Commodity Online: Best-selling author Daniel Estulin states that the key issue to be discussed this week at the G20 Finance Ministers and Central Bank Governors Meeting, being held in St. Andrews, Scotland, is how to bring down the present world financial system through dumping the US dollar. Estulin first reported on this initiative as being deliberated at the most recent Bilderberg meeting held in Greece in May 2009. Estulin says that the success or failure of this callous plan hinges on the ability of the US and UK representatives to convince the Russian, the Chinese and other national governments to go along with their scheme.

Estulin maintains that if the co-conspirators succeed, such sudden devaluation of the US dollar would result in the sinking of the world economy through a chain-reaction collapse of the entire world’s financial system. As discussed during the Bilderberg Group’s super-secret conclave back in May, this breakdown would then be used as an excuse to launch a new world monetary system. G20 leaders are aware that those who run the monetary markets, the monetary system, control the world. That is why today, the world is run through a dominant one-currency monetary system and not by national credit systems.

A severe breakdown crisis would affect every corner of the world and be a prelude to instability, wars and general hostility along financial, geographical and geopolitical lines, affecting not only particular countries but also societies, cultures and whole continents. Such a breakdown could result in a consolidation of the world’s monetary system.

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Group of Ten (G10 eller Tiogruppen). Sammanslutning av industriländer, elva stycken, för samarbete kring internationella finansiella frågor och möjlighet att stödja IMF:s låneresurser. Sverige ingår i G10. Samarbetet involverar i olika former finansdepartement, tillsynsmyndigheter och centralbanker. Ett antal G10-kommittéer har sekretariat i BIS och arbetar med att utveckla standarder för finansiell verksamhet som kan stärka den internationella finansiella stabiliteten.

Källa: Riksbanken

ERM2 är ett växelkurssamarbete mellan euroområdet och de EU-länder som inte deltar i valutaunionen. ERM2 baseras på en fast, men justerbar centralkurs gentemot euron och ett band, ±15 procent, inom vilket valutakursen kan variera. Det går även att avtala om en mindre variationsbredd. Centralkursen bestäms av finansministrarna och centralbankscheferna i de berörda länderna. Mera detaljerade regler för hur växelkurssamarbetet ska fungera finns i ett särskilt avtal mellan centralbankerna i EU-länderna.

Källa: Riksbanken

© Thomas Ramseyer-Volkart
https://www.xing.com/profile/Thomas_RamseyerVolkart
December 30, 2008

Despite huge liquidity injections the worldwide economy is to enter a period of stagnation. Faltering consumers absent from buying all sort of goods. Mainstream US, UK, Spain residents are  not capable to pay down debts. Credits gradually becoming nonperforming dramatically drag down loans as well as bank ratings.

What may happen to the world wide economies and the financial system is perfectly illustraded by some meToo firm’s stock price performance. After its forced sale of the asset management unit the new tune was “back to the core business; back to the roots.”

Retrofitted to the boring meToo group it has ever been for more than 100 years before the daredevil excursion into the field of bancassurance took place it gradually recovered and returned to a steady growth at lower speed.

Facts
metoo group soared at highs in July 1998 at the Stock exchange. The main reason for this was the expected Return on Equity (ROE: 15% to 20%) vagualy promised by managers heavily influenced by the dotcom bubble’s steeply rising quotes. Supported by creative balancesheet managers the topshots almost burst with enthusiasm. But then the imploding dotcom sector had them struggle and finally topple over. Illusions vanished into nirvana; the quotes fell by some 69% from 905 to 84 points.

Meanwhile the phantastic outlook for the banking business – mainly the investment banking – lifted this sector’s prices by 40 points (146%) from lows at 23 in the early 2000s to miraculous levels of 75 points in June 2007. The driver for that was cheap money supplied by almost all the developed countries’ central banks having the debt (government and private) increase to an unrealistic volume led by the long-lasting low interest rate policy of United States’ Bush follower A. Greenspan.

Assumption
The implosion of the US and other countries’ real estate sector – first signs were already given by the stumbling twins Fanny and Ginny in early 2004 – was provoked by the gradually increasing federal reserve (Bernanke) interest reates. The mainstream people were not longer able to pay their interest due nor paying down any debt. People of age above 70 were reported working forced by lacking cash in Florida and elsewhere too.

