Crisis Summit: Bush and USA asks, what kind of capitalism refoundation are you talking about?

Nov 13 2008 @ 05:44pm
Por: Felipe IV
Publicado en: English

The financial crisis collapses credit, and credit collapses sales, which at the same time creates massive layoffs with widespread bankruptcies and destroys the numbers of the real economy. The "bad news" are spread like a contagious virus around the world.

USA and the main economies in the EU (Germany, UK and Spain) are alreayd in recession, and the others (including Asia, Latin America and the Middle East) are awaiting to enter the recession club. There is no space for "good news": The US-UE economic Empire explodes and collapses for the four corners. To the stock market crash follows the motor industry collapse. Nobody escapes here: finances, services, industries, media, advertising, entertainment industry, the mytical "consumism society" shakes by the absence every day more notorious of the comsuption.

The capital injections and super-mega-bailouts failed to succeed: Nobody believes in anything. The jew capitalism system (established as the "only world" possible) doesn't plan for the future and just play for the juncture. Buy cheap, sell expensive and save cash under the pillow, synthetizes the sionist philosophy now a trend in the "markets without liquidity". The "growth" euphoria is now over (with minotary wealthy people and massive poverty worldwide), the key gears of the system are stopped and survival is marked by "Every man for himself".

This crisis not only crashes the markets and the economies but it also razes with all ideologies of "free market" and scoops the margins for every utopias and the myths that support and legitimate the dominant system. Capitalism is bankrupted: The very structures of a "superior civilization" are falling (with democracy, pacifist philosophy and consumism society incorporated) and the only thing that seems to remain alive (in the middle of the economic earthquake) are the bankters and the US dollar the ones that continue harvesting profitability with the crisis.

All the "multipolarity" paradigms and the "opportunity for everyone", and it just stands on foot the axiomatic truth of sionist capitalism of the jews merchants: Buy cheap and sell expensive. Data from reality overcomes any interpretation: the command chain was broken and capitalist powers debate what to do with the world they invented. Everything has its birth, then it transforms and finally dies in a matter of seconds.

The central banks and goverments of the Empire have lost dimenssion between "social bailout" and "business bailout". Only saving the business: Capitalism "restructures" and creates "profitability" and new expansive horizons with crisis. The biggest fish eats the smallest fish: The financial giants eat themselves and just stands up the most suitable to continue depredating.

Capital concentrates and becomes every time more autistic: If this trend prevails, then we are at the verge of a intercapitalist third world war. By now, we are just on the first step of the economy apocalypsis and the EU powers want to eat to the current Empire with the "refoundation of the capitalist system".

Projected in sequence: the "black monday" the global markets on September 15th, that recorded the most impressive collapse in Wall Street since 9/11, transformed the mortgage crisis in a credit crisis and installed officially the financial crisis with projected recession from central economies to emergent and peripheral economies in the capitalist system throughout the world.

Since then, the "financial bubble" of the speculative capitalism without borders from Wall Street, the reproduction of money by money itself, exploed and collapsed over the very foundations of the global netword that created it.

Bad entrepeneurial resultas at global scale and the news that Germany and UK will face a recession provoked a pressure on every world leaders before the G-20 summit this weekend in Washington.

On Wednesday, Wall Street felt in the abyss after the Secretary of the US Treausre, Henry Paulson, stated that authorities are changing their objective for a massive national bailout, leaving alone the plans to buy stocks and toxic mortgages.

Oil prices sunk below $53 in London after the Bank of England announced the country is officially in recession and german experts anticipated that the biggest economy in Europe is likely to not see any growth next year.

Germany would annonuce today that is officially in recession.

An independent group of experts indicated that economic growth in Germany will halt next year. Thye criticized the meassure for stimulatin the economy as "a medley of isolated projects designed to give the impression that the government is doing something".

"The economy pobably entered in recession the second half of 2008 and probably production contracts even more", stated the Bank of England (central) in its last quaterly report.

The unemployment rate in UK rised to its highest level since 1997, a 5.8% in the thrid quarter, according to official figures.

The "bad news" came from every corner of the world.

Trust in consumers in Japan registered its lowest record and industrial production in the eurozone felt strongly on September.

The first quaterly loss in the history of the bankinga and insurance group ING highlighted again the damage cause by the financial crisis, and the first bank in Italy, Unicredit, annouced a collapse in profits, too.

