. The world’s economy will stumble and fail along with the BRICs, if that’s what is happening. And it seems to be.
Of course, the elites work quietly in the background. They naturally don’t want to admit to an engineered takedown of the world.
But their bought-and-paid-for media can be plenty vocal when given the opportunity. Perhaps that’s what is going on now.
We noticed it a while ago regarding China, and now both Brazil and India are getting press about domestic economic troubles.
When the mainstream media is recruited to this sort of reporting, you can bet the elites WANT it publicized.
The narrative seems to us neatly laid out. The initial bubble-and-bust in 2008 provoked a good deal of controversy. But it is likely that the crumbling of the BRICs, coming some four years later, will not look to most like a connivance.
Of course, it must be. The degradation of the world’s economy should be laid at the feet of the system that is currently empowered: Monopoly/mercantilist fiat-paper central banking.
We’re not supposed to notice, of course. But we DO notice. It’s not OUR world. It’s not OUR economy. It’s theirs.
But so long as we borrow this world, we’ll do our best. We’ll downsize, try not to borrow. Maybe buy more gold and silver. Try to drop out of the consumerist society as much as possible. Buy some farmland.
Store some food.
All prudent moves. We can’t control the larger confluence of forces that are driving the world’s economy down. We can’t work on that scale, of course. Only a handful can and apparently do.
But we can arm ourselves with knowledge. We can appreciate this weary world’s directed history.
We can educate others. Above all, we can control our own psychology and desires. We can refuse to give in to pessimism.
Conclusion: We can take what Ludwig von Mises famously called human action to better our own lifestyles and those of our loved ones. We can protect ourselves. And we should.
- BRICs Slowdown Casts Pall On Global Economy (freeinternetpress.com)
- Pepe Escobar looks at the future, as we build a full spectrum confrontation world (fabiusmaximus.wordpress.com)
Posted by mb50
Euro Area Seeks Bigger IMF War Chest on Spanish Concerns … European officials travel to Washington this week seeking a bigger global war chest to combat the debt crisis as Spain’s government battles to quell renewed market turmoil over its finances. Three weeks after European leaders unveiled emergency euro- area funding exceeding the symbolic $1 trillion mark, concerns about Spain’s position have ratcheted the nation’s borrowing costs to the highest levels this year. Crisis-fighting resources will dominate talks at the International Monetary Fund’s spring meeting in Washington from April 20-22. – Bloomberg
Dominant Social Theme: Austerity would work if Europe would just cooperate.
Free-Market Analysis: Almost unnoticed, the world’s leaders now speak in terms of trillions rather than billions (or millions) as they used to, and the IMF and central banks are leaders in this trend (see above excerpt).
The goal of the elites running these facilities is world government and the European Union is a stepping-stone to this consolidation. Austerity, the program that is supposedly stabilizing European finances, is actually an elite dominant theme that does the opposite of its stated intent.
As part of this globalist thrust, the power elite seeks to empower certain international facilities with additional funding and authority. Out of chaos … order, as the article excerpted above once again illustrates:
Bowing to international pressure to do more while stopping short of a bolder proposal, European governments agreed last month that 500 billion euros ($654 billion) in fresh money would be placed aside 300 billion euros already committed to create an 800 billion-euro defense against contagion.
By also offering to give the IMF 150 billion euros, “European governments have done their part,” ECB Executive Board Member Joerg Asmussen said April 13. “I would now expect our non-European friends and partners to contribute their part to IMF resources.”
This kind of problem/solution formula is easy to understand for anyone who wants to look. The elites pursue their goals via dominant social themes, fear-based promotions that frighten people into giving up power and wealth to globalist facilities. In this case the mechanism is the “sovereign debt crisis” and the solution is to puff up the IMF with more resources.
The longer the so-called sovereign debt crisis goes on, the more the globalists utilize it to expand the power of their chosen institutions. We wrote about this phenomenon just the other day in an article entitled, “Debt Crisis Plotted to Deliver the Euro to the IMF?” Here’s how we explained the genesis:
One has to keep in mind the artificiality of the current economic construct. The economy of the world is run via monopoly fiat/paper money printed by central banks. It is this system that has seemingly crashed half of the world’s economy and is well on the way to delivering China into the same situation …
The EU crisis itself, as we have often pointed out, started when certain poorer countries were given large amounts of money by Brussels to “equalize” the economy. These funds were supposed to allow the bureaucracies to address native imbalances and create fiscal health.
