Free Markets, Free People
Apparently they decided to explore a global tax:
Bob Davis of the Wall Street Journal deserves a journalism prize for taking the time to read the recent communiqué issued by the G-20 countries meeting in Pittsburgh. He found they had assigned the International Monetary Fund (IMF) the job of studying how to implement a global tax on America and the rest of the world.
“The IMF assignment from the G-20 has been widely overlooked,” Davis noted. His article ran under the headline, “IMF Mulls Global Bank Tax.”
The “Leader’s Statement” endorsed by President Obama and released at the event declares on page 10 that “We task the IMF to prepare a report for our next meeting with regard to the range of options countries have adopted or are considering as to how the financial sector could make a fair and substantial contribution toward paying for any burdens associated with government interventions to repair the banking system.”
The term “fair and substantial contribution” is code for a global tax. Other misleading terms for global taxes include “innovative sources of finance” and “Solidarity Levies.”
Those that believe in the concept of “one world government” have been wanting global taxes for decades. The money would give them a completely different type of power – a revenue stream vs. having to rely on donor money. Note the “source” of the tax revenue – the “financial sector” or those “evil, rich Wall Street types.” Too easy:
While the global tax would affect the savings of ordinary Americans and be passed on to consumers, it is being packaged by the international left and its progressive allies in the U.S. as an assault on Wall Street and the big banks.
If you’re shaking your head and trying to push this off as some anti-left fantasy, try this:
Meanwhile, President Obama used his recent speech to the United Nations to declare, “We have fully embraced the Millennium Development Goals.” He left unsaid what this means. It has been calculated that this will cost the U.S. $845 billion to meet U.N. demands for a certain percentage of Gross National Product to go for official foreign aid to the rest of the world. Compliance with the Millennium Development Goals (MDGs) was incorporated into the Global Poverty Act that Obama had introduced as a U.S. senator but which never passed.
A global tax of the kind envisioned in the G-20 document could help provide the revenue to fulfill Obama’s promise to comply with the MDGs.
Yes, he did introduce such an act, and no, thankfully, it didn’t pass. But we’re in an entirely different situation now than in 2007 aren’t we? In addition to all the other economy killers, our betters are “exploring” another scheme to loot almost a trillion dollars from the American taxpayer (and others around the world).
The most popular proposal is called the “Tobin Tax”:
One proposal, popular at the United Nations for decades and long-advocated by Fidel Castro, is the Tobin Tax, named after Yale University economist James Tobin. Such a tax, which could affect stocks, mutual funds, and pensions, could generate hundreds of billions of dollars a year. Indeed, Steven Solomon, a former staff reporter at Forbes, says in his book, The Confidence Game, that such a proposal “might net some $13 trillion a year…” because it is based on taking a percentage of money from the trillions of dollars exchanged daily in global financial markets.
And we can’t have that much money flying around not being taxed appropriately, can we? Not when it can fulfill a long held dream for some. Make no mistake – this is not about an equitable global tax, not that I’d support that either, but this is a redistribution of the wealth scheme, plain and simple:
What is driving the global taxation agenda is a Marxist view that the U.S. is exploiting the people and natural resources of the world. According to this perspective, international institutions such as the International Monetary Fund, the World Bank and even the U.N. must be restructured and provided with new financial resources to supervise and manage the redistribution of the world’s wealth. The United States, being the leading capitalist state, has to pay the largest price.
Their attitude was expressed at a non-governmental organization forum in Monterrey, Mexico, associated with the U.N.’s International Conference on Financing for Development, that Christopher Columbus “invaded, destroyed and pillaged” the hemisphere and that a global tax was necessary to pay for the damage.
In his 2001 speech to the U.N. World Conference on Racism, Castro advocated the Tobin Tax specifically in order to generate U.S. financial reparations to the rest of the world. He declared, “May the tax suggested by Nobel Prize Laureate James Tobin be imposed in a reasonable and effective way on the current speculative operations accounting for trillions of US dollars every 24 hours, then the United Nations, which cannot go on depending on meager, inadequate, and belated donations and charities, will have one trillion US dollars annually to save and develop the world.”
