Global system needs fixing

The global system needs fixing
Possible re-regulation of the global financial sector will be up for discussion in 2009. Something radical is
needed but I doubt this will happen. My own suggestions include:
1. A ban on short selling of stocks. These transactions bring no value to the real economy or people
and destroy value for the benefit of speculators. A total ban should be imposed with 30-year jail
sentences for anyone breaking the law. Alternatively short-selling could be allowed with a 95%
tax on each transaction, the kind of tax you impose on casinos or brothels. This would imply that
short-sellers are close in behaviour to pimps or beneath them.
2. Close all hedge funds. They are merely croupiers at the global casino and again bring no real
value to the global economy or people. Some financial executives would plead that they are
essential to the global economy but this is not true. Most of their activities have no value and any
remaining ones could be conducted by banks that will be looking for new work.
3. Create a global registry for significant financial transactions involving derivatives. And again
aim to tax them out of existence. At least with a central registry we would know where the
liability on derivatives was held, unlike today (January 2009) when there are $600 trillion worth
of derivatives with no one alive on the planet who actually knows who is liable for them, along
with $5 trillion worth of Credit Default Swaps (CDSs) related to these derivatives. The current
system is insane, criminal and negligent.
4. Create a managed global exchange rate system – Bretton Woods II to prevent currency
speculation. Currency could be exchanged for trading and tourism purposes and for limited and
registered corporate hedging purposes, but rampant speculation would be illegal or again taxed
at say 45% for each transaction with the revenue of the tax going to a Global Humanity Fund for
Education and Health. The speculators would thereby fund government spending for the people.
5. All off-shore tax havens should be closed. It only needs the 4-6 major economies of the world to
say that they will not deal with any organisation engaged in activities in off-shore tax havens for
these cesspits, which allow criminals, third-world murderers and Western corporate accountants
to stash away their gains, to cease existence.
6. The IMF, World Bank and G-8 should be restructured. Someone should inform the IMF and
World Bank ever so nicely that the Washington Consensus is dead. Their methodology consists
of “We will save your currency by propping it with funds, providing you destroy your real
economy with tax hikes, interest rates hikes and social spending cuts so that your people will
suffer. You should know that much of our funding will never reach your shores as we will
transfer them directly to your creditor banks in the West, some of whom are our personal
friends.” Such IMF polices have failed almost everywhere in the last 30 years. East Asians loath
the organisation and have focussed their policies to ensure they never have anything to do with
the IMF again. The bankruptcy of the IMF/World Bank policies is reflected in the fact that in
order to get out of this global crisis, every major economy in the world is undertaking policies
which are diametrically opposed to those of the IMF.