October 13, 2008
British Prime Minister Gordon Brown has called for a new Bretton Woods system, saying that the financial crisis should be used to make world leaders agree to fresh rules and regulations under a long planned new global financial order.
“Sometimes it takes a crisis for people to agree that what is obvious and should have been done years ago, can no longer be postponed,” Brown told an audience earlier today.
Speaking at Thomson Reuters’ editorial headquarters, Brown called for “a new financial architecture for the global age”, stating that the Bretton Woods system devised after the second world war was out of touch with the new world order.
Brown said: “This crisis demonstrates beyond doubt that a global capital market requires much stronger global cooperation and supervision. And we need to ensure that we have an effective global early warning system to alert us across continents to economic and financial risk.”
Brown contended that the current financial system is “too clouded with opacity, conflicts of interest, irresponsible risk-taking, and when problems occur countries have tended to look inwards and deal with them in isolation when it is clear they should look outwards and join in international co-operation.”
“We are proposing a world leaders’ meeting in which we must agree the principles and policies for restructuring the financial system across the globe,” Brown added.
His speech came after the UK government announced it would bail out three high street banks – RBS, HBOS and Lloyds TSB – to the tune of Â£37bn. Since that announcement, shares in the banks have plunged on the stock market.
Brown’s call echoes that of elite figures such as CFR member Jeffrey Garten and Timothy Geithner, president of the Federal Reserve Bank of New York, who have both recently called for a “new global monetary authority”, a de-facto global financial dictatorship, operating across borders and forcing nations and corporations to register and adhere to strict monitoring and regulations.
The call is also similar to plans recently touted for a new centralized system of financial supervision across the EU providing greater regulatory powers.
Watch a Reuters report on the story: