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The Biggest Fiscal Injection That The World Has Ever Seen

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Really shows you that he's in love with globalism and cares only for globalists... Still pushing for the global government like mad... :o

'We're at a Huge Transition Phase in Our History' (Spiegel Link)

Former British Prime Minister Gordon Brown was at the helm in London when the global financial system came close to collapse in the autumn of 2008. SPIEGEL spoke with Brown about his snap decision to recapitalize British banks and asked him why global regulation has been so long in coming.

SPIEGEL: Mr. Brown, early one morning at the height of the banking crisis, you told your wife Sarah to get ready to move out of Downing Street as you might resign that afternoon. How did she react?

Brown: Very professionally. She got on with the preparations. Of course, she couldn't call in the movers just yet. That would have been a bit too disastrous of a signal to the markets.

SPIEGEL: We're talking about Wednesday, Oct. 8, 2008. Lehman Brothers had just filed for bankruptcy. In your new book "Beyond the Crash," you write: "I sensed that if no one acted, total collapse was imminent." What exactly were you expecting?

Brown: The Royal Bank of Scotland would have collapsed within hours. HBOS was not far behind, and in that case, other European and American banks would have followed. I think people still misunderstand, in retrospect, the scale of the collapse that we were facing: It would have been absolutely catastrophic.

SPIEGEL: Would the ATM's have stopped handing out money?

Brown: Most likely. People would have been in panic about their savings, there would have been a run on the banks. But what worried me most was: At this moment there was a total lack of leadership about the way forward, both within banks and governments. The banks still deceived themselves. One banker told me on the day before his bank collapsed: "All we need is overnight funds." He didn't even realize that his institution was virtually on the brink.

SPIEGEL: That morning, you announced the immediate recapitalization of the British banks using billions of pounds in public funds, and which basically meant nationalization. Today, you receive a lot of praise for the steps you took. But how did you know then that it would work?

Brown: I didn't. To be honest, it was a gamble. No other country had done it before. I would have resigned that day if it failed. But it worked. Within days, most large economies followed our path.

SPIEGEL: At around the same time, German Finance Minister Peer Steinbrück was still in denial, blaming the problem entirely on Anglo-American banking practices.

Brown: What really sparked the whole thing was the subprime crisis in America. But what people hadn't yet realized was that half the subprimes had been sold into European banks. The banks were undercapitalized, and they had a lot of impaired assets on their balance sheets.

SPIEGEL: Were you in close contact with German Chancellor Angela Merkel at the time?

Brown: On a regular basis. She knew exactly what I was thinking. But our decision on Oct. 8th may have nevertheless surprised her.

SPIEGEL: It was quite a risk.

Brown: We could not be clear how the markets would react and what other governments would do. If nobody would have supported our course of action, then I think it would have been pretty difficult for Britain. But people had realized that the American TARP scheme was not going to work. In that scheme the state would take over the impaired assets. But it didn't deal with the problem that banks were themselves undercapitalized. Our plan was better.

SPIEGEL: In the summer prior to the Lehman collapse, you had read several books about the Great Depression. Did that prepare you?

Brown: It did. I knew that monetary and fiscal policy had to work together. Our course led to printing money obviously, but at the same time to the biggest fiscal injection that the world has ever seen. And the whole thing had to be coordinated internationally, the first time that had happened on such a scale.

SPIEGEL: Critics argue that you not only helped solve the crisis, but that you also had a hand in creating it in the first place. In 2005, as Chancellor of the Exchequer, you told managers that government should not only "have a light touch, but a limited touch" in banking regulation.

Brown: You've got to understand the atmosphere in Britain at the time. We had introduced the Financial Services Authority and had removed the system of self regulation in the City. We had merged all the different supervisory organizations ...

SPIEGEL: ... but the result was an extreme dearth of regulation. There is a reason that Lehman Brothers did much of its business in London.

