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IMF Exploits Euro-Crisis to Create Global Money Power

imageMonday, April 16, 201
by Staff Report

Euro Area Seeks Bigger IMF War Chest on Spanish Concerns … European officials travel to Washington this week seeking a bigger global war chest to combat the debt crisis as Spain’s government battles to quell renewed market turmoil over its finances. Three weeks after European leaders unveiled emergency euro- area funding exceeding the symbolic $1 trillion mark, concerns about Spain’s position have ratcheted the nation’s borrowing costs to the highest levels this year. Crisis-fighting resources will dominate talks at the International Monetary Fund’s spring meeting in Washington from April 20-22. – Bloomberg

Dominant Social Theme: Austerity would work if Europe would just cooperate.

Free-Market Analysis: Almost unnoticed, the world’s leaders now speak in terms of trillions rather than billions (or millions) as they used to, and the IMF and central banks are leaders in this trend (see above excerpt).

The goal of the elites running these facilities is world government and the European Union is a stepping-stone to this consolidation. Austerity, the program that is supposedly stabilizing European finances, is actually an elite dominant theme that does the opposite of its stated intent.

As part of this globalist thrust, the power elite seeks to empower certain international facilities with additional funding and authority. Out of chaos … order, as the article excerpted above once again illustrates:

Bowing to international pressure to do more while stopping short of a bolder proposal, European governments agreed last month that 500 billion euros ($654 billion) in fresh money would be placed aside 300 billion euros already committed to create an 800 billion-euro defense against contagion.

By also offering to give the IMF 150 billion euros, “European governments have done their part,” ECB Executive Board Member Joerg Asmussen said April 13. “I would now expect our non-European friends and partners to contribute their part to IMF resources.”

This kind of problem/solution formula is easy to understand for anyone who wants to look. The elites pursue their goals via dominant social themes, fear-based promotions that frighten people into giving up power and wealth to globalist facilities. In this case the mechanism is the “sovereign debt crisis” and the solution is to puff up the IMF with more resources.

The longer the so-called sovereign debt crisis goes on, the more the globalists utilize it to expand the power of their chosen institutions. We wrote about this phenomenon just the other day in an article entitled, “Debt Crisis Plotted to Deliver the Euro to the IMF?” Here’s how we explained the genesis:

One has to keep in mind the artificiality of the current economic construct. The economy of the world is run via monopoly fiat/paper money printed by central banks. It is this system that has seemingly crashed half of the world’s economy and is well on the way to delivering China into the same situation …

The EU crisis itself, as we have often pointed out, started when certain poorer countries were given large amounts of money by Brussels to “equalize” the economy. These funds were supposed to allow the bureaucracies to address native imbalances and create fiscal health.

Of course, this money was nothing but a kind of bribe. The elites of the given nation pocketed the funds and then made sure their countries entered the EU. After this occurred, further lending took place via the elite’s top, European commercial banks.

After the 2008 crash, it became clear that the EU’s PIGS couldn’t repay the loans. This was likely the plan all along. After this realization set in, the power elite that orchestrates this sort of thing ensured that the solution to this manipulated dilemma was “austerity.”

The idea is evidently and obviously to make people so miserable that they will eventually welcome world government and world money. The power elite orchestrating this has been using what we call directed history for at least a century and probably closer to three – within the context of the modern globalist conspiracy.

The article we are analyzing today from Bloomberg suggests an expanded IMF based on the Euro crisis. But the IMF is also promoting a US$500 billion expansion via developing countries.

The justification is that the European crisis might spill over into other continents and nations. The IMF has to be prepared for via a half billion-dollar transfer from the very countries it claims to be protecting. Reuters reports the following:

Euro Area Seeks Bigger IMF War Chest on Spanish Concerns … International Monetary Fund (IMF) Managing Director Christine Lagarde said that she is hoping to make “real progress” at this week’s meetings …

In January, the IMF said it would need $600 billion in new resources to help “innocent bystanders” who might be affected by economic and financial spillovers from Europe … On Friday, officials from the Group of 20 nations told Reuters the world’s major economies were likely to agree to provide the IMF with somewhere between $400 billion and $500 billion.

A G20 official said the fundraising effort would likely raise about $50 billion from Japan and a similar amount from China and Saudi Arabia, in addition to the $250-300 billion already committed by EU countries. Smaller amounts will likely come from countries such as Russia, Mexico and Brazil.

Thus it is that the IMF expands. It is receiving at least US$150 billion from Europe and hundreds of billions from mostly “developing” countries. It is interesting that the Reuters article and the Bloomberg article don’t quite match up on the European contributions. What’s a few hundred billion among friends?

In fact, nobody REALLY knows how much money is flowing at the top, or where it is headed. The point of the reports is promotional and has little to do with accuracy. The idea is to throw vast sums around as to imbue government officials with godlike powers.