Because all this
prosperity destruction is our fault.
Keep an eye out for this scheme as it develops. This has been a “progressive” dream for quite some time. They now have the man and the Congress to make it come true.
Have you ever heard a speech, digested it and then thought, “am I hearing something that really isn’t there?” I’m talking about President Obama’s UN speech. I’ve listened to this guy for 3 years now and I’ve come to at least have a familiarity with his style of speaking. I’ve also caught on to the fact that the content of his speeches is much different when addressing an international audience than a domestic one. And, has been noted by many, his speeches to the international community have been based in series of apologies for America.
But never have I heard what I heard before the UN. So I had to think about it and wonder if, in fact, I was just reading way too much into it. That’s until I read Michael Gerson today in the Washington Post. He put into words exactly what I thought at the conclusion of the speech that day:
Obama’s rhetorical method in international contexts — given supreme expression at the United Nations this week — is a moral dialectic. The thesis: pre-Obama America is a nation of many flaws and failures. The antithesis: The world responds with understandable but misguided prejudice. The synthesis: Me. Me, at all costs; me, in spite of all terrors; me, however long and hard the road may be. How great a world we all should see, if only all were more like…me.
On several occasions, Obama attacked American conduct in simplistic caricatures a European diplomat might employ or applaud. He accused America of acing “unilaterally, without regard for the interests of others” — a slander against every American ally who has made sacrifices in Iraq and Afghanistan. He argued that, “America has too often been selective in its promotion of democracy” — which is hardly a challenge for the Obama administration, which has yet to make a priority of promoting democracy or human rights anywhere in the world.
The world, of course, has its problems, too. It has accepted “misperceptions and misinformation.” It can be guilty of a “reflexive anti-Americanism.” “Those who used to chastise America for acting alone in the world cannot now stand by and wait for America to solve the world’s problems alone.” Translation: I know you adore me because I am better than America’s flawed past. But don’t just stand there loving me, do something.
I realized that the simple word I was searching for to describe it all was “narcissism.” Some may prefer to use “malignant narcissism”, but I’m not a psychologist or psychiatrist, so I’m unable to make that determination. But as Gerson demonstrates in his analysis of the speech (and my first impression and the impression I retained after reading the speech), it was indeed an indulgence in classic narcissism. Obama’s come to believe his own press clippings. I find his indulgence of this narcissism to be extremely dangerous, especially in a man with so little experience in foreign affairs. It is a weakness the jackals who inhabit the world of international politics will surely see as a weakness and attempt to exploit.
A lot of things are perking in the world right now. The reason this sort of narcissism is dangerous is because it assumes an ability, undemonstrated to this point, to handle any crisis. That sort of an assumption, especially without any context or framework of experience could lead an overconfident leader into a foreign policy disaster. As anyone paying attention knows, there are plenty of potential disasters on the horizon. If this speech is any indication of the President’s state of mind, his name may be all over at least one of them.
It appears that today is the day for rather scathing assessments of President Obama in the British press. This one by Nile Gardiner. He points out that the third-world debating club, known as the UN, will certainly deliver a standing ovation to their favorite US president in a while. But, says Gardiner, we should understand the context of that ovation:
Obama’s popularity at the UN boils down essentially to his willingness to downplay American global power. He is the first American president who has made an art form out of apologizing for the United States, which he has done on numerous occasions on foreign soil, from Strasbourg to Cairo. The Obama mantra appears to be – ask not what your country can do for you, but what you can do to atone for your country. This is a message that goes down very well in a world that is still seething with anti-Americanism.
It is natural that much of the UN will embrace an American president who declines to offer strong American leadership. A president who engages dictators like Mahmoud Ahmadinejad and Hugo Chavez will naturally gain respect from the leaders of the more than 100 members of the United Nations who are currently designated as “partly free” or “not free” by respected watchdog Freedom House.
