Sep 102017
 
BY JAMES RICKARDS POSTED  SEPTEMBER 8, 2017 Dear President Trump: America is in for a Rude Awakening in January Dear President Trump, Over the last couple of years I’ve been all over TV… from Fox News to CNBC, CNN and Bloomberg. I’ve been telling our fellow Americans that the financial global elite was planning to issue their own globalist currency called special drawing rights, or SDRs. And that those elites would use this new currency to replace the U.S. dollar as the global reserve currency. I’ve even written about this extensively in my best-selling booksThe Road to Ruin and The New Case for Gold. I’m sure some people in the mainstream media thought I was out of line — but the United Nations and the International Monetary Fund (IMF) have both confirmed this plan to replace the U.S. dollar is real. I’ve made this warning many times, but it seems to be falling on deaf ears. That’s why I’m writing directly to you. Here’s the proof that the U.S. dollar is under attack, right in front of our eyes: The UN said we need “a new global reserve system… that no longer relies on the United States dollar as the single major reserve currency.” And the IMF admitted they want to make “the special drawing right (SDR) the principal reserve asset in the [International Monetary System].” More recently, the IMF advanced their plan by helping private institutions, such as the UK’s Standard Chartered Bank, issue bonds in SDRs. Although our mainstream media ignored this major event, the UK media reported: This is all happening. And on January 1st, 2018, this trend to replace the U.S. dollar will accelerate. That’s when the global elite will implement a major change to the plumbing of our financial system. It’s a brand-new worldwide banking system called Distributed Ledger Technology. And it will have a huge impact on seniors who are now preparing for retirement. When this system goes live, many nations will be able to dump the U.S. dollar for SDRs. For now, the U.S. dollar is still the world’s reserve currency. Other nations have to hold and use the U.S. dollar for international trade, instead of their own currencies. This creates a virtually unlimited demand for U.S. dollars, which allows us to print trillions of dollars each year to pay for wars, debt and anything we want. It keeps our country operating. Now, we can see that (more…)
Mar 092016
 
IMF managing director calls for new technology, shifting policy to meet population growth. Peter Dizikes | MIT New Office March 7, 2015 Original article, MIT Press The relentless rise in world population during the century ahead means we must develop new technologies and policies to spur economic growth, said Christine Lagarde, managing director of the International Monetary Fund (IMF), while delivering MIT's Karl Taylor Compton Lecture on Friday. In a sweeping overview of global demographics and their effects on our civic structures, Lagarde highlighted the many challenges of living on an increasingly crowded planet, including fiscal and environmental stresses. But she emphasized that a growing population need not portend a kind of doomsday scenario, as some have envisioned. “We need to re-frame the debate about demographics,” Lagarde said. “I believe that this challenge can be met. But it requires the right policies, political resolve, and strong leadership. … The fiscal policy responses and technological innovation are especially important parts of the solution.” The world population is currently around 7.5 billion people and is projected to grow to 10 billion about 40 years from now. As Lagarde emphasized in her lecture, "Demographic Change and Economic Well-being: The Role of Fiscal Policy," population growth is bound up with some distinctly positive changes, such as greater life expectancy and a growth in per-capita income around the world. Globally, life expectancy has increased from 47 years to 71 years since 1950, and per-capita income has quadrupled since the end of World War II. Yet having more people on the planet may also be associated with a slowdown in economic growth, Lagarde noted, because an aging population is less able to work and may be fiscally burdensome for states, due to larger costs associated with health care and retirement security. Lagarde cited technology as a countervailing force to these trends, which spurs growth and lessens the costs embedded in our shifting demographics. She heralded MIT for its focus on “technological innovation,” saying it was “essential to raising living standards over the long term.” Lagarde also unequivocally emphasized the need for robust government investment in scientific research and development (R&D). New IMF economic research, Lagarde noted, indicates that if governments of the world’s advanced economies took steps that increased private-sector R&D by 40 percent, they would improve long-run GDP in those countries by 5 percent. Lagarde delivered her address before a capacity audience of around 1,200 (more…)
Dec 162015
 
China to get more power under reform deal   By IanTalley      Getty Images   Long-awaited IMF reform was approved in Congress. WASHINGTON–U. S. lawmakers look set to ratify a five-year-old international deal to overhaul the governance of the International Monetary Fund that gives emerging markets such as China greater power at the emergency lender. Lawmaker approval would resolve a long-running grievance by emerging powers that their voice and vote at the shareholder institution doesn’t represent their growing economic heft in the world. Congressional leaders agreed early Wednesday morning to include the changes in a catch-all spending bill, which could become law in the coming days. “We look forward to the outcome of the legislative process,” said IMF spokesman Gerry Rice. U.S. lawmakers have stymied modernization of the fund’s shareholder governance for years, fomenting resentment among the IMF’s emerging-market membership. An expanded version of this story is available at WSJ.com Share this:FacebookLinkedInTwitterGoogleTumblrPinterestReddit (more…)
Aug 242015
 
