Posts Tagged ‘Bretton Woods’


February 2, 2009

Monday, February 02, 2009





By Ghulam Muhammed


Trillions of dollars that the western nations are committing to bail out their life support systems of institutionalized slurping of people’s wealth albeit without even slightest noise alerting the victims, are once again another form of highway robbery. The world has to find another alternative to be so captive of the economic system that imposes on them a form of taxation without representation that in its scale has no precedent in history. At Davos, the Status Quo-ists pressed again and again that the world has no prepared alternative to the Bretton Woods. Those who are familiar with the high tension prevailing at Bretton Woods, will not discount how the US gnomes prevailed on the more pragmatic recommendations of Britain’s Lord Keynes, whose ghost is making increased appearances behind the shoulders of all debaters at all levels of economic recovery.  The same railroading tactics that hampered the smooth democratization of world economic system, has once again are appearing to distort once again the future of world economic reorganization. And at the back of all such shenanigans are the American Jewish gnomes, who had recklessly followed their greed instincts and willfully mismanaged the credit system with the foreknowledge that when the US and world economy gets bankrupt, it is they who will rule the roost, it is they would impose their own solutions to first and last benefit their own kind, be that the cabal, nay the mafia of bankers or investment advisers that have pauperized the world, while filling in their coffers. Investors like Warren Buffet and George Soros should be investigated and stolen money should be recovered from them in a ‘System Restore’ exercise and they should be hauled up to face international justice in the manner of war crimes, as their sins of commissions and omissions, their acts of shrewd maneuverings and manipulations, their underhand dealings, their legalized gambling and cornering of the markets has not been mere sideshow but the very essence of the criminalization of world economic system. A world oversight committee of all UN member states should be formed as one country one vote basis, to forestall any hijacking of the future economic system that has have transparent institutions to protect the world from the criminalization of the processes through cartelization and creating virtual monopolies.


A start at reform should start with exposing the role of American Jewish gnomes, who seem to have made a life-style of working at the farthest ends of the systems, so that no authority can touch them. All US or US controlled institutions, from Federal Reserve to IMF and World Bank, should debar all Jewish personal who work in tandem with each other to frustrate any smooth working of the system and are always ganging up to exploit their ubiquitous presence in key spots of the world economic system.


This is not signaling out Jews as a racial profiling exercise, but a fact of life all over the world, that has to be publicly acknowledged and noted by all, but especially those that suffer while the Jews fill in their coffers.


Ghulam Muhammed, Mumbai




United States

An end of hubris

Nov 19th 2008
From The World in 2009 print edition

America will be less powerful, but still the essential nation in creating a new world order, argues Henry Kissinger, a former secretary of state and founder of Kissinger Associates


The most significant event of 2009 will be the transformation of the Washington consensus that market principles trumped national boundaries. The WTO, the IMF and the World Bank defended that system globally. Periodic financial crises were interpreted not as warning signals of what could befall the industrial nations but as aberrations of the developing world to be remedied by domestic stringency—a policy which the advanced countries were not, in the event, prepared to apply to themselves.

The absence of restraint encouraged a speculation whose growing sophistication matched its mounting lack of transparency. An unparalleled period of growth followed, but also the delusion that an economic system could sustain itself via debt indefinitely. In reality, a country could live in such a profligate manner only so long as the rest of the world retained confidence in its economic prescriptions. That period has now ended.

Any economic system, but especially a market economy, produces winners and losers. If the gap between them becomes too great, the losers will organise themselves politically and seek to recast the existing system—within nations and between them. This will be a major theme of 2009.

America’s unique military and political power produced a comparable psychological distortion. The sudden collapse of the Soviet Union tempted the United States to proclaim universal political goals in a world of seeming unipolarity—but objectives were defined by slogans rather than strategic feasibility.

Now that the clay feet of the economic system have been exposed, the gap between a global system for economics and the global political system based on the state must be addressed as a dominant task in 2009. The economy must be put on a sound footing, entitlement programmes reviewed and the national dependence on debt overcome. Hopefully, in the process, past lessons of excessive state control will not be forgotten.

