By Gary Dorsch
Sir Josiah Stamp, former chief of the Bank of England in 1927, warned: “If you want to continue to be the slaves of bankers, and pay the cost of your own slavery, then let bankers continue to create money and control credit.”
Indeed, the world economy is now held hostage by an elite banking cartel, whose reckless pursuit of speculation and bloated profits, has precipitated a breakdown of the global financial system, and is plunging the world towards a “Great Depression.”
The global economy will grind to a halt this year, the IMF predicts, after $ 30-trillion in market capitalization was erased from world stock markets since October 2007, in the wake of the worst banking crisis since the Great Depression of the 1930’s. What began with the bursting of the US house price bubble has, so far, resulted in $1.2-trillion of losses and write-downs from toxic assets held by banks worldwide.
The IMF warned: “Unless stronger financial strains and uncertainties are forcefully addressed, the pernicious feedback loop between real activity and financial markets will intensify, leading to even more toxic effects on global growth.”
The are also predicting that bank losses could eventually peak at $2.2-trillion, and hobble the world economy in the year ahead.
The IMF said on January 28th: “Downside risks continue to dominate, as the scale and scope of the current financial crisis has taken the global economy into uncharted waters, triggered by the collapse of bank credit and stock markets.”
Global trade collapsed by 45% in the fourth quarter from a year earlier, exposing the staggering depth of the global financial crisis. Speaking at Davos, Switzerland last week, Australian trade minister Simon Crean warned that falling global trade would compound the economic downturn. “If global trade is a multiplier in growth, it also has the potential to be a multiplier in reverse,” he warned on Jan 31st.
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