Azara Blog: Gordon Brown says not a lot about the global financial crisis

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Date published: 2008/04/05

The BBC says:

The world is facing "the first truly global financial crisis", the prime minister has told leaders.

Gordon Brown said institutions such as the World Bank and United Nations need reform to tackle the double threat of economic turmoil and climate change.

Speaking at the start of the Progressive Governance conference of centre-left leaders and politicians, Mr Brown said that the old institutions established in the aftermath of World War II were now unable to cope.
"We now have to reshape our global rules and global institutions for this new era," he said.

"We are facing a global financial crisis which is probably the first truly global financial crisis of the modern world.

"We have to reform our global financial institutions. It is absolutely clear that the national supervision that we have is inadequate and we need a global agreement."

The prime minister said the International Monetary Fund (IMF) needed complete re-structuring so it could act as an "early warning system" for the international economy.

He said the World Bank should help developing nations move towards cleaner economic development.

Where would we be without Gordon Brown? We hardly need the IMF to be an "early warning system". There were plenty of sane economists (and others) who predicted a bad end to the housing boom in the States (and the UK). It's just that as long as a pyramid scheme is on the up, there are many people who are willing to play along with the idea that the laws of economics have somehow been suspended. And it was never going to be perfectly predictable exactly when the pyramid scheme would go bust. It just happens to have gone bust in 2007, and the whole world is now feeling the impact. It is not helped by the fact that we could be at or near peak oil, so the price of energy, and hence everything else, has soared. For some reason the governments of the world seem less concerned about that.

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