Stacy Summary: h/t to all that sent this in.
Dominique Strauss-Kahn, the head of the International Monetary Fund, suggested Friday the organization might one day be called on to provide countries with a global reserve currency that would serve as an alternative to the U.S. dollar.
“That day has not yet come, but I think it is intellectually healthy to explore these kinds of ideas now,” he said in a speech on the future mandate of the 186-nation Washington-based lending organization.
Strauss-Kahn said such an asset could be similar to but distinctly different from the IMF’s special drawing rights, or SDRs, the accounting unit that countries use to hold funds within the IMF. It is based on a basket of major currencies.
Tags: global currency · imf23 Comments
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Oh dear, I can see that for the 10th time all over Alex Jones website…. zzzzzzzz
Strauss-Kahn should get lobotomized
Snoot! SNOOOOOT! Wake up! Where are you?
@Mother Earth
Pour Strauss Kahn c’est déjà fait. He’s as brain dead as the french socialist party. I would opt for pearls and sea shells. The future reserve currency will be depleted uranium. Hell. Why not silver ? Much better than gold.
What is with the need for a reserve currency? That is just lazy behaviour, it’s like a risk independent fixed interest rate, it hides information about the risk but is easy on the lender. A world currency puts power in the hands of the issuer. To suggest that while monetary blocks are under such stress and the abuse by the US of the dollar reserve currency habit reaches its pinacle is simply moronic. The IMF should be cut up and abolished immediately. It is a complete failure in every way.
Saying things like ‘Intellectually healthy’ is just to get the psychopats on board. Saying things like ‘such an asset could be similar to but distinctly different ‘ is just to nonsense to tie the brains of the audience in a knot so they don’t see it is about forcing trust upon the world population in return for becoming a serf.
Snoot, WL and Dan II already great discussion about this article on earlier blog this morning in case you missed it (halfway down page)
http://maxkeiser.com/2010/02/26/ote43-on-the-edge-with-max-keiser/comment-page-3/#comments
its news like these that makes you wonder whether all these conspiracy theorists…could actually be right …no?
Would a world reserve currency like this; http://img191.imageshack.us/i/unitednationsspecialdra.jpg/ take away the need for regional currency like Euro and Sucre?
Morning, Paganrongs!
“Strauss-Kahn should get lobotomized”
Strauss-Kahn is moving into the presidency of France, ME. But lovely idea.
http://news.yahoo.com/s/nm/20100216/wl_nm/us_france_sarkozy_strausskahn
No surprise
Look beyond the Horizon.
A Silver lining awaits all who yearn for a better day.
DP
“Strauss-Kahn, a former finance minister of France, said that during the recent global financial crisis, the dollar “played its role as a safe haven” asset, and the current international monetary system demonstrated resilience.
“The challenge ahead is to find ways to limit the tension arising from the high demand for precautionary reserves on the one hand and the narrow supply of reserves on the other,” he said.”
He’s talking about providing liquidity without exporting inflation from the US. The ‘way’ Strauss-Kahn most probably plans to meet this goal is further sdr allotments. The article implies an expansion of the sdr for global liquidity.
Zhou:
“The centralized management of its member countries’ reserves by the Fund will be an effective measure to promote a greater role of the SDR as a reserve currency. To achieve this, the IMF can set up an open-ended SDR-denominated fund based on the market practice, allowing subscription and redemption in the existing reserve currencies by various investors as desired. This arrangement will not only promote the development of SDR-denominated assets, but will also partially allow management of the liquidity in the form of the existing reserve currencies. It can even lay a foundation for increasing SDR allocation to gradually replace existing reserve currencies with the SDR.”
http://www.bis.org/review/r090402c.pdf
http://articles.moneycentral.msn.com/Investing/JubaksJournal/OurBiggestExportInflation.aspx
The problem was addressed by the IMF in 2004:
http://www.allbusiness.com/finance-insurance/monetary-authorities-central-bank/164731-1.html
Creating an atmosphere conducive to their goals is what the IMF/BIS system is all about!
That arbitrary 3% to GDP! (Maybe it wasn’t arbitrary)
“Most economists, including Mr. Bernanke, say the debt won’t shrink until the deficit is restrained to about 3 per cent of GDP. That’s roughly the annual rate of growth the U.S. economy can manage in normal times without stoking inflation. If the deficit grows more quickly than the economy, the government has no ability to begin paring the debt.”
http://www.theglobeandmail.com/report-on-business/fix-the-deficit-first-bernanke-tells-us-politicians/article1480580/
The US has to have inflation or there won’t be global liquidity: we are moving to the sdr/system; the 3% rule will see fruition come in the form of the new reserve system. There is no other alternative (unless GATA has some ideedee?)
Where did the 3% ruling for debt/gdp come from? It is being applied in the Eurozone and US: where else? Is this a global regulation?
Mark my words, there will be no basket of currencies associated with any future world wide monetary system. There will be only one method of payment , through one central computer system (backed by two commodities-Gold and Silver).
http://insideglobalbanking.com/2009/11/23/debt-and-deficits-an-eu-perspective/
But a deficit below 3% of GDP, as stated in the Maastricht Treaty, has become a long term goal – so long term, that I doubt its value.
(no so long-term…2013)
I think that the IMF is putting the cart before the horse here. The same people that brought you the IMF brought you the EU and the WTO. Right now, I think they should focus on keeping as much of the EU together as they can if they want to achieve their objectives of ‘ever closer union.’ The IMF is going to find itself facing a credibility problem as far as the IMFC is concerned if the ECB can’t keep the eurozone together.
Anyway, the EU is at its core a fascist institution which, by its very DNA can only grow into a non-representative prison for the people living within its boarders. At least with the council of ministers the member states had more say.
@Snoot. phil posted a vid on the other thread you should watch.
“Mr. Obama plans to rely on a new debt commission to come up with recommendations on how to meet his promise to bring the figure down to the equivalent of 3% of GDP by 2015, according to budget analysts briefed on the proposal.”
http://online.wsj.com/article/SB10001424052748704722304575037470289762694.html
Let me think, a new currency, maybe a new bank too which can print endlessly the new bank notes? How about “tollar” and International Federal Bank or something…
This meshes with what Lindsey Williams is saying on 2/25/10:
http://www.parenting-healthy-children.com/Parenting.xml
One world currency? Just another ideological dream. It will be corrupted by the controllers as all other currencies have been corrupted. Even gold.