Tag Archive: International Monetary Fund


BoozWheezBoozWheez

Published on Mar 23, 2013

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The Cyprus debt crisis is being felt by the banks but also by the people who work at them. Nick Paton Walsh reports

 

 

by Stephen Lendman

Veterans Today

Austerity reflects predatory capitalist harshness. Bankers, other corporate favorites, and super-rich elites are enriched at the expense of most others.

Force-fed policies are destructive. Disadvantaged households are harmed most. Capital’s divine right is prioritized. It profits by cutting wages and eroding social spending en route to eliminating it altogether.

Washington’s fiscal cliff duplicity conceals class war. Bipartisan complicity wants America’s social contract destroyed. By 2023 or sooner, it may no longer exist.

Robbing poor Peter to pay rich Paul is policy. It’s happening across Europe. The worst of times are planned. Banker rights are prioritized over popular ones. They’re on the chopping block for elimination.

OnJanuary 1, The New York Times headlined “Used to Hardship, Latvia Accepts Austerity, and Its Pain Eases.”

It’s hard imaging rubbish this unconscionable gets published. The Times featured it.

Latvia “provide(s) a rare boost to champions of the proposition that pain pays,” said The Times. Hard times continue.

“But in just four years, the country has gone from the (EU’s) worst economic disaster zone to a model of what the (IMF) hails as the healing properties of deep budget cuts.”

IMF policies wage financial war on humanity. They’re hugely destructive. They debt-entrap nations. They impoverish millions. They force-feed structural adjustment harshness. They mandate:

  • privatization of state enterprises; many are sold for a fraction of real worth;
  • mass layoffs;
  • deregulation;
  • deep social spending cuts;
  • wage freezes or cuts;
  • unrestricted free market access for western corporations;
  • corporate-friendly tax cuts;
  • tax increases for working households;
  • trade unionism crushed or marginalized; and
  • harsh repression against opposition to a system incompatible with social democracy, civil and human rights.

Kleptocrats are empowered. Bankers and other corporate predators strip mine countries of material wealth and resources. Crown jewels are sold off at fire sale prices. Poverty, unemployment, hunger and homelessness grow.

People lucky enough to have jobs become serfs. Debt peonage substitutes for freedom. A race to the bottom follows. Force-fed austerity is neo-Malthusaianism writ large.

Its holy trinity mandates no public sphere, unrestrained corporate empowerment, and abolition of social spending. It’s the worst of all economic/financial worlds.

They’re financialized into hollow shell dystopian backwaters.

Bravo, said The Times. After seeing its economy shrink 20% from peak levels, Latvia dead-cat bounced a smidgen. Its exports rose.

“We are here to celebrate,” said IMF head Christine Lagarde. She’s a world class scoundrel. She was Washington’s top choice to run things. Her support for neoliberal harshness won her the job.

Her mandate is austerity harshness, mass impoverishment, neo-serfdom, and extracting wealth for giant banks and other financial favorites. Her background showed she’s up to the challenge.

 

Read Full Article Here

By Michael,

Please be warned – the statistics about the economy that you are about to read are likely to completely blow your mind.  The U.S. economy is in far, far more trouble than the mainstream news would have you believe.  Most Americans are still convinced that the economic downturn that we have been experiencing will soon be over and that things will shortly get back to “normal”.  But that is not what is happening.  What we are actually witnessing is the disintegration of the foundations of the U.S. economic system.  The survival of the American middle class is now in serious jeopardy.  In fact, the survival of the American way of life is now in serious jeopardy.  Today, more Americans are living in poverty than at any other time in history.  Millions upon millions of Americans are out of work and it now takes the average unemployed worker an average of over 35 weeks to find a job.  Home sales are at near record lows.  Home foreclosures are at record highs.  Factories and jobs continue to leave the United States at a dizzying pace and the U.S. government has piled up the biggest mountain of debt in the history of the world with no end in sight.  So yes, the U.S. economy is in a deep, deep state of crisis, and there is not much hope that things are going to get much better any time soon.

