New IMF Strategy Document Charts Launch Of “Bancor” Global Currency

Highlights “potential resistance” on road from “voluntary multilateral framework” to full blown global currency

Steve Watson
Infowars.net
Wednesday, Aug 4th, 2010

A newly published IMF strategy document calls for the implementation of a global currency, called the “bancor”, to stabilise the international monetary system, while acknowledging that only a monumental shift toward acceptance of globalism will make it possible in the short term.

The IMF blueprint, authored by Reza Moghadam, director of the IMF’s strategy, policy and review department, has stayed under the radar for three months.

However, an article on the Financial Times blog alphaville, entitled IMF blueprint for a global currency – yes really, today highlights the document and the clear strategy of the global financial body.

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“…in the eyes of the IMF at least, the best way to ensure the stability of the international monetary system (post crisis) is actually by launching a global currency.” Izabella Kaminska notes.

“And that, the IMF says, is largely because sovereigns — as they stand — cannot be trusted to redistribute surplus reserves, or battle their deficits, themselves.”

A chart within the document, innocuously titled Reserve Accumulation and International Monetary Stability (PDF link), presents a stepping stone system toward a fully fledged global currency:

Beginning with a vague recommendation for “voluntary policy adjustments” to be adopted by member states, the chart moves through more and more draconian economic policies toward a long term endgame of a global currency.

The chart also plots “potential resistance” to each stepping stone from sovereign states, with a spike in the short term, followed by a lull, and then a general rise as the move toward a global currency progresses over time.

The IMF’s road to a global currency hinges on a wider use of and eventual implementation of an international monetary system based on special drawing rights (SDR), the IMF’s synthetic paper currency.

Once an SDR-based system is in place, the IMF envisages just one final step to the launch of a new global currency.

The document even gives the global currency a name, the “bancor” after John Maynard Keynes’ proposed, but never implemented, World Currency Unit of clearing.

The following section of the IMF document highlights this:

48. From SDR to bancor. A limitation of the SDR as discussed previously is that it is not a currency. Both the SDR and SDR-denominated instruments need to be converted eventually to a national currency for most payments or interventions in foreign exchange markets, which adds to cumbersome use in transactions.

And though an SDR-based system would move away from a dominant national currency, the SDR’s value remains heavily linked to the conditions and performance of the major component countries. A more ambitious reform option would be to build on the previous ideas and develop, over time, a global currency. Called, for example, bancor in honor of Keynes, such a currency could be used as a medium of exchange—an “outside money” in contrast to the SDR which remains an “inside money”.

The document concludes that without a catalyst to create a sudden clamour for globalism, the implementation of a global currency will take time:

It is understood that some of the ideas discussed are unlikely to materialize in the foreseeable future absent a dramatic shift in appetite for international cooperation.

The IMF first touted the possibility of a new global currency in March of last year. The issue was then debated at the G20 Summit in London just days later.

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A clause in Point 19 of the communiqué issued by the G20 leaders led to analysts describing the dawn of a “revolution in the global financial order.”

“We have agreed to support a general SDR allocation which will inject $250bn (£170bn) into the world economy and increase global liquidity,” The clause stated.

“In effect, the G20 leaders have activated the IMF’s power to create money and begin global ‘quantitative easing’. In doing so, they are putting a de facto world currency into play. It is outside the control of any sovereign body. Conspiracy theorists will love it.” Ambrose Evans-Pritchard of the London Telegraph wrote at the time.

“The world is a step closer to a global currency, backed by a global central bank, running monetary policy for all humanity.” he added.

The same conclusion was drawn by the Washington Post’s Anthony Faiola, who described how the IMF is on course to be transformed into “a veritable United Nations for the global economy.”

The move has also been endorsed separately by the World Bank and the UN.

The head of the International Monetary Fund, Dominique Strauss-Kahn, has repeated the call for a global currency via SDR multiple times.

The introduction of a new global currency and taxation system, with an overarching regulatory body, is a key cornerstone in the move towards global government, centralized control and more power being concentrated into fewer unaccountable hands.

The IMF’s push toward this kind of system is part of the ongoing movement to empower a group of unelected central bankers with the authority to usurp state sovereignty by overseeing benchmarks for national financial governance and setting regulations for financial institutions all over the globe.

The Impact of Fiat Money as the World’s Reserve Currency

David Redick

Activist Post

The creation of fiat official government money has had a profound effect in history and on our nation and the world today. "Fiat" means it is worth whatever the government says it is (its face value), although the material of which it is made may have more or less intrinsic market value.  Examples would include both valuable silver dollars and worthless paper, each declared to be worth $1; and today’s American Eagle bullion coin with a face value of $50 for one ounce of gold. 

