IMF TO FLOOD MARKETS WITH ACMETAL

EU Threatens Netanyahu Over PA State
Adar 20, 5769, 16 March 09 10:41by Hana Levi Julian

(IsraelNN.com) The European Union (EU) issued an oblique threat on Sunday to the incoming government of Prime Minister-designate Binyamin Netanyahu over the issue of a new Palestinian Authority (PA) state.EU foreign policy chief Javier Solana told reporters that the European body of nations would change its relationship significantly with the Jewish State if the Netanyahu government does not back the establishment of a new Arab state within Israel's current borders.PA and Egyptian officials met with Solana and other EU representatives in an attempt to find ways to form a unity government between the Fatah faction and the Hamas terrorist organization.Numerous attempts by Egyptian and Saudi Arabian leaders to achieve that goal have failed thus far, leaving the PA government split between Hamas ruling Gaza, and Fatah ruling parts of Judea and Samaria.Let me say very clearly that the way the European Union will relate to a government that is not committed to a two-state solution will be very, very different, Solana said.Late Sunday night, Netanyahu's Likud party signed a coalition agreement with the Yisrael Beiteinu (Israel is Our Home) party, led by Avigdor Lieberman, who is set to become Foreign Minister.

Although Lieberman is seen by some as a right-wing conservative, he has expressed support for the idea of Israel giving up blocs of land and swapping Jewish and Arab populations in areas of Judea and Samaria. The Yisrael Beiteinu chairman has backed the plan as the best option to maximize Jewish demographics in Israel while providing the Palestinian Authority with land for a new state. International media has in some respects demonized Lieberman and the prospect of his installation as Israel's next Foreign Minister.According to the Associated Press, Lieberman has said Palestinian prisoners should be drowned in the Dead Sea, that Israeli-Arab lawmakers meeting with Palestinian militants should be executed and that the president of Egypt could go to hell.The news agency also reported that Lieberman's party, which is now the third-largest party in the Knesset, calls for legislation to require members of Israel's Arab minority to swear loyalty to the Jewish state or lose their citizenship.In fact, the party's platform calls for the establishment of a pledge of allegiance to be administered to every citizen and prospective citizen in the country, regardless of ethnicity or religious background.Meanwhile, the EU has yet to keep the promise it made at an Egyptian-hosted summit in Sharm el-Sheikh in January to help prevent arms smuggling into Gaza.Israel ended its counterterrorist Operation Cast Lead on January 18, partly on the strength of commitments by Western nations to prevent Hamas terrorists from replenishing their weapons supplies. Nevertheless, Hamas has succeeded in smuggling in new weapons, according to the latest intelligence reports by the Israel Security Agency (Shin Bet).

Last update - 20:02 17/03/2009 Study: Israel may attack Iran nuclear sites with ballistic missiles By Reuters

Ballistic missiles could be Israel's weapon of choice against Iranian nuclear facilities if it decides on a pre-emptive attack and deems air strikes too risky, according to a report by a Washington think-tank. Israel is widely assumed to have Jericho missiles capable of hitting Iran with an accuracy of a few dozen meters (yards) from target. Such a capability would be free of warplanes' main drawbacks - limits on fuel and ordnance, and perils to pilots. Extrapolating from analyst assessments that the most advanced Jerichos carry 750 kg (1,650 lb) conventional warheads, Abdullah Toukan of the Center for Strategic and International Studies said 42 missiles would be enough to severely damage or demolish Iran's core nuclear sites at Natanz, Esfahan and Arak. If the Jericho III is fully developed and its accuracy is quite high then this scenario could look much more feasible than using combat aircraft," he said in the March 14 report, titled Study on a Possible Israeli Strike on Iran's Nuclear Development Facilities. Israel, whose jets bombed Iraq's nuclear reactor in 1981 and mounted a similar sortie over Syria in 2007, has hinted that it could forcibly deny Iran the means to make an atomic bomb. But many experts believe the Iranian sites are too distant, dispersed and fortified for Israel's warplanes to take on alone.Israel neither confirms nor denies having Jerichos, as part of an ambiguity policy veiling its own assumed atomic arsenal. A veteran Israeli defence consultant played down the idea of ballistic missiles being used for conventional attacks. You look at any major Western military, and you'll see that such strikes are the purview of manned warplanes, while ballistic missiles are reserved for nuclear-strike scenarios," the consultant told Reuters on condition of anonymity.

Toukan, whose 114-page report frowns on the prospect of unilateral Israeli action, said a Jericho salvo could draw an Iranian counter-attack with Shehab missiles. Other reprisal scenarios include Iran choking off oil exports, hitting U.S. Gulf assets, or ordering proxy attacks on Jewish targets abroad. Some Israeli experts have been dismissive of the Shehab threat, citing intelligence assessments that Iran has deployed fewer than 100 of the missiles and that, if launched, most would be destroyed in mid-flight by Israel's Arrow II interceptor. Under such circumstances, we would expect little more than a repeat of the Gulf war, said one ex-general, referring to Iraq's firing of 40 Scud missiles at Israel during the 1991 conflict. Those attacks inflicted damage but few casualties. The Arrow II also provides some protection for Jordan, a friendly Arab neighbour of Israel and which Toukan saw becoming Ground Zero if a ballistic missile exchange takes place. He noted that any Jericho strikes on Iran - which has denied seeking nuclear weapons but vowed to retaliate if attacked - would be complicated should Tehran obtain the most sophisticated version of Russia's S-300 air-defence system, which can tackle both invading planes and ballistic missiles. Israel could face a further difficulty in mounting a sneak Jericho attack because its strategic air bases are located near population centers. The unannounced test launch of what was believed to be a Jericho III outside Tel Aviv last year became public knowledge within minutes. But that may be the extent of Iran's forewarning. According to the Israeli consultant, only the United States and Russia are known to have satellites capable of spotting ballistic missile launches in real time, and it's highly unlikely that the Iranians would get access to that information.

Medvedev orders large-scale Russian rearmament MAR 17,09

MOSCOW (AFP) — President Dmitry Medvedev on Tuesday announced a large-scale rearmament and renewal of Russia's nuclear arsenal, accusing NATO of pushing ahead with expansion near Russian borders.Meeting defence chiefs in Moscow, Medvedev said he was determined to implement reforms to streamline Russia's bloated military and stressed Moscow continued to face several security threats needing robust defense capacity.From 2011, a large-scale rearmament of the army and navy will begin, Medvedev said.He called for a renewal of Russia's nuclear weapons arsenal and added that NATO was pursuing a drive to expand the alliance's physical presence near Russia's borders.Analysis of the military-political situation in the world shows that a serious conflict potential remains in some regions, Medvedev said.He listed local crises and international terrorism as security threats and also stated: "Attempts to expand the military infrastructure of NATO near the borders of our country are continuing.The primary task is to increase the combat readiness of our forces, first of all our strategic nuclear forces. They must be able to fulfil all tasks necessary to ensure Russia's security,Medvedev said.And while he praised Russia's military thrust into Georgia last year in defence of the rebel region of South Ossetia, he also said the conflict had shown up the military's failings.The comments came despite signs of a warming in US-Russian relations since the inauguration of President Barack Obama in January.Medvedev, who took office last May and has struggled to escape the shadow of Prime Minister Vladimir Putin, is due to meet Obama for the first time next month in London.Some analysts believe the Obama administration is backing away from policies that angered Moscow under the presidency of George W. Bush.Those policies included strong US support for expanding the NATO alliance to include the ex-Soviet republics of Georgia and Ukraine and a plan to build US missile defence facilities in Eastern Europe.But even though Medvedev and others have expressed hope for an improvement in US-Russian ties, there was a combative tone to Tuesday's meeting, intended to sum up military developments in the last year and to plan ahead.

Defence Minister Anatoly Serdyukov said: US efforts have been aimed at gaining access to raw materials, energy and other resources in the former Soviet Union, while Washington had actively supported processes aimed at pushing Russia from its traditional sphere of interests.The head of Russia's strategic missile forces, Nikolai Solovtsov, told news agencies that Russia would start deploying its next-generation RS-24 missiles after the December 5 expiry of the START-1 treaty with the United States.

Moscow hopes to replace the treaty with a new accord.

Russia says its nuclear-capable, multiple-warhead RS-24 missiles are capable of overcoming defences such as the US missile shield.In recent years Russia has been attempting to streamline its military, which currently numbers over one million personnel and has been burdened by corruption and bureaucracy.Moscow-based defence expert Alexander Golts said he detected a contradiction in Medvedev's rhetoric, arguing that demonising NATO is at odds with Russia's stated goal of a slimmed down, efficient military.There are real threats, notably instability in Central Asia, but Russia can resist them alongside NATO. In Afghanistan it is clear NATO is also helping to defend Russia,said Golts.Another independent expert, Pavel Felgenhauer, said it was unclear if the Kremlin had the stomach for military reforms likely to involve mass lay-offs in the current economic crisis.There's a lot of opposition in the ranks and this opposition will grow, Felgenhauer said. It's unclear if the Kremlin will stay the course.At Tuesday's meeting the defence minister, Serdyukov, said non-combat deaths in the military remained high at 471 last year, describing an unhealthy moral and psychological atmosphere in certain military formations.Serdyukov also said the vast majority of weapons in the Russian military were out of date. The share of contemporary arms and military technology is around 10 percent,he said.AFP.