Because of the exploding U.S. trade deficit, every single month far more wealth goes out of the United States than comes into it.  Every single month more good jobs and more factories leave our shores never to return.  America was once the greatest industrial power on the globe, but today the U.S. is being de-industrialized at a staggering pace.  Every single month state and local governments go even deeper into debt.  Every single month the U.S. government goes even deeper into debt.  Today, the total of all consumer, business and government debt in the United States is equivalent to approximately 360 percent of GDP.  At no point during the Great Depression did we ever even come close to such a level.  It would be hard to understate exactly how much danger the U.S. economy is in.

Yes, things really are that serious.

The following are 44 statistics about the U.S. economy that will send a deep, deep chill down your spine….

 

Read Full Article Here

Several Top Economists Privately Told Obama That He Screwed Up The Recovery In One Major Way

Barack Obama

AP

The Washington Post’s Zachary Goldfarb reveals this in a great new story:

One year and one month before President Obama won reelection, he invited seven of the world’s top economists to a private meeting in the Oval Office to hear their advice on what do to fix the ailing economy. “I’m not asking you to consider the political feasibility of things,” he told them in the previously unreported meeting.

There was a former Federal Reserve vice chairman, a Nobel laureate, one of the world’s foremost experts on financial crises and the chief economist of the International Monetary Fund , among others. Nearly all said Obama should introduce a much bigger plan to forgive part of the mortgage debt owed by millions of homeowners who are underwater on their properties.

Just as in during the financial crisis, the reaction of The White House was to not do much. Part of it was the result of political expediency (no big “homeowner bailout” has much chance if it needs to go through Congress) and part of it seems to be a thinking on the part of the administration that helping out over-indebted homeowners is not really plausible.

The idea that huge and persistent levels of homeowner debt remain a big economic drag should be understood by anyone familiar with Richard Koo’s “Balance Sheet Recession” framework (although the primary economist whose doing work on the subject these days is University of Chicago professor Amir Sufi, who has literally written (along with economist Atif Mian) the paper on the subject titled “Household Balance Sheets,Consumption, and the Economic Slump“).

The abstract of that paper explains how a theoretical notion (that high levels of debt were a drag) could be demonstrated in the data.

The large accumulation of household debt prior to the recession in combination with the decline in house prices has been the primary explanation for the onset, severity, and length of the subsequent consumption collapse. Using novel county level retail sales data, we show that the decline in consumption was much stronger in high leverage counties with large house price declines. Levered households experiencing larger house price declines faced larger drops in credit limits, were unable to refinance mortgages into lower rates, and paid down existing debts at a faster pace. Using zip code level data on auto purchases and exploiting within-county variation, we show that the consumption response to declining house prices was stronger in areas with more reliance on housing as a source of wealth.

The paper’s charts show a worse-than-average consumption decline in areas characterized by high debt.

Click the chart to enlarge.

Note that unlike some economic debates which break on predictably partisan lines (with liberals favoring more intervention, and conservatives favoring less) this question is a little different.

For example, in a post following up on Goldfarb today, liberal economist Dean Baker disagrees that the mortgage debt hangover is the main problem, and instead says that the main problem is just the normal collapse in asset prices, and that the real failure was the lack of a sufficiently large stimulus.

Baker writes:

In fact, there is no need to turn to implausible underwater mortgage debt explanations for the weakness of the economy. The economy is acting exactly as those who warned of the bubble predicted. We saw a sharp falloff of residential construction as we went from a near record boom, with construction exceeding more than 6.0 percent of GDP at the 2005 peak, to a bust where it fell below 2.0 percent of GDP. This meant a loss in annual demand of more than $600 billion a year.

We also saw a large falloff in consumption due to the loss of $8 trillion in housing wealth. The housing wealth effect is one of the oldest and most widely accepted concepts in economics. It is generally estimated people spend between 5 and 7 cents each year per dollar of housing wealth. This means that the collapse of the bubble would be expected to cost the economy between $400 billion and $560 billion in annual demand.

There is no mechanism that would allow the economy to easily replace the combined loss of between $1 trillion and 1.2 trillion in demand that would be predicted from the collapse of the housing bubble. Therefore it is hard to see why anyone would feel the need to look to explanations involving the indebtedness of underwater homeowners, the whole downturn is easily and simply explained by the collapse of the bubble.

