Last Thursday’s G20 meet saw little new initiative. The $1.1 trillion stimulus package was largely from already announced packages. This totals up to US$5 trillion in bailout economics worldwide, appx 7% of the planet’s GDP of US70 trillion (purchasing power parity exchange rates).
The ‘name and shame’ tax haven policy development will dwindle once Gordon Brown’s poll bounce is over. Hopefully the policy focus doesn’t dwindle, but the writing is on the wall with the ignorance of ‘automatic information exchanges’ between tax jurisdictions.
The hype over the Financial Stability Board, set up to monitor CEO largesse and hedge fund trickery will be another talkfest with false teeth. They have no policy parameters. George Monbiot will be more likely to keep them honest.
As usual, the press uses the diversionary headlines of the above to channel attention away from the tragedy of these talks – the expansion of the IMF’s powers. It’s budget tripled. The bermuda triangle of economic policy was enhanced, with the bailout economics playbook now extending to one of the world’s most controversial institutions. The expansion of the IMF’s Special Drawing Rights means it can expand it’s quantitative easing – AKA printing money AKA Mugabe economics AKA hyperinflation.
But what about the policy reform no one dared mention? The one that would address both asset price bubbles and environmental devastation?
This expansion in Special Drawing Rights gave a nod towards the Chinese and Russians who are lobbying for a new world currency. This G20 meet paved the way for SDR’s to become their desired ‘globo’ world currency.
Based on a weighted index of the US dollar, the British pound, the Japanese yen and the Euro, SDR’s are distributed to countries according to their IMF contributions ie the SDR currency is backed up by the various countries percentage contribution to the IMF.
Read this excellent bloomberg article to understand the weighting of this currency basket and whether the US dollar is under threat.
From tax havens to credit squeezes to climate disasters, the playing field could be leveled with the big picture reform we remind you of:
The great tax shift, off our wages and onto natural resources (and licensed monopolies). We hope someone mentioned the UK’s great People’s Budget debate of exactly 100 years ago. Did these principles get mentioned anywhere?
Nobody can hide land, rendering tax havens irrelevant. Asset bubbles are only caused because speculative impulses push the ponzi scheme higher and higher until the inevitable 18 year land cycle explodes like a teenager’s hormones. By keeping a lid on land prices we have a more stable asset base from which credit can be based on.
Climate disasters have been sped up by the easy profits one can make raping the planet as a miner or land banking so that families have to live on the outskirts, not next to the train station in town. Land banking leads to doughnut development. A Resource Rental system backed up by environmental bonds re-iterates what we all invariably feel – that the planet is valuable and that we must look after it.
We must halt the speculation upon natural resources if we are serious about providing a sense of hope for working people. How ironic that the forgotten war, no not Afghanistan Mark2, but the unending suburban war zone in America saw 2 tragic mass murders over the weekend. The G20 policies will only prolong this depression.
The overwriting aim is to lock renters into paying 40 – 40% of their income to the lazy, planet flipping speculators that caused this GFC. Global financial crisis or Good for Corporates?
We dare you to get involved by studying the 3 dimensional financial literacy so desperately needed. With the groundswell building, we aim to reform economics such that people and planet matter.