And, frankly, he fits there much better than he does here, because the UN is a palace of speeches with little or no action. It is becoming clear to many of us that the proper job for Barack Obama isn’t President of the United States, where you’re actually expected to turn your speeches into action, but Secretary General of the UN, where speechifying is the ultimate action – well, that and spending donor money, covering up for peacekeepers who rape those they’re there to protect or “oil for food” type scandals, and generally denouncing the UN’s host country.
I mean, as Gardiner points out, Obama’s perfect for the job.
Simply put, Barack Obama is loved at the UN because he largely fails to advance real American leadership. This is a dangerous strategy of decline that will weaken US power and make her far more vulnerable to attack.
At a conference in Russia recently, former Secretary of State Madelyn Albright said that the US no longer wants to be first among nations. Barack Obama will make that clear again today, I think. I’m not sure why that’s important to them, but I do know, as Gardiner points out, in the realm of global politics, showing weakness is a very dangerous game to play.
UPDATE: Wow … exactly on form. Obama is becoming predictable. Give me a venue and I can pretty much predict what he’ll say. If it is the UN or a speech before an international group, he’s going to apologize for the US. And of course, Qadhafi will love it.
That’s what the UK Times is reporting:
Iran has perfected the technology to create and detonate a nuclear warhead and is merely awaiting the word from its Supreme Leader, Ayatollah Ali Khamenei, to produce its first bomb, Western intelligence sources have told The Times.
The sources said that Iran completed a research programme to create weaponised uranium in the summer of 2003 and that it could feasibly make a bomb within a year of an order from its Supreme Leader.
Of course, what we don’t know about Iran’s capability could fill a book. We’ve seen it variously reported that they a year away to ten years away – a good indicator that for the most part intelligence agencies haven’t a clue in reality.
However, as we know, nuclear bombs are old technology. The genie has been out of the bottle way too long to believe that Iran can’t build a bomb if it dedicates the time and resources to do so. And it certainly seems to have done both.
So now what?
That’s the salient question now. Let’s assume Iran has a bomb by this time next year – then what?
Well here’s the apparent game plan:
If Iran’s leader does decide to build a bomb, he will have two choices, intelligence sources said. One would be to take the high-risk approach of kicking out the international inspectors and making a sprint to complete Iran’s first bomb, as the country weathered international sanctions or possible air strikes in the ensuing crisis. The other would be to covertly develop the materials needed for an arsenal in secret desert facilities.
Last week, during a series of high-level US visits to Israel, officials outlined Washington’s plans to step up sanctions on Iran, should Tehran fail to agree on talks. Robert Gates, the Defence Secretary, and General James Jones, the National Security Adviser, said that Iran had until the end of next month, when the UN General Assembly is to meet, to make a positive move towards engagement.
If Tehran fails to respond, Washington aims to build a tough international coalition to impose harsh sanctions focusing on petroleum products — an area where Iran is particularly vulnerable because it sends almost all of its crude abroad for refinement.
The feeling, of course, is if these sorts of sanctions can be imposed, it will hurt the regime even further by adding more unrest among a population already not happy with the election outcome. And, per the Times, hit directly at the Revolutionary Guards Council, which is the main exporter of terrorism through its surrogates in various parts of the world.
Of course what isn’t mentioned by the Times is the one big fly in the ointment of getting this done – China. No China, no sanctions. And China has developed a pretty close relationship with Iran based on petroleum trade. In 2004 it signed two huge oil and gas deals with Iran. Presently 45% of China’s crude imports come from the Middle East and that’s expected to rise to 70% by 2015. In 2008, China finalized a $70 billion deal to develop Iran’s Yadavaran oil field in exchange for the supply of liquefied natural gas. And much, much more.
So China is not going to be keen to cripple a nation which it has invested so much time and money in developing a relationship with – especially if it wants to maintain its own economy (and keep its own internal unrest to a simmer) during recessionary times.
Bottom line? My guess is a lot of tough talk and fist shaking at Iran, but in the end, nothing much happens and Iran ends up with its nuke. The play will be made in the UN where China has a seat on the Security Council and I’d almost bet the house that nothing comes out of that organization with any teeth whatsoever or China won’t vote for it.
