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It has been a while since my last post, it was difficult to write about what I saw coming down the pike without sounding sadly without any credible case. Now there is enough out there for the public to be willing to consider the drastic change in life styles and mind sets that will be needed to survive without becoming just a barely better economy than Mexico.
The fast pace in which the corruption of values and ethical standards from a critical mass of our Financial and Political leaders will require a strong public willing and ready to learn about the subject of economics and finance it is our responsibility if we do not pull ourselves by the bootstraps no one else will we the Joe Public types not Mr. Politician nor Mr. CEO
“Roughly once year the IMF, US Secretary and sometimes finance ministers of G7 countries get a phone call from the finance minister of a large emerging-market economy: …the country is rapidly running out of foreign reserves, lost access to capital markets, and that perhaps even lost confidence of its citizens. Without a large rescue loan, he country will be forced to devalue its currency and.” This is how Mr. Roubini starts the introduction of his book “Bailout or bail-ins” co-authored with Brad Setser.
Eerily familiar, what sounds like corrupt dictators of a struggling African or Central American nation?
FT.com/ reports: AIG paid more than $40m in controversial retention bonuses to staff at its troubled financial unit in December, three months ahead of schedule, according to the resignation letter of an executive at the insurance group.
News of the decision to pay bonuses of $165m to staff at AIG sparked political outrage and protests in the US Congress, after the insurer was bailed out with $173bn of public money last year. Before the publication of the letter, momentum on draconian legislation to claw back bonuses had begun to slow.
Jake DeSantis, a manager in AIG’s Financial Products unit, said AIG “accelerated by three months [the payment of] more than a quarter” of the $165m of retention bonuses due to the division’s employees.
The President of the USA will arrive in Europe for a summit hosted by British Prime Minister Gordon Brown, while ”
European Union politician on Wednesday slammed U.S. plans to spend its way out of recession as “a way to hell.”
Czech Prime Minister Mirek Topolanek, whose country currently holds the EU presidency, told the European Parliament that President Barack Obama’s massive stimulus package and banking bailout “will undermine the stability of the global financial market.” Reported by Fox News
Will the strongest currencies dominate what may become the UN of finance and will that nation be China? Just consider:
China’s central bank yesterday proposed replacing the US dollar as the international reserve currency with a new global system controlled by the International Monetary Fund.
In an essay posted on the People’s Bank of China’s website, Zhou Xiaochuan, the central bank’s governor, said the goal would be to create a reserve currency “that is disconnected from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currencies”. Reported by FT.com
But no matter what we will make it through, believe that work hard like you mean it, have a good day no matter what