November 22, 2008
By now I hope readers have had a chance to read my recent article on the global financial crisis entitled “Is Babylon the Great about to Fall…Ushering in a Global Beast System?” That article mentioned the recent Global Summit held in Washington, DC about the global economic crisis. This Summit brought together the G-20 nations, 20 of the more dominant nations in global finance, power and trade. It is remarkable that 20 heads-of-state flew into Washington, DC for a very quick meeting and then flew out of town after a brief photo-op. The public statements issued by attendees, of course, are meant to reassure and calm the masses. The real business was conducted behind closed doors and not revealed to the public.
What happened behind those closed doors? The short video link below (sent to me by a reader) speaks volumes about the atmosphere that prevailed behind those closed doors. It is a video link showing the heads-of-state marching out for their group photo. Amazingly, it shows that not one chief-of-state would shake hands with President Bush, even though they would freely shake hands with each other. I urge you to watch it and see President Bush’s “hang dog” demeanor as if he were an outcast at the Conference. This unique exclusion of President Bush from even the “staged” camaraderie which prevails at such events provides an insight into how strained and blunt the world leaders were in their discussions with President Bush behind closed doors.
Here is my opinion re: what happened. The global housing/credit/equities/banking crisis originated from the reckless and deceptive financial practices invented by Wall Street (derivatives, swaps, securitized loans with diverse tranches, etc.) which were shamelessly and deceitfully marketed to the other nations as top-rated investments. Even Freddie and Fannie bonds, thought to be top-rated investments that were bought in the hundreds of billions by foreign investors, turned out to be toxic waste. Many nations need strong commodity prices to make their economies run correctly, but the COMEX exchange in New York has allowed the “shorts” (who drive down prices) to manipulate all metals, commodity and equity markets via the futures markets. CNBC’s Jim Cramer (the host of “Mad Money”) delivered an on-camera scolding to Wall Street and the Market regulators of the Bush administration this week for rigging the markets so prices of stocks, commodities, etc. could be manipulated downward by a change in an obscure rule involving the “uptick” rule re: short-selling. It was rather technical for me to follow, but Mr. Cramer made it clear that the American markets were tilted to favor short-sellers to drive prices downward. In previous blogs, I commented that Freed Zakaria (a Board Member of the Council of Foreign Relations and the Trilateral Commission) wrote in his 9-8-08 column in Newsweek magazine that Russia would be forced to change its aggressive behavior by a dramatically lower oil price on world markets. Within a week, the price of oil began to unwind and later it collapsed. However, the oil market pulled down the entire commodities markets and the global equity markets, threatening to collapse more banks, hedge funds, etc. Many nations are struggling to balance their finances, secure their internal markets and industries, etc. via waves of bailouts made necessary by the crony capitalism of Wall Street’s reckless and self-serving “investments.”
This crony capitalism in the American markets has enraged the world, which has suffered immense losses from Wall Street’s profligacy. At the G-20 Economic Summit, I believe the world gave President Bush an ultimatum about what he MUST do in his last days as American’s leader. The brevity of the G-20 meeting argues that it was not a deliberative conference, it was arranged for the world leaders to quickly give the USA a blunt ultimatum about what it MUST do to restore world markets. I think the rest of the world cannot wait for Bush to leave office. The nations have good cause to be wrathful at the reckless and deceitful investment products sold by Wall Street to the world. They were tricked into buying the financial equivalent of “toxic waste.” It is possible that a new global economic system will emerge from this ongoing crisis, but I make no predictions re: how long it will take to emerge. It makes sense that world leaders would wait at least until Barack Obama becomes President before instituting major changes. Obama has the charisma to call on the American people to swallow the substantial economic changes needed to salvage global markets. VP-Elect Biden promised Obama would be tested within six months of taking office and would have to make decisions that the people wouldn’t think were right. Biden likely tipped the hand of the globalist elites. It would make sense to have Obama make those changes soon after he takes office while his popularity is high.
However, Obama’s cabinet appointees announced so far are a collection of Clintonistas and Establishment insiders, which doesn’t augur well for major changes. However, Proverbs 22:7 reminds us that “borrowers are servants to lenders” The profligate USA is now the biggest debtor in the planet’s known history, and the world leaders at the G-20 Summit were the USA’s lenders. I think the profligate American borrower was taken to the woodshed behind closed doors at the G-20. The next few years could be very interesting, indeed! Be sure to watch the short video below. Without any words, it reveals the atmosphere that obviously prevailed behind the closed doors of their meeting.