Best of the Week
Most Popular
1.The Gallery of Crowd Behavior: Goodbye Stock Market All Time Highs - Doug_Wakefieldth
2.Tesco Meltdown Debt Default Risk Could Trigger a Financial Crisis in Early 2015 - Nadeem_Walayat
3.The Trend Every Nation on Earth Is Pouring Money Into - Keith Fitz-Gerald
4.Do Tumbling Buybacks Signal Another Stock Market Crash? - 26Mike_Whitney
5.Could Tesco Go Bust? How to Save Tesco from Debt Bankruptcy Risk - Nadeem_Walayat
6.Gold And Silver Price - Respect The Trend But Prepare For A Reversal - Michael_Noonan
7.U.S. Economy Faltering Momentum, Debt and Asset Bubbles - Lacy Hunt
8.Bullish Silver Stealth Buying - Zeal_LLC
9.Euro, USD, Gold and Stocks According to Chartology - Rambus_Chartology
10.Evidence of Another Even More Sweeping U.S. Housing Market Bust Already Starting to Appear - EWI
Last 5 days
Pretium - Canadian Golden Elephant - 31st Oct 14
What USA Today Got Wrong About the Stock Market Fear Gauge - 31st Oct 14
Election Result - Labour Wins South Yorkshire Police and Crime Commissioner - 31st Oct 14
Gold Price Falls, Stocks Record Highs as Japan Goes ‘Weimar’ - 31st Oct 14
EUR/USD - Double Bottom Or New Lows? - 31st Oct 14
More Downside Ahead for Gold and Silver - 31st Oct 14
QE Is Dead, Now You Tell Me What You Know - 31st Oct 14
Welcome to the World of Volatility - 31st Oct 14
Stocks Bear Market Crash Towards New All Time Highs as QE3 End Awaits QE4 Start - 31st Oct 14
US Mortgages, Risky Bisiness "Easy Money" - 30th Oct 14
Gold, Silver and Currency Wars - 30th Oct 14
How to Recognize a Stock Market “Bear Raid” on Wall Street - 30th Oct 14
U.S. Midterm Elections: Would a Republican Win Be Bullish for the Stock Market? - 30th Oct 14
Stock Market S&P Index MAP Wave Analysis Forecast - 30th Oct 14
Gold Price Declines Once Again As Expected - 30th Oct 14
Depression and the Economy of a Country - 30th Oct 14
Fed Ends QE? Greenspan Says Gold “Measurably” “Higher” In 5 Years - 30th Oct 14
Apocalypse Now Or Nirvana Next Week? - 30th Oct 14
Understanding Gold's Massive Impact on Fed Maneuvering - 30th Oct 14
Europe: Building a Banking Union - 30th Oct 14
The Colder War: How the Global Energy Trade Slipped From America's Grasp - 30th Oct 14
Don't Get Ruined by These 10 Popular Investment Myths (Part VIII) - 29th Oct 14
Flock of Black Swans Points to Imminent Stock Market Crash - 29th Oct 14
Bank of America's Mortgage Headaches - 29th Oct 14
Risk Management - Why I Run “Ultimate Trailing Stops” on All My Investments - 29th Oct 14
As the Eurozone Economy Stalls, China Cuts the Red Tape - 29th Oct 14
Stock Market Bubble Goes Pop - 29th Oct 14
Gold's Obituary - 29th Oct 14
A Medical Breakthrough Creating Stock Profits - 29th Oct 14
Greenspan: Gold Price Will Rise - 29th Oct 14
The Most Important Stock Market Chart on the Planet - 29th Oct 14
Mysterious Death od CEO Who Went Against the Petrodollar - 29th Oct 14
Hillary Clinton Could Be One of the Best U.S. Presidents Ever - 29th Oct 14
The Worst Advice Wall Street Ever Gave - 29th Oct 14
Bitcoin Price Narrow Range, Might Not Be for Long - 29th Oct 14
UKIP South Yorkshire PCC Election Win is Just Not Going to Happen - 29th Oct 14
Evidence of New U.S. Housing Market Real Estate Bust Starting to Appear - 28th Oct 14
Principle, Rigor and Execution Matter in U.S. Foreign Policy - 28th Oct 14
This Little Piggy Bent The Market - 28th Oct 14
Global Housing Markets - Don’t Buy A Home, You’ll Get Burned! - 28th Oct 14
U.S. Economic Snapshot - Strong Dollar Eating into corporate Profits - 28th Oct 14
Oliver Gross Says Peak Gold Is Here to Stay - 28th Oct 14
The Hedge Fund Rich List Infographic - 28th Oct 14
Does Gold Price Always Respond to Real Interest Rates? - 28th Oct 14
When Will Central Bank Morons Ever Learn? asks Albert Edwards at Societe General - 28th Oct 14
Functional Economics - Getting Your House in Order - 28th Oct 14
Humanity Accelerating to What Exactly? - 27th Oct 14
A Scary Story for Emerging Markets - 27th Oct 14
Could Tesco Go Bust? How to Save Tesco from Debt Bankruptcy Risk - 27th Oct 14
Europe Redefines Bank Stress Tests - 27th Oct 14
Stock Market Intermediate Correction Underway - 27th Oct 14
Why Do Banks Want Our Deposits? Hint: It’s Not to Make Loans - 26th Oct 14
Obamacare Is Not a Revolution, It Is Mere Evolution - 26th Oct 14
Do Tumbling Buybacks Signal Another Stock Market Crash? - 26th Oct 14
Has the FTSE Stock Market Index Put in a Major Top? - 26th Oct 14
Christmas In October – Desperate Measures - 26th Oct 14
Stock Market Primary IV Continues - 26th Oct 14
Gold And Silver Price - Respect The Trend But Prepare For A Reversal - 25th Oct 14
Ebola Has Nothing To Do With The Stock Market - 25th Oct 14
The Gallery of Crowd Behavior: Goodbye Stock Market All Time Highs - 25th Oct 14
Japanese Style Deflation Coming? Where? Fed Falling Behind the Curve? Which Way? - 25th Oct 14
Gold Price Rebounds but Gold Miners Struggle - 25th Oct 14
Stock Market Buy the Dip or Sell the Rally - 25th Oct 14
Get Ready for “Stupid Cheap” Stock Prices - 25th Oct 14
The Trend Every Nation on Earth Is Pouring Money Into - 25th Oct 14 - Keith Fitz-Gerald
Bitcoin Price Decline Stopped, Possibly Temporarily - 25th Oct 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Stocks Epic Bear Market