Normally, when a country creates too much fake money, sellers avoid it for payment, or stop buying its bonds due to its falling value, and the party is soon over. However, the U.S. is in a unique positionnever seen in the history of the world. Our fiat paper money is the primary de facto world’s "reserve currency" (anyone will accept it for payment and keep it as cash, or as a dollar-denominated asset; banks keep it as their reserves, like gold). We can create new money out of thin-air, and sellers of goods and services worldwide will accept it.   We can also pay our debts with it, even as the federal government spends to excess. 

We have abused the privileged status of the U.S. dollar in many immoral and counterproductive ways. It is the underlying cause of our major problems, such as jobs being exported due to excess imports of goods (other countries would run out of money; the U.S. can create more as needed!), strange banking and securities deals based on loose money, excess personal spending and debt, and wars. 

One cannot underestimate the importance of our ability to pay debts to other nations, and not be required to convert to their money. This conversion would normally trigger market valuation, which could collapse the value of the U.S. dollar.  Conversely, other nations must buy dollars to pay for most imports, and face declining exchange rates if they have expanded their money supply too much. We have abused this reserve status, and as of mid-2009 other nations started seeking alternatives (yuan, yen, a basket of currencies, etc.). 

Most people are not aware that the reserve currency is used for most payments between other nations; for example, India pays Brazil for coffee with U.S. dollars. Hence, all nations keep a supply of U.S. dollars to use in trade. All banks are required to have sufficient reserves in order to show a strong asset base for the bank’s obligations (mainly demand and time deposits). Since the USD has been valued by the world system to be "as good as gold," it is known as a reserve currency and used instead of gold to fund these bank reserves. The Dollar has been used in about 90% of international transactions since its ascendancy in the 1920s, but has become weaker since 2000, and declined to 70% or less by 2009. About 30% of international deals are now done in Euros and Yen, but that is increasing as the economies and currencies of China and others grow stronger. Indeed, China started using its yuan for international transactions in 2010, and also allowed foreign firms to create yuan-denominated private equity funds.

There have been a series of international agreements to manage currency. The International Monetary Fund (IMF) and World Bank were born of these deals. Both are counterproductive causes of spending and distortions (including feeding corrupt governments), and should be abolished along with the Federal Reserve. 

Redeemability was restricted more and more until the 1944 Bretton Woods agreement, which set rules to: 1) Allow only nations to redeem paper for gold between each other (not people; a form of the Gold Bullion Exchange standard).  2) Create the International Monetary Fund (IMF) to handle its transactions.  3) Set the USD as the world's official reserve currency, with a fixed value of $35 per ounce of gold. 

The US engaged in so much monetary expansion (inflation of the money supply) after WW2 it lost much of its value and flooded Europe with so-called Euro-dollars. France finally started demanding gold for most of their paper dollars, which peaked with De Gaulle’s famous press conference on Feb. 4, 1965 where he described the U.S. as having an "exorbitant privilege" as the world’s reserve currency, which allowed us to pay our debts with money created out of thin air!   De Gaulle said: 

There can be no other criterion, no other standard, than gold. Gold that never changes, that can be shaped into ingots, bars, coins . . . that has no nationality and that is eternally and universally accepted as the ultimate fiduciary value par excellence. 

France started redeeming their paper dollars to gold, but Nixon soon refused to remit gold to any nation (we were running out), and then abrogated Bretton Woods on Aug. 15, 1971, setting the dollar "afloat" with no redeemability. Within a few years, all nations had done the same, including conservative Switzerland. Whoopee! Everybody could make money out of thin air! 

The Fed destroys the value of our money by excess expansion of the money supply. Proof is shown in the start and end purchase power amounts below, which are from www.measuringworth.com:

It took $1,202.05 in the year 1912 for the same purchase power as $1,000 in the year 1774 (a 17.7% loss in 138 yrs, or 0.13 % per yr).

It took $22,427.40 in the year 2008 for the same purchase power as $1,000 in the year 1913 (a 95.5% loss in 95 yrs, or 1.0% per yr). Almost eight times worse than before the Fed!