What is a currency war? Currency wars are also referred to as “competitive devaluations.” They occur when a number of nations seek to deliberately depreciate the value of their domestic currencies. The goal is to stimulate their respective economies. You see, a weaker currency will make a nation’s exports more competitive in global markets and simultaneously makes imports more expensive. Higher export volumes increase economic growth, while more expensive imports encourage consumers to shift to local alternatives instead of imported products. While currency devaluation is a common occurrence in the foreign exchange market, the hallmark of a currency war is that a number of nations engage in devaluation attempts simultaneously. Presently, more than 20 countries have reduced interest rates or implemented measures to ease monetary policy from January to April 2015. And in August, China – the world’s second-largest economy – jumped on board in a major way, placing a strain on the world reserve currency, the U.S. dollar… Currency Wars: China Has U.S. Dollar on Puppet Strings Peter Schiff, CEO of Euro Pacific Capital and best-selling author of “Crash Proof,” issued a warning about currency wars and an impending U.S. dollar collapse. He spoke to Newsmax TV on Aug. 11: “We’re on the verge of a much worse financial crisis than the one we went through in 2008, and it’s going to take the form of a currency crisis. You’re talking about currency wars. America is going to win the currency war, which is a race to the bottom, and you don’t want to win a currency war because a currency war is different from most wars in that the object is to kill yourself and unfortunately, we’re going to succeed.” You see, no other country has had this much impact on the U.S. monetary policy in quite some time – or arguably, ever. The U.S. Federal Reserve must now reconsider the dollar’s role in foreign exchange markets as it decides whether to raise interest rates this year. “It is very possible that we could see a 10% to 15% drop in the exchange rate against the U.S. dollar in the next week or two,” Duncan Innes-Ker, of the Economist Intelligence Unit, told The Guardian on Aug. 13. In an Aug. 13 report, Morgan Stanley analysts Hans Redeker, Ian Stannard, and Sheena Shah said China has exported “deflationary pressure” for global central banks to depress their countries’ own exchange (more…)
Aug 062015
 
The “Old Monies” group follows news, announcements, and press releases on these websites along with central banker speeches. If you really want to know what is going on become a member of this Markethive group.   Not a member – follow this link to have your own account and be a part of this group. https://markethive.com/group/newmonies The key elements of focus with these institutions are the Global Reserve Currency and the status of Global Trade and Commerce. The Bank for International Settlements – https://www.bis.org/ The Bank for International Settlements (BIS) is the world’s oldest international financial organisation. The BIS has 60 member central banks, representing countries from around the world that together make up about 95% of world GDP. The International Monetary Fund – http://www.imf.org/external/ The IMF’s primary purpose is to ensure the stability of the international monetary system—the system of exchange rates and international payments that enables countries (and their citizens) to transact with each other. The Fund’s mandate was updated in 2012 to include all macroeconomic and financial sector issues that bear on global stability. The World Bank – http://www.worldbank.org/ Five Institutions, One Group The World Bank Group consists of five organizations: The International Bank for Reconstruction and Development The International Bank for Reconstruction and Development (IBRD) lends to governments of middle-income and credit worthy low-income countries. The International Development Association The International Development Association (IDA) provides interest-free loans — called credits — and grants to governments of the poorest countries. Together, IBRD and IDA make up the World Bank. The International Finance Corporation The International Finance Corporation (IFC) is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. The Multilateral Investment Guarantee Agency The Multilateral Investment Guarantee Agency (MIGA) was created in 1988 to promote foreign direct investment into developing countries to support economic growth, reduce poverty, and improve people’s lives. MIGA fulfills this mandate by offering political risk insurance (guarantees) to investors and lenders. The International Centre for Settlement of Investment Disputes The International Centre for Settlement of Investment Disputes (ICSID) provides international facilities for conciliation and arbitration of investment disputes. The BRICS Post – http://thebricspost.com/ The BRICS Post is an international news and views website with writers, analysts, and experts in over a dozen countries. It is published by BRICS Media (more…)
Mar 232015
 