Real Estate Market 2006 to 2008
The heavily indebted houseowners – with 90% to 120% mortgage credit on their homes – did not substantially lose their money, if not at all. They just depoited their housekeys on the creditsharklike greenhorny bonushot greedy banking clerk’s desk. It is evident that only the citizens – by their dwindling savings as well as the badly managed assets covering their annuities and their possibly destroyed belongings insured – really lost their wealth by institutional investment experts all over the globe.

As a matter of fact the manipulated ignorant kept citizens unwittingly stroke back. By busting their mortgage credits they hit actually  themselves by the means of their troubled pension funds – often only liabilities on their employers’ balance sheets – as well as miserably performing insurance policies’ coverage, direct investments as well as exchange traded funds (ETF) due to mismanaging finance experts.

Conclusion
The stalling financial system which was poorly supported in the first place – e.g. Lehman Brothers’ failure – , swept along the economy and is even shaking the citizens’s faith in the governments around the world.

The actual financial system seems to be more or less antiquated.

Recommendation

1. GOVERNMENTS may ACT not TALK
2. Governments shall not practice demagogy; integrity is wanted
3. Leaders of all kind be clear, honest and transparent
4. Government shall give citizens the incentive to pay down their debts thus being less vulnerable (a lot of students start their earning lives with debts up to USD 40′000)
5. Governements shall explain to citizens as well as to the financial community and have them clearly understand that the actual liquidity injection is like a shot suppressing the truth: the action taken is only for to postpone the financial system’s fatal collapse if not corrected in due time
6. Reasonable austerity – governments to state the  different impacts on the economies – must be announced. As it is common knowledge austerity thus saving – paying down debt, less consuming, saving today and buying tomorrow – always means lower economic growth rates
7. By the aforesaid austerity the basement of a sound long lasting growth – lower than the one of the past decade – is built

The present world peoples’s descendants will be grateful for that !

The Administration starting this will be mentioned in the history books for sure; our children will remember and respect  the people of change !

An enduring lower standard life will be the basement to future realistic stabilized prosperity !

© Thomas Ramseyer-Volkart
https://www.xing.com/profile/Thomas_RamseyerVolkart

Infusing trust is a tricky business. Changing investment sentiment is even more. Sometimes just a guise, a glance or a few symbolic words tells the markets that there is a floor under them. But there are times when the benign gestures fall flat with a sceptic market. These are some of those changes.

The Street is expecting a lot from the government tomorrow,to alleviate the tight bear grip,so prevalent these days. Yet, a package might not be the real answer. Of course corporates will need them, if they have to survive. But if the policy makers are looking for a better equity growth then, they will be really surprised.

Tomorrow PM, will announce an estimated ‘economic stimulus’ of  mega $15billion package. Aiming to infuse liquidity, credit infusion,giving a ’support’ to sectors like exports,infra,auto etc. But what is seemingly missing from this entire game is an assurance of sorts, that it will be all right.

You see, investors dont really need a package. Give them enough confidence and they will do the work of the most efficient planning system in world. Mediating funds, efforts,attention,optimism and growth prospects between companies, projects and ambitions. But what is sorely missing is that ‘very’ assurance and a ’supportive’ gesture that there is a firm floor beneath. Cases like, Sovereign Funds, Central Banks play an important role in sending across that message of ‘assurance’. But from what it seems, it will take some time before markets slap themselves for being so pessimistic, and collectively roars again. After all crowd psychology is no mature than a teenage running high on adrenaline.And rehashing the point made earlier, markets may want a credit infusion package, but its seldom what the market really needs. The truth is, markets themselves dont know what they want, something in the lines of the famous question, “What do women want?”. So you might hand the markets a credit candy when it cries for one, but what it really asks for is a gentle hand to bring it out of the fear and panic.

Riksbanken är centralbanken i Sverige och en myndighet under riksdagen. Riksbanken ansvarar för Sveriges penningpolitik med målet att upprätthålla ett fast värde . Riksbanken har också i uppdrag att främja ett stabilt, säkert och effektivt betalningsväsende.

Riksbankens tolkning av målet om ett fast penningvärde är att inflationen ska vara låg och stabil. Konsumentprisindex, KPI, ska hållas på 2 procent. Riksbankens främsta verktyg för att påverka inflationen är reporäntan.

Betalningssystemet och kreditförsörjningen spelar en central roll för att ekonomin ska fungera effektivt. Riksbanken gör fortlöpande bedömningar av risker i de svenska storbankerna och i den centrala finansiella infrastrukturen.

