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Vladimir Putin & Chinese Premier Wen Jiabao plan for new world financial system

Posted on February 21, 2009 by admin

The World Economic Forum took place in Davos Switzerland last week and from the meeting results, it seems that there is a new sheriff in town.  <h2>This new sheriff’s name?  Vladimir Putin.</h2>

Sheriff Vladimir Putin

Here are 4 recommendations that Putin had to fix the new world financial system:

PUTIN RECOMMENDATIONS

1. Declare hopeless debt securities as bad assets, and write them off. The current crisis will only be prolonged unless the balance sheets are cleaned up. A liquidation process is essential. (The refusal for banks to come clean has resulted in extreme constipation for the credit system, what is “fair market value” nowadays?)

2. Get rid of virtual money, exaggerated reports, and dubious credit ratings on financial securities. He wishes for fundamental asset values to be determined by the ability to generate added value, apart from subjective models. (He refers indirectly to credit derivatives and futures contracts, the artificial mechanisms to control price structures, those putrid devices that act as pseudo-money - but really cause nothing but wrotten stench.)

3. Get away from the single reserve currency system, which he regards as dangerous. Instead, install several strong reserve currencies in a smooth and irreversible switch. (This is the unofficial death knell of the USDollar itself, for alternatives in usage.)

4. Get currency reliability for foreign reserves management, which can be used by other states. This can be achieved by enabling more open monetary policies, and enforcing economic and financial discipline. (This will enable regional stability and cooperation.)

Isn’t it amazing listening to Vladimir Putin talking about sound economics while the new American President - Barack Obama - talks about “economic stimulus plans” ? Who’s being honest here?

There’s a new sheriff in town - and it’s Russia’s Vladimir Putin.

If Vladimir Putin is the Sheriff of Davos - Chinese Premier Wen Jiabao is the forceful sidekick. In fact, it’s just a matter of time before the sidekick becomes the LAW.

Listen to an analysis by By Jim Willie of GoldenJackAss.com -

“Chinese Premier Wen Jiabao was more clever in his acute criticism of the United States. He made scathing comments at Davos about the ‘inappropriate macroeconomic policies’ and the ‘unsustainable model of development characterized by prolonged low savings and high consumption’ of some unnamed countries. Wen attacked ‘blind pursuit of profit’ by financial institutions and their ‘lack of self-discipline’ by them.

After speaking at the World Economic Forum, where he echoed the criticism laid out by Putin, he went on an important trip across Europe. Wen traveled to four major European capitals, whose significance is enormous. He met with Swiss leaders in Bern, with German leaders in Berlin, with Spanish leaders in Madrid, and with European Union leaders in Belgium. One should interpret this not as an endorsement of the status quo, as reported by the US press media, but rather as an announcement of the new structure to conform to the Putin Blueprint for a Post-US World.

The entrenched and defensive US-based and UK-based press media have no interest in mentioning a new framework. Loss of the current framework represents an invitation to the Third World. China has no interest in furthering the status quo. Wen served notice to European leaders.”

Look out America - there are 2 new sheriffs in town.