Of course, this money was nothing but a kind of bribe. The elites of the given nation pocketed the funds and then made sure their countries entered the EU. After this occurred, further lending took place via the elite’s top, European commercial banks.
After the 2008 crash, it became clear that the EU’s PIGS couldn’t repay the loans. This was likely the plan all along. After this realization set in, the power elite that orchestrates this sort of thing ensured that the solution to this manipulated dilemma was “austerity.”
The idea is evidently and obviously to make people so miserable that they will eventually welcome world government and world money. The power elite orchestrating this has been using what we call directed history for at least a century and probably closer to three – within the context of the modern globalist conspiracy.
The article we are analyzing today from Bloomberg suggests an expanded IMF based on the Euro crisis. But the IMF is also promoting a US$500 billion expansion via developing countries.
The justification is that the European crisis might spill over into other continents and nations. The IMF has to be prepared for via a half billion-dollar transfer from the very countries it claims to be protecting. Reuters reports the following:
Euro Area Seeks Bigger IMF War Chest on Spanish Concerns … International Monetary Fund (IMF) Managing Director Christine Lagarde said that she is hoping to make “real progress” at this week’s meetings …
In January, the IMF said it would need $600 billion in new resources to help “innocent bystanders” who might be affected by economic and financial spillovers from Europe … On Friday, officials from the Group of 20 nations told Reuters the world’s major economies were likely to agree to provide the IMF with somewhere between $400 billion and $500 billion.
A G20 official said the fundraising effort would likely raise about $50 billion from Japan and a similar amount from China and Saudi Arabia, in addition to the $250-300 billion already committed by EU countries. Smaller amounts will likely come from countries such as Russia, Mexico and Brazil.
Thus it is that the IMF expands. It is receiving at least US$150 billion from Europe and hundreds of billions from mostly “developing” countries. It is interesting that the Reuters article and the Bloomberg article don’t quite match up on the European contributions. What’s a few hundred billion among friends?
In fact, nobody REALLY knows how much money is flowing at the top, or where it is headed. The point of the reports is promotional and has little to do with accuracy. The idea is to throw vast sums around as to imbue government officials with godlike powers.
Often, we discover the announcements made about funds prove not to be true. The European sovereign debt crisis was supposed to have been solved years ago, when the first announcements were made that funds had been delegated to “fix” the problem by leading European sponsors.
In fact, we have come to realize this crisis – like other crises around the world – are often manufactured ones. This is no doubt why they often last so long. The longer the crisis lasts, the more possibilities for a transformative effect.
In this case it seems obvious to us that the intent is to make citizens of the West so miserable (via “austerity”) that they will welcome virtually any change, even globalism, that promises to make their lives better.
Seen through this admittedly cynical lens, the 20th century with all its “isms” and arguments for expanding government via socialism, etc., was the first part of a promotion that is now nearing its latter stages. Having successfully made people dependent on government, the powers-that-be are now removing those props in order to further their internationalist aims.
No doubt global governance will be sold the same way as were the initial governmental solutions of the 20th century – as a panacea that will somehow reduce the world’s afflictions and rectify the wrongs of the “market.”
Conclusion: We are not yet sure the IMF is destined to become the world’s central bank – complete with an SDR global currency – but the IMF is continually showing up at the center of things as world economic chaos blossoms. More that the Bank for International Settlements or even the World Bank, it appears to be the Chosen One.
- IMF funds drive caught in global power shift (jhaines6.wordpress.com)
- Spain again to test investors’ nerves (donny-wise.com)
- Japan mulls $60 bil. contribution to IMF resource boost (english.kyodonews.jp)
- Daily US Opening News And Market Re-Cap: April 16 (zerohedge.com)
- S. Africa pushing for more World Bank, IMF reform (seattlepi.com)
Tags: Christine Lagarde, Crisis, euro, European sovereign debt crisis, European Union, fiat, G-20 major economies, global governance, IMF, International Monetary Fund, paper money, SDR global currency, Socialism, Spain, Washington