Monday, May 16, 2011

“Crash, Aha, Saviour of the Universe”

Gordon Brown warns banking collapse may be the 'trailer' to a series of financial crises

Former Prime Minister Gordon Brown has warned the global financial collapse of 2008 may just be the 'trailer' to a series of devastating international crises.He warned that the financial system remains 'perilously unregulated' three years after the collapse sent Britain plunging into recession... you cant make this up.

Posted by cat and canary @ 09:47 PM (3057 views)
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28 thoughts on ““Crash, Aha, Saviour of the Universe”

  • It’s a bit like breaking out a massive fart and then telling everyone that a bad smell may come their way.

    People appreciate the warning but would appreciate it more if he hadn’t created the problem.

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  • Governments should come together and engineer global solutions to global problems. Pull the other one Gordon. You know as well as I do that the world is run by criminal bankers and criminal corporations and that governments vacillate between trying unsuccessfully to regulate them and just simply doing their bidding.

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  • GB can either go down in history as an unfortunate fool or a shameless liar.

    If he makes pretence to wisdom now, the latter option is the only acceptable conclusion.

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  • Ozymandias says:

    And this lunatic wonders why he wasn’t invited to the royal wedding. Like most sensible families, the royal family decided to keep the countries embarassing political skeletons in the cupboard rather than invite crazy old uncle Gordon out to embarass himself in public. But the irony is, like Lear’s fool, there is some truth now in what he foretells.

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  • 3. uncle tom

    A globalist’s shoe licking war mongering traitorous criminal?

    Gordon, we have you figured out my pathetic man. Don’t be too insightful, you will reveal your historical dirty deeds to all.

    I still stand by the engineered boom and bust theory and that belief gets stronger almost by the day.

    Anyway, who let the dogs out?

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  • mark wadsworth says:

    I think we ought to let him run the IMF, you can’t fault his efforts at framing the previous incumbent. That way we are absolutely guaranteed a series of financial crises.

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  • @MW,
    Completely agree.

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  • 2. icarus

    “In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex. The potential for the disastrous rise of misplaced power exists and will persist.”

    ~ Dwight D. Eisenhower. http://www.youtube.com/watch?v=8y06NSBBRtY A little refresher.

    Then we had terrorism and 911. Who benefits?

    Dwight D. Eisenhower, RIP.

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  • ontheotherhand says:

    I’m afraid I have to pull out the hubris of his 2005 conference speech crowing that they had beaten the housing boom and bust cycle.

    “Why has it been that at every point since 1997 faced with the Asian crisis, the IT collapse, a stock exchange crash, an American recession, last year a house price bubble, this year rising world oil prices, why has it been that at every point since 1997 Britain uniquely has continued to grow?”

    “In any other decade, a house price bubble would have pushed Britain from boom to bust. In any other decade, a doubling of oil prices would have put Britain first in last out and worst hit by a world downturn.”

    “I tell you, it is because with Bank of England independence, cutting debt, fiscal discipline and the New Deal this Labour government has shown the strength to take the tough long-term decisions, that inflation is low, interest rates are low, growth has been sustained in every year, and we are closer than ever to the goal which drives us forward: the goal of full employment for our generation.”

    “Labour, the natural party for economic strength in our country today.”

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  • the BOE were never independent because if they were they would have raised interest rates and increased regulation to stop an out of control housing bubble.

    BOE have politicised

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  • http://www.infowars.com/globalists-secret-weapon-exposed-tech-kill-chips/

    A bit off topic, but I have a newsflash that may be of interest to some that fear being (accurately) taxed and tightly controlled in the future

    by our very caring and responsible planetary conscious globalist authorities. It’s for the children.

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  • OTOH – “And without those strengths built by the Labour government the country would not have withstood the 2007-8 financial calamity that originated in the world outside the UK and was mitigated by the global response orchestrated by a Labour prime minister”.

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  • 7. taffee said…the BOE were never independent because if they were they would have raised interest rates and increased regulation to stop an out of control housing bubble.

    ~ They are tied to the hip of the Fed, so, no independance.

    On a side note, Bernanke didn’t take out a 30 year fixed rate mortgage for no reason.

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  • taffee – au contraire, Shaxson’s ‘Treasure Islands’ shows that the BoE has always been independent, has always been a handmaiden to the City, and that (at a time when Wall Street was muzzled by the US administration/Treasury) the two laid the foundations for offshore tax & regulation avoidance that unfettered both the City and Wall Street and brought us to where we are now.

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  • letthemfall says:

    It’s remarkable how many people think in tabloid terms when it comes to politics. To blame Gordon Brown for the crisis is naive, or perhaps, in the case of Cameron et al, disgracefully cynical. It would have happened whichever party or whichever leader was in control. The only thing one can perhaps definitely say about the last few years is that the economic hegemony and its destructive effects have been thoroughly exposed. But the most appalling thing is that it is pretty clear that nothing is going to be done about it, regardless of govt, old politicians, and especially regardless of it’s-all-so-and-so’s-faulters.