Bottom bottom line – Israel, who we seem bound and determined to have worse relations with, is probably going to have to find a way to destroy the capability on their own. Militarily they’ve been quietly developing the strike capability for some time. And Saudi Arabia, which is very worried about an Iranian nuke and what it would do to the balance of power in the region, has given Israel a subtle nod that it would turn its back should the Israelis fly over their territory to strike Iran – unprecedented in the history of the region and an indication of the depth of fear the Saudis harbor.
But reliance on the UN and “sanctions”? I just don’t see that happening.
That’s Glenn Garvin of the Maimi Herald’s question:
For weeks, Zelaya — an erratic leftist who styles himself after his good pal Hugo Chávez of Venezuela — has been engaged in a naked and illegal power grab, trying to rewrite the Honduran constitution to allow him to run for reelection in November.
First Zelaya scheduled a national vote on a constitutional convention. After the Honduran supreme court ruled that only the country’s congress could call such an election, Zelaya ordered the army to help him stage it anyway. (It would be ”non-binding,” he said.) When the head of the armed forces, acting on orders from the supreme court, refused, Zelaya fired him, then led a mob to break into a military base where the ballots were stored.
His actions have been repudiated by the country’s supreme court, its congress, its attorney-general, its chief human-rights advocate, all its major churches, its main business association, his own political party (which recently began debating an inquiry into Zelaya’s sanity) and most Hondurans: Recent polls have shown his approval rating down below 30 percent.
In fact, about the only people who didn’t condemn Zelaya’s political gangsterism were the foreign leaders and diplomats who now primly lecture Hondurans about the importance of constitutional law. They’re also strangely silent about the vicious stream of threats against Honduras spewing from Chávez since Zelaya was deposed.
Warning that he’s already put his military on alert, Chávez on Monday flat-out threatened war against Honduras if Roberto Micheletti, named by the country’s congress as interim president until elections in November, takes office.
I think Garvin’s question is a good one. If you have someone who continues to pursue activities which are clearly not constitutional, and instead is doing everything within his power to subvert said constitution, what do you do?
Well perhaps have the military arrest him and throw him out of the country is not the first action which comes to mind, granted. However, in Honduras, unlike here, the military does have a law enforcement function. That may not be ideal (because of exactly the perception it leaves) but that’s the case. Perhaps, in retrospect, the best thing that could have been done is have civilian law enforcement arrest Zelaya, keep him in the country and put him on trial. Bottom line – it seems his removal was justified based on his actions.
What the world seems to be objecting too most is the method of his removal while ignoring the reasons.
And then, as Garvin points out, we have the thug in Venezuela threatening Honduras while everyone remains silent:
”If they swear him in we’ll overthrow him,” Chávez blustered. “Mark my words. Thugetti — as I’m going to refer to him from now on — you better pack your bags, because you’re either going to jail or you’re going into exile.”
No one denouncing the coup seems to be bothered by Chavez’s threats. In fact, it could be argued that the reaction of the US has green-lighted Chavez and his followers to intervene in some way, to include militarily. Not that Chavez or the Venezuelan military are competent enough to actually do that, but it certainly wouldn’t surprise me now if they tried.
Zelaya was trying to follow Chavez’s template and somehow manage a constitutional change to a permanent presidency through bypassing the constitutionally mandated process and claiming a popular mandate instead. Even his own party didn’t support his attempt and the congress, dominated by that party, passed a law making what Zelaya was attempting illegal. Zelaya attempted it anyway, making what Zelaya was doing a criminal offense. The Supreme Court of Honduras ruled against Zelaya. The Attorney General apparently enforced the law.
Here, we’d call that the “checks and balances” working. There, the result is apparently a “coup”.