EU must consolidate before further enlargement, Merkel says
ELITSA VUCHEVA 17.03.2009 @ 09:23 CET

The EU needs to consolidate before enlarging any further, German Chancellor Angela Merkel has said in what is the latest blow to countries hoping to join the bloc any time soon.Commenting on western Balkan countries' fears that their EU ambitions are slowly being pushed far into the future, Ms Merkel said: We don't want this, but no one is well served in a Europe that can't keep up with integration and takes on too many new members too quickly.Therefore, we say that we have Croatia and its accession talks in our sights. But we must also first see that, with the Lisbon treaty, we hopefully get a certain consolidation phase in terms of integration, she added in a speech on Europe to members of her conservative Christian Democrat party (CDU) in Berlin, Reuters reports.Ms Merkel's comments come amid an already gloomy situation for EU aspirants.Uncertainty over the EU's Lisbon treaty has diminished the willingness to see new countries let in not only in Germany, but also in other member states, notably France.Additionally, the financial crisis has stolen the attention of leaders from EU enlargement concerns, and the western Balkans' own situation does not make matters easier.Croatia is expected to end EU membership negotiations by the end of this year - although this timeline has come into question due to a blockage of the talks by Slovenia in a border row between the two neighbours.Turkey's accession talks have been advancing slowly, while the third EU candidate, Macedonia, has failed to even begin such talks for more than three years because of a Greek veto in a dispute over the former Yugoslav country's name.Montenegro filed an application to join the bloc last December, but EU member states have been reluctant ever since to take the next step by passing this application for assessment to the European Commission. Any assessment result is unlikely before some time next year.

The other western Balkan countries are even further down the line.

Serbia and Albania are expected to submit their requests to join the EU some time in the next few months, while Bosnia and Herzegovina's internal problems have slowed its reforms and EU integration process. Disagreement among EU members over Kosovo's status makes it unlikely for Pristina to progress much towards the EU in the near future.

UK making the case for enlargement

Some EU countries, however, have warned against the trend of stopping the bloc's expansion, with the UK in particular speaking strongly in favour of keeping momentum going.We must re-energise our relations with our neighbours because this [financial] crisis has shown very clearly how exposed we are to problems beyond our borders, British foreigh secretary David Miliband wrote in a comment for Polish daily Gazeta Wyborcza on Monday.Whatever the temptations, we cannot afford to turn inwards, he added.Well beyond the Balkans – where the offer of EU membership is also critical to overcoming the nationalist politics and ethnic divisions, there are also other neighbours the 27-nation bloc should one day consider for accession.Beyond these [Balkan] countries, there are others – Iceland or Ukraine for instance – for which we must keep open the prospects of membership,said Mr Miliband.

WORLDS OBSSESSION WITH ISRAEL - VATICAN WANTS JERUSALEM
http://www.israelnationalnews.com/Radio/News.aspx/762
ARGENTINA IMF
http://www.imf.org/external/country/arg/index.htm
BRAZIL IMF
http://www.imf.org/external/country/bra/index.htm
CANADA IMF
http://www.imf.org/external/country/can/index.htm
GERMANY IMF
http://www.imf.org/external/country/deu/index.htm
FRANCE IMF
http://www.imf.org/external/country/fra/index.htm

NEW WORLD ORDER ONE WORLD GOVERNMENT - VIDEOS
http://www.jeremiahproject.com/newworldorder/
http://www.youtube.com/watch?v=7a9Syi12RJo
http://www.guba.com/watch/3000111574
http://video.google.com/videoplay?docid=-4106574677079572938
http://www.biblebelievers.org.au/nv2.htm
http://www.biblebelievers.org.au/theaim.htm#A%20global%20village%20full%20ofidiots

UN DOCUMENTS
http://www.biblebelievers.org.au/undoc.htm#United%20Nations%20Documents
OUR GLOBAL NEIGHBORHOOD
http://www.sovereignty.net/p/gov/gganalysis.htm
MYTHS OF GLOBAL WARMING
http://www.biblebelievers.org.au/green.htm
THE GLOBAL ETHIC
http://www.biblebelievers.org.au/gloeth.htm#THE%20GLOBAL%20ETHIC
SECRET GROUPS
http://www.biblebelievers.org.au/masons.htm#History%20and%20Purpose%20of%20the%20Freemasons%20and%20otherSecret%20Societies
MASONRY
http://www.biblebelievers.org.au/masindx.htm#The%20Question%20of%20Freemasonry
MASONIC CONSPIRACY
http://www.biblebelievers.org.au/masonapo.htm#NASA%20Masonic%20Conpsiracy
BOOK READINGS
http://www.biblebelievers.org.au/book.htm
FED HISTORY
http://www.chicagofed.org/about_the_fed/our_history.cfm
http://www.av1611.org/kjv/kjvhist.html

Brace for New world order
By Yen Feng MAR 11,09

THE global financial crisis has called for a new world order, as venerable banks and financial houses have all but toppled in the last six months, Education Minister and Second Minister for Defence Ng Eng Hen said on Wednesday. That the global financial crisis has precipitated this calling for a new Order is stating the obvious. But the consequences of radical change to come in the ensuing transition and post-crisis Order can lead to a different world,he said.

Speech SMU LKC Ministerial Forum
We should be forewarned, alert and prepared. The effect on individual countries - including that on Singapore and Singaporeans - may not always be immediately apparent or easily projected.Dr Ng was speaking to about 150 students at the Singapore Management University at its second SMU Ministerial Forum on Wednesday. The first, with Health Minister Khaw Boon Wan, was held in 2006. The minister's speech, Singapore and SMU in the New World Order, set the tone for the evening's forum, as students of the business-oriented university peppered him with questions ranging from the flailing economy to how education must evolve to meet new challenges. In his speech, Dr Ng also outlined his ideas on how Singapore must respond in order to emerge not only intact but ahead of the pack. He drew lessons from other small city states, like Venice and Boston, and said Singapore must keep its competitive edge in drawing talent to remain sustainable in a modern, connected world, while taking advantage of the nation's large reserves. Singapore's reserves provide us the flexibility and resources to successfully cope with the financial crisis,said Dr Ng. We should not now abandon our fiscal prudence to face this crisis, but use our reserves to build strategic capabilities that will pay rich dividends over the medium and longer term.

IMF to flood markets with Acmetal 16-Mar-09 08:35 pm

Although it might not be called the Acmetal, it seems that the IMF is going to start mass printing its own cash soon. Talk about an inflationary roar!Watch out!!!!!!!!!!!! mass currency printing=mass inflation.IMF poised to print billions of dollars in 'global quantitative easing The International Monetary Fund is poised to embark on what analysts have described as global quantitative easing by printing billions of dollars worth of a global super-currency in an unprecedented new effort to address the economic crisis.

IMF To Print Billions Out Of Thin Air MAR 16,09

The International Monetary Fund is poised to embark on what analysts have described as global quantitative easing by printing billions of dollars worth of a global super-currency in an unprecedented new effort to address the economic crisis.Alistair Darling and senior figures in the US Treasury have been encouraging the Fund to issue hundreds of billions of dollars worth of so-called Special Drawing Rights in the coming months as part of its campaign to prevent the recession from turning into a global depression. Should the move, which is up for discussion by the summit of G20 finance ministers this weekend, be adopted, it will represent a global equivalent of the Bank of England's plan to pump extra cash into the UK economy.However, economists warned that the scheme could cause a major swell of inflation around the world as the newly-created money filters through the system. The idea has been suggested by a number of key figures, including billionaire investor George Soros and US Treasury adviser Ted Truman.Simon Johnson, former chief economist at the IMF, said: The principle behind it is that everyone would get bonus dollars and instead of the Federal Reserve having to print them, everyone gets them.
http://www.telegraph.co.uk/finance/f...ve-easing.html

Monday, March 16, 2009 Russia Proposes Creation of Global Super-Reserve Currency Curt Here

The news gets crazier by the day. Now we have the Country of Russia suggesting that the G20, at the April 2nd summit in London should start the process of establishing the creation of a super reserve currency. According to the Russian plan this global super-reserve currency will be issued by the major international financial institutions. The hope is this new currency will provide stability and control to the current chaotic financial situation.They are suggesting that we should disregard standard approaches of doing business and we should act globally together under one financial system, with one set of rules. The Russians take it one step further and say they believe at the coming summit, the G20 nations should seek and achieve accord on the main parameters of this new world financial system.This is all happening very fast, and if major decisions are made at the G20 summit towards a global new financial order, we may have the framework in place towards the implementation of the mark of the beast. This is a pretty scary thought if you ask me and to be frank I am having a hard time believing what I am reading these days. But God's Word is true and I know that His coming will be fulfilled exactly as it was written. Still, I stand in awe.Stay Tuned Curt.

IMF ONE WORLD ONE CURRENCY DESTINATION OR DELUTION 2000 IMF MEETING
http://www.imf.org/external/np/tr/2000/tr001108.htm

The third panelist is Paul Masson, who in this hall does not need an introduction. He is Senior Advisor in the IMF Research Department where, as you know, he has played an extremely important role in stimulating research on international economic and international monetary issues. He has modeled the credibility of monetary policy, studied various aspects of European integration, written on exchange rate regimes, and most recently and interestingly in today's context on a project for a West African currency area.

Paul? MR. MASSON: Thank you very much.

As we have already heard, the creation of the euro out of 11 national currencies a little more than a year and a half ago, the prospect of dollarization in several Latin American countries, the creation of currency boards, which is the next best thing to adopting another country's currency and in fact may have some advantages relative to that--all of these things open the possibility of a radical reduction in the number of currencies in the world.Is this trend likely to continue to its logical conclusion? That's really the question of this roundtable--namely, the creation of a single world currency.I think that to consider this question adequately, one really needs to look at the roles of money in the world economy and at the national and international levels.

At the national level, the traditional analysis considers three roles for money--as a means of payment, store of value, and unit of account. At the international level, in parallel with this but really a separate analysis, looks at the use of an international currency either for invoicing trade, denominating assets and liabilities, as a form of holding foreign exchange reserves, as a vehicle more generally for foreign exchange transactions, and also as the currency to which other currencies are pegged, as an anchor, essentially, for other countries' monetary policies.I would argue that technology and globalization are blurring the distinction between national and international uses of money to some extent and have the potential for changing these uses radically. Let me give a few examples. Multinational corporations doing business in many countries make transfers between their branches or subsidiaries which have no relation to the currencies in which the profits or revenues are earned. Multinationals often report their financial results in both local currency and in U.S. dollars or pounds sterling, in particular if they have ADRs listed in New York or shares listed in London.As we are all aware, currency swaps allow the transformation of denomination of capital flows, and derivative instruments permit sophisticated hedging of currency risk.Third, internet use--e-banking, if you will--increases the potential for payment to be made across borders without passing through a traditional banking system: it may at some stage involve a payment through such banks, but it need not, and this possibility is increasingly being studied.And also, I think both retail and business transactions will be increasingly made using technologies where prices can be quoted in multiple currencies with exchange rates potentially being continuously updated.As a fairly trivial example, in Europe at the moment, it is standard to bill in both euros and the national currency--that is, the unit of account, the euro, may be different from the means of payment, the national currency, which of course will in a few years be replaced by the euro itself.