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  • mark wadsworth says:

    It’s an interesting debate whether the BoE is “independent” or not, and if so, “independent” of what?

    Clearly, the BoE sets interest rates to suit the government, but is it not also the case that the government will always speak out in favour of interest rate changes which would have suited the Home-Owner-Ist and banking fraternity anyway? So really, it’s all just one group of people making decisions to suit themselves, government, bankers, central bankers, IMF, EU, ECB; and they manage to stay in power by throwing some crumbs to the masses (“Oh look! Your house prices are going up! You’re all becoming richer!” etc).

    Well, that and keeping their trousers on.

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  • cat and canary says:

    “But the most appalling thing is that it is pretty clear that nothing is going to be done about it, regardless of govt, old politicians, and especially regardless of it’s-all-so-and-so’s-faulters.”

    …agree-ish.

    ..but as a floating voter, I specifically find Gordon’s comments shameless, just because he’s now after landing a cushy job in the IMF. This stinks. Gordon had the chance to sort it, regulate it. But like all of our wet politicians, he hadn’t the balls to do it. Meanwhile we all revel in paying this all off.

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  • MW @11 – “independent of what” – independent of the government and government oversight and regulation. There’s far more to it that just setting IRs. e.g. American investment banks coming to London to escape regulation in the US? BCCI licence to operate in London when the Americans were screaming for it to be shut down? The opening of Cayman, Virgin Isles, British Crown Dependencies (governors appointed by the Crown) as centres for funnelling a lot the world’s dirty money through London? – put it down to the BoE and the City. See Shaxson chapters 5&6, where he also writes of politicians’ inability to coerce the BoE and the City ( that was in the old days when politicians – Labour and Conservative – still thought they had a right to look after the country’s interests before those of the City/BoE).

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  • ontheotherhand says:

    MW. It is not fully independent, but I genuinely think it stops one thing which is slashing rates no matter the inflation in a run up to a general election.

    I think the best way to get fully independent interest rates would be to give the majority of the jobs on the committee to foreign economists living abroad, preserving only the Chairman role as appointee with a veto. That way they would have no personal interest whatsoever in the form of UK property, UK debts, UK savings, or children/spouses with UK jobs that would cloud their vision.

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  • letthemfall says:

    C&C
    Yes I can understand those feelings; I have them about nearly all (or all) politicians. But you could argue that had GB attempted to do what he should have done, he would have been out of office in short order, and if he’d made such his intention in early 1997, Lab would never have been elected.

    NC’s Alf Garnett jibe at the most reactionary contributors here has a resonance throughout the electorate. The tragedy of Alf was not so much his ignorance and prejudices as his support for a political system that was completely against his interests. I think that sums up a large slice of the electorate in this country.

    As for GB’s comments, too late to do much, but at least he said them I suppose.

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  • mark wadsworth says:

    Ic, if you are right, that BoE is truly independent of UK government, then somehow you make that sound like A Bad Thing (which it is, I suppose). So why was Mr G Brown always boasting about it?

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  • letthemfall: I am almost 100% certain that you would not be so condemning of any similar criticism of a Tory ex PM. The ‘they’re all as bad’ defence lacks credibility when it’s only ever used in one direction

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  • letthemfall says:

    flashman
    Maybe I wouldn’t, but then we all have our biases don’t we?

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  • mark w – the BoE and the City have always been joined at the hip and, taken together, they’re independent of central government. Nationalisation of the Bank meant nothing – the legislation didn’t even specifify what its purpose was. The pair of them practised ‘regulatory capture’ long before the term was coined. GB was simply making a virtue out of necessity.

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  • letthemfall: I admire that answer

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  • icarus: I grant you that the BOE were incompetent in their absolute failure to regulate the banks in the long run up to the financial crisis. I will also grant you that their interest rate policies have tended to favour property owners and that they seem to be consistently more interested in boom stoking than they are in controlling inflation (over the decades there have actually been times when they were lauded by the public bit it seems those days are long gone)

    However, I really don’t think that their apparent incompetence is born out of any sinister style of incorporation or intent. I think that the BOE members have traditionally been a typical bunch of old farts who consistently make the huge mistake of thinking that their own priorities are aligned with the priorities of the country. Old men of a certain stature tend to think like that, so their behaviour is entirely predictable.

    Personally I’d abolish the BOE and bring the function under government control. At least they’d then be accountable to the electorate. I’m not convinced that bank ‘independence’ was not brought in as a trick to divert blame away from politicians. I certainly wouldn’t put that past a couple of operators like Blair and Brown

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  • Flash – there’s nothing necessarily sinister here, but that doesn’t have to mean that ‘bumbling old farts’ is the explanation of what goes on (even though some of the governors up to the ’70s and ’80s were old Empire types). The City and its handmaiden were always steeped also in ‘financial liberation’ ideology and the way they both undermined capital controls and other regulation and gave birth to offshore shenanigans (largely through the Eurodollar market from ’50s, which eventually allowed US and other banks to get around Glass-Steagall and other regulations) is documented in the above-mentionted Shaxson book. Must go now, but do read it.

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  • icarus: will do

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