Global institutions, including the International Monetary Fund (IMF) and the World Bank, have endorsed a China-led international bank, despite opposition from the U.S. “We are comfortable with the idea of a bank that puts together finance for infrastructure, because our view is that there is a huge need for infrastructure in emerging markets countries,” David Lipton, the first deputy managing director of the IMF, told CNBC early on Monday.The $50-billion Asian Infrastructure Investment Bank (AIIB) is being established to meet the need for greater infrastructure investment in lower- and middle-income Asian countries. It comes amid complaints by China and other major emerging economies that they lack influence in institutions such as the IMF, the Asian Development Bank and the World Bank.Support for the AIIB has gathered speed in Europe this month, with the U.K. the first country to sign up, followed by Germany, France and Italy and then Luxembourg and Switzerland.However, Washington has expressed misgivings, officially because of concerns about standards of governance and environmental and societal safeguards. Unofficially, the country’s is thought to be worried about sacrificing its clout in Asia to China, as well as piqued by criticism of slow reforms in the IMF and World Bank.China ‘leader of the world’“China is now the leader of the world,” Sri Mulyani Indrawati, managing director of the World Bank, told CNBC on Sunday in Beijing.“They (Chinese leaders) try to show that they have sound principles in not only presenting a development solution, but also in establishing this new institution and that is why many of the countries now are becoming members of this institution.”Jim McCaughan, CEO of Principal Global Investors, said that China’s move was part of a bid to establish theyuan as a global currency—and that the U.S. might be more positive towards the AIIB then its official statements suggested.“I think Washington will collaborate; I do not think it will officially join, but I think they will collaborate, at least behind the scenes,” McCaughan told CNBC early on Monday, adding that the bank was part of a “bigger picture.”“Ultimately, Chinese economic policymakers, I believe, are pushing towards the idea of the renminbi as a reserve currency… this is one small step in that direction, having a multilateral institution that they can lead,” McCaughan said.http://www.cnbc.com/id/102526769 Share this:FacebookLinkedInTwitterGoogleTumblrPinterestReddit (more…)
Mar 202015
 
 WASHINGTON (Reuters) – U.S. Treasury Secretary Jack Lew on Wednesday said failure by Congress to authorize reforms at the International Monetary Fund it was “dangerous” and would limit U.S. leverage on issues such as the China-led infrastructure bank. But a senior Republican lawmaker expressed doubt Congress would take up the reforms this year, increasing the likelihood the IMF would seek to move ahead without the United States. The fund’s member countries agreed in 2010 to reform the institution to give more say to emerging countries, but the Obama administration has so far been unable to persuade Congress to pass necessary funding changes. U.S. foot-dragging is prompting other countries to question Washington’s commitment to international institutions and putting it on the defensive, Lew said at a hearing before a U.S. House of Representatives subcommittee. “I think that’s a very dangerous thing strategically; I think that’s a mistake,” Lew said, adding that passing the IMF reforms would give the United States more leverage in pushing its perspective on the Asian Infrastructure Investment Bank. Germany, France and Italy followed Britain in saying they would join the China-led initiative, despite Washington’s objections to the bank’s environmental and human rights standards. Kay Granger, chairwoman of the House State and Foreign Operations Appropriations Subcommittee, where Lew testified, said she did not believe Congress would pass the IMF reforms when the Congressional Budget Office estimated they would cost $300 million. “In the past, there has not been sufficient congressional support for the IMF proposal, and frankly, I do not expect much to change this year,” she said. In comments to Reuters, Granger also said the Obama administration has been slow in responding to her concerns. The administration has been pushing Congress for two years to approve a shift of some $63 billion from an IMF crisis fund to its general accounts, which is necessary to make good on Washington’s international promise. Granger said the proposal may now be considered as part of the budget discussions for the next fiscal year, which begins in October. The White House says the changes would cost very little, but some lawmakers do not agree and also fret about the risks attached to IMF loans. U.S. delays on the reforms have prompted the IMF’s board to consider other options, including a proposal under which Washington would lose its veto power at the global lender. (Reporting by Anna Yukhananov; Editing by Steve Orlofsky) news.yahoo.com/u-treasury-secretary-says-dangerous-not-pass-imf-193747451–business.html   Share (more…)
Mar 122015
 