Brown: Lehman Brothers failed to declare its financial position. You cannot blame the regulator for not picking up something when there was a failure to declare. In the end, it wouldn't have mattered whether regulation was a little stronger or a little weaker. What we hadn't factored in was the interdependence between the different financial institutions. What happens to one bank has implications for a lot of others.

SPIEGEL: Regulators in Canada, Australia and Sweden have obviously done a better job. Banking systems in those countries weren't hit nearly as hard. Do you not see any errors at all in hindsight?

Brown: I wish that we had had a better understanding. We did a trans-Atlantic simulation exercise in early 2007 which included US Secretary of the Treasury Hank Paulson and Chairman of the Federal Reserve Ben Bernanke. We looked at what would happen if an individual institution collapsed. People realized that there were consequences that went beyond that individual institution. But we didn't analyze what would happen to the system in its entirety, due to connections and entanglements. We should have built a global control system for the financial sector much earlier.

SPIEGEL: Both Germany and the European Union had tried to adopt tougher regulations long before the crisis. But London always stood in the way.

Brown: That's a misunderstanding. I was always in favor of intervention but wanted to do it on a global level. If you regulate in Europe, but not in America or Hong Kong, Singapore or Switzerland, banks will be basing more of their operations abroad. You need a global system, and that is now recognized. But I see the problem that we're not yet implementing rules at a global level that cover all the major financial centers.

SPIEGEL: There will always be someone who doesn't play by the rules. Isn't the call for global supervision just a lazy excuse for doing nothing?

Brown: When we introduces the savings income tax, we were successful. If we had only done that in Europe, other countries would have taken advantage. Now there is an exchange of information with countries like the US, Switzerland and Liechtenstein. If financial centers escape supervision, this undermines the whole system.

SPIEGEL: Good intentions regarding improved regulation were plentiful after the Asian crisis 10 years ago.

Brown: At that time, I was proposing an early warning system for the global economy. I made very specific proposals for improving transparency in the financial system and to make supervision more international.

SPIEGEL: The outcome could certainly be the same this time around: A lot of talk but no real consequences.

Brown: Of course, that's the biggest danger now because complacency develops. We seem to return to a cycle where people move from excessive fear to irrational exuberance.

SPIEGEL: The price for bailing out the banks was extremely high in many countries. You yourself were voted out of office and you have left a huge deficit to your successor.

Brown: Deficits are the inevitable product of dealing with a recession. Because the financial sector in our country is so much bigger than in other countries, we had bigger losses in our revenues. To blame it on our fiscal policy is not justified. We simply took the measures that were necessary to move the country out of recession.

SPIEGEL: Yet the British economy is shrinking once again.

Brown: People have taken their eye off the ball in terms of making sure that the economy can grow.

SPIEGEL: Do you feel you've been cheated by the bankers?

Brown: In our families and in community life, we expect certain standards: trustworthiness, integrity, that people do things responsibly and don't take reckless risks. As we know now, bankers were operating on a different set of standards. Somehow the global financial giants exempted themselves from the moral conduct that we would expect from other institutions. And that's the problem.

SPIEGEL: Should bankers continue to receive bonuses?

Brown: Not if they come at the cost of the stability of the bank. If top bankers in this country had paid themselves 10 percent less for the past 10 years, they would have amassed an extra £50 billion -- exactly the amount of money we had to spend on recapitalizing the banks.

SPIEGEL: Do you think an additional banking tax would add stability to the system?

Brown: I think so. We certainly can't continue with a situation where the financial system poses such risks to the world economy and to individual livelihoods and doesn't even pay for that risk. The taxpayer has got to be not just compensated, but protected in the future. There could be an agreement between Germany, France, Britain and America on a global banking levy. Other financial centers could join later.

SPIEGEL: Surely that is wishful thinking.

Brown: It's a question of leadership. There's no reason why Germany, France, Britain and America couldn't agree to that. Congress has been debating a revenue tax. The G-20 is chaired by President Sarkozy. There's Angela Merkel who's proven to be a person who can win people's support for big issues. But we need more than that. We need global financial supervision.