The debate will be over priorities, transcending the longstanding debate between idealism and realism. Economic constraints will oblige America to define its global objectives in terms of a mature concept of the national interest. Of course, a country that has always prided itself on its exceptionalism will not abandon the moral convictions by which it defined its greatness. But America needs to learn to discipline itself into a strategy of gradualism that seeks greatness in the accumulation of the attainable. By the same token, our allies must be prepared to face the necessary rather than confining foreign policy to so-called soft power.

Every major country will be driven by the constraints of the fiscal crisis to re-examine its relationship to America. All—and especially those holding American debt—will be assessing the decisions that brought them to this point. As America narrows its horizons, what is a plausible security system and aimed at what threats? What is the future of capitalism? How, in such circumstances, does the world deal with global challenges, such as nuclear proliferation or climate change?

America will have to learn that world order depends on a structure that participants support because they helped bring it about

America will remain the most powerful country, but will not retain the position of self-proclaimed tutor. As it learns the limits of hegemony, it should define implementing consultation beyond largely American conceptions. The G8 will need a new role to embrace China, India, Brazil and perhaps South Africa.

The immediate challenge

In Iraq, if the surge strategy holds, there must be a diplomatic conference in 2009 to establish principles of non-intervention and define the country’s international responsibilities.

The dilatory diplomacy towards Iran must be brought to a focus. The time available to forestall an Iranian nuclear programme is shrinking and American involvement is essential in defining what we and our allies are prepared to seek and concede and, above all, the penalty to invoke if negotiations reach a stalemate. Failing that, we will have opted to live in a world of an accelerating nuclear arms race and altered parameters of security.

In 2009 the realities of Afghanistan will impose themselves. No outside power has ever prevailed by establishing central rule, as Britain learnt in the 19th century and the Soviet Union in the 20th. The collection of nearly autonomous provinces which define Afghanistan coalesce in opposition to outside attempts to impose central rule. Decentralisation of the current effort is essential.

All this requires a new dialogue between America and the rest of the world. Other countries, while asserting their growing roles, are likely to conclude that a less powerful America still remains indispensable. America will have to learn that world order depends on a structure that participants support because they helped bring it about. If progress is made on these enterprises, 2009 will mark the beginning of a new world order.



November 7, 2008


Friday, November 07, 2008





One of the big imponderable enigmas hovering over Obama’s campaign and his chances of becoming the 44th President of the United State of America was how the Israel Lobby and the neo-cons will let it happen. Obama was able to circumvent two of their most potent instruments of coercion on the Presidential Hopeful: massive funding potential and the united Jewish vote. Obama had very successfully neutralized both, one by collecting small donations from millions through email canvassing and second by dividing the Jewish vote on partisan and economic lines. However, both the Israeli Lobby and the Neo-cons are part and parcel of US nation and at the first opportunity, they will try to infiltrate his administration, to subvert and deflect his inconvenient strains of initiatives that will adversely affect the old neo-con agenda. With placements of people like Dennis Ross in any influential position to influence Obama’s foreign policies which are bound to differ from that of Bush and Neocon, if America has to see the change that he had so emphatically promised to the nation, the ‘evil empire’ is fighting back. One of the latest moves is to taint Arab money and finance as anti-American. The whole world is aware that the massive Sovereign Funds of oil rich Gulf countries are all locked up with the West and there has never been any reference to Islamic Banking conditionalities over any such investments. However, now that the last Bretton Woods has miserably failed due to the greed of the same Neo-con finance manipulators, any new world reorganization will have to find better solutions to the next big crisis and if even a cursory reference is made to even study the relevance of Islamic Banking and Finance to the new World Financial Order, the gnomes have started ganging up on Obama. Obama will have uphill task to put them in place at the very start of his administration. Any pandering to the interests that are responsible to the destruction of America as a economic superpower, will bound to go a long way in reforming the whole mess left by the rogue Bush administration.


The world has tried both the Marxist and the capitalist economic alternatives. In fact, devoid of the human and humane element that Islamic Finance is all about, the old order had played havoc with the lives of billions of people on the surface of the globe. The time has come to give the third alternative a chance to bring in an ethical and moral dimension to how the next financial order should play out. Islamic experts are bound to be represented on the table when the Bretton Woods II is next called in. The world should be prepared for the despoiling role of neo-cons, whose future is all tied up as to how world is messed up and destroyed so that they can pick up the pieces.