On Twitter today, Sufi defended his ideas in a series of tweets. Here are a few of them:

image

Amir Sufi, Twitter

Bigger picture, when people talk about “the debt” these days, they’re probably talking about The National Debt, even though it really doesn’t seem connected at all to the problems of the economy. Homeowner debt, however, is a real burden. There may not be much plausibly that can be done, but it should get much more attention.

For more on the balance sheet recession, see this awesome Richard Koo presentation >

Read more: http://www.businessinsider.com/economists-on-obamas-failure-to-address-mortgage-debt-2012-11#ixzz2D5rUquuW

Politics, Legislation and Economy News

Economic News  –  Global Economy  :  Austerity – Banking – Financial – Rising Costs

Eurozone gives Greece 10-day ultimatum

EUobserver.com
  1. By Valentina Pop

BRUSSELS – Eurozone finance ministers have given Greece 10 days to implement budget cuts in return for a delayed bailout tranche.

  • Merkel and Samaris met in Berlin in August (Photo: primeminister.gov.gr)

“We stressed that before the next disbursement Greece clearly and credibly should demonstrate its commitment to fully implement the programme … by the 18 October at the latest,” said Jean-Claude Juncker, chair of the eurozone finance ministers, on Monday (8 October).

He noted that most of the 89 “prior actions” – a list of budget cuts, privatisations, labour market and tax reforms agreed in March – had been agreed upon within the three-party coalition in Athens, but that no money could flow before everything is implemented.

The €31.5 billion tranche of bailout money has been delayed since June, awaiting a report by experts from the “troika” of international lenders – the EUuropean Commission, European Central Bank and International Monetary Fund (IMF) – who are still in Athens trying to figure out how to plug the widening gap in Greek finances.

IMF chief Christine Lagarde, during the same press conference, also said that “more work needs to be done” and that “acting means acting, not just speaking.”

She denied reports that the IMF was at odds with the EU over Greece’s debt sustainability scenario, a projection underlying the €130 billion bailout agreed in March, which assumes that debt-to-GDP will fall to 120 percent by 2020.

“There are no figures yet, the troika has not finalised its report,” Lagarde said.

In a separate report issued Monday, the IMF warned of a possible worsening of the euro-crisis amid “rising social tensions and adjustment fatigue” in the “periphery” – meaning countries such as Greece, Portugal and Spain where anti-austerity protests have intensified in recent weeks.

About 8,000 protesters took to the streets of Athens on Monday on the eve of a visit by German Chancellor Angela Merkel shouting “Merkel raus [out]” and “Angela, go home.”

Some 7,000 policemen are to be deployed during her six-hour visit to the Greek capital, with large parts of the city closed to protesters.

Merkel is on her first visit since Greece went bankrupt in 2009 and had to ask for two consecutive bailouts. Her visit is designed to show support for centre-right Prime Minister Antonis Samaras as he struggles to implement further austerity measures.

Blamed for most of Greece’s woes in Greek press, Merkel has softened her stance in recent months.

But her message is likely to be more of the same: no money until the troika says the austerity measures are being implemented properly.

 

 

Related

  1. Merkel to visit Greece this WEEK
  2. Greece, Spain up for more austerity despite violence
  3. IMF: politics could wreck EU bank union plan

 Politics, Legislation and Economy News

Economic News  :  Global Economy -Activism  – Austerity – Fiscal Irresponsibility

A molotov cocktail explodes beside riot police officers near Syntagma square during a 24-hour labour strike in Athens September 26, 2012. REUTERS-Yannis Behrakis
A masked protester runs through a cloud of tear gas in Athens' Syntagma square during a 24-hour labour strike September 26, 2012. REUTERS-Yannis Behrakis
Passengers arrive at the port of Piraeus during a 24-hour labour strike in Athens September 26, 2012. REUTERS-Yorgos Karahalis

By Renee Maltezou and Harry Papachristou

ATHENS

(Reuters) – Greek police clashed with hooded rioters hurling petrol bombs as tens of thousands took to the streets of Athens on Wednesday in Greece’s biggest anti-austerity protest in more than a year.

