Nicholas Sarkozy could be the end of Forex

http://online.wsj.com/article/SB1224...googlenews_wsj

http://www.abs-cbnnews.com/business/...nancial-crisis

http://www.bloomberg.com/apps/news?p...u8Y&refer=home

Sarkozy is a joke. Peg currenciess to gold, which has been more volatile than currencies. Gold went down more than $200 in the last eleven days. China loves Sarkozy though, hmmm?

Some economists find references to Bretton Woods curious.
http://www.marketwatch.com/News/Stor...253f&Track=201

"Bretton Woods was about exchange-rate management and setting up facilities for country-to-country lending under duress, and that actually hasn't worked bad in this crisis," said Roger Kubarych, chief U.S. economist at UniCredit MIB and a senior fellow at the Council on Foreign Relations.
"It's mainly a banking crisis. It's not a currency crisis," Goldstein agreed.
While some emerging economies, such as Iceland and Hungary, have seen runs on their currencies, "there's been no run on the dollar, there's been no run on the major currencies," he said. Chances of a major move back toward fixed exchange rates appear quite unlikely.

Lending money to the 'poors' was what created this crisis.

I agree.

http://www.imf.org/external/pubs/ft/aa/aa01.htm

iv) To assist in the establishment of a multilateral system of payments in respect of current transactions between members and in the elimination of foreign exchange restrictions which hamper the growth of world trade.


I say let the French start learning Chinese and keep them out monetary policy making.
Je viens d'avoir un grand verre de vin chinois Bordeaux

Unfortunately it smells the end for Forex

Well the EU elite already scrapped so many sovereign currencies they call junk currency. I hope that the UK never surrender to them! GBP forever! A global currency - and then what no currency at all - just cashless society and slave credits. lol

Ignore me - I must be a conspiracist or if you like the media a conspiracy theorist even though the media covered the EU call for global currency.

http://www.prisonplanet.com/eu-leade...-currency.html
http://www.prisonplanet.com/calls-fo...-increase.html

Funny how until now no one else has been concerned about this, I mean how many have heard about the Amero apart from a few London traders and independent media....oh, yes just a crazy konspiracy theory, I forgot.
EU President Calls For “Global Governance” To Solve Financial Crisis

Asia Backs Sarkozy Push for Bretton Woods II

http://www.rgemonitor.com/financemar..._bretton_woods

``I don't understand the call for global regulation, given Europe has to get its own regional house in order,'' said Simon Johnson, a former IMF chief economist who teaches at the Massachusetts Institute of Technology. ``Europe has fragmented regulation and no cross-border management in place, yet it talks about a global program.''

http://bloomberg.com/apps/news?pid=2...U8o&refer=home

Sarkozy is a mad man. Relax

very interesting! now here are so many new things and ideas in the world..let's see the future!

It appears Sarkozy has gotten his "Bretton Woods" meeting scheduled for Novemer 15th. He's putting his speech into action. They will blame the U.S., speculators, and others for this credit crisis and revamp the entire monetary system with more regulation, and more restrictions on traders, even look into a new currency system. And notice he's got the british prime minister interested as well now. Like I said before, anything can happen at his point.
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[COMP] Nasdaq Composite gains 5.46 points to 1,557.49

Back to Bretton Woods

European leaders invoke historic conference to fix financial system



By William L. Watts, MarketWatch
Last update: 6:52 p.m. EDT Oct. 24, 2008
http://i.mktw.net/mw3/community/imag...e/comments.pngComments: 431




LONDON (MarketWatch) -- Forget Davos. As world leaders attempt to pick up the pieces left by the most terrifying financial crisis since the Depression, it may be time for a New Hampshire mountain resort town to reclaim the spotlight.