SPIEGEL: That's even harder to achieve.

Brown: Yes, but on the other hand, everybody now knows that banks can impose huge costs on your country. To get on top of these risks, we need to move ahead. It's not enough to discuss the future of banks at a national level. If you have a German solution, a British solution and an American one, you could get three separate sets of regulations and it would mean that the banks could look at the different countries and decide which operations to locate in each country.

SPIEGEL: Isn't that what globalization is about?

Brown: We're at a huge transition phase in our history. During industrialization, we saw that local institutions had to be replaced by national ones. Now, globalization is challenging our national institutions to move up to bigger ones. We're finding that the national framework is insufficient. We've got to think and act globally. If we don't do that, we won't solve the banking problem, nor will we solve the environmental problem or the terrorist problem.

SPIEGEL: Mr. Brown, thank you very much for this interview.

Interview conducted by Marco Evers and Christoph Pauly

Edited by Pole

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"We did a trans-Atlantic simulation exercise in early 2007 which included US Secretary of the Treasury Hank Paulson and Chairman of the Federal Reserve Ben Bernanke."

They knew all along. It was just a game for them.

Problem: Terrorism - Solution: Global Government

Problem: Banking - Solution: Global Government

Problem: Environment - Solution: Global Government

Wait till we see more 'problems' to convince us that the global governance is needed desperately.

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I`m sure the savers in Northern Rock and RBS were very thankful to all that taxpayer`s money pumped in . ;)

Personally I love the guy, he stopped the banking crisis, allowing me to get my money out (wasn't with NR or RBS) and buy lots of lovely gold and silver at prices cheap compared to today. Not only that but his actions have contributed to setting up an even bigger crisis in the future that I stand to profit from very handsomely thanks to him.

NICE ONE GORDON!!! :D

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Personally I love the guy, he stopped the banking crisis, allowing me to get my money out (wasn't with NR or RBS) and buy lots of lovely gold and silver at prices cheap compared to today. Not only that but his actions have contributed to setting up an even bigger crisis in the future that I stand to profit from very handsomely thanks to him.

NICE ONE GORDON!!! :D

Sooner or later to make use of your new asset you will have to convert back to that terrible fiat money. :D

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From a business perspective having global governance would make life less bureaucratic and more efficient in many ways like one trademark instead of going through the trademark process for different continents.

One language would certainly improve business in many ways.

One set of laws would be easier and more efficient for doing business or even going on holiday.

In this day and age of globalisation whether its for business or personal, life would be better in so many ways imo and whether we like it or not, with continously improving communication be it cheaper faster air, rail or private travel or cheaper faster net access globalisation will eventually reach every person on this planet whether they like it or not.

:o

I don't want my life to be more efficient because it decreases the quality of my life.

Being is a hurry all the time - is that progress?? Building machines to save time and what we do with the extra time??? Work some more! And then we get home to watch some meaningless entertainment as we're too tired and stressed to even think.

Life has more value when lived authentically. How can life be authentic if we're stripped of our cultural identity?

I want to be able to learn and speak local languages as it helps me to understand local cultures better. All countries should keep their local currencies to reflect their local economies. Banks should be local too (as opposed to central)! People are different and should be different. We're not robots or sheep.

I don't care about the trademark process as most of the laws are made to help cruel global corporations who don't care about human lives.

BTW, in the 19th century one could travel from St. Petersburgh to Paris without a passport - without any global governance!

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Congreave, when is it going to dawn on you that holding yellow metal if things so tits up won't make you wealthy?

By the way, what was the dividend on your metal investment this year?

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Congreave, when is it going to dawn on you that holding yellow metal if things so tits up won't make you wealthy?

By the way, what was the dividend on your metal investment this year?

Is he counting on tits up, or just ongoing (deliberate) inflation? Anything-but-cash right now looks like a good plan - the trouble is it seems to be everyone's plan, and finding something that doesn't look too bubbly seems almost impossible...

