Thread: Brown - Crisis Is Birth Pangs Of A NWO

Brown warns against 'pessimism'

Gordon Brown has given a wide-ranging speech on the economy

See the Video http://news.bbc.co.uk/2/hi/uk_news/politics/7850649.stm

The economic crisis should be treated as "the difficult birth-pangs of a new global order", with new rules introduced on trade, Gordon Brown says.

The prime minister set out a series of actions designed to "replace fear with confidence" and warned against just "muddling through as pessimists".

During a speech defending his handling of the crisis he also warned against the "deglobalisation threat".

His speech came as a poll suggested the Tory lead had grown to 15% over Labour.

The UK is now officially in recession for the first time since 1991, with many businesses blaming difficulties in obtaining loans for the crisis.

'Fill the gap'

Last week the government announced a scheme to offer banks insurance against losing more money from the bad debts which started the credit crunch.

The Bank of England will also be able to buy up to £50bn worth of assets in companies in all sectors of the economy.

Addressing the Foreign Press Association in London, Mr Brown said such measures were intended to "fill the gap" in lending.

He added: "We face a choice. We could allow this crisis to start a retreat from globalisation.

It will be like turning around a supertanker

George Osborne, Conservatives

"As some want, we could close our markets - for capital, financial services, trade and for labour - and therefore reduce the risks of globalisation.

"But that would reduce global growth, deny us the benefits of global trade and confine millions to global poverty.

"Or we could view the threats and challenges we face today as the difficult birth-pangs of a new global order - and our task now as nothing less than making the transition through a new internationalism to the benefits of an expanding global society - not muddling through as pessimists but making the necessary adjustment to a better future and setting the new rules for this new global order."

'Gloomsters'

He said: "As the downturn spreads across the world, we are, for the first time, seeing cross border flows growing more slowly than domestic flows. And we are seeing banks favouring domestic lending over foreign lending.

"This is a trend which must be halted if we are to avoid the risk of a damaging worldwide spiral of deleveraging and deglobalisation - with adverse consequences for all economies."

Mr Brown received some support for his attempts to brighten the gloom as Barclays Bank shares soared 60% after its chairman and chief executive wrote an open letter to investors saying its profits would be above £5.3bn.

And the director general of the Confederation of British Industry, Richard Lambert, wrote in the Daily Telegraph that "the UK is not about to go bust" and that recent government measures "will be enough to prevent something much worse (than the current recession) - provided we don't allow ourselves to get swept away by the gloomsters".

But SNP spokesman Stewart Hosie described Mr Brown's comments as "meaningless rubbish" designed to deflect criticism from the prime minister.

"Gordon Brown might be better answering why he allowed a credit bubble during his tenure as chancellor or why debt levels were so high that the recession can now only be fought by doubling the national debt to over £1 trillion," he said.

Meanwhile, shadow chancellor George Osborne told the Institute of Chartered Accountants that a Conservative government would make Whitehall more accountable.

'Incentives'

He promised to include a clause on the responsibility to taxpayers in the employment agreements of senior civil servants, with the Civil Service Code being rewritten to incorporate "responsible financial management".

Public sector employees should also be rewarded for suggesting waste-cutting ideas, Mr Osborne added.

He said: "We need a new culture of financial discipline across Whitehall. That means new incentives, new information and new powers of investigation."

Mr Osborne added: "Creating a new culture of financial discipline in Whitehall is not going to be easy. It will be like turning around a supertanker.

"But with a determined political will and the right plans, we can do it. We can turn the Whitehall supertanker and put Britain on the right course."

A ComRes opinion poll for the Independent suggests the Conservatives have increased their lead over Labour to 15 points - from five points last month.

It puts the party on 43%, with Labour on 28% and the Liberal Democrats on 16%. ComRes telephoned 1,012 adults from 21 to 22 January.

http://news.bbc.co.uk/2/hi/uk_news/politics/7850649.stm

Gordon Brown: 'Recession must not lead to a retreat from globalisation'

Prime Minister Gordon Brown is to warn against giving up on globalisation because of the current worldwide financial crisis.

Last Updated: 12:24PM GMT 26 Jan 2009

Watch the Video :

http://link.brightcove.com/services/lin ... 9092407001 http://www.brightcove.com/channel.jsp?c ... 1139053637

In a speech in London ahead of a series of meetings with the heads of world financial institutions and Asian economic powers, Mr Brown will say there must be no retreat into trade protectionism or a "financial mercantilism" which would restrict banking activities like lending to domestic markets.