Källa: Riksbanken

Suing against politicians and government service officers is the latest trend which is rising in Sri Lanka which is now own to Mr.MR and Company.As being a heir for this property Sri Lanka, i am now the Governer of Central Bank.But the trend of filing litigation against SLFP government members was brought to the society by millionair philanthrophist Deshamanya Dr. Lalith Kotelawala who is now trying to become a billionaire through litigation against government and its officials step by step.Deshamanya the Dr. Lalith Kotelawala; So called philanthrophist who is earning from poor Sri Lankas by making them cash cows is now charging every and each one of us a billion rupees along with his legal officer attorney Thushari Weerasinghe another one of the women who satisfy Deshamanya’s old crotch at nightmares and at night bed those days.Deshamanya Dr.Lalith Kotelawala was one of the Harrys who became rich during the bloody slutty bitch Chandrika Bandaranaike Kumaratunga’s (later she renamed her Chandrika Bandaranayake Kumaratunga to hide that she is a decendant of Nayakkar cast) time.Chandrika who was the mistress of famous actor Sanath Gunatilaka offered a VSAT Licence and somany other things to Lalith Kotelawala to enhance his business during her reign in Sri Lanka.It was as a return favour she offered to Lalith since she got bundles of money from Lalith to capaign for the 1994 elections.Lalith Kotelawala who then turned to Ranil Wickramasinghe on 2005 Presidential Elections through offering more than Rs.40 million as funds later became friendly with MR(Mahinda Rajapakshe the Mama of Sri Lanka) via helping Dayata Kirula Mega exibition. Starting from their Lalith started to charge litigation from Mangala Samaraweeera to Gover of Central Bank.If I reveal the real man behind Lalith Kotelawala he is one of the famous philanthrophist in the world who is having an unethical son with a fraudulent Doctorate who is going by the name Dr.Punarjeewa Karunanayake.

NEWS REPORTS

Legal Action
25 Jun, 2008 11:07:31
Sri Lanka’s banker a billion rupees from Central Bank governor
June 25, 2008 (LBO) – Sri Lankan businessman Lalith Kotelawala has demanded a billion rupees in damages from Central Bank governor Ajith Nivard Cabraal for trying to introduce rules that would effectively remove him from a bank and finance companies in his Ceylinco group.
Kotelawala also threatened to initiate legal action against Cabraal to remove him as central bank governor if he persists with the implementation of the proposed corporate governance codes for licensed commercial banks and registered finance companies.
In his letter of demand, released to the media, Kotelawala said the code of governance has been promulgated “specifically” to remove him as chairman and director of Seylan Bank and six finance companies in the Ceylinco group.
The corporate governance code proposed by the central will prevent directors of banks and finance companies from continuing in their posts if they are over 70 years, have been a director for more than nine years or are directors of more than 20 other companies or entities.
Kotelawala’s Ceylinco group consists of a diversified portfolio of business activities which include insurance, a credit card company, banking, micro finance, finance, leasing, house and property development, travel, health care, as well as a diamond venture, Blue Diamonds.
Kotelawala is also chairman of six registered finance companies; The Finance, Seylan Merchant Leasing, Finance & Guarantee Company, Asian Finance, Multi Finance and Ceylinco International Reality.
Kotelawala said the proposed code of corporate governance has been introduced as a direction under the Banking Act, “in ignorance” of the provisions relating to corporate governance in existing laws.
It was also “in violation of a citizen’s right to engage in a lawful trade, without age, number of directorial positions held,” he said in his letter of demand sent through his Attorney-at- Law.
Kotelawala described the code as “draconian” and said its legality has been challenged by Seylan Bank and other commercial banks in the Supreme Court and Court of Appeal of Sri Lanka.
He said that in spite of the pending litigation and sentiments expressed on behalf the Central Bank to bring about a settlement between the parties, Cabraal proposed a draft code of corporate governance for registered finance companies.
This was once again done “with the malicious intention and sinister motive of summarily removing” him from the position of chairman and director of the finance companies, Kotelawala said.
Kotelawala said he would proceed with legal action if Cabraal fails to pay and settle his demand for damages within two weeks. –> 