Violence erupted after nearly 70,000 people marched to parliament chanting “We won’t submit to the troika (of lenders)” and “EU, IMF Out!” on the day of a general strike against a new round of cuts demanded by foreign lenders.

As the rally ended, dozens of black-clad youths threw stones, petrol bombs and bottles at riot police, who responded with several rounds of teargas. Police chased the protesters through Syntagma square in front of parliament as helicopters clattered overhead. Smoke rose from small blazes in the streets.

About 120 people were detained after angry protesters smashed bus stop kiosks and set fire to garbage cans.

“We can’t take it anymore – we are bleeding. We can’t raise our children like this,” said Dina Kokou, a 54-year-old teacher and mother of four who lives on 1,000 euros a month.

“These tax hikes and wage cuts are killing us.”

The 24-hour nationwide strike, called by the country’s two biggest unions representing half the four-million-strong work force, is shaping up to be the first test of whether Prime Minister Antonis Samaras can stand his ground.

Police officials estimated the demonstration was the largest since a May 2011 protest, and among the biggest since near-bankrupt Greece first resorted to aid from international lenders in 2010 – which has come at the price of painful austerity cuts.

The traditional summer break has allowed the fragile conservative-led coalition to enjoy relative calm on the streets since narrowly coming to power on a pro-euro, pro-bailout platform, but unions say the lull is over.

“Yesterday the Spaniards took to the streets, today it’s us, tomorrow the Italians and the day after – all the people of Europe,” Yiorgos Harisis, a unionist from the ADEDY public sector group told demonstrators.

“With this strike we are sending a strong message to the government and the troika that the measures will not pass even if voted in parliament, because the government’s days are numbered.”

About 3,000 police – twice the number usually deployed – stood guard in the centre of Athens, which last saw serious violence in February when protesters set shops and banks ablaze as parliament approved an austerity bill.

Police formed a barricade outside parliament, and officers blocked a pensioner who tried to move towards Samaras’s office holding a banner with pictures of Greek prime ministers under the title: “The biggest traitors in Greek history”.

Ships stayed docked, museums and monuments were shut to visitors and air traffic controllers walked off the job for a three-hour stoppage. Train service and flights were suspended, public offices and shops were shut, and hospitals worked on skeletal staff as part of the general strike.

“DESTROYING OUR LIVES”

Much of the union anger is directed at spending cuts worth nearly 12 billion euros ($15.55 billion) over the next two years that Greece has promised the European Union and International Monetary Fund in an effort to secure its next tranche of aid.

The bulk of those cuts is expected from cutting wages, pensions and welfare benefits, heaping a new wave of misery on Greeks who say repeated rounds of austerity have pushed them to the brink and failed to transform the country for the better.

“We can’t just sit by idly and do nothing while the troika and the government destroy our lives,” said Dimitra Kontouli, a 49-year-old local government employee whose salary was cut to 1,100 euros a month from 1,600 euros previously.

“My husband has lost his job, we just can’t make ends meet.”

A survey by the MRB polling agency last week showed that more than 90 percent of Greeks believe the planned cuts are unfair and burden the poor, with the vast majority expecting more austerity in coming years.

Unions argue that Greece should remain in the euro but default on part of its debt and ditch the current recipe of austerity cuts in favor of higher taxes on the rich and efforts to nab wealthy tax evaders.

But with Greece facing certain bankruptcy and a potential euro zone exit without further aid, Samaras’s government has little choice but to push through the measures, which have also exposed fissures in his coalition.

With Greece in its fifth year of recession and nearly one out of four jobless, analysts say patience is wearing thin and a strong public backlash could tear apart the weak government.

“What people want to tell Samaras is that they are hurt and Samaras could use this to demand concessions from the troika,” MRB polling director Dimitris Mavros said.

