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G-7, IMF and World Bank Leaders to Meet

Posted on Apr 11, 2008
Mexico Food Protest

Mexicans bang pots and pans in 2007 to protest high food prices, which have continued upward this year.

Following the string of economic crises across the globe, financial elites are planning to meet in Washington this weekend to address how to resolve the problems of global capitalism. Notably missing from the proceedings is any representative from the developing world.

The Washington Post:

Financial markets are tumbling. The world economy is starting to sputter. Food prices have shot up so far, so fast, that there are riots in the streets of many poor nations.

It’s a hard time to be one of the masters of the global economy.

Those leaders—finance ministers from all over the world—are gathering in Washington this weekend to sort out their reactions to the most profound global economic crises in at least a decade. The situation could reveal the limitations that international economic institutions face in dealing with the risks inherent to global capitalism.

“There’s got to be something coming out of the weekend, a way to visibly assume public responsibility for trying to limit the damage that financial markets can do to our society,” said Colin Bradford, a senior fellow at the Brookings Institution. “The pressure is on politicians this weekend to come up with an answer. ... What is the power structure going to do about this?”

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By Douglas Chalmers, April 12, 2008 at 6:00 pm Link to this comment

If interest rates were based on things like the level of wages and the cost of living, things would work out differently.

The whole issue is that the profit/loss equation is falsely based in terms of the real world of human beings and nature.

The lesson of Hurricane Katrina and global warming is that EVERYTHING must be based on the ultimate REALITY of existence upon this planet and mutual existence with each other.

Money is NOT real - it is merely a form of slavery! What groes on trees IS real!!! Those who now can’t afford to buy food can tell you!

The basis of the problem will come to an end when “cronyism” somes to an end. But the trouble is that all revolutions are hijacked by criminals. What will change this time???

For wages to keep pace with productivity and demand to be regulated instead of interest rates, the West will most probably merely fall back into the trap of communism.

As the human race is not clever enough to succeed with either, the other age-old alternative of war will be the “lender of last resort”. That is, grab what you need from your neighbors!!!

That is the old tribalism which humans have still not outgrown…...  evn in the nuclear age, uhh.

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By Christopher Robin, April 12, 2008 at 12:58 pm Link to this comment
(Unregistered commenter)

“Despotism & Democracy”  YouTube 9:56 mins.

Harold D. Lasswell Ph.D Yale Encyclopedia Britannica Films - 1946

“Measures how a society ranks on a spectrum stretching from democracy to despotism. Explains how societies and nations can be measured by the degree that power is concentrated and respect for the individual is restricted. Where does your community, state and nation stand on these scales?”

Out of the mouths of old filmstrips and political science professors .....?

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By Christopher Robin, April 12, 2008 at 12:22 pm Link to this comment
(Unregistered commenter)

An Interview with economist Dr. Ravi Batra
September 23, 2007 by J. Taylor


BATRA: ” The main reason is that we don’t have a free enterprise economy. It is touted as a free enterprise economy but we really don’t have that. In fact, what we have are regional monopolies or a monopolized economy. Some people call it “Crony Capitalism.” The main feature of a monopolized economy is that the fruit of rising productivity goes to owners of capital, not to the employees. So there occurs a rising gap between productivity and wages. Wages are the main source of demand and productivity is the main source of supply so with the rising gap between wages and productivity there is a potential for a gap between demand and supply. And that has been occurring in the U.S. for many years now. So the question is how have we stayed afloat for so long with supply rising faster than demand? The answer is demand has remained artificially high through the creation of debt, either from government, consumers, corporations and foreigners. All this debt has combined to lift up demand to the level of supply. But debt created prosperity cannot last forever. So we have gotten into this mess by: First, allowing wages to lag behind productivity and secondly by artificially bolstering demand by creating a tremendous amount of debt. All we have done is simply postponed the problem. And, since this postponement has been going on for many years, the mess is potentially catastrophic.”

Full interview:

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By Douglas Chalmers, April 12, 2008 at 10:57 am Link to this comment

World Bank’s Robert Zoellick on food prices…  rice in Asia has shot up from US$400 per ton to $900!!!

Rustling the rice goddess, Phra Mae Po Sop  in Thailand…...

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By PatrickHenry, April 12, 2008 at 4:40 am Link to this comment

We only import the dollar value we export.  Those goods have to be certified as to the contents and conditions in which they were manufactured.

It would never work, U.S. corporations are too greedy.

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By PatrickHenry, April 12, 2008 at 4:36 am Link to this comment

Now thats a thought.

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By cyrena, April 12, 2008 at 4:18 am Link to this comment

One need not be any of the above VOT, to know that it’s called….INBALANCE. Anytime ANYTHING becomes so grossly and obscenely OUT OF BALANCE, the thing will CRASH, no matter WHAT the hell it is!!

Nope, don’t need to know anything more than the basics for that.

So, several JILLION dollars on the capitalist market in little tiny Dubai, and NONE in more than half the countries on the globe, is gonna create a bit of an inbalance.

Do ya get that? When 10% of Americans control 90% of the wealth and resouces in this nation, and the remaining 90% of us have to fight for that tiny 10%, then…things are fucking out of balance!

Do you get THAT? Ok, just expand that to the rest of the globe dependant on this CAPITALISTIC method of running an economy, and you see how it all works out.

TRADE is a good thing. FREE TRADE gives us what we have now. Eventually, it’ll get you FREE TRADE capitalists as well.

Matter of fact, seems like that’s already happening.

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By voice of truth, April 11, 2008 at 4:24 pm Link to this comment

Oh my God,

Every thread you join in on, your posts are full of just nonsensical gobbledygook.  I wouldn’t doubt if you really do think that is capital markets function!  Oh me, oh my, the “less fortunate”.

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By DennisD, April 11, 2008 at 3:01 pm Link to this comment
(Unregistered commenter)

Hail, hail the gangs all here.

The “elite” who control the world’s economies and therefore the world’s governments will meet in of all places, Washington, our very own District of Corruption.

I guess criminals really do return to the scene of the crime. 

By voice of truth, April 11 at 10:17 am #

“I am not a Nobel laureate economist, but I do know that when prices are artificially held down and / or wages are artificially inflated for the masses, something will break, and break badly, and sooner rather than later.”

Actually just the opposite has been happening for the last 30 years or so in the real world re: prices and wages but the end result will be the same - a broken economy on an unimaginable scale.

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By TDoff, April 11, 2008 at 11:32 am Link to this comment

I wonder how many chickens will be sacrificed, and how many toady’s entrails will be studied, as the world’s ‘financial elite’ don their masks, grasp their spears, and do their voodoo dances about their bubbling cauldron spewing it’s vile essence, as they manipulate and calculate how much further to tighten the noose about those less fortunate than themselves.

They certainly picked the right place for their nadir meeting, D.C. will further any devious plot they devise, to make sure the conniving rich and powerful retain their perks.

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By voice of truth, April 11, 2008 at 11:17 am Link to this comment

Food prices are too high, what at the politicians going to do about this?!?!  Oh my!  The sky is falling.

Why is it that if there is anything that people need, liberals believe that it needs to be regulated, prices and profits controlled, and everyone gets the same access to it?

And what the hell would someone from “the developing world” have to say that could add to the meetings noted above?

“Give us more food”
“Give us more aid”
“Give us more of your jobs”

It really bothers me when folks, who seem to have absolutely no inkling at all about how a market functions, start babbling about how to control it.  I am not a Nobel laureate economist, but I do know that when prices are artificially held down and / or wages are artificially inflated for the masses, something will break, and break badly, and sooner rather than later.  How many more instances of this do we need?

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