VIEWER’S COMMENT(S)
6. Tissa Jayawardana Jun 25
This is,obviously, violating basic rights of Mr. Kotalawala.
5. das samuel Jun 25
Kotelawala is the most honourable businessman in sri lanka.His companies assist business entrepreneurs, small businessmen, indebted citizens and the poor. His companies are the most reliable for the public to invest their savings in deposits or as investments.
His staff are recruited for suitability (and are rewarded for good performance) and not on religious,racial,language or political considerations.His success is resented by political henchmen bigots – hence this “proposal” by the central bank governer.I wish him success in his quest for justice.
4. Upananda Karunaratne Jun 25
upananda7@hotmail.com 

–>
It is better Kotalawala goes to courts in order to get the justice since he was not practising this procedure in respect of others.
Now he can taste the Sri Lankan legal system if he continues this process as he published in the newspaper. I doubt whether he will continue this procedure since he does these things for mere propaganda. He had done the same thing before President Rajapaksa become the President of Sri Lanka and sent letters of demands to a Minister.
3. Owllll Jun 25
owllll@yahoo.com 

–>
Wonderful! Having perfected the art of marginalization through constitutional maneuvering, we are learning the fine art of oppression through constructive administrative manipulation.
2. Ramesh Jun 25
shalom1@sltnet.lk 

–>
The court case summary of Kotelawela vs Cabraal – Kotelawela – i demand 1Bn rupeesCabraal – no problem i’ll have it printed by tomorrow morn.
1. Nadarajah Jun 25
nada@sltnet.lk 

–>
Yes you should go ahead.who is the governor to introduce changes to kill pioneer and leading business figures in the country ????
RECENT STORIES 

–>

–>RELATED STORIES

Sri Lanka Ceylinco Insurance to raise equity; expand foreign presence 11 Jun
Sri Lanka’s Ceylinco in shopping mall with skating rink 05 Mar
Ceylinco Group Chairman appealed to the Central Bank to loosen its grip on the banking sectors? expansion 14 Oct

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Kotelawala sues Central Bank Governor over mandatory codeRenowned businessman and Ceylinco Group Chairman Dr. Lalith Kotelawala is suing Central Bank Governor Ajit Nivard Cabraal for ‘malicious conduct’ over the proposed mandatory code for finance companies banks which would affect the former.
In a letter sent by his attorney Thushari Weerasinghe to the Central Bank governor, Dr Kotelawala said that if the governance codes applicable to banks and licensed finance companies are implemented, legal action would be taken against the governor seeking his removal, on the grounds that ‘you are not a fit and a proper person to hold the post of Governor of the Central Bank of Sri Lanka, and any other public office.” The Ceylinco chief, who is demanding a sum of Rs 1 billion in damages from losses incurred if the code for finance companies is implemented, says the governance code was promulgated specifically to remove him as Chairman and director of Seylan Bank PLC by preventing him holding the post of director.

hc code bars directors from serving more than nine years, beyond the age of 70 years and in more than 20 companies or entities. Dr Kotelawala has been having a running battle with Mr Cabraal ever since the mandatory code of governance for banks became effective this year. A second code for finance companies, which will also adversely affect Dr Kotelawala, has been prepared by the Central Bank and is currently under public discussion and scrutiny.
Dr Kotelawala says the rules in the banking code have been formulated, deliberately targeting him to prevent him from functioning as Chairman and director of Seylan Bank PLC, which is a bank created and built up by the vision and guidance of my client, and in defiance of the confidence placed in him by Seylan Bank shareholders, customers and other stakeholders.
“… the code of corporate governance has been introduced as a direction under the Banking Act, in the background and in ignorance of the provisions relating to corporate governance envisaged in the Companies Act No 7of 2007, the Banking Act No 30 of 1988 as amended, and the Finance Companies Act No 78 of 1988 and in violation of a citizens’ right to engage in a lawful trade, without age, number of directorial positions held, being a barrier; which even the said acts passed by the Parliament of Sri Lanka has recognized,” the letter said. Dr Kotelawala, Seylan Bank and other commercial banks have challenged the legality of the banking code and “in spite of the aforesaid pending litigation and sentiments expressed on behalf of you, as well as the Central Bank of Sri Lanka to bring about a settlement between the parties to the said actions; you have initiated to implement an exposure draft code of corporate governance, in relation to registered finance companies, once again, with the malicious intention and sinister motive of summarily removing me from the position of the Chairman and director of the aforesaid finance companies, as well.”

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