Saturday, April 4, 2009

The G20 Summit

A gold nuggetThe summit reportedly went beyond the expectations of the President of the “Republic of France.”

As the Dialy Telegraph reports and reports, there will be a crackdown on tax havens. I am obviously not very intelligent, so would someone please explain to me what in the world bullying tax havens has to do with cleaning up after a fiat money system run amok?

At the Sunday Telegraph, Liam Halligan says price inflation is going to be a major problem. The Sunday Telegraph also reported that Russia wants some sort of gold standard. The Telegraph has more on the summit.

Bill Bonner says the Yankee dollar's days are numbered.

Gary North had something to say before and after the summit.

Anthony Gregory reflects on the humanitarian with the printing press, the POTUS that is.

The Western Confucian has some more.


simentt said...

Re the tax havens.

As with any other system working by decree, the failure of the system is the failure of a decider, either by ineptitude or by opposition. As ineptitude can be ruled out, the failure of the economic system must be blamed on greed and sabotage.

In the case of the tax havens, the failure of the economic system and the fiat currencies must to a large part be blamed on the few percent of tax-revenues that the resourceful have been diverting. Thus if the tax-havens were to stop competing with the responsible national economies for the savings and investments of the citizens, those same percent of increased revenues would have made everything better and the failure would for sure have been avoided.

This policy was more clearly evident while the USSR was still a player. As the USSR lacked the diplomatic clout to force the tax-havens of the time (the western part of the world) to change, the solution was to erect barriers to trade and migration, keeping the population and assets within their own economy.

Now, luckily, the tax-havens are so small and few that really draconian measures can be avoided. Simple threats will probably be sufficient.

Look at Switzerland, which is already enforcing changes in their banking code to allow more 'openness' and 'cooperation'. This is probably the main measure that needs to be enacted to make sure that the planned economy of the 22nd century will be a success. If only it had been taken before, then the whole current mess would have been avoided.


J.K. Baltzersen said...

Well, sir, I am grateful that there are people out there intelligent enough to understand that a centrally planned economy is the road to prosperity.