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mises
Joined: 05 Nov 2007
Location: retired
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 Posted: Fri Oct 10, 2008 8:42 am Post subject: Berlusconi Says Leaders May Close World's Markets |
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http://www.bloomberg.com/apps/news?pid=20601087&sid=aP5mpMUORBWM
Woah.
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Oct. 10 (Bloomberg) -- Italian Prime Minister Silvio Berlusconi said political leaders are discussing the idea of closing the world's financial markets while they ``rewrite the rules of international finance.''
``The idea of suspending the markets for the time it takes to rewrite the rules is being discussed,'' Berlusconi said today after a Cabinet meeting in Naples, Italy. A solution to the financial crisis ``can't just be for one country, or even just for Europe, but global.''
The Dow Jones Industrial Average fell as much 8.1 percent in early trading and pared most of those losses after Berlusconi's remarks. The Dow was down 0.5 percent to 8540.52 at 10:10 in New York.
Group of Seven finance ministers and central bankers are meeting in Washington today, and will stay in town for the International Monetary Fund and World Bank meetings this weekend. European Union leaders may gather in Paris on Oct. 12, three days before a scheduled summit in Brussels, Berlusconi said today, while Group of Eight leaders may hold a meeting on the crisis ``in coming days,'' he said.
Berlusconi didn't give any details about what kind of rules leaders were looking to change, except to say that leaders are ``talking about a new Bretton Woods.''
The Bretton Woods Agreements were adopted to rebuild the international economic system after World War II in a hotel in Bretton Woods, New Hampshire. The aim of the agreements was to establish a monetary management system, initially by pegging currencies to gold. The IMF was set up later to help manage the international financial system. |
What will Bretton Woods 3 look like?
Whatever it looks like, you can be damn sure this era is over:
http://www.youtube.com/watch?v=v0TGpe2KMUs
As is this one:
http://en.wikipedia.org/wiki/Monetary_hegemony#American_Monetary_hegemony |
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ontheway
Joined: 24 Aug 2005
Location: Somewhere under the rainbow...
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| Posted: Fri Oct 10, 2008 9:09 am Post subject: |
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"If you close your doors before 5 o'clock you will never reopen!"
Mr. Potter to George Bailey.
A global market shut down would teleport us instantly into the middle of a deep Super Depression.
The only solution to this mess is to abolish the Fed and go on a 100% gold standard. This should be done immediately. The US can do this alone if necessary, but the US can coordinate the transition by leading the world onto a nearly global gold standard. The rest will have the choice of joining in or staying out. However, if the dollar went back on gold at a 100% gold standard, any remaining fiat currency would follow Zimbabwe's currency to zero. |
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mises
Joined: 05 Nov 2007
Location: retired
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| Posted: Fri Oct 10, 2008 9:14 am Post subject: |
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I disagree. Closing the markets and reorganizing the global system towards something resembling sanity and balance would be a good idea. Maybe. Unless they consult the banksters for advice. Then we'll get a global disaster.
Whatever. The whole thing is blowing up anyways. |
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ontheway
Joined: 24 Aug 2005
Location: Somewhere under the rainbow...
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| Posted: Fri Oct 10, 2008 9:27 am Post subject: |
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If they closed the stock and bond markets, nearly all financial transactions would freeze up. (Shipping is already bottled up, as you posted elsewhere. Imagine 10,000 times worse.) There would be a run on every bank and financial institution. The FDIC would collapse. All financial transactions would stop. No checks or Credit Cards would be accepted. No payrolls would be made. Most businesses would close their doors. Schools would be closed. National guard units called up. Grocery stores and gas stations would run out of inventory. Remaining items would be looted. The army would roll out to assist the national guard in protecting key areas against looters and potential rioters. Hospitals and Utilities would remain open with skeleton crews. Service would gradually fail, area by area, region by region. Everyone would be stranded at home. Waiting. Watching TV or listening to radio news. Hungry. Cold. Illness, injuries, attacks, starvation, go unaided in many areas. Food distribution by the guard and military would be unable to meet rioting demands....
The above is a best case scenario.
There is only one solution:
100% gold standard NOW! |
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mises
Joined: 05 Nov 2007
Location: retired
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| Posted: Fri Oct 10, 2008 9:31 am Post subject: |
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You might be right.
I'm hearing rumors that gold will play a role in any new system. |
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