Ex-Prime Minister Gordon Brown warns--This is the last chance
Jun 15, 2012
It helps not to be in a position of political power. You can speak closer to the truth without being criticized for causing a panic. Financial markets don't take it as seriously, it seems. It's a bit like talking to yourself in a corner.
Britain's Gordon Brown resigned as Prime Minister on May 11, 2010. But he does have some interesting things to say about the G20 meeting in Mexico that begins on Monday.
The European crisis is no longer a European crisis. It is now everyone’s.
This is the last chance.
Whichever way the Greeks vote in Sunday’s election, a chaotic exit from the euro is becoming more likely: Its tax revenues are collapsing, not rising as promised. Unable to regain access to markets, Portugal and Ireland will soon have to ask for their second IMF programs. Sadly Italy – and potentially even France – may soon follow Spain in needing finance as the European recession deepens.
Already we are in the downward spiral that shows no sign of ending.
If there is a failure of global leadership next week, not only will Europe be condemned to a lost decade but the whole world will pay a fearful price.
So what is Mr. Brown's solution to the problem?
The starting point for China is to expand consumer demand faster than planned and for the West to advance infrastructure investment.
He sounds serious. Hard to believe.
The problems of a Babylonian system were built in from the start. Central banks were given power when granted the power to create money and loan their new creation to governments at interest, instead of governments retaining that right for themselves.
The money that is created is an asset to its creator, but a debt to the borrowers. This inevitably tips the funnel and ensures that the money flows in one direction--to the owners of the central banks. When they are kind enough to loan out money, it must always be repaid PLUS INTEREST, which means more money flows their way than is loaned out.
This works in an ever-growing economy, as long as people work hard to maintain the payments on their debts. The fruit of labor flows upward until the people or governments can no longer "service the debt." Then things come to a grinding halt. Then there is a risk of a slave revolt.
Take Iceland, for example.
Or Greece and Spain.
Yes, of course, the Socialist policies of these countries caused them to spend too much on their people. But all Socialism really did was to bring the root problem to a head more quickly, because Socialism tends to reward non-workers and punish workers through the Karl Marx's Graduated Income Tax. As people wake up to this fact, more and more decide to move to the non-productive side of the equation to allow the hard workers to support them. That allows them to enjoy "the good life" at someone else's expense.
I think I understand the problem of Socialism. But this is not the root of the problem. The root is the source of money, how it is created, by whom, and what is done with it. In 1913 Congress gave away the store to those who had a problem with the love of money. Congress was tricked by those pretending to be experts, but who, in fact, experts in greed.
We are now facing the collapse of the so-called PIIGS nations (Portugal, Ireland, Italy, Greece, and Spain). God is mocking them already by inserting a prophetic story in the New Testament, where the 2,000 PIGS rush off the cliff (or steep slope) into the sea. Read the story in Matt. 8:32. Did God know that 2,000 years later there would be PIGS nations rushing off the cliff?
Perhaps the best advice one could give is not to become a creditor. In other words, don't invest in debt instruments. Invest in positive forms of wealth. The day will come when God Himself will declare a Jubilee, and all debt instruments will become worthless.
We are not quite there yet, but when it happens, you can be sure that a lot of financial experts will be singing the blues.