In The Days

• Source: News Max
• Submitted By: Mike Raley
• News Date: 10/9/08
• Author: Julie Crawshaw

The current financial turmoil will likely hit emerging market countries hard, according to International Monetary Fund managing director Dominique Kahn.

New World Order

“And whereas thou sawest iron mixed with miry clay, they shall mingle themselves with the seed of men: but they shall not cleave one to another, even as iron is not mixed with clay.”
—Dan 2:43

“After this I saw in the night visions, and behold a fourth beast, dreadful and terrible, and strong exceedingly; and it had great iron teeth: it devoured and brake in pieces, and stamped the residue with the feet of it: and it was diverse from all the beasts that were before it; and it had ten horns.”
—Daniel 7:7

But there is a solution.

“As bleak as the situation now looks, I am convinced that there is a way out of our shared predicament. The trick is to get policymakers around the world to pull in the same direction,” Kahn writes in the Financial Times.

Kahn says world governments must immediately do five things:

• Provide temporary governmental guarantees on retail bank, interbank, and money market deposits that include safeguards against heightened supervision and limits on deposit rates that often accompany such guarantees;

• Remove troubled assets from the marketplace, issuing shares from the government if necessary;

• Match private capital with state capital;

• Close the many loopholes in global monetary regulations that allowed financial institutions to minimize capital while increasing risk; and

• Keep a large fund of money available that can be quickly deployed to emerging market countries under serious stress.

Countries already suffering food and fuel price inflation may now also see declines in exports, trade, and investment as a result of financial turmoil that is becoming increasingly global, World Bank President Robert B. Zoellick said at the institution’s annual meeting.

“While people in the developed world are focused on the financial crisis, many forget that a human crisis is rapidly unfolding in developing countries. It is pushing poor people to the brink of survival,” Zoellick said.