  China-IMF talks underway to endorse yuan as global reserve currency  March 12, 2015, 12:12 pm   Including the yuan in the SDR basket would aid China’s attempts to diminish the dollar’s dominance in global trade and finance [Xinhua] China is pushing for the International Monetary Fund to endorse the Chinese yuan as a global reserve currency alongside the dollar and euro. A senior Chinese central bank official said Thursday that the country is “actively communicating” with the IMF on the possibility of including the yuan, or RMB, in the basket of the Special Drawing Rights (SDRs). Including the yuan in the SDR system would allow the IMF to recognize the ascent of the world’s second-biggest economy while aiding China’s attempts to diminish the dollar’s dominance in global trade and finance. “We hope the IMF can fully take into account the progress of RMB internationalization, to include RMB into the basket underlining the SDR in foreseeable, near future,” said Yi Gang, vice governor of the People’s Bank of China. However, China will be patient until conditions are ripe, Yi said at a press conference on the sidelines of the ongoing annual parliamentary session. In late 2015, the IMF will conduct its next twice-a-decade review of the basket of currencies its members can count toward their official reserves. SDRs are international foreign exchange reserve assets. Allocated to nations by the IMF, an SDR represents a claim to foreign currencies for which it may be exchanged in times of need. Although denominated in US dollars, the nominal value of an SDR is derived from a basket of currencies, with, specifically, a fixed amount of Japanese yen, US dollars, British pounds and euros, without RMB. China would need to satisfy the Washington-based lender’s economic benchmarks and get the support of most of the other 187 member countries. To become a currency included in the SDR basket, the trade volume of goods and services behind that currency will be evaluated, the Chinese Central Bank official explained on Thursday, stressing that RMB has no problem in this regard. But he said views are divided on whether the RMB is a freely usable currency. “No matter whether and when the RMB will be included in the SDR basket, China will push on with its financial sector reform and opening-up,” Yi said. The yuan became the world’s No. 2 currency for trade finance globally in 2013, and overtook the Canadian (more…)
Nov 142014
 
Just another clue! – Mike   Bill Frezza Contributor. I chronicle the decline and fall of entitlement democracy. Opinions expressed by Forbes Contributors are their own. Originally Post at : http://onforb.es/19E7PPa by In this handout provided by the International Monetary Fund (IMF), International Monetary Fund Deputy Director Michael Keen presents the Fiscal Monitor Press Conference October 9, 2013 at the IMF Headquarters in Washington, DC. The report said that emerging-market governments were at economic risk. (Image credit: Getty Images via @daylife) The International Monetary Fund (IMF) quietly dropped a bomb in its October Fiscal Monitor Report. Titled “Taxing Times,” the report paints a dire picture for advanced economies with high debts that fail to aggressively “mobilize domestic revenue.” It goes on to build a case for drastic measures and recommends a series of escalating income and consumption tax increases culminating in the direct confiscation of assets. Yes, you read that right. But don’t take it from me. The report itself says: “The sharp deterioration of the public finances in many countries has revived interest in a “capital levy”— a one-off tax on private wealth—as an exceptional measure to restore debt sustainability. The appeal is that such a tax, if it is implemented before avoidance is possible and there is a belief that it will never be repeated, does not distort behavior (and may be seen by some as fair). … The conditions for success are strong, but also need to be weighed against the risks of the alternatives, which include repudiating public debt or inflating it away. … The tax rates needed to bring down public debt to precrisis levels, moreover, are sizable: reducing debt ratios to end-2007 levels would require (for a sample of 15 euro area countries) a tax rate of about 10 percent on households with positive net wealth. (page 49)” Note three takeaways. First, IMF economists know there are not enough rich people to fund today’s governments even if 100 percent of the assets of the 1 percent were expropriated. That means that all households with positive net wealth—everyone with retirement savings or home equity—would have their assets plundered under the IMF’s formulation. Second, such a repudiation of private property will not pay off Western governments’ debts or fund budgets going forward. It will merely “restore debt sustainability,” allowing free-spending sovereigns to keep tapping the bond markets until the next crisis comes along—for which stronger measures (more…)
Nov 062014
 
Full Article at Forbes – http://onforb.es/19E7PPa The International Monetary Fund (IMF) quietly dropped a bomb in its October Fiscal Monitor Report. Titled “Taxing Times,” the report paints a dire picture for advanced economies with high debts that fail to aggressively “mobilize domestic revenue.” It goes on to build a case for drastic measures and recommends a series of escalating income and consumption tax increases culminating in the direct confiscation of assets. Yes, you read that right. But don’t take it from me. The report itself says: “The sharp deterioration of the public finances in many countries has revived interest in a “capital levy”— a one-off tax on private wealth—as an exceptional measure to restore debt sustainability. The appeal is that such a tax, if it is implemented before avoidance is possible and there is a belief that it will never be repeated, does not distort behavior (and may be seen by some as fair). … The conditions for success are strong, but also need to be weighed against the risks of the alternatives, which include repudiating public debt or inflating it away. … The tax rates needed to bring down public debt to precrisis levels, moreover, are sizable: reducing debt ratios to end-2007 levels would require (for a sample of 15 euro area countries) a tax rate of about 10 percent on households with positive net wealth. (page 49)” Note three takeaways. First, IMF economists know there are not enough rich people to fund today’s governments even if 100 percent of the assets of the 1 percent were expropriated. That means that all households with positive net wealth—everyone with retirement savings or home equity—would have their assets plundered under the IMF’s formulation. Share this:FacebookLinkedInTwitterGoogleTumblrPinterestReddit (more…)