He will also call for worldwide co-operation to shore up the fragile global financial system.

Speaking a week after launching a second multi-billion bailout package to get the banks lending again, Mr Brown will acknowledge that their ability to operate as he wishes depends not only on their management in the UK but also on getting the international regulatory regime right.

The current turmoil should be regarded as "the difficult birth-pangs of a new global order" which will deliver a better future if the international community makes the right adjustments, he will say.

Mr Brown wants the London summit of the G20 group of major economies which he is chairing in April to secure international co-operation on financial reform, economic expansion and job creation as a response to the global downturn.

After meeting European allies over the last few weeks and speaking to US president Barack Obama on Friday - the first EU leader to do so - he has scheduled a series of meetings over the next 10 days with the prime ministers of G20 states China, South Korea and Japan, as well as heads of international institutions including World Bank president Robert Zoellick, to prepare the way for the April summit.

Just days after the UK officially entered recession by recording a second quarter of negative growth, the Prime Minister will say today that the international community faces a choice that could make the difference between world prosperity and poverty.

"We could allow this crisis to start a retreat from globalisation," he is expected to say. "As some want, we could close our markets - for capital, financial services, trade and for labour - and therefore reduce the risks of globalisation.

"But that would reduce global growth, deny us the benefits of global trade and confine millions to global poverty.

"Or we could view the threats and challenges we face today as the difficult birth-pangs of a new global order - and our task now as nothing less than making the transition through a new internationalism to the benefits of an expanding global society - not muddling through as pessimists but making the necessary adjustment to a better future and setting the new rules for this new global order."

Mr Brown will say that last week's UK bailout package should provide "the key to preventing a deeper and longer recession than we need to have" by reducing banks' uncertainty over bad debts and enabling them to increase lending to businesses and families.

But he is expected to add: "The ability of banks in Britain to operate as we wish depends not only their management at home but on getting regulation right internationally.

"Our banking systems have been shown to be totally interdependent and interconnected. No financial institution anywhere can insulate itself from the shock that started in the US mortgage market earlier this decade. As banks facing losses retreat to their home markets, we have had a loss of lending capacity in every major market."

And he will add: "The fragility of the global financial system must be addressed internationally.

"If what happens to a bank in one country can - within minutes - bring potentially devastating effects on banks in a different continent, then only a truly international response - in policy and governance - can be effective. If we all co-ordinate our response there will be a quicker global and therefore British recovery."

Mr Brown will pledge to "fight hard" to prevent a return to the beggar-thy-neighbour protectionism of the 1930s.

And he will warn: "We also need to ensure we do not exercise a new form of financial mercantilism of retreat into domestic lending and domestic financial markets."

http://www.telegraph.co.uk/finance/fina ... ation.html

As some want, we could close our markets - for capital, financial services, trade and for labour - and therefore reduce the risks of globalisation.

"But that would reduce global growth, deny us the benefits of global trade and confine millions to global poverty.

"Or we could view the threats and challenges we face today as the difficult birth-pangs of a new global order - and our task now as nothing less than making the transition through a new internationalism to the benefits of an expanding global society - not muddling through as pessimists but making the necessary adjustment to a better future and setting the new rules for this new global order."

Sorry, but I never saw the benefits for globalization. Cheap junk in place of quality products and contaminated food in place of what was safe food. Jobs gone abroad and an influx of others to take the jobs we had for the sake of cheap labor.....sorry....more and more it looks likes global poverty long before there's any benefits....that is if that was really the intention......which I seriously doubt.

Originally Posted by crazybird

As some want, we could close our markets - for capital, financial services, trade and for labour - and therefore reduce the risks of globalisation.

"But that would reduce global growth, deny us the benefits of global trade and confine millions to global poverty.

"Or we could view the threats and challenges we face today as the difficult birth-pangs of a new global order - and our task now as nothing less than making the transition through a new internationalism to the benefits of an expanding global society - not muddling through as pessimists but making the necessary adjustment to a better future and setting the new rules for this new global order."

Sorry, but I never saw the benefits for globalization. Cheap junk in place of quality products and contaminated food in place of what was safe food. Jobs gone abroad and an influx of others to take the jobs we had for the sake of cheap labor.....sorry....more and more it looks likes global poverty long before there's any benefits....that is if that was really the intention......which I seriously doubt.

You got that right crazybird!