David Cameron: world on brink of new economic crisis … The world stands on the brink of a new economic crisis that would leave countries like Britain "staring down the barrel", David Cameron has warned … David Cameron (left) said that Western politicians must show more 'leadership.' …The Prime Minister said that the failure of leaders in the US and Europe to tackle government deficits now "threatens the stability of the world economy." – UK Telegraph
Dominant Social Theme: The economic crisis is grave indeed. Perhaps what is needed is a new currency.
Free-Market Analysis: David Cameron joined a number of other prominent leaders in warning about the perilous state of the West's and the world's economy. At the same time, we learn, French President Nicolas Sarkozy is pushing US President Barack Obama to support adding the Chinese yuan to the IMF's SDR basket. SDRs have been suggested as a potential new, global currency that could take over from the sputtering dollar.
Something certainly needs to be done, we are told. The economic news is grim and Cameron's speech was triggered by yesterday's market drop, which saw stocks fall around the world. The FTSE-100 took its biggest drop in more than two years. The Dow was down some four percent. The West's largest economies are toppling back into recession, according to Cameron and others.
What does Cameron want? The Telegraph article tells us he spoke in Canada, "after delivering a blunt warning to President Barack Obama and eurozone leaders about the need to follow Britain's example and curb their deficits."
So perhaps, in part, this is about more "austerity measures." Western governments must raise taxes, cut spending, reduce public employment and sell off prime assets. This is the IMF approach, and presumably when Cameron warns about government profligacy, he has in mind a range of IMF solutions. More from the article:
"Barriers to action are now political as much as economic," Mr Cameron wrote in an open letter. "We must send a clear signal that we are ready to take the actions necessary to maintain growth and stability for all for the future." In the letter, signed by leaders from Australia, Canada, Indonesia, Mexico and South Korea, Mr Cameron implicitly criticised US and eurozone governments for not doing more to reduce budget deficits …
Eurozone governments must "act swiftly" to restore markets' confidence in the single currency and struggling countries like Greece. All European economies "must confront the debt overhang to prevent contagion to the wider global economy". Mr Cameron's warning was echoed in Washington at a meeting of the International Monetary Fund.
"The current economic situation is entering a dangerous phase," said Christine Lagarde, the fund's managing director. Robert Zoellick of the World Bank also said that the world economy is now "in the danger zone". Both warned that the world is facing a prolonged crisis unless leaders can find the "political determination" to set the recovery back on track.
When the world's leaders begin to warn of something in concert, we try to peer beneath the surface to see what they are really driving at. Austerity – the grinding down of the West's middle class – is one aspect of it, perhaps. But the installation of a global currency is perhaps another. Problem … solution. Thesis … antithesis.
Since we are morbidly suspicious of the financial crisis in the first place, we continue to look for ways that the elites try to take advantage of it to suggest further globalization. Sure enough, we came on this article over at Bloomberg: "Sarkozy Told Obama China's Yuan Should Be in SDR Basket."
According to the article, Sarkozy told President Barack Obama that the yuan should be included in the International Monetary Fund's Special Drawing Rights system. A "French presidential official" revealed the conversation. Placing the yuan in the SDR basket is supposedly a goal of Sarkozy's while France leads the Group of 20 for a year.
Sarkozy is anxious to have the yuan included in a global basket of currencies, but the article tells us that some Chinese officials are less enthused. "Last month Chinese central bank Deputy Governor Yi Gang said the yuan shouldn't rush to join the IMF's currency basket, according to a commentary he wrote in the Caixin Century magazine."
Still, there are other Chinese officials who support the idea. "People's Bank of China Governor Zhou Xiaochuan, floated the idea in 2009 of a new international reserve currency based on the SDR to replace the US dollar."
The great central-banking families that are trying to move the world toward global governance would like nothing better than to create a world currency. And perhaps the current economic crisis is providing them with that opportunity. Out of chaos … order.
We can see, perhaps, two emergent strands intersecting as the world's political leaders – who basically carry water for the elite banking families – try to propose evermore Draconian and globalist solutions. First, as we mentioned above, is increased austerity and the second is a global currency.
It has occurred to us, as well, that the powers-that-be miscalculated with this latest downturn. The scope is huge and the economic slump is deep. While in another era it might be easy for the elites to utilize such a crisis to their advantage, the Internet itself is likely making this sort of manipulation more difficult.
We see a kind of Internet Reformation taking shape around the world that is countering the globalist trends of the Anglosphere power elite. Things will likely get much worse before they get better, but the rising consciousness about the way the world REALLY works means that solutions meant to be implemented from the top down will likely be put in place with a good deal more difficulty.
Something is going on. When Western world leaders speak with one voice about "crises" that must be dealt with by concerted action, we immediately look for solutions with an internationalist focus. Austerity programs further damage already reeling middle classes and an expansion of SDRs via the Chinese yuan makes a global currency more feasible, theoretically anyway.
There are probably other ways that the elites will try to utilize this unwinding international depression to their advantage. In fact, it may be to their advantage to continually aggravate it. One thing we are sure of. Whatever solutions are proposed at the top will benefit the powers-that-be and their agendas first of all. Despite the rhetoric, the billions struggling with this economic crisis are merely an afterthought, or even worse – an enemy.