In addition, payment and settlement systems are increasingly run by private financial institutions and are not under the direct control of the central bank; and debit and credit positions at the end of the day, or whenever they are settled, may not necessarily require settlement through central bank balances.And as has already been mentioned, the creation of the euro has fundamentally altered the relationship between national sovereignty and national money.For some time now, people have been speculating on another development, which is that technology and financial innovations have been leading to the possibility of essentially a zero-cash-balance society, as for instance, credit cards and, internet/e-banking economize on the use of cash and bank deposits--traditional money. And when one looks at financial institutions, reserves on bank deposits have been reduced--required reserves have been reduced in many countries, and excess reserves or clearing balances have been reduced almost to zero, shrinking the size of high-powered money and also, arguably, the potential effectiveness of monetary policy.There are some stylized facts which have direct implications for how we should view the evolution of international moneys in the future.What do these trends mean for the international monetary system? I would argue that there may well be several implications.First, payments may be increasingly made outside the direct control of governments and central banks.Second, the notion of competing moneys may be given greater scope: I refer to the idea and proposals which have long been considered, that allowing individuals and companies to choose between moneys would be a way of making sure that the best money won out. I think that the increasing channels available outside the direct control of governments may allow the competing moneys idea to be given greater sway; and perhaps network externalities, which are, as Maury mentioned, a raison d'etre of money, though very hard to model, may be given more scope.So for instance, one may find that just as it increases the use of the English language, the internet may favor the more widespread use of the U.S. dollar.Third, because, the scope for monetary independence has been reduced by increases in capital mobility, countries may be less reluctant than in the past to give up their national currency provided, of course, that the dominant world currency or the regional currency exhibits the necessary stability in terms of purchasing power.

Those three factors I think suggest forces leading to fewer currencies, if not necessarily to a single world currency. However, I would also argue that going the other way is the fact that technological advances that allow separation of the means of payment, store of value, and unit of account roles for money may make the coexistence of different currencies in any given country or monetary area easier. And I would further argue that the forces of globalization are not stamping out nationalism. A currency remains an important symbol of national or regional sovereignty, even though in practice it may not be associated with much monetary independence.So I, like Maury, do not think that currencies will disappear en masse. But I think there is a sub-question which is also interesting, which Maury has touched on, and that is the question of regional blocs and the elimination or the consolidation of currencies within regional currency areas.I think that in reality, the major regional currency blocs that exist at the moment are really those centered around the U.S. dollar and the euro. The euro bloc will no doubt develop further, mainly because of a political motivating factor, namely, membership in the EU and also, though to a lesser extent, because of the economic factor of close trade links with the existing countries of the euro area.For the dollar, I would argue that only the economic factor comes into play since the U.S. has steadfastly refused to share monetary or other forms of sovereignty, and with only a few exceptions, its trading partners decline to abandon their own currencies in such a one-sided relationship.

And the examples of Canada and Mexico show that trade and other strong linkages with the United States can thrive even without a common currency. I expect that unless the political reality changes, this situation will continue.An Asian currency bloc has been much ballyhooed, but I think the fundamental question is around what currency. Japan is the region's largest economy, but in a few decades will probably be overtaken by its much more populous neighbor, China. In the meantime, that country needs to emerge further from the rigidities of state control, create a convertible currency and a modern financial system, and settle outstanding frictions with neighbors and territories before the renminbi can lay claim to being an international currency.So I would argue that political factors mitigate against either country forming the nucleus of a strong regional grouping.So I am not holding my breath for the formation of an Asian currency bloc, nor do I expect that these countries would join a dollar or a euro bloc.So to sum up, I see a world where currency use is increasingly dictated by private choice, not government fiat, where two major currencies--the U.S. dollar and the euro--will coexist, perhaps uneasily and in competition with each other, but there will also remain a slew of minor currencies. But I would say that the number of currencies will matter less because individuals will have greater options for hedging or choosing the currency in which to transact and will have less need to hold cash balances and hence are less likely to suffer the confiscation by inflation engineered by an irresponsible central bank.So in conclusion, I think that the one currency or many question may become somewhat less important than it may have been in the past, because there will be further potentially radical changes in the national use of moneys.Thank you.

A Factsheet - September 2008
Gold in the IMF

Gold played a central role in the international monetary system until the collapse of the BrettonWoods system of fixed exchange rates in 1973. Since then, the role of gold has been gradually reduced. However, it is still an important asset in the reserve holdings of a number of countries, and the IMF remains one of the largest official holders of gold in the world.

The IMF's gold holdings
The IMF holds 103.4 million ounces (3,217 metric tons) of gold at designated depositories. The IMF's total gold holdings are valued on its balance sheet at SDR 5.9 billion (about $9.3 billion) on the basis of historical cost. As of August 31, 2008, the IMF's holdings amounted to $86.2 billion (at then current market prices). A portion of these holdings were acquired since the Second Amendment of the IMF's Articles of Agreement in April 1978, amounting to 12.97 million ounces (403.3 metric tons), with a market value of $10.8 billion as of August 31, 2008. As noted below, this part of the Fund's gold holdings is not subject to restitution to members.

The IMF acquired the majority of its gold holdings prior to the Second Amendment through four main types of transactions. First, it was then prescribed that 25 percent of initial quota subscriptions and subsequent quota increases were to be paid in gold. This represented the largest source of the IMF's gold. Second, all payments of charges (i.e., interest on members' use of IMF credit) were normally made in gold. Third, a member wishing to purchase the currency of another member could acquire it by selling gold to the IMF. The major use of this provision was sales of gold to the IMF by South Africa in 1970-71. And finally, members could use gold to repay the IMF for credit previously extended.

The IMF's policy on gold today
The Second Amendment to the Articles of Agreement in April 1978 eliminated the use of gold as the common denominator of the post-World War II exchange rate system and as the basis of the value of the Special Drawing Right (SDR). It also abolished the official price of gold and brought to an end the obligatory use of gold in transactions between the IMF and its members. It furthermore required that the IMF, when dealing in gold, avoid managing its price or establishing a fixed price.

The Articles of Agreement now limit the use of gold in the IMF's operations and transactions. The IMF may sell gold outright on the basis of prevailing market prices, and may accept gold in the discharge of a member's obligations at an agreed price, based on market prices at the time of acceptance. These transactions in gold require an 85 percent majority of total voting power. The IMF does not have the authority to engage in any other gold transactions—such as loans, leases, swaps, or use of gold as collateral—nor does it have the authority to buy gold.

The Articles also provide for the restitution of the gold the Fund held on the date of the Second Amendment to members of the Fund as of August 31, 1975. Restitution would involve the sale of gold to this group of members at the former official price of SDR 35 per ounce, with such sales made to those members who agree to buy it in proportion to their quotas on the date of the Second Amendment. A decision to restitute gold requires support from an 85 percent majority of the total voting power. The Articles do not provide for the restitution of gold the Fund has acquired after the date of the Second Amendment.

The IMF's policy on gold is governed by the following principles:

As an undervalued asset held by the IMF, gold provides fundamental strength to its balance sheet. Any mobilization of IMF gold should avoid weakening its overall financial position.

The IMF should continue to hold a relatively large amount of gold among its assets, not only for prudential reasons, but also to meet unforeseen contingencies.

The IMF has a systemic responsibility to avoid causing disruptions to the functioning of the gold market.

Profits from any gold sales should be used whenever feasible to create an investment fund, of which only the income should be used.

How and when the IMF used gold
Outflows of gold from the IMF's holdings occurred under the original Articles of Agreement through sales of gold for currency, and via payments of remuneration and interest. As noted, since the Second Amendment of the Articles of Agreement, outflows of gold can only occur through outright sales. Key gold transactions included:

Sales for replenishment (1957-70). The IMF sold gold on several occasions to replenish its holdings of currencies.

South African gold (1970-71). The IMF sold gold to members in amounts roughly corresponding to those purchased from South Africa during this period.

Investment in U.S. government securities (1956-72). In order to generate income to offset operational deficits, some IMF gold was sold to the United States and the proceeds invested in U.S. government securities. Subsequently, a significant buildup of IMF reserves prompted the IMF to reacquire this gold from the U.S. government.

Auctions and restitution sales (1976-80). The IMF sold approximately one third (50 million ounces) of its then-existing gold holdings following an agreement by its members to reduce the role of gold in the international monetary system. Half of this amount was sold in restitution to members at the then-official price of SDR 35 per ounce; the other half was auctioned to the market to finance the Trust Fund, which supported concessional lending by the IMF to low-income countries.

Off-market transactions in gold (1999-2000). In December 1999, the Executive Board authorized off-market transactions in gold of up to 14 million ounces to help finance the IMF's participation in the Heavily Indebted Poor Countries (HIPC) Initiative. Between December 1999 and April 2000, separate but closely linked transactions involving a total of 12.9 million ounces of gold were carried out between the IMF and two members (Brazil and Mexico) that had financial obligations falling due to the IMF. In the first step, the IMF sold gold to the member at the prevailing market price and the profits were placed in a special account invested for the benefit of the HIPC Initiative. In the second step, the IMF immediately accepted back, at the same market price, the same amount of gold from the member in settlement of that member's financial obligations. In the end, these transactions left balance of the IMF's holdings of physical gold unchanged.

2009 Article IV Mission to Canada: Concluding Statement
March 9, 2009

This statement presents the preliminary assessment of the 2009 Article IV mission to Canada. The period ahead will be challenging in light of the sharp deterioration in the global environment and Canada’s strong international linkages, particularly with the United States. However, Canada is better placed than many countries to weather the global financial turbulence and worldwide recession, thanks to sound policy management and proactive steps to maintain economic and financial stability. We see the key policy priorities as continued vigilance, and readiness to respond if tail risks are realized.