“The people are willing to give the government time, but on certain conditions like cracking down on tax evasion and securing a bailout extension. If the government succeeds in that, its life will also be extended.” ($1 = 0.7715 euros)

(Additional reporting by Tatiana Fragou; Writing by Deepa Babington)

Politics, Legislation and Economy News

 

Banking &Financial Corruption  :  Taxation Hypocrisy

 

 

 

Trillions Stashed in Offshore Tax Havens

by Stephen Lendman
 

A new Tax Justice Network (TJN) USA report reveals an estimated $21 – $32 trillion of hidden and stolen wealth stashed largely tax-free secretly. 

Titled “The Price of Offshore Revisited,” it explains what financial insiders know but won’t discuss. Many of them have their own hidden wealth.

 

TJN describes a “subterranean” systemic “economic equivalent of an astrophysical black hole.” The higher estimate above exceeds US GDP twofold.

 

It’s mind-boggling. It’s hard imagining a tiny percent of privileged elites control this much wealth secretly. It’s worse knowing it’s largely tax free. It’s appalling that governments let them get away with it.

 

Wall Street and other major banks manage it. Their business is fraud and grand theft. Private banking operations yield huge profits. Keeping funds secreted tax free attracts rich clients. Private capital globally is attracted. It’s welcome from anyone, “no questions asked.”

 

Government policies protect them. Societal costs are huge. Tax justice is absent. Hotel magnate Leona Helmsley once said only little people pay taxes. TJN’s report bears her out.

 

A vast “global offshore industry” is explained. It’s largely tax-free. It’s controlled by the world’s richest, most powerful elites. Estimating amounts secreted takes tedious data mining.

 

Previous estimates relied more on rough judgments. TJN used several methods. They include available data sources, estimation methods, and core assumptions. They’re open to peer review and public scrutiny.

 

Four key approaches were used:

 

(1) A “sources-and-uses” country-by-country model.

 

(2) An “accumulated offshore wealth” model.

 

(3) An “offshore investor portfolio” model.

 

(4) Best-guess estimates of offshore assets held by the world’s top 50 private banks. 

 

Familiar Wall Street, European, and other global financial institutions comprise them.

 

Current data gotten from global central banks, the World Bank, IMF, UN, and national accounts were used. Other evidence includes:

 

(1) “Transfer mispricing” data.

 

(2) Demand for cross-border liquid “mattress money” data.

 

(3) Current research data on the offshore private banking market’s size.

 

TJN believes its work comprises the “most rigorous and comprehensive” data ever produced. It challenges anyone to contest it.

 

In overall size through 2010, it estimates hidden global wealth at from $21 – $32 trillion. It’s invested “virtually tax-free” through a still-expanding black hole of more than 80 secret jurisdictions. It calls estimates conservative.

 

Developed countries don’t face debt problems. They’ve got huge offshore tax evasion ones. Repatriation would reduce debt substantially. Doing so would bring it well within tolerable levels.

 

Only financial wealth is included. Much else isn’t measured. It includes real estate, yachts, racehorses, gold, art, and other categories not easily quantified.

 

The offshore economy alone has an enormous negative impact on the domestic tax bases of affected countries. They’ve had significant private capital outflows for years, decades or longer.

 

TJN focused on 139 countries. They’re mainly “low-middle income” ones. The World Bank and IMF maintain data on them.

 

Since the 1970s, private bankers let rich elites accumulate trillions in hidden wealth. At the same time, these nations experienced structural adjustment harshness. 

 

They became debt-entrapped. Some borrowed themselves into insolvency. They sold off public assets at fire sale prices. They impoverished their people. They colluded with big money interests at their expense.

 

Through 2010, they accumulated over $4 trillion in debt. Minus foreign reserves invested in First World securities, it’s $2.8 trillion. Including hidden wealth, they’re net lenders.

 

Key is that assets of these countries are held by wealthy elites. Ordinary people bear the burden of debts.

 

In the 1980s, an unnamed Fed official said:

 

“The problem is not that these countries don’t have any assets. The problem is they’re all in Miami” and other global cities. They’re home to private financial institutions.

 

Hidden offshore wealth correlates positively with loan amounts to indebted countries. Large amounts of borrowed capital were secreted lawlessly in global tax havens.

 

Local elites continue “vot(ing) with financial feet.” At the same time, their public sectors borrow heavily and ordinary people go begging.