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SPIEGEL: Both Germany and the European Union had tried to adopt tougher regulations long before the crisis. But London always stood in the way.

Brown: That's a misunderstanding. I was always in favor of intervention but wanted to do it on a global level. If you regulate in Europe, but not in America or Hong Kong, Singapore or Switzerland, banks will be basing more of their operations abroad. You need a global system, and that is now recognized. But I see the problem that we're not yet implementing rules at a global level that cover all the major financial centers.

BIG FAT LIAR (and why, ultimately, so much blame rests with this useless turd-faced baboon).

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Is he counting on tits up, or just ongoing (deliberate) inflation? Anything-but-cash right now looks like a good plan - the trouble is it seems to be everyone's plan, and finding something that doesn't look too bubbly seems almost impossible...

I am certain Bogbrushsan means compared to making a credible business plan, find some halfway competent folks and selling to mass markets, holding gold is a shit strategy for becoming wealthy.

Compared to working for someone else, crossing ones fingers and hoping theres a pension at the end of the 9 to 5 rainbow it might be a winner, however.

Depends on perspective?

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I am certain Bogbrushsan means compared to making a credible business plan, find some halfway competent folks and selling to mass markets, holding gold is a shit strategy for becoming wealthy.

Compared to working for someone else, crossing ones fingers and hoping theres a pension at the end of the 9 to 5 rainbow it might be a winner, however.

Depends on perspective?

For becoming wealthy, I agree. For holding onto wealth... (provided you bought a while back).

But, yes, I understand the point, and it's not entirely clear if the general does...

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Guest UK Debt Slave

I read this tripe and I just despair, despair.

Edit: Where is the I am sorry.

+1

Brown doesn't "do sorry"

In his twisted logic, there's no limit to the price of the Global New World Order.

A very sick man indeed

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Brown: What really sparked the whole thing was the subprime crisis in America. (...)

Not inflating the bubble in the first place?! :unsure:

Sure, sure.

There-there Gordon, take your pills now, and have a good rest dear, ok? Go back to your (padded) room now. Good boy.

.

Edited by Tired of Waiting

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From a business perspective having global governance would make life less bureaucratic and more efficient in many ways like one trademark instead of going through the trademark process for different continents.

One language would certainly improve business in many ways.

One set of laws would be easier and more efficient for doing business or even going on holiday.

In this day and age of globalisation whether its for business or personal, life would be better in so many ways imo and whether we like it or not, with continously improving communication be it cheaper faster air, rail or private travel or cheaper faster net access globalisation will eventually reach every person on this planet whether they like it or not.

I reject globalism totally and hope it fails. In fact, rather than governance widening to a global level, I really hope (for the sake of the children, maaan) that it reverses and the governance side of things narrow to a more immediate (and therefore accessable) local level. I truly believe that in everyone is a basic, natural, human requirement to self determination, freedom to choose ones destiny (within the confines of minimal, locally set rules and regs, naturally). Globalists, to me, display sub-human characteristics and deny everyone their freedom & self determination through their relentless persuit of 'order' on an unnecessary level.

I worry that the human psyche will cope with, imo, the helplessness/hopelessness of being governed at a global level

Lifes short - What is the point in life? For me, it's to have fun with friends and family and look after them - this is my self determination. If governance encroaches on my ability to do this, on the local level i might be one voice in 100,000 with access to those making the rules. On a global level, I'm one voice in 7 billion.

To the globalists, it's order, order, order and to hell with individuality - They're like frickin' evil robotic people farmers always searching for ways to level things in the name of convenience.

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I reject globalism totally and hope it fails. In fact, rather than governance widening to a global level, I really hope (for the sake of the children, maaan) that it reverses and the governance side of things narrow to a more immediate (and therefore accessable) local level. I truly believe that in everyone is a basic, natural, human requirement to self determination, freedom to choose ones destiny (within the confines of minimal, locally set rules and regs, naturally). Globalists, to me, display sub-human characteristics and deny everyone their freedom & self determination through their relentless persuit of 'order' on an unnecessary level.