Context and outlook

1. Canada entered the global financial turmoil on a solid footing. Through 2007, Canada experienced strong growth, price stability, fiscal and current account surpluses, historically low unemployment, and financial stability. This favorable outturn reflected strong fiscal discipline, sound and credible monetary policy, and robust financial supervision and regulation. It also reflected supportive global growth and booming commodity prices.

2. Toward end-2008, however, the global environment deteriorated rapidly. On the heels of intense international financial turbulence, economic activity contracted sharply in advanced economies, and global trade collapsed. In early 2009, confidence and production plunged worldwide, while financial market conditions improved somewhat but remained at highly stressed levels. Going forward, fiscal and monetary stimulus in various countries will limit the global downturn, although still-severe financial conditions will pose headwinds to growth. Meanwhile, widening output gaps will feed disinflationary pressures, exacerbated by softening commodity prices amid subpar worldwide demand. Risks to the outlook are to the downside, and include protracted financial strains and intensified macro-financial feedback.

3. The global deterioration is adversely affecting Canada through its strong international linkages. In the fourth quarter, real exports fell by 17.5 percent (annual rate), and the external current account balance registered the first deficit in 10 years. Domestic demand shrank as well, as households and businesses retrenched amid falling commodity and asset prices, and headline GDP declined at the fastest rate since 1991. Going into January, the economic environment continued to deteriorate; the unemployment rate rose to 7.2 percent and rising economic slack contributed to a fall in core inflation from 2.5 percent to 1.9 percent (year on year).

4. Looking ahead, output is likely to contract significantly in the near term, recovering as the full effects of policy stimulus are felt. Further export declines and soft commodity prices are likely to weigh on employment and income, while uncertainties about near-term prospects may restrain investment. With economic slack widening, core inflation will decline. Downside risks predominate, including negative spillovers if the global environment worsens more than expected.

5. At the same time, the strains evident in other countries are markedly less serious in Canada. Canada’s housing markets have been less overheated than elsewhere and booms have been localized rather than general. Financial conditions have tightened, as reflected in spreads and lending standards; but strains are considerably less severe than in other major countries, and credit growth remains solid, both of which reflect a resilient financial system.

6. Canada has responded proactively to the worsening economic outlook. Fiscal stimulus incorporated in Budget 2009 will ameliorate the downturn, and in tandem with the Bank of Canada’s aggressive easing of monetary policy, will mitigate deflation risks. The financial system is stable, and recent steps taken to expand the toolkit for financial stabilization are appropriate given the uncertain outlook. Looking ahead, the main task for policies is to remain vigilant and stand ready to respond if tail risks materialize.

Macroeconomic policies

7. The mission supports the large, timely, and well-targeted fiscal stimulus in Budget 2009. The stimulus package is appropriately sized—well above the Fund’s benchmark of 2 percent of GDP. It is also prudently based on a worse economic outturn than private sector forecasts. With sizeable infrastructure spending and permanent tax cuts, it is weighted toward items that are most effective in stimulating demand. Its steps to boost the safety net will protect Canada’s most vulnerable, and training enhancements will facilitate reallocation of displaced workers. The budget appropriately leverages provincial stimulus, and provinces’ intentions to launch supplementary packages are welcome. The mission also welcomes the move to cut external tariffs, which is in line with Canada’s long-standing commitment to trade liberalization and openness.

8. The near-term focus is appropriately on implementation, and in particular on mobilizing spending. The framework for monitoring deployment of the budget will promote maximum effectiveness and provide opportunities to assess both its implementation and the prevailing economic environment. Looking ahead, if downside risks to the global economy materialize, Canada is well positioned to participate in further possible global policy actions. Meanwhile, automatic stabilizers could be given full play, letting the safety net accommodate increased demands on it in the downturn.

9. The mission also welcomes the authorities’ commitment to medium-term fiscal prudence. In this connection, Budget 2009 rightly notes the aim to avoid long-term structural deficits. This commitment, along with a strong track record of budgetary responsibility and its low debt/GDP ratio (the lowest in the G-7), underpin Canada’s fiscal credibility. The aim to return the debt/GDP to a downward path over the medium term is appropriate. However, the considerable uncertainty surrounding the outlook would complicate setting numerical targets at present; targets could be recalibrated when the outlook is clearer, further bolstering fiscal credibility.

10. The Bank of Canada’s proactive and aggressive monetary easing is appropriate given the subpar economic outlook. Since December 2007, the Bank of Canada has cut its policy rate by 400 basis points to a record low 0.5 percent, most recently easing on March 3. In addition, expanded Bank of Canada facilities (longer terms and a greater variety of collateral) have bolstered liquidity, complementing reductions in the policy rate. With the credit intermediation mechanism working more smoothly than in other countries, the monetary stance will impart a significant boost to demand. Complementing monetary policy, the floating exchange rate policy has also served Canada well, serving as a shock absorber. The recent depreciation of the exchange rate, which has occurred in line with the decline in commodities prices, will dampen disinflationary pressures and support activity.

11. Going forward, maintaining an accommodative monetary stance will be appropriate given the disinflationary pressures associated with the recession. Maintaining an easy stance will limit the downside risks to inflation and inflation expectations, with the latter anchored by the Bank of Canada’s strong commitment to price stability under its inflation-targeting framework. Indeed, medium-term inflation expectations have been relatively stable despite downward pressure on near-term inflation from collapsing commodities prices and rising economic slack. Continuing to clearly communicate the Bank’s views on the price stability outlook will signal commitment to maintain an easy stance for as long as needed to avoid an undershooting of inflation and inflation expectations. The Bank of Canada has also appropriately kept open the possibility of using more aggressive measures, if needed to combat deflationary pressures.

Financial sector policies

12. Canada’s financial system has displayed remarkable stability amid the global turbulence. While no major financial system has been entirely immune from global spillovers, Canadian banks were well capitalized coming into the downturn and have avoided the catastrophic losses experienced by banks in other major countries. Accordingly, and in contrast to banks elsewhere, Canadian banks have not required public capital injections, instead raising capital in markets (albeit at high costs, reflecting heightened global risk aversion). Moreover, bank credit growth has held up well, partly reflecting substitution from financial markets (including those abroad) that have come under stress. Notwithstanding the non-bank ABCP crisis, financial market conditions have generally remained less strained than elsewhere, although equity prices have declined broadly in line with foreign markets.

13. This outcome reflects strong regulation and supervision, along with structural factors in the Canadian financial market. Banks and their securities operations have been subject to rigorous consolidated supervision and regulation by OSFI, including limits on leverage, and target capital ratios well above Basel standards. In addition, five-year reviews have ensured that federal regulatory legislation is modernized periodically, while interaction among officials in the context of the Financial Institutions Supervisory Committee (FISC) and other forums supports smooth exchange of information. On the structural side, banks have a profitable and stable domestic retail market, and generally seem to exhibit a lower tolerance for risk. Due to all these factors, banks maintain prudent balance-sheet structures, and have less exposure to toxic structured assets than international peers.

14. Looking ahead, the coming credit cycle is likely to be challenging. The economic downturn will pressure bank credit quality. Mortgage delinquencies are already rising (albeit from low levels), particularly in Western provinces hit hard by collapsing commodity prices. In addition, high household debt is of concern in an environment of rising unemployment and effects of falling asset prices on net wealth, notwithstanding modest debt-service levels due to low interest rates. In this context, pressures on banks may feed back into tighter credit conditions, dampening growth. Meanwhile, major insurers and pension funds have been adversely affected by the stock market decline.

15. Against this backdrop, the key policy priority remains forestalling an adverse macro-financial feedback loop. Along with the appropriately supportive stance of macroeconomic policies, the Canadian authorities’ proactive approach to financial stability will limit this risk. The approach has included a range of precautionary steps:

offering guarantees on bank and insurance liabilities under the CLAF and CLIAF;

creating authority for transactions to maintain financial stability (including capital injections);

increasing purchases of insured mortgage securities to boost bank liquidity and support the mortgage market;

introducing the Canadian Secured Credit Facility to bolster vehicle and equipment financing for businesses and consumers;

increasing the resources of Export Development Canada and the Business Development Bank of Canada, to support economic activity;

and expanding CDIC’s resources and options for dealing with troubled institutions.

More generally, continued close consultation among Federal supervisors and regulators, in the context of the FISC and other forums, could focus on risks to individual institutions, risks of spillovers across institutions (including between banks and non-banks), and macro-prudential risks such as those related to high household debt. In addition, continued close cooperation between Federal and provincial supervisors would manage any potential spillovers between provincial and national markets.

16. Consolidating and enhancing securities regulation would further strengthen the already robust financial stability framework. Over time, bringing a greater financial stability focus to securities regulation, and achieving greater national integration (in line with the recommendations in the 2008 IMF Financial System Stability Assessment Update), would provide a more holistic perspective to financial stability arrangements. In this connection, the mission welcomes the authorities’ intentions as expressed in Budget 2009 to follow the recommendations of the Expert Panel on Securities Regulation.

DOCTOR DOCTORIAN FROM ANGEL OF GOD
then the angel said, Financial crisis will come to Asia. I will shake the world.

JAMES 5:1-3
1 Go to now, ye rich men, weep and howl for your miseries that shall come upon you.
2 Your riches are corrupted, and your garments are motheaten.
3 Your gold and silver is cankered; and the rust of them shall be a witness against you, and shall eat your flesh as it were fire. Ye have heaped treasure together for the last days.

REVELATION 18:10,17,19
10 Standing afar off for the fear of her torment, saying, Alas, alas that great city Babylon, that mighty city! for in one hour is thy judgment come.
17 For in one hour so great riches is come to nought. And every shipmaster, and all the company in ships, and sailors, and as many as trade by sea, stood afar off,
19 And they cast dust on their heads, and cried, weeping and wailing, saying, Alas, alas that great city, wherein were made rich all that had ships in the sea by reason of her costliness! for in one hour is she made desolate.