French President Nicolas Sarkozy and British Prime Minister Gordon Brown have sounded calls for a revisit of the 1944 Bretton Woods conference that laid the groundwork for much of the postwar financial world order.
President Bush earlier this week acquiesced to calls by Sarkozy and European Union officials, setting a Nov. 15 summit of leaders from the Group of 20 leading industrial and developing nations to be held at the National Building Museum in Washington.
While they won't be meeting at the New Hampshire resort town that gave the Bretton Woods system its name, European leaders hope the gathering will get the ball rolling on a number of potentially major reforms.
"The U.S. really is the epicenter of the crisis, so the Europeans may think they're on the moral high ground and try to lead the process of reform," said economist Morris Goldstein, a senior fellow at the Peterson Institute for International Economics in Washington. "We'll have to see how this turns out."
Sarkozy was the first to make a call for a new "Bretton Woods."
Last week, he told the European Parliament that the talks must aim to "overhaul capitalism," not by "questioning the idea of a market economy" but by implementing certain principles, including subjecting all financial institutions to regulation, ensuring bonuses don't provide incentives for undue risks and re-thinking the monetary system.
Not to be outdone, Brown, in an Oct. 17 op-ed in the Washington Post, also called for a "new Bretton Woods."
The same "sort of visionary internationalism is needed to resolve the crises and challenges of a different age. And the greatest of global challenges demands of us the boldest global cooperation," he wrote.
Brown declared the old postwar financial institutions "out of date" and in need of rebuilding to deal with a "wholly new era in which there is global, not national, competition and open, not closed economies." He reiterated calls for cross-border supervision of financial institutions, shared global accounting standards, "more responsible" executive pay and a role for international institutions to serve as an early-warning system.
The original Bretton Woods
Convinced that economic hardship had led to the rise of fascism, the Allies called the Bretton Woods conference in an attempt to address the causes of the Great Depression. The primary focus, economists say, was to come up with a currency system less rigid than the gold standard while providing similar stability. As part of the effort, the conference laid the foundations for the International Monetary Fund and the World Bank.
The resulting system remained in place until 1971, when the Nixon administration removed the dollar's peg to gold and allowed the greenback to float -- effectively putting an end to the fixed-rate system.
Some economists find references to Bretton Woods curious.
http://www.marketwatch.com/News/Stor...253f&Track=201
"Bretton Woods was about exchange-rate management and setting up facilities for country-to-country lending under duress, and that actually hasn't worked bad in this crisis," said Roger Kubarych, chief U.S. economist at UniCredit MIB and a senior fellow at the Council on Foreign Relations.
"It's mainly a banking crisis. It's not a currency crisis," Goldstein agreed.
While some emerging economies, such as Iceland and Hungary, have seen runs on their currencies, "there's been no run on the dollar, there's been no run on the major currencies," he said. Chances of a major move back toward fixed exchange rates appear quite unlikely.
But Simon Derrick, chief currency strategist at Bank of New York Mellon in London, thinks the references to Bretton Woods may point, in part, to a desire to rein in recent volatility in foreign exchange markets.
Derrick also noted that European Central Bank President Jean-Claude Trichet warned in a news conference following this month's meeting of Group of Seven finance ministers and central bankers that authorities viewed excess volatility as a problem, even though no mention of currencies was made in the G7's official communique.
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Back to Bretton Woods








"It does seem to me there's evidence to suggest that Europe's very much focused on this idea of the need for perhaps a rather more controlled currency regime than currently is the case," he said.
That doesn't mean a return to a fixed-rate regime, he said. But authorities could make the case for a move back towards more active intervention in currency markets to rein in volatility, a feature of markets well into the 1990s.
http://www.marketwatch.com/charts/gi...cktick=1&rand=
After all, the British pound has seen a record daily drops against the U.S. dollar this week and other currency pairs are also showing huge swings.
Extreme volatility "clearly has the potential to do a huge amount of damage to investors, to people who aren't properly hedged, to people who are trying to forecast budgets. That extreme volatility contains the threat of feeding back into ... asset markets," he said.
No one-day fix
Regardless, leaders aren't likely to come out of the one-day affair with anything resembling a broad plan to overhaul the world financial system. While the summit may get the ball rolling, there are a lot of very complex details that need to be ironed out. Leaders may schedule more meetings, but the nuts and bolts of any structural overhaul will be ironed out by technocrats, not presidents and prime ministers, experts said.
Moreover, the Nov. 15 conference comes shortly after the U.S. presidential election, leaving the Bush administration little leeway for serious negotiations. The White House has said it will seek "input" from the president-elect.
"I'm not sure I expect a lot out of this first meeting. I expect mostly principles and expressions of determination and cooperation," Goldstein said.
"Not all bad, I think - and much better also that they do it at the G-20 level than the G-8 level because the emerging economies have a big stake in the crisis."

