Financial Crisis Weekend Developments 10-13-8
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Financial News Crisis
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Weekend Developments
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10-13-8
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IMF Head Issues
Global Meltdown Warning
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The world financial system is teetering on the "brink of systemic meltdown", the head of the International Monetary Fund (IMF) has warned in Washington.
Dominique Strauss-Kahn said rich nations had so far failed to restore confidence, but he endorsed a new action plan by the G7 group.
He also said the IMF was ready to lend to countries in dire need of capital.
The 15 eurozone leaders will meet in Paris later to try and establish a common approach to the markets crisis.
French President Nicolas Sarkozy and German Chancellor Angela Merkel said they would present a number of proposals at the summit to ease the credit freeze that has caused the collapse of several leading international banks.
But after meeting in Paris on Saturday, the two leaders said the summit would not result in a joint financial rescue fund for Europe, in the model of a $700bn rescue by the US government.
French Economy Minister Christine Lagarde said the eurozone leaders would discuss the possibility of guaranteeing interbank lending and put "meat" on the "skeleton" of a five-point plan by the G7 group of most industrialised nations to resolve the crisis.
Intensifying concerns
Mr Strauss-Kahn was speaking in Washington after talks with US President George W Bush, G7 finance ministers and the World Bank.
Earlier, G7 ministers had released the five-point plan to free up the flow of credit, back efforts by banks to raise money and revive the mortgage market. More details, LINK HERE.
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IMF & World Bank Meet
Amid Calls For NWO For Money
The president of the World Bank, Robert Zoellick is calling for a new financial world order including scapping the G-7 system.
Zoellick is calling for a new "Steering group" made up of Brazil, China, India, Mexico, Russia, Saudi Arabia, South Africa, and G-7 members France, Germany, Italy, Japan, Britain and the United States.Those nations combine for more than 70% of the world's economy, over half ot the world's population, and nearly two-thirds of the world's energy production as well as most of the world's primary polluters. It's also the primary group of nations for the world's capital assets and natural resources.
The World Bank president says such a new group would not alltogether replace the G-7 and the new group would be open up and coming members.
The head of the IMF, Dominique Strauss-Kahn is warning leaders to act quickly to contain a global recession but warns of more dire consequences if world leaders do not act decisively and quickly. Both leaders warn that no nation can solve its own econmic problems alone because the crisis is globally interconnected.
The IMF has recently changed its rules for bailing out nations with severe debt problems. The IMF is prepared to aid failing debtor nations, but such aid comes with a steep price-tag in a bevy of strict conditions that can strip a nation of much of its sovereignty. All the better, to mandate and force a 1-World, Global Government.
There are some differences between the IMF and World Bank views on resolving the crisis. The IMF's chief wants the new steering group of nations proposed by the World Bank's president to also include debtor nations who are in crisis. IMF chief Strauss-Kahn says in reality, all nations need to be involved in the process and not merely a steering committee.
The high-level global banking conference continues throughout Monday, October 13. Participants and reporters both conclude that no significant restructuring of the world's economic architecture take place at this conference, however, it does help to set the stage for a future restructuring. For more details on the weekend's meeting of the world's elite bankers, LINK HERE.
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Meanwhile, Back in Europe
EU Acts On Crisis
EU leaders met in a special emergency session. led by EU president Nicolas Sarkozy who is also the President of France.
Sarkozy predicts that "an ambitious, coordinated" plan will be put into action beginning on Monday when markets re-open for business. Despite Sarkozy's confident remarks, none of the EU leaders have given any details, although Britain will take control of 2 major British banks and France and Germany are expected to unveil bank rescue packages worth hundreds of billions of dollars.
Meanwhile, the Bush Administration and the Fed Reserve appaer to be moving towards taking ownership stakes in several threatened US banks. Australia, New Zealand, the UAE and Portugal are all moving to guarantee bank deposits.
The world's financial crisis was being met head on by meetings in Washington with the G7 and G-20 as well as the IMF & World Bank, while at the same time the EU leaders met in an emergency conference in Paris, France. The meetings are intended to find a way out of the global financial crisis. For more details, LINK HERE.
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EU Agrees On Bank Rescue Plan
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Mideast Muslims Believe
Financial Crisis Is Divine Judgment
Upon US & West
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