EZEKIEL 7:19
19 They shall cast their silver in the streets, and their gold shall be removed: their silver and their gold shall not be able to deliver them in the day of the wrath of the LORD: they shall not satisfy their souls, neither fill their bowels: because it is the stumblingblock of their iniquity.

REVELATION 13:16-18
16 And he(FALSE POPE) causeth all, both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads:(CHIP IMPLANT)
17 And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name.
18 Here is wisdom. Let him that hath understanding count the number of the beast: for it is the number of a man; and his number is Six hundred threescore and six.(6-6-6) A NUMBER SYSTEM

WORLD MARKET RESULTS
http://money.cnn.com/data/world_markets/

SPECIAL CONFERENCE MAR 23-24,2009,ALL FINANCIAL INSTITUTIONS WILL BE THERE,ALL THE EU MEMBERS WILL BE THERE,AND THE G-20 WILL BE THERE.THIS SAME GROUP OF EU,BANKERS,G-20 WILL ALSO BE IN LONDON IN APRIL TO LAY PLANS FOR THE NEW WORLD ORDER,ESPECIALLY THE G-20.https://futurefinance.wsj.com/index.php

HALF HOUR DOW RESULTS WED MAR 18,2009

09:30 AM -47.87
10:00 AM -84.59
10:30 AM -112.54
11:00 AM -81.24
11:30 AM -99.32
12:00 PM -69.77
12:30 PM -61.65
01:00 PM -45.88
01:30 PM -49.59
02:00 PM -48.27
02:30 PM +69.21
03:00 PM +142.21
03:30 PM +58.30
04:00 PM +90.88 7486.58

S&P 500 794.35 +16.23

NASDAQ 1491.22 +29.11

GOLD 939.00 +22.00

OIL 49.24 +0.08

TSE 300 8635.68 +76.08

CDNX 865.71 +12.59

S&P/TSX/60 525.99 +3.44

MORNING,NEWS,STATS

YEAR TO DATE PERFORMANCE
Dow -15.73%
S&P -13.85%
Nasdaq -7.29%
TSX Advances 875,declines 635,unchanged 283,Volume 2,282,118,598.
TSX Venture Exchange Advances 346,Declines 361,Unchanged 348,Volume 127,365,760.

Dow -66 points at 4 minutes of trading today.
Dow -100 points at low today.
Dow -45 points at high today so far.
GOLD opens at $903.10.OIL opens at $48.43 today.

AFTERNOON,NEWS,STATS
Dow -138 points at low today so far.
Dow +128 points at high today so far.

DAY TODAY PERFORMANCE - 12:30PM STATS
NYSE Advances 1,772,declines 1,800,unchanged 125,New Highs 4,New Lows 61.
Volume 262,282,438.
NASDAQ Advances 1,478,declines 1,116,unchanged 158,New highs 10,New Lows 27.
Volume 1,236,099,722.
TSX Advances 529,declines 806,unchanged 283,Volume 1,299,661,886.
TSX Venture Exchange Advances 226,Declines 311,Unchanged 292,Volume 77,547,442.

FOMC:
FED is buying up to $750 BILLION in agency Mortgage backed securities.
FED will buy up to $300 BILLION in long term Treasury securities over next 6 months.
FED to bring total purchases of securities up to $1.25 TRILLION this year.
Expects inflation to remain subdued,risk remains for weaker growth.
Latest vote on policy actions were unanimous.
Rates will stay low for an extended period.
Economy has continued to contract since JANUARY meeting.
Anticipates expanding range of eligible collateral for TALF.

WRAPUP,NEWS,STATS
Dow -138 points at low today.
Dow +176 points at high today.
Dow +1.23% today Volume 584,015,713.
Nasdaq +1.99% today Volume 2,147,483,648.
S&P 500 +2.09% today Volume N/A

Major Averages on pace for 2nd consecutive weekly gain.
Stocks,Treasuries give back much of post FOMC decision gains.
FED rally fades.
Nasdaq now on pace for best monthly percentage gain since OCT 2003.
Dow on pace for best monthly percentage gain since APR 2007.
S&P 500 on pace for best monthly percentage gain sin APR 2003.
Dow,S&P 500,Nasdaq touch highest level in over a month.

RECORD LOWS DOW
-Sept 30,1996 5,882.17
-Oct 30,1996 5,993.23
-Nov 6,1996 6,177.71
-Dec 16,1996 6,268.35
-Apr 15,1997 6,587.16
-Apr 21,1997 6,660.21
-Apr 28,1997 6,783.02
-May 1,1997 6,976.48
-May 7,1997 7,085.65

RECORD LOWS S&P 500
-Sept 5,1996 649.44
-Sept 6,1996 655.68
-Sept 11,1996 667.28
-Sept 12,1996 671.13
-Oct 1,1996 689.08
-Oct 28,1996 697.26
-Nov 4,1996 706.73
-Nov 5,1996 714.14
-Dec 17,1996 726.04

PETER SCHIFF WAS RIGHT - VIDEO
http://www.youtube.com/watch?v=2I0QN-FYkpw&eurl=http://britanniaradio.blogspot.com/2009/03/peter-schiff-why-meltdown-should-have.html&feature=player_embedded
PETER SCHIFF NOW VIDEO
http://www.youtube.com/watch?v=EgMclXX5msc&eurl=http://britanniaradio.blogspot.com/2009/03/peter-schiff-why-meltdown-should-have.html&feature=player_embedded

Misdirected Bailout Rage Sets Pretext For New Financial World Order
Greedy Wall St Execs are flotsam jetsam compared to global banking elites
Steve Watson Infowars.net Tuesday, March 17, 2009

A so called bailout backlash, a huge rise in public antagonism toward banks and Wall Street, is set to provide the Obama administration and the governments of the G20 nations a pretext to usher in a new era of international centralization and control over financial practices and institutions. The backlash or bailout rage as others have dubbed it, has been further heightened by revelations regarding AIG's squandering of almost $100 billion in taxpayer rescue funding - which it siphoned off to Goldman Sachs and a number of European banks - in addition to the company's plan to continue issuing massive bonuses to the people in the very division that were responsible for it's spiraling derivative-driven downturn. The intention to use such practices to push for increased authoritative regulation is clear. Mr. Obama’s advisers argued that to at least some extent, this was a sentiment they could tap to push through his measures in Congress,reported The New York Times yesterday. However, the Times article also highlights the fine line that Obama and other heads of state must tread in utilizing such backlash for their own gain. The danger, aides said, is that if he were to become identified as an advocate for the banks and Wall Street, people could take out their anger on him.This is the stumbling block that must be overcome in order to uncover the real solutions to the induced global financial collapse. While the practices of those at AIG, Goldman Sachs and their ilk are abhorrent, they represent a mere drop in the ocean compared to the actions of our governments and their central bank bedfellows, who have provided for such circumstances in the first instance anyway. The Federal Reserve still refuses to answer specific questions about where $2 trillion in bailout funds has gone, a subject that Bloomberg News sued the Fed simply to try and discover. Staggering scenes unfolded two weeks ago at a Senate budget Committee meeting when Federal Reserve Chairman Ben Bernanke arrogantly refused to state where any of the bailout money had gone despite repeated questioning by U.S. Senator Bernie Sanders.

The economic stimulus is the latest phase of an overarching effort to foment another Great Depression, or rather a Greater Depression. It is a debt and inflation tool designed to pump up another bubble in the economy. It is a built-in demolition of an already stressed economy. It is how the global elite and the banksters will take control and create a world banking empire and one-world government that is accountable to no one.It is blatantly apparent that Obama is merely one of the select frontmen for this, an agenda which is truly global in scale. As we have previously highlighted, the elite have exploited the problem that they created to push for increased regulation of the world economic system in the pursuit of a de-facto global financial dictatorship. The swift and ruthless exploitation of the economic meltdown on behalf of globalists and central banks revolves around their drive to move towards a one world currency system and an unprecedented centralization of global financial power, a fact that financial analysts are finally beginning to realise. Last week Ben Bernanke told an elite gathering at the Council on Foreign Relations that a new overarching financial authority should be created and empowered with sweeping new regulatory responsibilities. Such a suggestion echoes that of über elitist Paul Volcker, an Obama adviser and former Fed chairman, who has consistently called for regulatory crackdowns, along with other members of the elite Group of Thirty and the Trilateral Commission. During Volcker’s address at the Columbia University’s Center for Capitalism and Society last month, he said only new forms of international financial regulation will save us from the yawning catastrophe. All banks must be supervised and regulated, but those of systemic significance around the world, which, almost inevitably… are international, they’re not just national, will be subject to a particular layer of supervision, said Volcker. British Prime Minister Gordon Brown, EU heads such as Joaquin Almunia and establishment media outlets like the Wall Street Journal amongst many others have all continually used the economic crisis as an excuse to argue for greater financial power, a new world economic order in which control is concentrated into fewer hands - with the IMF and the World Bank enjoying the spoils.UK Business Secretary and top Bilderberg member Peter Mandelson has also pushed for a Bretton Woods for this century, to help build the machinery of global economic governance.

Former UK Prime Minister Tony Blair, German Chancellor Angela Merkel and French President Nicolas Sarkozy all made the same appeal at a conference in Paris on the future of capitalism earlier this year.Merkel called for the creation of a new global economic body under the UN, similar to the Security Council, to judge government policy.Sarkozy called for a new world, new capitalism during his speech, as he commented In capitalism of the 21st century, there is room for the state.Meanwhile, Blair called for a new financial order which he said should be constructed upon values other than the maximum short-term profit.More of the same appeals are set to be made this weekend at the meeting of the G20 in England.The globalists created the problem of wildly irresponsible fractional reserve banking, the debt bubble and the credit crunch by ceaselessly inflating the money supply and now they are offering their solution to the crisis by posing as the saviors and promising to fix the crisis, but only if complete control of the global financial system be signed over to them. As Ron Paul, Peter Schiff and their ilk have tirelessly argued, the only way to solve the financial crisis is to allow incompetent banks and companies to fail, not to reward their misdeeds by giving them billions in taxpayer money. The only way to re-capitalize the world is to provide incentives for people to work hard and save money, not by creating more credit out of thin air, which is what caused the problem in the first place.The globalists’ call for a centralized global economic order has nothing to do with providing solutions to the crisis but everything to do with providing themselves with more power and control over the world's financial system.