Often, we discover the announcements made about funds prove not to be true. The European sovereign debt crisis was supposed to have been solved years ago, when the first announcements were made that funds had been delegated to “fix” the problem by leading European sponsors.

In fact, we have come to realize this crisis – like other crises around the world – are often manufactured ones. This is no doubt why they often last so long. The longer the crisis lasts, the more possibilities for a transformative effect.

In this case it seems obvious to us that the intent is to make citizens of the West so miserable (via “austerity”) that they will welcome virtually any change, even globalism, that promises to make their lives better.

Seen through this admittedly cynical lens, the 20th century with all its “isms” and arguments for expanding government via socialism, etc., was the first part of a promotion that is now nearing its latter stages. Having successfully made people dependent on government, the powers-that-be are now removing those props in order to further their internationalist aims.

No doubt global governance will be sold the same way as were the initial governmental solutions of the 20th century – as a panacea that will somehow reduce the world’s afflictions and rectify the wrongs of the “market.”

Conclusion: We are not yet sure the IMF is destined to become the world’s central bank – complete with an SDR global currency – but the IMF is continually showing up at the center of things as world economic chaos blossoms. More that the Bank for International Settlements or even the World Bank, it appears to be the Chosen One.

Source

G20 tackles global economy; China unswayed on yuan

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By Leika Kihara and Jan Strupczewski

WASHINGTON | Fri Apr 15, 2011 10:37am EDT

(Reuters) – The world’s big economies on Friday tried to overcome their differences and flesh out a plan to make the world economy less prone to booms and busts.

The challenge of getting the Group of 20 to agree on how to spot and fix dangers to global growth comes as policymakers are worried about more immediate threats — high oil prices, huge debts in some rich nations and unrest in the Middle East.

China, at the center of the ambitious global policy plan, signaled it will only let its tightly controlled yuan currency rise in value at its own speed.

Still, the G20 as the major forum for global policy coordination wants to find ways to insulate the economy from some of the imbalances that led to the 2007-2009 crisis and the worst global recession since World War Two.

Canadian Finance Minister Jim Flaherty said addressing imbalances between export-rich and debt-burdened countries that have long plagued the global economy was a priority of the G20, which accounts for 85 percent of world output.

But it has become hard to find agreement on just how to reform the world’s financial system now that the darkest days of the financial crisis have passed. The G20 is trying to settle its differences on the imbalances plan in time for a leaders’ summit November.

Even if there is agreement, countries will not be bound to follow any policy recommendations that emerge from the monitoring of their policies but officials hope peer pressure will work.

There is a divide between big emerging economies, led by the group known as BRICS, for Brazil, Russia, India, China and South Africa, and developed economies such as the United States.

Leaders of the BRICS kept up their calls for a monetary system less reliant on the U.S. dollar at a summit in China this week.

BRICS STAND FIRM

China’s central bank governor, Zhou Xiaochuan, stayed at home to attend the BRICS summit but made sure his voice was heard in Washington on the key topic of currency reform, reiterating that currency reform in China will take place gradually.

U.S. officials said ahead of the G20 meeting that currency flexibility was vital to correct excessive trade surpluses.

South African President Jacob Zuma, speaking in China, blasted the United States for its super-loose monetary policies and over-spending, which he said threatened the world economy.

The Federal Reserve’s $2 trillion bond-buying program, designed to stimulate the U.S. economy, has been blamed by emerging economies for driving down the dollar’s value and unleashing destabilizing waves of “hot money” into emerging markets in search of higher yields.

A cloudy outlook for global growth complicates efforts to find unity about how to add stability to the economic system.

High oil and food prices, the euro zone’s sovereign debt crisis, political infighting over the massive U.S. budget deficit and the impact of Japan’s earthquake, tsunami and nuclear crisis all pose risks to the recovery from recession.

G20 officials on Friday were pushing for a deal on how to apply new guidelines to identify countries with excess trade deficits or surpluses and too much debt.

“It is a matter of credibility for the G20 that we agree on the indicative guidelines this weekend,” said Olli Rehn, the European Union’s economic and monetary affairs commissioner.

The G20 wasn’t expected Friday to name specific countries that spend or save too much, but if it did, the United States and China would almost certainly top the list.

It would probably include others. French Finance Minister Christine Lagarde said Thursday the biggest economies — those representing 5 percent of total G20 output — might get special scrutiny. That would also include France, Germany and Japan.

Beyond that the G20 hopes to discuss how to apply guidelines. That might be done through computer modeling, with sources telling Reuters four different models for identifying imbalances were being discussed.

Reducing budget deficits is crucial too. The IMF this week said the United States may have a hard time meeting a G20 goal of halving its deficit by 2013.

President Barack Obama presented a plan this week to cut the deficit by $4 trillion over 12 years, but his former economic adviser said the country should wait until after growth is strong enough to warrant higher interest rates.

(Reporting by Reuters IMF/G20 team; Writing by Glenn Somerville, editing by William Schomberg and Leslie Adler)

( Original Article )

reuters.com

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