Ghulam Muhammed, Mumbai


Expert Warns Obama To Avoid Islamic Finance


Wednesday, November 5, 2008 1:44 PM

By: Dave Eberhart

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Frank Gaffney of the Center for Security Policy warns that the president-elect should avoid financing his great society with tainted Islamic-correct petro dollars, saying their strings might be attached inextricably to the nation’s worst extremist enemies.

With Barack Obama’s victory Tuesday sucking the oxygen from the air, few are focusing on Thursday, the day the U.S. Treasury Department will embrace the so-called “Shariah-Compliant Finance” or SCF.

If “Shariah” doesn’t ring any bells other than sounding foreign and somewhat ominous, it is simply the “religio-political-legal code authoritative Islam seeks to impose worldwide under a global theocracy,” Gaffney said.

The Treasury Department will host a “seminar for the policy community” entitled “Islamic Finance 101,” and it’s all about getting warm and fuzzy with SCF. Co-sponsoring the event is the Islamic Finance Project at Harvard Law School.

Harvard has benefitted mightily from the infusion of millions of dollars from a Wahhabi Saudi prince and his government, Gaffney said.

Yes, it’s all about money.

U.S. financial institutions, reeling from the credit crunch, are hungrily eyeballing more than $1 trillion in petrodollars, including Shariah-compliant bonds, mutual funds, mortgages, insurance, hedge funds, and real estate investment trusts.

Dow Jones Corp. has even created its own index for Islamic-correct investments: the Dow Jones Islamic Index, according to The Coalition to Stop Shariah.

Enter Uncle Sam, the always cash-strapped giant that must feed at any convenient trough these days, regardless of what strings are attached.

And what a trough it is. The global Shariah market is growing at a 15 percent pace, courtesy of the oil boom and resurgence in Islamic fundamentalism, according to the Center for Security Policy. It’s expected to more than double during the next 10 years.

Attractive chunk of available change and maybe even an imperative, but some watchdogs are ringing alarm bells.

Investors Business Daily recently examined Shariah-compliant finance and its involvement with investments and other transactions that have been structured to conform to the orthodox teachings of Islamic law.

“That means they can’t charge or earn interest, the cornerstone of our credit-driven economy,” the business publication advised. “Nor can they take any stake in ‘haram,’ or forbidden, industries, including meat and beverage producers (if they process any pork or alcohol); entertainment; gaming; and interest-based financing.

“Wall Street is jumping into this hot new market oblivious to the risks not just to the bottom line, but to national security. It knows little about Shariah law and is turning to consultants to create ‘ethical’ products to sell.

“Lost in the hype over these Muslim-friendly funds is that they must ‘purify’ their returns by transferring at least 3 percent into Islamic charities, many of which funnel funds to terrorists.”

Bottom line: Shariah law obligates that a sizable portion of “zakat,” or giving — one of the pillars of Islam — go to support jihad. So many of the purification donations generated from Shariah finance could wind up in the hands of our enemy.

Gaffney sees the latest Federal interest in SCF products as leading to dangerous ends.

“Such submission — the literal meaning of ‘Islam’ — is not likely to remain confined long to the Treasury or its sister agencies,” he said. “Thanks to the extraordinary authority conferred on Treasury since September, backed by the $700 billion Troubled Asset Relief, the department is now in a position to impose its embrace of Shariah on the U.S. financial sector.

“The nationalization of Fannie Mae and Freddie Mac, Treasury’s purchase of — at last count — 17 banks and the ability to provide, or withhold, funds from its new slush fund can translate into unprecedented coercive power,” the expert said.

Gaffney has called upon the new president to nix the outgoing administration’s determination to advance the Islamist agenda via such projects as “Islamic Finance 101,” and what flows from them.

He calls the embrace of SCF “the first far-reaching policy decision inherited by the new president-elect.”

Gaffney’s advice: “Pull the plug on Thursday’s indoctrination program and the insidious industry it is meant to foist on the ‘policy community,’ our capital markets, and our country.”

“After all, the object of Shariah is the supplanting of our government and Constitution, through violent means if possible and, until then, through stealthy ones,” he said.

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