POST BANKS
http://www.snp.org/node/15005
http://www.neweconomics.org/gen/

2009-03-17 SNP Postal Affairs spokesperson, Mike Weir MP, has backed the campaign for the creation of Post Banks.

The Post Bank concept is backed by organisations as diverse as the Federation of Small Business, New Economics Foundation and the Communications Workers Union as well as from members across all political parties. It is a system that exists in other European countries. Commenting on the move Mr Weir said the concept of a Post Bank offered a chance for local post offices to extend services and offer financial services to many excluded from the larger banks.Mr Weir said: The closure programme has decimated the number of Post Offices across the country. In many of these communities the traditional banks have also long since gone. We need to look to the future and see how new services can be introduced at the remaining post offices to build on the network for the future and also to provide much needed financial services.

In many communities small businesses are finding it increasingly difficult to get finance from the large banks, despite the fact that they are now largely owned by the taxpayer. It is also clear that the large banks really do not always wish to engage with small savers and borrowers, their deals are all targeted at those who can deposit large sums every month. The Post Bank concept gives the opportunity to create a bank that will concentrate on small savers and small businesses, providing essential services in our communities. It is ironic that we are looking to recreate something that existed before it was sold off by the last Tory administration!
Note. Details of the proposal can be downloaded from www.neweconomics.org

New coalition launches Post Bank campaign As the Government struggles to get to grips with the financial crisis, a comprehensive proposal for a new Post Bank to run as part of the Post Office Network is launched today (Tuesday 17 March) by a new coalition of trade unions, a business organisation, pensioner and pressure groups and charities.

The proposal for the Post Bank will be formally launched at a Parliamentary reception hosted by Jon Cruddas MP this afternoon, with cross-party speakers including Pat McFadden, Minister for Employment and Post Offices, Vince Cable, Deputy Leader of the Liberal Democrats.

The model for a Post Bank proposed by the coalition would:

provide more financial services to people and businesses currently not served by high street lenders. strengthen the role of post offices and the Post Office Network making it more viable, creating new job opportunities, and securing its role for the future, ensure a stable source of finance in the heart of communities, particularly for the three million people still not using banks and the many small businesses looking for alternative sources of finance, link the productive economy with finance through a return to the form of relationship banking abandoned by our biggest banks
The Post Office and its network of 11,500 branches (almost twice the number of the major high street banks combined) is a unique national resource which communities, businesses and individuals around the UK depend on. The Post Bank coalition believes there is a unique opportunity to answer both concerns around secure and equitable finance and the future of the post office network by setting up a Post Bank.

Evidence from the coalition members demonstrates the clear need for a local banking infrastructure through a Post Bank:Around three million people are still denied access to basic finance in the UK, including the most disadvantaged, pensioners and those in very remote rural areas. The dynamic small businesses that pound for pound create more jobs than big business, are experiencing an increase in the cost of new credit through the high street banks and many are looking for alternative sources of finance to help them through the recession 38 per cent of small firms would consider banking with a Post Bank built on the Post Office Network. The Post Bank which would be established with Government funding, supported for example by the issue of local bonds, would offer a variety of finance services through post office branches and online would address these key concerns. Instead of using Government money to service existing bad debt, the Post Bank would provide stable finance where it is needed most, in the heart of our local economies.The Government must now seize this opportunity and build on the foundations of the Post Office network to create a Post Bank that works for the people and businesses of the UK.

Quotations:

Billy Hayes, CWU general secretary, said: The Post Bank is the right proposal at the right time politically and industrially. It answers the needs of the financially excluded and will appeal to many in this time of economic uncertainty. The Post bank will be a true People’s Bank meeting the needs of society and business alike and will bring crucial security to the post office network. The government must move swiftly to endorse this timely proposal.

John Wright, National Chairman of the Federation of Small Businesses said:Small businesses are completely reliant on the Post Office network with 80 per cent passing their letters and parcels through the Post Office and 47 per cent visiting a post office a couple of times each week. Most Sub Post Offices are run like small businesses, and keeping the network alive by establishing Post Bank would not only retain jobs but could also, we estimate, create 11,000 new jobs.

Lindsay Mackie, campaign co-ordinator at nef (the new economics foundation) said: The Post Bank Coalition proves that the idea of a trusted, fair and accessible bank based on the valued Post Office network has wide support across British society. We think that our proposal is an example of the radical re-thinking of our financial institutions that the Government should be working on urgently. In fact, the failure to do so would leave local communities, local economies and the thousands of small businesses that are the lifeblood of UK plc, very vulnerable

Paul Reuter, Unite national officer, said: Unite welcomes the valuable work of the Post Bank Coalition. There is clearly an appetite for a banking network that would reverse the trend of exclusion of local communities and improve services to small businesses, whilst at the same time supporting and maintaining the Post Office network. The experience of other established Post Banks in Europe are successful examples. The Post Bank - at the People's Post Office offers an opportunity for social inclusion, security and innovation in the banking sector which Government must endorse.

Frank Cooper, President, National Pensioners Convention, said: The Post Office network provides an everyday lifeline to millions of older people, many of whom rely on the services it offers and its valued place in local communities. Recently pensioners have lost faith in the financial sector and the launch of a new People's Bank at the Post Office will offer some much needed security to those who feel their money is currently under threat.

Tim Helweg-Larson, Director, Public Interest Research Centre said: The Post Office has long provided the public with a face-to-face means of investing their money securely, in Government-backed pension funds and bonds. It also offers the perfect means of leveraging investment for a new, renewable and sustainable energy infrastructure at this critical time. PIRC fully supports the goals of the Post Bank Coalition, which will be essential in providing local communities and small businesses with the financial security they so urgently require.

Foreign ministers haggle over pipeline funding
VALENTINA POP 17.03.2009 @ 06:41 CET

EUOBSERVER/BRUSSELS – EU foreign ministers on Monday failed to reach an agreement over energy and broadband projects worth €5 billion, leaving the decision for the top level summit later this week.The proposals were put forward by the European Commission as part of the economic recovery package, as well as a response to the recent gas crisis caused when Gazprom cut off supplies to Ukraine in the early weeks of January.We did not reach a decision yet. Some member states expressed the need to look at the package again. The presidency has said it will do a final effort and propose a new compromise, and I urged my colleagues to act in the spirit of responsibility and solidarity,Czech deputy-premier for EU affairs Alexander Vondra told a press conference.We still have time to reach an agreement at the EU council, so that the [European Parliament] can give its say until the legislative mandate. But if we fail to find an agreement this week, then the credibility of everybody will be put to question. We can't afford this, it's a collective effort,he added.Mr Vondra explained that there was a strong group of countries who wanted the so-called Nabucco pipeline, aimed at bringing Caspian gas directly to Europe via Turkey, to be on the list to receive money. Initially earmarked with €250 million, Nabucco was downgraded to €200 and in the latest draft its name was replaced with the broader term Southern corridor, referring also to a Turkey-Greece-Italy pipeline.Earlier on Monday, Romanian foreign minister Cristian Diaconescu said his country would not accept this replacement and could not vote the projects list unless Nabucco was on it. He also said Austria, Poland and Slovakia were supporting this position.We cannot understand which political interest is served by the way Nabucco is being dealt with," Mr Diaconescu said at a press conference.

Turkish bazaar

With 27 member states each aiming to get as much funding as possible for their own energy projects, haggling among capitals had reached the Turkish bazaar stage, an EU official told this website. Germany, for instance, wanted the controversial Russian-German gas pipeline Nord Stream to be included among the funded projects.But the official argument used by Germany to oppose the projects was different, according to an EU diplomat. Berlin was arguing that in order for the projects to have a real impact against the effects of the current economic crisis, they should be funded in 2009 and 2010, not up until 2015, as the commission has proposed. Almost half of the member states opposed the projects, but for differing reasons, the diplomat added. Some referred to regional imbalances – alluding to the fact that the countries most hit by the Russian gas cuts, like Bulgaria or Slovakia, would only get some tens of millions of euro, while others, like France and Italy, are in line for several hundred million euro.Other countries objected to specific projects. One group opposed further cuts in Nabucco's allocation, while a third group, including Germany, had doubts concerning the economic rationale of state funding for private projects, especially when the jobs created would be later than 2009-2010.

China Sends Obama a Clear Message
by Tony Sagami 03-17-09

What would happen if your boss cut your salary, you had no savings, and none of the banks or credit card companies would lend you any money? You’d be in some deep doo-doo, wouldn’t you? Well … that’s exactly the situation the U.S. is potentially staring at if foreign governments decide they don’t want to loan us any more money by buying U.S. Treasury and other government-backed bonds.And who buys most of our bonds? China and Japan …At the end of 2008, China owned $727.4 billion worth of U.S. Treasury bonds. And Japan was second, at $626 billion.Japan has drastically curtailed buying U.S. bonds now that its economy is in shambles. But China has been — and continues to be — the most important lender to the U.S., essentially funding a big chunk of President Obama’s $787-billion economic stimulus plan.

The problem is …China is Re-Thinking the Wisdom Of Holding So Much U.S. Debt.

Chinese Premier Wen Jiabao is worried about the stability of China’s huge portfolio of U.S. government bonds. Chinese Premier Wen Jiabao, speaking at the closing press conference of China’s National People’s Congress — China’s annual legislative session — dropped this verbal bomb on the Obama administration last week:To be honest, I am definitely a little worried. We have loaned huge amounts of money to the United States, so of course, we have to be concerned. We hope the United States honors its word and ensures the safety of Chinese assets.I highly doubt that those remarks were impromptu. They are a clear message to the Obama administration that it needs to stop spending like a drunken sailor if it expects the rest of the world to buy U.S. government bonds.The line of Chinese policymakers, economists, and scholars voicing concerns about investing too much of their country’s $2 trillion surplus in U.S. debt is growing longer and longer. Many are urging diversifying out of U.S. bonds and into more tangible assets such as natural resources and gold.