The point? In reality, this is not at all a cut-and-dried “military coup” as it is being portrayed. It wasn’t a disgruntled group of military officers who decided to take the law into their own hands and to change the government because they don’t like the form or direction in which it was heading. Instead a rather broad based coalition of politicians, to include those in his party, and other institutions such as the congress (legislative branch) and Supreme Court (judicial branch), found his criminal behavior to be unacceptable and decided to take what they considered to be legal action to prevent a rogue politician from any further attempts at violating the law.
They removed him from office.
And, unlike its reaction to the brutality on display in Iran, the world had an immediate knee-jerk fit.
We now have Venezuela threatening Honduras without a peep from the OAS or the US. We have the OAS now giving Honduras 3 days to reinstall Zelaya or else (what the “else” is is anyone’s guess). We have the president of Argentina sticking her nose into the affair. And we have the showdown tomorrow as Zelaya, in the company of the UN, OAS and Argentine president, reentering Honduras in a bid to retake office. Honduras has said Zelaya will be arrested if he reenters.
Why was there such a rush on the part of the US to denounce this? If sitting back for 10 days and assessing the situation in Iran before speaking was such a good idea as the administration claims, why wasn’t the same true in Honduras? As the facts come out, it seems that it isn’t what it is being characterized as.
If all of the world’s concern is focused on the “democratic process”, where was that concern last week as the now ex leader of Honduras tried to subvert the constitution and claim a mandate by means it prohibited?
Nowhere to be heard. The world was quite content, it seems, to let another declared leftist permanently install himself as a virtual dictator in a Latin American country. But let that country try to enforce it’s constitution, and all hell breaks loose.
You have to laugh some times. Or maybe a rueful shake of the head is more appropriate. Here’s Admiral Mullen, Chairman of the Joint Chiefs of Staff, answering questions about the reportedly tough measures the new UN resolution against NoKo allows the country, via the military, to take:
Q: Admiral Mullen, Secretary Gates, currently the U.S. military is tracking a North Korean-flagged ship, the Kang Nam, which is suspected of proliferating either weaponry, nuclear materials or missile parts. What are your options n terms of enforcing U.N. Security Council Resolution 1874? Are you prepared to board the ship at this time?
ADM. MULLEN: Without going into specific details, clearly we’re — we intend to vigorously enforce the United Nations Security Council Resolution 1874, to include — options to include certainly a hail and query. There are — part of the UNSCR is to, if a vessel like this is queried and doesn’t allow a permissive search, to direct it to go into a port, and the country of that port would, as required to, inspect the vessel, and to also keep the United Nations informed, obviously, if a vessel like this would refuse to comply.
But the United Nations Security Council resolution does not include an option for an opposed boarding or a noncompliant boarding with respect to that. And if we get to that point with a vessel that we suspect has material which is counter to — unauthorized in accordance with UNSCR, that’s a report that goes back to the United Nations as well.
Q: What do you think is on board this ship? What has made you suspicious that the military’s tracking it?
ADM. MULLEN: Well, I wouldn’t go into any kind of details, at this particular point in time, except to say that it’s very clear that the resolution prohibits North Korea from shipping these kinds of materials, the kinds of weapons that were laid out, in the material, from conventional weapons up to fissile material or nuclear weapons.
And we expect compliance. And I’ve gone through the steps that we would take.
Q: The north has said that they would take that, any sort of interdiction, as an act of war. Would that prevent you from pursuing U.N. Security Council Resolution 1874?
ADM. MULLEN: Well, I think, it’s important that this is a U.N. resolution. This is an international commitment. It’s not just the United States. It’s a lot of other countries as well. And the North taking steps to further isolate itself, to further non-comply with international guidance and regulations, in the long-run, puts them in a more difficult position.
With all due respect to Adm. Mullen, I’m having real difficulty, given what he said they could do -essentially send a report to the UN if NoKo doesn’t play along with the demands he’s authorized to make- seeing how NoKo is putting themselves “in a more difficult position” than they now occupy. More importantly, why would NoKo care?