A decline in purchasing power of the dollar, and thus price increases, always follow a rapid and excess (over 5% per year) increase in the money supply (monetary inflation). As shown below, the dollar has lost 95% of its value from 1913 (when the Fed started) to 2010, but 80% of that loss occurred after Nixon cut the Bretton Woods tie to gold in 1971, increasing the money supply even faster. Other factors, such as a reduced supply of goods and services, can cause price increases, but monetary inflation clearly has caused the most harm:

Source: Byron King, www.agorafinancial.com

The US dollar has lost over 95% of its purchasing power since 1913 due to excess monetary inflation by the Fed by creating new money to pay bills. This has been the main cause of the 2,000% increase in prices since 1913. Excess money creation prior to 1913 resulted in short-term inflation and panic runs on insolvent banks, but the Fed allowed long-term abuse by bailing-out such banks, which in turn caused the moral hazard of the banks taking excess risks by seeking casino profits for the last 97 years and counting!

A special monetary expansion event occurred in late 2008 when Bernanke produced the now infamous Bailout Spike by injecting almost $1 trillion of new money into the U.S. economy. On April 15, 2008, the Fed held $866 billion in assets, which served as the monetary base for the nation.  On April 15, 2009, it held $2.2 trillion. A decline in purchasing power of the dollar will follow this increase in the money supply.

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US, France call for flexible exchange rates at G20

G20 seeking monetary reform
© AFP/File Karen Bleier

AFP

NANJING, China (AFP) - French President Nicolas Sarkozy and US Treasury Secretary Timothy Geithner on Thursday called for more flexible exchange rate regimes as G20 nations met on global monetary reform in China.

The pair, speaking at the start of a day of talks in the eastern city of Nanjing, also called for a widening of the basket of currencies underlying the IMF's international reserve asset, while keeping the dollar and euro stable.

The West wants to see the yuan become part of the International Monetary Fund's Special Drawing Rights (SDR) basket as part of its efforts to prod Beijing into opening up its tightly managed and controversial currency regime.

"It's clear we must move towards a more flexible exchange rate system that would allow the world to absorb shocks. But this system cannot evolve without rules, coordination and oversight, or instability will prevail," Sarkozy said.

The IMF and World Bank Use Arab Uprisings to Expand Control Over Nations

Susanne Posel, Contributor

Many oil-producing nations such as Saudi Arabia, the US, the UK, Japan and Kuwait have pledged $165 million to fundan initiative of the World Bank that will allegedly prop up countries that have been affected by manufactured Arab Spring uprisings. 

Along with the approval of the UN, International Monetary Fund (IMF), the World Bank, the Islamic Development bank and the OPEC fund for International Development are supporting the partnership. 

The IMF and the World Bank, at a meeting in Tokyo, focused talks on the Middle East and their economies of which recent Arab Springs have paved the way for globalist influence in the region. Kim Yong-Yim, newly appointed president of the World Bank remarked that these revolutions have allowed for the international community to refine their development of such areas. 

41 IMF Bailouts And Counting – How Long Before The Entire System Collapses?

Michael Snyder

Broke nations are bailing out other broke nations with borrowed money.  Round and round we go - where we stop nobody knows. As of April, 41 different countries had active financial "arrangements" with the IMF.  Sometimes they are called "bailouts" and sometimes they are called other things, but in every single case they involve loans.  And most of the time, these loans come with very stringent conditions.  It is a form of "global governance" that most people don't even know about.  For decades, the IMF has been able to use money as a way to force developing nations to do what it wants them to do.

But up until fairly recently, this had mostly only been done with poor nations.  But now an increasing number of wealthy nations are turning to the IMF for help. We have already seen Greece, Portugal, Ireland and Cyprus receive bailouts which were partly funded by the IMF, Spain has received a bailout for its banking sector, and as I noted yesterday, it is being projected that Italy will need a major bailout within six months.  How long can this go on before the entire system collapses?

Well, that would depend on how much money the lender has.

GLOBAL POWER PROJECT, PART 4: BANKING ON INFLUENCE WITH JPMORGAN CHASE

By: Andrew Gavin Marshall

The following was originally posted at Occupy.com

In May, JPMorgan Chase was listed as the largest bank in the world with assets at roughly $4 trillion — some $1.53 trillion of it in derivatives. This was reported a month after the announcement that the bank had posted a record first-quarter profit of $6.5 billion.

Jamie Dimon, the bank’s CEO and Chairman, has faced a host of scandals in relation to his management of the megabank, including the loss of roughly $6 billion through the London branch of the bank — losses that Dimon was accused of hiding. A 300-page report by the U.S. Senate, investigating the “creative accounting” of JPMorgan, noted that the bank “hid losses, did not share information with its regulators, and misled the public” in what one banking regulator referred to as “make believe voodoo magic.” Stated bluntly in The New York Times, JPMorgan Chase, the largest derivatives dealer in the world, “is too big to regulate.”