Spanish State Secretary of Economy, David Vergara, pointed that the government could check again its projections for a lower growth in 2009, in 1%, due to the global crisis. Spanish economy will contract a 0.2% in the third quarter, compared to the previous quarter, he declared.

With a continued scenario of "nervous markets", with stock markets with ups and downs one day or the other, with a "volatile" situation ever changing with global authoriest without finding the right "key" to "normalize" the collapsed financial sector, now Sarkozy, Merkel and all major leaders in Europe have concluded that they have to start by the root of the problem: End with the reign of the US dollar.

A feared slogan, that starts to strongly spread in every central economy as well in the peripherals of Asia, Africa and Latin America.

The financial system in the world is "dollarized", a 80% of all international trade, 70% of all imports globally, and almost all the oil trade is made with dollars, and stocks and global money markets operate with the US dollar through stocks and bonds scattered at global scale by the largest banks and investment funds that have is operative headquarters in Wall Street, USA.

With that scenario, the EU launched the first stone for the "refoundation" of the capitalist system born in Bretton Woods, that implies tacitly the end of the globalization of dollar as currency pattern.

According to reports from the White House on Wednesday, the US President, George W. Bush, this weeked he will host the summit for the world financial crisis, and will seek to "solve current problems" instead of dismantling the existing system.

As it has previously warned, USA, the hegemonic Empire, prefers to continue with the current "model": "Controlled" (financially) from Wall Street and "guaranteed" (militarily) with US nuclear and conventional might. To Bush and the White House, on this terrain, there is "nothing to renew".

Bush travels today to Wall Street to offer its "view points" about the financial markets and the global economy before the meeting with the G-20 leaders in Washington.

The summit will be held from Friday to Saturday and this will be for a review of the global financial architecture.

Governments around the world have already pumped thousands of millions in dollars to the markets in an attempt to activate the credit sector, calm down nervous operators and avoid the global economy to continue sinking in a recession.

"We should solve the problems we have instead of dismantling a system that has improved the lives of many hundreds of millions of people around the world", declared the spokesman of the White House, Carton Carrol, anticipating Bush's comments.

According to the White House, the Imperial President (without blushing himself, for sure) "will underline that free market capitalism, specially free exchange, is far much better to achieve growth economically and get people out of poverty".

G-20 leaders (the richest countries and emergent ones) will meet from Friday night in Washington to try to restore trust and stabilty in the markets and begint to reform the current financial system in the world.

US officials indicated that the summit will end with an "action plan" that includes steps for the short term to help global economy. Countries like France pushes for concret actions after the summit.

G-20 summit, which will include countries like Spain, will gather key emergent countries like China, India, Brazil and South Africa with the denominated G-7 group of industrialized countries to review the causes of this crisis and propose solutions.

Leaders will have a dinner in the White House and on Saturday they will celebrate two plenary sessions. Doubts persist if the existing differences among participants of the G-20 will allow to achieve tangible advances.

This meeting will be the first in a series of encounters and the US responsibles foresee the next one will be for the first quarter of 2009, probably after Bush leaves the office and be replaced by the elected president, Barack Obama.

Since the "refoundation" project proposed by France started to circulate, the White House started a campaing to "lower expectations" for US support for radical changes to the current globalized econmy system that has the dollar as currency pattenr for international economic-financial transactionsa and as a international reserve currency.

Before the summit, Sarkozy and the president of the European Commission, Jose Manuel Durao Barroso, met with Bush in Camp David, in Maryland mountains (East of the USA), and US President showed his disapproval for the "refoundation" proposed by the Eurogroup leaders.

European Union leaders want a real and comprehensive reform, a sort of a new Bretton Woods, the set of agreements that rule the economy since 1944 (after the end of World War II) the economic-financial sort of capitalism leveled at global scale nowadays.

Bush, who is leaving the office in January, said that "time is needed" so we can see the effects of government interventions to stop the crisis.

This is, Bush and the White House clearly delimit the US-EU "financial bailout" orchestrated from a structural reform of the system in which the eurozone powers would seek to move Washignton out of the central economic and financial debates about the system.

Therefore Bush, as US analyst say, is not commiting for a reform beyond the US system, which, after all, will relapse to the new elected president starting from January 2009, meanwhile europeans propose a "global sort of supervision of financial markets" that would implement the IMF.

Obama, who will not participate in the G-20 summit, is concentrating his investiture, foreseen for January 20th, in how to face the crisis that, according to all odds, is pushing the USA and the world to a long and deep recession.