Reading this carefully, it seems the UN has authorized them to “query” a NoKo ship and ask to inspect it. NoKo can say “no”. If NoKo says no, we can demand they go to the nearest port for inspection. But again, all the NoKo ship has to do is say “no” and that ends it. Result: Strong report sent to UN. Sounds more like punishment for those who have to fill out the report to the UN than NoKo.
Where else in the universe are such steps considered “tough” besides the UN?
Gloria Borger, hardly a right-winger (and certainly an Obama supporter), takes Obama to task about his performance so far in the foreign policy arena:
This is not a column about whether the president should take pictures with — or shake the hands of — unstable foreign leaders who mostly call him names and rant about America.
Sometimes, it’s just unavoidable. A grimace instead of a smile on the face would be better, sure. But it’s not the end of America’s standing in the world, as some are suggesting.
But there is a problem, and it’s not about photo ops. It’s about finding the appropriate tonal response to leaders who say outrageous things about us and about our allies.
What she’s talking about are two recent incidents – one in which Obama was in attendance and the other occurred in the UN when Iran’s Amadinejad called for the destruction of Israel.
In both cases, Obama’s response was essentially a non-response.
Case in point: When Iranian President Mahmoud Ahmadinejad used the podium at the United Nations conference in Geneva on Monday to call Israel a “cruel and repressive racist regime,” we might have said something. The European delegates walked out of the conference (we declined to attend), but when asked about the brouhaha later, the State Department spokesman, sticking to the talking points, could only muster that “that type of rhetoric is not helpful and doesn’t help facilitate a constructive dialogue.”
A bit of a chuckle there for me. You know it’s gotten bad when even the Borgers of the world are criticizing the issuance of boilerplate rhetoric in response to what the rest of the West considers to be outrageous and inflammatory words. While not exactly a non-response, the administration comes as close to one as you can with its words.
But the second incident is even worse. Here Borger is talking about Newt Gingrich’s criticism of Obama and claiming he missed his real opportunity:
But the Summit of the Americas gave them an easy opportunity to decry the president’s weakness, not only after his handshake with Chavez but also when he sat quietly through Nicaraguan President Daniel Ortega’s 50-minute anti-American rant.
He didn’t have to walk out, but he could have given a sharper critique of Ortega’s histrionics after the event. Instead, he decided to just give it the back of his hand, saying only that “it was 50 minutes long.”
Its funny, the administration will attack any domestic critic with the full power of its spin machine. And yet, the president sits through a 50 minute anti-American tirade (after one of his advisers declared anti-Americanism was no longer cool in the world) and has no reaction at all.
Tell me, who’s job is it to defend the US if not his? Of course that’s not an easy thing to do if a president engaged in apologizing for the country at every foreign affairs opportunity, is it?
Well, here’s one decision the Obama administration can be glad they made – boycotting this mess:
As Iran’s President Mahmoud Ahmadinejad called for the eradication of Israel in his address to the United Nations anti-racism conference which opened it week long event in Geneva on Monday, delegates walked out, hecklers wearing clown-wigs shouted ‘racist’ towards him and were escorted out by security personnel and his speech was continually interrupted.
But hey, let’s sit down and talk with this fool – it’ll make all the difference in the world.
The UN – your third-world debating club at work.
A week or so ago, I mentioned the fact that Russia was lobbying for a new international currency to replace the dollar and opined that it most likely wouldn’t have any legs. By itself, Russia just didn’t have enough clout to bring about such a change. But apparently Russia was only the beginning. Later that same week, the UN came out in favor of a new currency option:
A U.N. panel will next week recommend that the world ditch the dollar as its reserve currency in favor of a shared basket of currencies, a member of the panel said on Wednesday, adding to pressure on the dollar.
Currency specialist Avinash Persaud, a member of the panel of experts, told a Reuters Funds Summit in Luxembourg that the proposal was to create something like the old Ecu, or European currency unit, that was a hard-traded, weighted basket.
Persaud, chairman of consultants Intelligence Capital and a former currency chief at JPMorgan, said the recommendation would be one of a number delivered to the United Nations on March 25 by the U.N. Commission of Experts on International Financial Reform.