 

Although First World countries borrow most, they and elites in them remain global financiers.

 

Wealth is concentrated in select private hands “in a handful of source countries.” Many are regarded as debtors.

 

Through 2010, 50 top private banks managed over $12 trillion in cross-border assets from individual clients,  trusts and foundations.

 

Smaller banks, investment firms, insurers, and non-bank intermediaries like hedge funds and independent money managers handle additional amounts up to an overall $32 trillion estimate.

 

TJN calls these enablers part of a global “tax injustice system.” Complicit governments let them operate at the expense of their own people.

 

“Since the late 1970s, investigative journalists, tax authorities, drug enforcement officials, terrorist trackers, national security experts,” and others became aware about vast amounts of money stashed in “offshore” tax havens.

 

Private banking “professional enablers” manage it. They make fortunes doing it. The term “offshore” refers less to physical locations than virtual ones anywhere. They’re often “networks of legal and quasi-legal entities and arrangements.” They operate in the interests of money managers.

 

Physical locations can be anywhere. Legal structures typically are assets owned by anonymous offshore companies in one jurisdiction. Trusts are in another. Trustees are in multiple places globally.

 

Clients are rich elites, companies, and criminals. They include real estate speculators, technology tycoons, oil sheiks, underworld millionaires, heads of state, despots, and drug lords, among others. Their common needs include:

 

(1) Anonymity and confidentiality.

 

(2) Minimizing or avoiding taxes.

 

(3) Skilled money management.

 

(4) Ability to access and manage their wealth anywhere.

 

(5) Secure places to reside, visit, or hide.

 

(6) Assured financial security no matter what’s happening in the real world.

 

Skilled professionals provide these services globally. Money management happens in a virtual world. They live under one set of rules. Another exists for all others. It’s gone on for decades. Global banks thrive on it. It’s one of their most profitable operations.

 

Physical locations operate from Bermuda, the Cayman Islands, Nauru, St. Kitts, Antigua, Tortola, Switzerland, the Channel Islands, Monaco, Cyprus, Gibraltar, Liechtenstein, and elsewhere. 

 

Over 3.5 million paper companies, thousands of shell banks and insurers, more than half the world’s registered commercial ships above 100 tons, and tens of thousands of shell subsidiaries of giant global banks, accounting firms, and various other companies operate there.

 

Nonetheless, conventional havens are misleading. Despite their vast financial infrastructure, most super-rich elites want more security. They also need easy access to First World capital markets, competent attorneys and accountants, independent judiciaries, and laws protecting them.

 

Professional “enablers” provide all needed services. Managing vast wealth is complex. Many skills are required. They include financial, economic, legal, accounting, and insurance. Super-rich elites demand and get the best.

 

Haven locations offer more than tax avoidance. Almost anything goes on. It includes fraud, bribery, illegal gambling, money laundering, human and sex trafficking, arms dealing, toxic waste dumping, conflict diamonds and endangered species trafficking, bootlegged software, and endless other lawless practices.

 

It’s impossible to estimate total lawful and illegal wealth from all sources. It’s vastly more than estimates within the parameters of TJN’s study. Credit Suisse tried. 

 

Through mid-2011, it puts total financial and non-financial global wealth at $231 trillion. It’s a best guess. It’s tenfold TJN’s top figure. It’s mind-boggling. It’s roughly 3.5 times global GDP. In 2011, it was about $65 trillion.

 

Imagine the good a small percent of global wealth could do for billions of disadvantaged people. Imagine its ability to stabilize and recapitalize troubled countries. Imagine a world where everyone shares its wealth. Imagine one worth living in. 

 

Global wealth represents low-hanging fruit out of reach. Instead of everyone benefitting, few do at the expense of all others. Injustice that great begs for transformational change. From the bottom up is the only way possible. Shedding light on what’s dark is a good way to start.

 

Stephen Lendman lives in Chicago and can be reached at lendmanstephen@sbcglobal.net

 

His new book is titled “How Wall Street Fleeces America: Privatized Banking, Government Collusion and Class War”

 

http://www.claritypress.com/Lendman.html

 

Visit his blog site at sjlendman.blogspot.com and listen to cutting-edge discussions with distinguished guests on the Progressive Radio News Hour on the Progressive Radio Network Thursdays at 10AM US Central time and Saturdays and Sundays at noon. All programs are archived for easy listening.