The reason is simple:

There is an expectation that U.S. bonds are headed for a big drop in value because we are simply printing too much money to fund our stimulus spending spree.In fact, the Chinese are already starting to move out of U.S. bonds …Last summer, China’s big state-owned banks — such as the Bank of China and the Bank of Communications — began dramatically reducing their holdings in Fannie Mae and Freddie Mac debt.It turns out the Chinese made a pretty savvy move … Fannie Mae and Freddie Mac bonds have gotten annihilated since then.Now, the Chinese are concerned that U.S. Treasury debt could suffer as well. So what can you do if you think the Chinese and Premier Wen Jiaboa are right?

Four Safe Hiding Spots To Consider:Safe Hiding Spot #1 —Shorten-up on maturities …
Long-term bonds are the last thing you’ll want to be holding if Obama’s administration keeps spending like a drunken sailor. If you’re a fixed-income investor, you could shorten the maturities of your bond portfolio. The Obama administration can’t spend, spend, spend without creating a big inflationary problem down the road. That means long-term bonds are the very last thing you want to be holding when inflation takes off.

Safe Hiding Spot #2 — Funds that profit from rising interest rates …

As the mountain of debt shoots to the moon and the safety of U.S. obligations comes under attack, the Treasury will likely have to boost interest rates to get investors to buy its bonds. And there are mutual funds that could make you richer along the way. For example, the Rydex Inverse Gov Long Bond Strategy (RYJUX) fund and the ProFunds Rising Rates Opportunity (RRPIX) fund are meant to profit from rising Treasury bond interest rates.

Safe Hiding Spot #3 — This fund offers protection against a tumbling U.S. dollar …

Another high-profit strategy is to bet that the U.S. dollar is headed for trouble. The Merck Hard Currency (MERKX) fund invests in the currencies of countries with the strongest economies and budget surpluses and could do very well if the U.S. dollar falls. Subscribers of my Asia Stock Alert already own this fund.

Safe Hiding Spot #4 — Non-dollar debt …

I believe the most lucrative strategy of all will be investing in long-term, non-dollar denominated debt of countries with prudent fiscal and monetary practices. International bond funds, like the T. Rowe Price International Bond (RPIBX) or the American Century International Bond (BEGBX), could be big winners.To sum it up: If I could make one and only one prediction for the next year, it would be that the U.S. dollar is going lower. A lot lower.And if I’m right, any of the above safe hiding spots should do very, very well.Best wishes,Tony.

Sino-EU relations on rocky road to recovery
ANDREW WILLIS 17.03.2009 @ 17:39 CET

EUOBSERVER / BRUSSELS - Securing good political relations between the European Union and the Peoples' Republic of China is not something that can be achieved overnight. One is a heterogeneous hotchpotch of democratically elected governments, the other, a one-party state where criticism of the communist leadership is rarely tolerated.
Nevertheless, the two sides had made great strides towards deepening ties until a cancelled summit last December seemed to undo much of the progress.The decision was prompted by French president Nicholas Sarkozy's decision to meet with the Dali Lama, the Tibetan spiritual leader, towards the end of last year, at a time when France held the rotating presidency of the council of ministers. At the time, European Commission president, Jose Manuel Barroso, expressed his frustration by saying: frankly there was no reason for this decision.Things have improved since then, helped in part by the economic crisis says Belgian liberal MEP, Dirk Sterckx, who heads the European Parliament's delegation to China. I think things are getting better, he told EUobserver in an interview.Everybody realises that this is not a time to quarrel but a time to work together.Indeed 2009 may see a record two EU-China summits taking place, one planned for the second half of May under the Czech presidency and a possible second one under the Swedish presidency in the latter half of the year.

The ongoing negotiations to upgrade formal relations between the two sides, currently governed by the 1985 Trade and Cooperation Agreement, to a Partnership and Cooperation Agreement (PCA), are a sign of good diplomatic health. It is something formal but it is a very clear signal on how far you want to go as partners, Mr Sterckx says of the PCA.I think it would be a bad thing if these talks collapsed.Of course it takes time because it's a difficult negotiation. If you want to have this kind of agreement you bring your collaboration one step higher which means that you don't just talk about trade. You also talk about political subjects.

Tibet

Despite the economic crisis pushing the two sides closer together, one political subject in particular continues to frustrate the drive for better relations.Last Thursday, MEPs adopted a resolution urging the Chinese government to resume talks with the Dali Lama's representatives and negotiate a positive, meaningful change in Tibet,not ruling out autonomy for the region.The move has gone down very badly with the Chinese. They are cross about our position, says Mr Sterckx of the EP resolution designed to mark the 50th Anniversary of the Tibet uprising against Chinese rule that resulted in the Dali Lami's exile to India. I hope we can come closer to a negotiated agreement in Tibet, but the Chinese say there is no agreement to be made. You have these two views and it's very difficult to get a good discussion about this, it makes them very nervous,he said. The Dalai Lama's envoys released a memorandum on autonomy, which was presented to Chinese officials during the latest and eighth round of dialogue last November in Beijing. Last week's European Parliament resolution called on the Chinese government to consider the memorandum as a basis for discussions and equally called on the Czech presidency to adopt a similar declaration. I would be surprised [if they do],Mr Sterckx added.

Rearmament

Such is the debate on Tibet that one issue normally guaranteed to raise political hackles has received little attention in recent months. China's defense spending rose by 17.6 percent last year, but the EU appears unconcerned by this. If you look at military spending, it is of course growing in China but it is at a much lower level than for instance that of the United States, says Mr Sterckx, who also points to the very low number of Chinese soldiers on foreign soil. I hope that we don't get into an arms race as that would be a very useless thing to do. But of course there is the historical frustration of China having lost over the last two hundred years a large part of its territory to people who were militarily stronger than they were.Despite this hang-up, he feels the Chinese move is this area is not a threat to Europe.It is difficult to get information on this but, as far as I read, they are using a lot of the money to modernize rather than to expand their forces,he explained.

PUSH TO AUDIT FEDERAL RESERVE GAINS STEAM
http://www.youtube.com/watch?v=X_aZn6wqAdQ&eurl=http://wnd.com/index.php?fa=PAGE.view&pageId=91999&feature=player_embedded

MONEYNETDAILY Push to audit Federal Reserve gains steam,Lawmakers join call to examine nation's money controllers March 16, 2009 9:49 pm Eastern By Drew Zahn
2009 WorldNetDaily

U.S. Rep. Ron Paul, R-Texa

A bill calling for the comptroller general of the United States to audit the private Federal Reserve is gaining momentum in Washington, D.C., as more and more representatives add their names to its bipartisan support. As WND reported, U.S. Rep. Ron Paul, R-Texas, introduced last month H.R. 1207, the Federal Reserve Transparency Act of 2009, a bill requiring that an audit of both the Fed's Board of Governors and the Federal Reserve Banks be completed and reported to Congress before the end of 2010. Paul was joined at the time of introduction by 11 other Republican and Democratic co-sponsors. Since its introduction, 17 additional U.S. representatives have added their names as co-sponsors, bringing the total to 29 legislators seeking the audit.

Rep. Paul has been a harsh critic of the Federal Reserve, even seeking to abolish the private money-control system, arguing that Congress should reassert its constitutional authority over monetary policy. The Constitution, Paul said, gives Congress, not the private Federal Reserve, the authority to coin money and regulate the value of the currency.Paul explained his advocacy for the H.R. 1207 audit in the U.S. House: Throughout its nearly 100-year history, the Federal Reserve has presided over the near-complete destruction of the United States dollar, the Texas Republican said. Since 1913 the dollar has lost over 95 percent of its purchasing power, aided and abetted by the Federal Reserve's loose monetary policy. How long will we as a Congress stand idly by while hard-working Americans see their savings eaten away by inflation? Only big-spending politicians and politically favored bankers benefit from inflation,he said. Paul called oversight of the Fed long overdue.

You've never needed to understand money like you need to understand it now! Web of Debt: The Shocking Truth About Our Money System and How We Can Break Free unravels the deception of the Federal Reserve and presents a crystal clear picture of the financial abyss towards which we are heading.Since its inception, the Federal Reserve has always operated in the shadows, without sufficient scrutiny or oversight of its operations,he continued. The Federal Reserve can enter into agreements with foreign central banks and foreign governments, and the GAO is prohibited from auditing or even seeing these agreements. Why should a government – established agency, whose police force has federal law enforcement powers, and whose notes have legal tender status in this country, be allowed to enter into agreements with foreign powers and foreign banking institutions with no oversight? Paul said H.R. 1207, which has been referred to the House Committee of Financial Services, would achieve much-needed transparency of the Federal Reserve.Paul talked at the recent Conservative Political Action Conference, or CPAC, in Washington about his concerns regarding the Fed. In his weekly online column, Paul also said the Founding Fathers intended only gold and silver to be used as currency, but that long since has been abandoned in favor of a monetary system essentially orchestrated in secret. People are demanding answers and explanations for our economic malaise, and we should settle for nothing less than the whole truth on monetary policy,he said. WND reported last month on Paul's continuing effort to abolish the institution. Paul said every problem in the economy, from the Great Depression, to the stagflation of the 70s, to the current economic crisis caused by the housing bubble,can be traced to Federal Reserve policy. Paul's abolition plan calls for the director of the Office of Management and Budget to liquidate Fed assets in an orderly manner so as to achieve as expeditious a liquidation as may be practical while maximizing the return to the Treasury.

Columnist and commentator Chuck Baldwin believes it's about time.