This is BS - Isn't hindsight a wonderful thing. Didn't see the EU or GB dissing their mass-heave bull run, or the bear $ moaning - circa 1.5 euro to 1$ and 2$ to £1. But just love the way all these world leaders are coming out with all the regulation this/regulation that/blame culture - how can the banks be solely to blame for this?
We've been through a period of immense global growth and prosperitity (or so we are constantly told by any chimp chump leader on a dais, pre the period when everything went south) Personally the immense growth I couldn't quite see month to month or even per annum myself in my adult life. My responsible adult life has had failed pensions, endowments, housing crashes, net result bigger mortgage to pay off as house prices increased so much, blah, blah.

Our goverments have borrowed our futures. And we have borrowed our own. Sadly some more so than others. Equate it to countires, banks or individuals. Basic accounting has not worked for a long time. Why? Because we, as individuals can't buy Jack Sh*t without paying it up. In 2005 - when things started to look bubblish. What did our world goverments/treasuries do? Oh cut interest rates. Flood the market with cheap borrowing. And Make being up to your neck in debt seem affluent? Man, it's crazy. Folk bought cars and holidays on their mortgages and were encouraged to do so. But if the top can't balance the books, how do they expect tier one, 2, 3 then us Joe public 1,2,3 to do so. No point blaming anyone, we sit it out, pay it back or live forever with credit. Deflation, inflation, just devalue everything and increase wages. At end of day its nonsense. A big giant con. Not a chance that our world leaders did not see this coming. They created the commodity bubble, they've rode it up and sold it down, ditto the financial/banking crisis. Imagine what the deficit would look like if they hadn't? Considering they've been flooding the markets with billions for weeks now. we're just the numpties. I don't feel sorry for speculators. Entreprenurial spirit will always survive without it we wouldn't have so much as a light bulb/euro/disk space. Why we'll just jump on the next thing.

But I do feel sorry for the poor folks pensions/investments/college funds that are stuffed. Yet historically aren't they always?

Cheers, been an interesting thread - tho has a frisson of panic throughout it and makes me feel so thick!!

How I wish I had both....

I agree, the current banking system (capitalism) is unsustainable over a longer period, but it seems now they will try to fix it with socialist intervention (taxpayers money) so it might just live to see another day. The government has already put taxed forex in Slovenia, like 40% if you close a position in less than one year.

You are very right.And think that fetus is the puppet of the Rottshields(european).They are afraid of unrest because europe will go down in the next future.So they send that lilliput to make a bargain.In their system europe is sustained by the US

I believe everybody is just so excited these days and the socialism theme was put on the table by McCain at times when everybody is looking for an answer, so now that he accuses Obama of being a socialist and pretending to distribute wealth, we all seem to be seeing the ghost elsewhere. I honestly don’t believe that’s what they mean, but somebody might be thinking in a more fair way, it is not to distribute the money, it is giving poor people in USA’s case, or poor countries in an international level, better commercial opportunities on front of powerful economies, and it is not socialism, it does not have to be so radical. And about Europe system or any other system being sustained by the US I would rather say all the wolrd’s economies are related to USA’s after Bretton Woods, that doesn’t mean they are sustained by it.