In the midst of the scandal, the bank faced a potential “revolt” of its shareholders in a bid to strip Dimon of his dual role as CEO and Chairman. In confidential government reports which were leaked to The New York Times, the bank was accused of “manipulative schemes” which transformed “money-losing power plants into powerful profit centers” while executives made “false and misleading statements” under oath.

Yet even in the midst of scandal, Jamie Dimon was praised in a storm of support by billionaires, corporate kingpins and media barons. Calling JPMorgan Chase “as good a bank as there is,” New York City mayor and billionaire media baron Michael Bloomberg went on to call Dimon “a very smart, honest, great executive.” News Corporation chairman Rupert Murdoch praised Dimon as “one of the smartest, toughest guys around,” while Jack Welch, former chairman and CEO of General Electric, referred to him as a “great leader” and said he had earned the “right to hold both Chairman and CEO titles.” To top it off, billionaire investor and CEO of Berkshire Hathaway, Warren Buffet, dubbed Dimon “a fabulous banker.”

Order Out Of Chaos: The Doctrine That Runs The World

Brandon Smith

From the days of Spartacus-Weishaupt to those of Karl Marx, and down to Trotsky (Russia), Bela Kun (Hungary), Rosa Luxembourg (Germany), and Emma Goldman (United States), this world-wide conspiracy for the overthrow of civilization and for the reconstitution of society on the basis of arrested development, of envious malevolence, and impossible equality, has been steadily growing. It played, as a modern writer, Mrs. Webster, has so ably shown, a definitely recognizable part in the tragedy of the French Revolution. It has been the mainspring of every subversive movement during the Nineteenth Century; and now at last this band of extraordinary personalities from the underworld of the great cities of Europe and America have gripped the Russian people by the hair of their heads and have become practically the undisputed masters of that enormous empire. - Winston Churchill, February 1920, in an article that appeared in the Illustrated Sunday Herald
  
The concept of conspiracy frightens some people, so much so that they are willing to overlook any and all evidence that world events are for the most part directed, rather than chaotic and coincidental. For those who are uneducated and unaware, explanations for the terrible tides of politics and war generally revolve around a false understanding of Occam’s razor. They argue that the theory states that the “simplest explanation” is usually the correct one for any particular problem or crisis. But Occam’s razor actually states that the simplest explanation according to the evidence at hand is usually the correct answer for any given problem. That is to say, the simplest explanation must conform to the evidence, or it is likely not correct.

Unfortunately, “skeptics” of directed conspiracy often turn a blind eye to evidence that is contrary to their simple explanations, while arguing that simplification is its own vindication. In other words, they don’t feel the need to defend their simplistic worldview because, in their minds, simplicity stands on its own as self-evident. There was a time when men believed that the planets revolved around each other because they were tied together by long glass strings, and this was evident to them because it was the simplest explanation they could come up with. The thinking of skeptics of the New World Order and concerted globalization is much like this.

Egypt Rejects IMF Conditions

Egypt Revolution - Wiki Commons

Emad Mekay
IPS

CAIRO - Egypt has cancelled plans to borrow 3 billion dollars from the International Monetary Fund because of conditions that violated the country’s national sovereignty and a public outcry that warned against terms that were blamed for impoverishing many Egyptians.

According to several Egyptian newspapers, General Sameh Sadeq, member of the country’s ruling military council, said the country turned down the loans, and those under discussion with the World Bank, because there were "five conditions that totally went against the principles of national sovereignty." Gen. Sadeq didn’t detail what these conditions were. 

The IMF loan would have made Egypt the first recipient of funding in the Middle East since the so-called Arab Spring movement against Western-backed dictatorships began late last year.

The Global Eco-Constitution of the UN Explained

Susanne Posel, Contributor
Activist Post

The idea behind global governance is that “there does not exist any serious environmental problem which cannot be solved through minimizing of energy and material consumption.”

Choosing “the creation of a global society with global democracy” will “improve the function of global financial markets” and “environmental quality.”

George Soros suggests in The Crisis of Global Capitalism that a “worldwide alliance will operate in promoting principles of international law.” However, there is little concern in the globalist Elite’s view of local markets.

Globalists Blame Financial Crisis of 2008 to Usher in One World Currency

Susanne Posel, Contributor
Activist Post

The efforts of the Global Elite are to enable an environmentally-based economy within a one world government. This includes replacing the currency and economic structures in place.

The Royal Canadian Mint (RCM) has announced that they will stop printing pennies. The RCM have unveiled a digital RFID-chip based currency that can be loaded up, stored and spent in-store and online.

The RCM calls this currency MintChip; which will be a virtual payment method accessible through microchips, microSD cards and USB sticks.