We've seen money go out the back door of this government unlike any time in the history of our country,' Senator Byron Dorgan, a North Dakota Democrat, said on the Senate floor. 'Nobody knows what went out of the Federal Reserve Board, to whom and for what purpose. How much from the FDIC? How much from TARP? When? Why? Baldwin wrote. Senator Dorgan is exactly right. No one oversees the Fed. The Fed is held accountable to absolutely nobody, Baldwin continued. But Senator Dorgan (as with everyone else in Congress) has no one to blame but himself. Ever since the Marxist, E. Mandell House, convinced President Woodrow Wilson to create the Federal Reserve in 1913, the Congress of the United States has had virtually nothing to do with the way our fiscal policies are managed. The Fed (which is not even a government agency, but rather a private corporation consisting of mostly foreign bankers) dictates America's financial policies.Baldwin cites the U.S. Constitution itself. In Article I, Section 8, Paragraph 5, it states Congress has the authority to coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures.Columnist Jacob Hornberger last year noted that while Paul's abolition plan is considered wacky by some, at least two Nobel Prize-winning economists had the same idea. Economists Milton Friedman and Friedrich Hayek called for the abolition of the Fed during their careers, Hornberger notes.While Friedman spent much of his life advocating externally imposed constraints on the Fed's power to expand the money supply, his first wish was to have the Fed abolished, as he pointed out in a 1995 Reason magazine interview. In his book, Denationalization of Money: An Analysis of the Theory and Practice of Concurrent Currencies,Hayek advocated a free-market monetary system of competing currencies,said Hornberger.Most Americans probably still believe that the Great Depression was caused by the failure of the free-enterprise system.It is a false belief. The truth is that the worst economic disaster in American history was caused by the Federal Reserve. Give current Fed Chairman Ben Bernanke credit for publicly acknowledging that fact in a speech delivered in 2002 commemorating Friedman's 90th birthday,Hornberger said.

Nobel-winning economist says EU stimulus inadequate LEIGH PHILLIPS
17.03.2009 @ 17:39 CET

EUOBSERVER / BRUSSELS - Nobel-prize-winning economist Paul Krugman told Brussels on Tuesday (17 March) that the European Union is not spending enough on its fiscal stimulus programmes. Where the EU committed €200 billion in a recovery plan last year, Mr Krugman said Brussels in fact needs to spend around €500 billion this year and up to a trillion in total over the next three years to get the economy going again.My back of the envelope math says on both sides of the Atlantic we should be having a stimulus that peaks at four percent of GDP annually, he told reporters after meeting with industry commissioner Guenter Verheugen.The American economist said both the EU and the US were under-spending, with the US plan amounting to about 2.5 percent of GDP and the EU plan weighing in at around 1.5 percent of GDP.The European Commission disputed Mr Krugman's analysis, saying that once Europe's more generous welfare expenditures - or automatic stabilisers - are taken into account, Europe's total stimulus represented around 3.3 percent of GDP.We think it's a little bit too early to make judgment whether the stimulus packages we have enacted will work, said Mr Verheugen at the same press conference.I don't see that a second stimulus package will be prepared. I just don't see any room.Commission spokesperson Johanes Laitenberger later told reporters that much of the announced European stimulus had yet to be implemented and that any assessment of whether the package has worked should wait until the monies have been spent.Mr Krugman conceded that in Europe there will be less sheer misery than in the US, but added that said, I'm disappointed even with the Obama administration's plan.I'm not holding up the US as a role model, he continued.

He said that Washington should be committing slightly more than the EU, around €600 billion this year.Calling both stimulus plans inadequate, the economist, who is also a columnist for the New York Times, said: The US stimulus package is $800 billion (€616 billion) over three years. It should be $1.2-$1.3 trillion (€924 billion - €1 trillion) and the Europeans should be doing the same thing.Instead, he said, We are all following the pattern of Japan in the 1990s.In recent days, a minor breach has opened up across the Atlantic, with the United States arguing that more stimulus is needed, and France and Germany saying publicly that they feel that enough has been spent. The two European powers want the focus for the upcoming G20 meeting in London to tackle the crisis should instead be on tougher international regulation of the financial sector.European leaders are afraid that the public spending will result in substantially higher inflation rates in the coming years.Mr Krugman said that on the contrary, Europe is facing the likelihood of deflation. [European Central Bank chief] Mr Trichet is still saying there is no risk of deflation in Europe, which I think is weirdly complacent,he later said at a seminar in the European capital.The nobel laureate blamed the lack of a centralised political and economic authority for the situation in Europe.Europe has a real problem. There is no central authority, he said.It would be really helpful right now if Brussels had more authority.Mr Krugman, a supporter of the US Democratic Party, called upon the ghost of British interventionist economist John Maynard Keynes to inspire Europe.Keynes is our best guide to what's going on. Reading his books seems to be a more accurate description of current events compared to that of many of today's economists.

Sweden preparing for difficult EU presidency
ELITSA VUCHEVA 17.03.2009 @ 07:10 CET

EUOBSERVER / BRUSSELS – Sweden has set itself ambitious goals for its six-month stint at the EU helm but the upcoming European elections and uncertainty about when the next EU commission will be appointed will make its presidency quite difficult, the country's minister for European affairs has said.Sweden is to take over the EU chair from the Czech Republic on 1 July until the end of the year. The period coincides with the end of the mandate of the current European Commission, due in October, and follows the European Parliament elections in June.Two key players and very important partners of the presidency – the parliament and the commission – will not be fully operational until quite some time into the autumn, which of course complicates matters, Swedish EU minister Cecilia Malmstrom said at a debate organised by Brussels-based think-tank The Centre on Monday (16 March).To the institutional limbo, she said, should be added the economic crisis and the planned second referendum in Ireland on the Lisbon Treaty, set for October. It is objectively [going to be] a quite difficult presidency, Ms Malmstrom said.But she urged the appointment of the new commission president not to be delayed. We hope we can reach an agreement with the other member states to appoint a new president of the commission already in June after the European election… so that at least we have a president,she said.

That president can then work with the outgoing commission while consulting with the different capitals in order to try to form a commission, she added.French president Nicolas Sarkozy had earlier this month said that a new commission chief should not be appointed before Ireland re-votes on the Lisbon treaty.The main issue for the commission raised by the Irish referendum is its size. If the Irish reject the Lisbon Treaty, then the number of commissioners has to be reduced to less than the number of member states – the number is not specified in the current Nice Treaty. If the Lisbon Treaty is accepted the number of commissioners remains the same, following a political agreement by EU leaders last year.

Strong emphasis on climate

Despite the challenges ahead, Sweden says it is preparing an ambitious agenda for its six months at the head of the 27-nation bloc.A strong emphasis will be put on climate and on preparing a coordinated EU position for the Copenhagen United Nations conference on climate change taking place in December.The most important objective is to do whatever we can… to make sure that Europe speaks with one voice in Copenhagen and that we can maybe if possible have a new global agreement to replace the current Kyoto protocol, which is due to expire in two years. If the EU sticks together – and I think we will – there is a chance that we can reach an agreement. If we don't, there is no chance at all,said Ms Malmstrom.Another urgent challenge for the EU's environment goals is see how the climate package the bloc's leaders agreed last December is to be financed.The short-time challenge is the financing, I would say, but then also to make concrete what we decided in December… It will be extremely difficult, but we are responsible to the whole world, this is our generation's biggest challenge, Ms Malmstrom stressed.Improving the EU's commitment to the Baltic Sea will also be among the Swedish presidency's priorities. The so-called Baltic Sea Strategy is about seeing how we can use the EU as a tool to overcome the enormous, huge environmental problems of the Baltic Sea, but also use the fact that it's quite a dynamic area,Ms Malmstrom said.

Enlargement…to the North?

Stockholm is also hoping to achieve results on EU enlargement, notably by bringing Croatia's EU talks to an end and by opening a chapter or two of Turkey's EU accession package.But besides the traditional focus on the western Balkan countries and Turkey, Sweden would also gladly welcome a possible EU application by Iceland, Ms Malmstrom said.Maybe as a Swede I think it would be very nice to receive an application from Iceland. But that is of course up to them,she noted.Iceland's financial meltdown caused by the global economic crisis has raised debate in the country about the merits of EU membership, with the issue expected to play an important part in the campaign ahead of next month's early elections.

EU parliament to run glitzy campaign for June elections
HONOR MAHONY 17.03.2009 @ 17:36 CET

EUOBSERVER / BRUSSELS – Stung by years of low turnout and lacklustre national campaigns, the European Parliament has launched a glossy campaign with a single message in a bid to make European politics count among the bloc's 375 million voters.

Under the slogan European elections, it's your choice, the campaign will feature posters, TV and radio spots and seminars, as well as running on social networking sites such as MySpace and Facebook. It will cost a total of €18 million, or five cents per voter.There will be a series of video recording booths where citizens ran record a message on what they think of the EU, advertisements on 15,000 billboards and election roadshows in Ireland, the UK, Bulgaria, Germany, Spain and Portugal.It is aiming to be a European campaign with a single message common to all member states, in stark contrast to previous European elections, which had the air of 27 separate national election days.The campaign itself will centre around 10 themes, such as consumer, security and energy issues. Each member state will choose four of the 10 on which to run their national platform for the elections, taking place on 4-7 June.This will be the first truly pan-European campaign that our parliament has ever developed, said one of the vice-presidents of the parliament, Spanish MEP Alejo Vidal-Quadras, unveiling the project on 17 March.German Socialist MEP Mechtild Rothe said: We will communicate loud and clear that the European Parliament is important for citizens and it is [their] choice.The main message is that citizens should use their vote carefully, as it could influence a range of policy issues such as the kind of energy Europe has in the future, its approach to immigration or its stance on data protection.Mr Vidal-Quadras said that the parliament was deliberately moving away from emphasising citizens' civic duty to vote, in favour of an original and professional campaign.

Voter apathy

A Berlin-based PR firm has been tasked with bringing voters into the polling booth, with the European Parliament this year likely to receive a huge boost in its legislative powers, if the Lisbon treaty is approved. The new institutional rules would mean that MEPs will in the future co-decide on an array of new areas, including visas, legal immigration, police co-operation, energy security, space policy and tourism.In this legislature alone, it has passed several laws ranging from registering dangerous chemicals to lowering mobile phone charges and opening the postal services through to recognition of medical qualifications and compensation for rail passengers.But although the laws affect almost every facet of citizens' lives, average voter turnout has fallen every year since direct elections began, reaching a low of 45.47 percent in 2004.The voter apathy is generally attributed to citizens' believing that who they vote for does not really matter, while those who do make it to the polls are often tempted to use the European elections to air national grievances.