I worry that the human psyche will cope with, imo, the helplessness/hopelessness of being governed at a global level

Lifes short - What is the point in life? For me, it's to have fun with friends and family and look after them - this is my self determination. If governance encroaches on my ability to do this, on the local level i might be one voice in 100,000 with access to those making the rules. On a global level, I'm one voice in 7 billion.

To the globalists, it's order, order, order and to hell with individuality - They're like frickin' evil robotic people farmers always searching for ways to level things in the name of convenience.

+100

However, I doubt whether globalists will understand the message.

To them human lives are valued in GDP.

They want everything to be structured, controlled, monitored, etc.

They hate winding B roads - they love motorways.

They hate small local restaurants - they love chain fastfood outlets.

They hate small independent shops - they love supermarkets.

They hate small local markets - they love plastic shopping centres.

They want our world to become totally soul-less. Because to them soul-less is more 'efficient'.

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From a business perspective having global governance would make life less bureaucratic and more efficient in many ways like one trademark instead of going through the trademark process for different continents.

One language would certainly improve business in many ways.

One set of laws would be easier and more efficient for doing business or even going on holiday.

In this day and age of globalisation whether its for business or personal, life would be better in so many ways imo and whether we like it or not, with continously improving communication be it cheaper faster air, rail or private travel or cheaper faster net access globalisation will eventually reach every person on this planet whether they like it or not.

Maybe we will have coffee coloured people by the score

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+100

However, I doubt whether globalists will understand the message.

To them human lives are valued in GDP.

They want everything to be structured, controlled, monitored, etc.

They hate winding B roads - they love motorways.

They hate small local restaurants - they love chain fastfood outlets.

They hate small independent shops - they love supermarkets.

They hate small local markets - they love plastic shopping centres.

They want our world to become totally soul-less. Because to them soul-less is more 'efficient'.

i think i remember Sarkozy making noises about shifting emphasis from GDP to some kind of quality of life index a couple of years ago - it resonated greatly with my view on things. Cameron also hinted at a 'happiness' index*, so perhaps there is hope.

(*unfortunately he was widely mocked at the time. i guess people prefer to be imprisoned in the current system. comfortably enslaved.)

Edited by Reck B

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Guest UK Debt Slave

i think i remember Sarkozy making noises about shifting emphasis from GDP to some kind of quality of life index a couple of years ago - it resonated greatly with my view on things. Cameron also hinted at a 'happiness' index*, so perhaps there is hope.

(*unfortunately he was widely mocked at the time. i guess people prefer to be imprisoned in the current system. comfortably enslaved.)

Quality of life index eh!

LOL!

Do really think any of these scumtards give a flying fekk about your "quality of life" or "happiness?"

All they care about is keeping you WORKING, paying debts and taxes.......forever, and their vision of a happiness index is just something that measures whether you are just above the threshold where you might:

1. Go insane and no longer be productive

2. Stop playing the commerce game and tell them all to fekk off and die.

Trust me on this. The very last thing any politician is interested in is your "happiness"

They just want you to be a good, obedient slave

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From a business perspective having global governance would (...)

I used to be in favour of global governance, until Gordon Brown.

If a country gets unbearable, it is vital to have emigration as an option, and a few dozen countries to chose from.

But if a global government makes the globe unbearable, what would we do?

Pluralism is vital.

Edited by Tired of Waiting

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:o

I don't want my life to be more efficient because it decreases the quality of my life.

(...)

But you can also opt to work less time for the same money instead.

Baldricks used to work from dawn to dust, and they still didn't manage enough turnips.

Now even people on unemployment benefits holiday abroad - OK, Benidorm, but this is much better than turnips' obsession.

Come on Pole, progress does exist. OK, the present is awful, but the past was far far far worse.

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