This RFID-chip currency is collaboration with the US corporations and research and development outfits. Ian Bennett, president and CEO of the Mint explains:

As part of its research and development efforts, the Mint has developed MintChip, which could be characterized as an evolution of physical money, with the added benefits of being electronic.

The MintChip is still under development, with patents pending and prototypes being studied. The creation and perfection of the technology must be useable with American markets.

One Last Look At The Real Economy Before It Implodes - Part 4

Brandon Smith

In the first three installments of this series, we examined the realities behind supply and demand, unemployment and personal debt, and national debt. As has been proven in each consecutive article with ample evidence, mainstream establishment numbers are, for the most part, utter garbage. They are not legitimate. They are meaningless.

The figures and stats that do have some truth to them are so obscured from the public view and unreported by the media that they may as well be state secrets. The average person has no clue of their existence because his primary sources of information are establishment-dominated. Even MSM talking heads and economic “analysts” are so mesmerized by the false version of the economic world that they have no point of reference when suddenly confronted with singular facts. Some people call this catastrophic behavior a “positive feedback loop.” It is a mainstream echo chamber that has become a financial tomb.

Now that I have covered the lies within our economy that I can prove absolutely, it is time to move on to the lies that are more difficult to pin down. These lies often slip past our investigations because the hard data that could be used to expose them is simply not available to the general public. In fact, much of the data is not even available to government officials. I am, of course, talking about the hard data behind the activities of central banks across the globe — the International Monetary Fund, the Bank for International Settlements and the Federal Reserve in particular. In this installment, we will explore the purpose of these lies; to hide the imminent destruction of our currency — by hook, by crook and by fiat.

One Last Look At The Real Economy Before It Implodes - Part 5

Brandon Smith

Since I began writing analysis for the liberty movement more than eight years ago, I have always said that we will know when the endgame of the globalists is upon us when the criminals come out into the light of day and admit to their crimes. At that moment, it will be because they no longer fear either the repercussions or their plans being obstructed.

As I plan to show in this installment of my series on the hidden fiscal collapse of America, the endgame has indeed arrived. At the very least, the international elites seem to think success is within their grasp, for they now openly expose their own criminality. But they do so in a way that attempts to divert blame or to rationalize their actions as being for the “greater good.”

Bretton Woods II — The Final Enslavement of Mankind

“The rising powers must be present at the creation of this new system in order to ensure that they will be active supporters.” – George Soros

SARTRE, Contributing Writer
Activist Post

Charges of a conspiracy theory are a convenient pretext to dismiss criticism when the global financial elites meet to shape the next evolution of centralized control of all economic activity. When Mayer Amschel Rothschild admitted,“Give me the power of the money and it will not matter anymore who is commanding”, he exposed the true nature of international finance. The new front man for the shadow masters of money is George Soros. His visibility is used to deflect attention away from the supra national circle of recluse manipulators, who set the agenda for globalism. The history of world politics is really the chronicle of money, debt and banking. Only by understanding this clash of titans, can one interpret the language of worldwide finance.

It is not often that you get to look into the window of the future before it takes place. The obsession with the political posturing of the torturous grinding process that produces a kosher sausage product causes acute indigestion. Banking is one such example and the INET, The Institute for New Economic Thinking, who sponsored the Bretton Woods II conference is the Neshama gourmet version of ground up animal flesh. Funneling the herd into the corral of a new world currency openly discussed, as the panacea for the coming collapse of international finance, is the height of totalitarian arrogance.

The IMF joins Bernanke in threatening US legislators

The International Monetary Fund's Washington D.C. Headquarters

M. Ruppert, Contributing Writer
Activist Post

The debt ceiling issue is irrefutably a “hot button” issue that has Washington seemingly irreparably divided over smallbudget cuts that have little to no effect on the massive deficit. To make matters worse for the clowns in Washington arguing over tens of billions of dollars with a public debt realistically in the neighborhood of $100 trillion, the private Federal Reserve and the International Monetary Fund are now stoking the fire.

As the men and women of Capitol Hill bicker, Bernanke makes comments like, ”History makes clear that failure to put our fiscal house in order will erode the vitality of our economy, reduce the standard of living in the United States, and increase the risk of economic and financial instability.” While the IMF says that we need to raise our debt ceiling ”expeditiously to avoid a severe shock to the economy and world financial markets.”

A note about the above linked AP article addressing the IMF’s concerns: there is a massive typo that seemed to elude one of the world’s largest news organization’s entire editorial staff. The debt ceiling is not $14.3 billion, it is $14.3 trillion. This is no minor mistake as a trillion is a hefty 1,000 billion.