Head of IMF Proposes New Reserve Currency
By HARRY DUNPHY, Associated Press Writer Harry Dunphy, Associated Press Writer – Fri Feb 26, 4:13 pm ET
WASHINGTON – 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.
He said having other alternatives to the dollar "would limit the extent to which the international monetary system as a whole depends on the policies and conditions of a single, albeit dominant, country."
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.
Several countries, including China and Russia, have called for an alternative to the dollar as a reserve currency and have suggested using the IMF's internal accounting unit.
Strauss-Kahn said the IMF also needs to do a better job of tracing how risk percolates through the global economy.
"Here it will be essential to improve our ability to monitor several dozen large complex financial institutions that make up the `plumbing' through which global capital flows," he said, while leaving national regulators the job of monitoring the solvency of individual institutions.
Comments:
Sounds like less sovereignty all round by that last paragraph.
We have seen an example of this before such as Ireland & the Euro.
We explored the results of voting to join the Euro in the post Have the Irish Unknowingly Embraced the Pathological State?
The elite agenda remains clear for those who dare to inform themselves.
The US dollar as reserve currency is not supportive of this agenda, so a replacement has been proposed and plans for implementation seem to be developing when a future crisis presents the opportunity.
Based on SDR's or some equivalent type of fiat based currency a global central bank will offer to ride in on a white horse to rescue the failing currencies.
Naturally sovereign rights and civil rights will need to be forfeit for the "safety" and "common good" of the global community.
Some countries, China, Russia and India in particular, have increased their gold holdings as a form of diversification from US dollars and Euros. This factor alone gives us some hope that the future global currency may be successfully resisted.
The implications of such a move are enormous. We have seen, through the study of history, that a stealthy seizure of power to create a powerful, pathological socialist state have the following characteristics:
Our duty as citizens, in my view, is to keep Washington, Ottawa, London, Lisbon, and Canberra accountable, and aware that the characteristics of the pathological state are insidious and develop slowly.
By HARRY DUNPHY, Associated Press Writer Harry Dunphy, Associated Press Writer – Fri Feb 26, 4:13 pm ET
WASHINGTON – 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.
He said having other alternatives to the dollar "would limit the extent to which the international monetary system as a whole depends on the policies and conditions of a single, albeit dominant, country."
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.
Several countries, including China and Russia, have called for an alternative to the dollar as a reserve currency and have suggested using the IMF's internal accounting unit.
Strauss-Kahn said the IMF also needs to do a better job of tracing how risk percolates through the global economy.
"Here it will be essential to improve our ability to monitor several dozen large complex financial institutions that make up the `plumbing' through which global capital flows," he said, while leaving national regulators the job of monitoring the solvency of individual institutions.
Comments:
Sounds like less sovereignty all round by that last paragraph.
We have seen an example of this before such as Ireland & the Euro.
We explored the results of voting to join the Euro in the post Have the Irish Unknowingly Embraced the Pathological State?
The elite agenda remains clear for those who dare to inform themselves.
The US dollar as reserve currency is not supportive of this agenda, so a replacement has been proposed and plans for implementation seem to be developing when a future crisis presents the opportunity.
Based on SDR's or some equivalent type of fiat based currency a global central bank will offer to ride in on a white horse to rescue the failing currencies.
Naturally sovereign rights and civil rights will need to be forfeit for the "safety" and "common good" of the global community.
Some countries, China, Russia and India in particular, have increased their gold holdings as a form of diversification from US dollars and Euros. This factor alone gives us some hope that the future global currency may be successfully resisted.
The implications of such a move are enormous. We have seen, through the study of history, that a stealthy seizure of power to create a powerful, pathological socialist state have the following characteristics:
- A period of fiat currency abasement (since the Fed was created in 1913 the dollar has lost close to 95.5% of its purchasing power)
- The genesis and growth of restrictions on firearms regardless of constitutional provisions
- A state controlled education system that teaches socialist principals
- An increasingly controlled media that emphasizes political correctness as a way to control the thoughts and speech of citizens
- The gradual dissolution of property rights
- The ultimate collapse of national sovereignty in favor of a global state
Our duty as citizens, in my view, is to keep Washington, Ottawa, London, Lisbon, and Canberra accountable, and aware that the characteristics of the pathological state are insidious and develop slowly.
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