“It is a good moment to move to a shared reserve currency,” he said.
But does the UN have enough leverage to push something like this through? Probably not without some fairly powerful backers of the idea. And speaking strictly of the UN, any such proposal would have to pass through the Security Council, and it’s unlikely the US would sanction such a change.
Today, though, China came out in favor of doing exactly what Russia and the UN recommend:
China’s central bank on Monday proposed replacing the US dollar as the international reserve currency with a new global system controlled by the International Monetary Fund.
In an essay posted on the People’s Bank of China’s website, Zhou Xiaochuan, the central bank’s governor, said the goal would be to create a reserve currency “that is disconnected from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currencies”.
As was noted last week, China has some concerns about the US economy:
“This is a clear sign that China, as the largest holder of US dollar financial assets, is concerned about the potential inflationary risk of the US Federal Reserve printing money,” said Qu Hongbin, chief China economist for HSBC.
And that’s a valid concern. With the Fed pumping out trillions of freshly printed dollars, inflation is almost assured.
In case you haven’t noticed, Russia and China are two of the four countries known as BRIC (Brazil, Russia, India, China). These emerging economies feel they deserve more clout than they now enjoy. And they’re meeting in advance of the upcoming G20 meeting in April of this year:
Finance ministers and central bankers from Brazil, Russia, India and China will convene ahead of the Group of 20 finance chiefs’ meeting in London on Friday, a Russian delegation source told Reuters on Thursday.
The source said the four will discuss the reform of international financial organizations such as the International Monetary Fund and the Financial Stability Forum, anti-crisis policies and preparations for the G20 summit in April.
Take a look again at China’s proposal for basing the international reserve currency in the IMF and the topic of their upcoming meeting in advance of the G20. Suddenly Russia’s proposal has some legs.
What clout does BRIC bring to the proposal? Well they are the holders of vast portions of the currency reserves around the world:
China runs the world’s biggest reserves, Russia comes 3rd, India 4th and Brazil 7th, as of last autumn.
Keep an eye out for Brazil and India weighing in on this. Should they come out in favor of such a change, as has China, it could portend some fireworks at the G20.
In the meantime, read this by Mikkel Fishman. It will explain some of the deeper and less evident problems we face. Then take a moment to look around and reflect. In my estimation, this truly is the calm before the storm.
Because the Secretary General has it – and demonstrates again why we ought to let the Third World Debating Club on the Hudson find a new home:
A day after his White House meeting with President Barack Obama, U.N. Secretary-General Ban Ki-moon called the United States a “deadbeat” donor to the world body while making the made the rounds on Capitol Hill.
“He used the word ‘deadbeat’ when it came to characterizing the United States. I take great umbrage (over) that,” Ileana Ros-Lehtinen, the panel’s senior Republican, said after an hour-long, closed-door meeting. “We certainly contribute a whole lot of U.S. taxpayer dollars to that organization. We do not deserve such a phrase.
Interviewed after the session, Ban said he had wanted to draw attention to the fact that the U.S. agrees to pay 22 percent of the U.N.’s $4.86 billion operating budget, but is perennially late with its dues — and now is about $1 billion behind on its payments.
That figure is “soon to be $1.6 billion,” Ban emphasized. Asked if he’d used the word ‘deadbeat’ during the meeting, he replied, “Yes, I did — I did,” then laughed mischievously.
The ultimate deadbeat institution which can, unsurprisingly, find more ways to waste money than the US government, calls the country that pays 22% of its cost and host to the parasites that represent their backwater potentates the “deadbeat” ?
Ban certainly demonstrates a lot of respect for the country and the new administration doesn’t he? So far this new relationship with the world is going swimmingly, as the UK can attest.
But there’s a glimmer of hope apparently. Ban has given Obama some budget advice:
Obama seeks a 9.5 percent increase in international affairs spending, which Yeo said would be enough to cover not only next year’s U.S. dues to the U.N., but also $1 billion in arrears.
Amazing. And we’ll end up handing it all over, just watch.