 

http://www.progressiveradionetwork.com/the-progressive-news-hour

Stephen Lendman is a frequent contributor to Global Research.  Global Research Articles by Stephen Lendman

 

Crossroads News : Changes In The World Around Us And Our Place In It

 

 

 

Activism

 

 

Published on Aug 20, 2012 by

Since the fall of Communism, Hungary has been doing everything the Western institutions have asked, privatizing and selling off state assets, which resulted in heavy debts and low living standards. Now, the new government is hitting back by raising taxes on foreign companies and trying to protect its domestic market. However, it has been criticized by the EU, IMF and the Western media. Hungarians have also taken to the streets of Budapest and the Western media is championing the views of the protesters and damning the government. On this week’s INFocus we will tell the real story of why the new Hungarian government is becoming a new bogeyman of the West and how fake protests can be started under foreign influence.

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

Susanne Posel
Activist Post
one world currency

© Unknown

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.

Paul Solman, correspondent for the PBS NewsHour purveys the positive propaganda of one world currency by asserting that:

Ah, the dream: one world, one economy, one currency – and, of course, one global political system . . . a common currency means a common economic policy . . .

The United Future World Currency is a foundation nearly 2 decades old that seeks to “bring to life the project for a common currency” once defined as the Euro. They are committed to bringing awareness to the necessity of global currency.

Organizations like this serve to make the idea of a global currency more palatable to the general public. Simultaneously, nations like China are pushing against the US dollar being the global reserve currency as the Federal Reserve continues to inflate the US dollar which debases its worth.

The Institute of International Finance (IIF), a group of technocrats that represent 420 banking cartels and financing houses have joined the cry for a one world currency.

Charles Dallara, managing director of the IIF, said:

A core group of the world’s leading economies need to come together and hammer out an understanding. The narrowly focused unilateral and bilateral policy actions seen in recent months – including many proposed and actual measures on trade, currency intervention and monetary policy – have contributed to worsening underlying macroeconomic imbalances. They have also led to growing protectionist pressures as countries scramble for export markets as a source of growth.

The UN’s call for one world currency is contained in their report entitled, United Nations: Economic and Social Survey 2010. The UN asserted that the US dollar must be replaced by a new one-world currency issued by the International Monetary Fund (IMF).

In response to the Global Market Crash of 2008, Zhou Xiaochuan, the governor of the People’s Bank of China, revived the ideal of the Bancor by demanding that the IMF have special drawing rights (SDRs).

Xiaochuan contented that national currencies were counter-productive to the global markets and that domestic monetary policy must not override international necessities.

The UN published a report following the financial crisis in 2008 entitled, The Commission of Experts of the President of the UN General Assembly on Reforms of the International Monetary and Financial System wherein they created a commission to “restore global economic stability”.

UN Secretary-General Ban Ki-moon affirmed that a one-world currency would “bridge the old North-South divide” and that the UN’s “monetary vision” if properly implemented would be a “path out of our current predicament.”

In a report published in 2010, the IMF stated that the Bancor should be established and administered as the one-world currency. To go along with the one-world currency, the IMF advises the establishment of a one-world bank; which would also have issuance rights as the Federal Reserve Bank does within the US.

The IMF report states:

The global central bank could serve as a lender of last resort, providing neededsystemic liquidity in the event of adverse shocks and more automatically than at present. Such liquidity was provided in the most recent crisis mainly by the U.S. Federal Reserve, which however may not always provide such liquidity.

The advent of a global currency, if allowed to happen will be controlled by the UN, as the IMF is an arm of the globalist Elite front.

Simply put, this demand is a call for economic control by the international community for the express purpose of ensuring that the future of all sovereign nations eventually fall victim to the coming global governance.

Susanne Posel is the Chief Editor of Occupy Corporatism. Our alternative news site is dedicated to reporting the news as it actually happens; not as it is spun by the corporately funded mainstream media.