Originally posted by Dorfl
It looks like the Eurozone countries are distancing themselves from the UK and the US. I wonder what will happen if the Eurozone, Chinese and
Russians would just go ahead and create a basket currency as a new global reserve currency.
Would the US and UK be in a position to do anything to counter it? I doubt that the OPEC countries would mind a new global currency. And the US don't
have many allies that would like to link their economic future to the dollar at the moment.
Another thing...I can understand that the US is against a global regulator. They can't even audit the Fed at the moment. So in effect they can't
comply with any regulation a third party would impose.
But the UK? Why are they against tougher financial regulations? What have they been doing lately? Does anyone know if the UK started printing money
just like the FED?
I think that there is just so much linkage between the US and UK economies that any controls which adversely effect business in the US would also drag
Britain's economy down further - and even now the UK is at the door of the IMF asking for help.
As a citizen of the US, I'm ashamed of this mess and angry at the effectively non self-regulating banking and equities industry in this country who
made it possible. Debt is far too cheap and available here, and it has been going back to the Clinton Administration (when a "recovery" resulted
from fast moves with paper and Greenspan holding the prime interest rate down to the ground for years). There simply wasn't enough economic
activity in the country to back all the money in the economy.
What to do? Stricter bankruptcy laws have been tried. The problem is in the equities markets - mortgages are too cheap here and too easy to get, and
for years the investment banks have been purposefully and aggressively marketing second and third mortgages - essentially unsecured loans if the
economy goes south. We need someone to watch the damn store, but mortgage bankers OWN the government.
Barack Obama was Congress' leading recipient of campaign funds from the two major national mortgage banks, Fannie Mae and Freddie Mac when he was in
the Senate, so we can count on him to represent their interests, not ours. Hope and change. Sure thing, you lying couillon.
[edit on 31-3-2009 by Murky]