The IMF Wants to Take Over the World, Banking Colossus in the Making

Politics / Global Financial System Jul 05, 2010 - 03:50 AM GMT

By: Michael_S_Rozeff

Politics

Best Financial Markets Analysis ArticleHow long did it take to build the Federal Reserve System? Nineteen years. The various interests created and debated banking reform between the years 1894 and 1913. This is documented by Elmus Wicker in his little book The Great Debate on Banking Reform: Nelson Aldrich and the Origins of the Fed.


How long did it take to get Medicare passed? Twenty-eight years. Medicare proposals emanated from the bureaucracy, from the Public Health Service, and from the Social Security Administration as early as 1937–1950 before being picked up by the Truman Administration.

What’s the next Federal Reserve? What’s the next Medicare? It’s an international central bank: the IMF reborn. The IMF is the International Monetary Fund.

This article, reprinted from the Washington Post, provides the details. For further details, see also here.

The creation process for this new Colossus has been going on now for eighteen years. The Joint Economic Committee of the U.S. Congress has been considering studies and proposals since at least 1998. The catalyst was the 1997 Asian Crisis.

The interest groups and powers that create these institutions often pull and haul for years on end before the process culminates. They debate in plain view. Once key persons sign on and negotiate a specific form and proposal, the process comes to a conclusion. A new power structure is born.

The development of an institution with a central banking capacity to lend to sovereign states is at least as important as creating the Fed and Medicare were. It is a key building block in world government, and world government is extremely dangerous to freedom.

The IMF is a bank funded by States and patronized by States.

It gets its funds from contributing States.

It makes subprime sovereign loans to the world’s States. It "rescues" States in trouble. It makes bailouts.

The IMF’s initial charge, dating from 1945, was to stabilize fixed-exchange rates. When exchange rates mostly started to float in 1971 and after, the IMF changed course. It started to make loans to governments for other purposes.

The U.S. is the prime mover and controller of the IMF’s bailouts, loans, and rescues.

The world’s States cooperate, compete, and sometimes make war against each other.

In the modern age, their cooperation through such institutions as the United Nations and the IMF is a form of political cartelization. It enhances each State’s control over its own people. It removes the peoples of the world from the loop of power and control over their governments.

The IMF bails out profligate governments that are spending more than their taxes permit and that are running inflationary monetary policies. Just as bailouts and deposit guarantees of U.S. banks permit the banks to overextend loans, so does the IMF create moral hazard at the country level.

The "deep troubles" and "currency crises" and "banking crises" that the IMF patches up are wounds that countries inflict upon themselves by State control of economies. The IMF reinforces State economic control.

These crises are products of State control over economies and fiat currencies. They are products of central banks in conjunction with fractional-reserve banking systems.

The IMF supplies bandages. It tapes up the wounds so as to keep the overall State-controlled economies and fiat money system going.

When economic difficulties surface due to the State-controlled economies, they often show up in currency, banking, and balance of payments difficulties. Frequently, there is a flight of capital and asset prices decline. The IMF is an international reflation (inflation) institution. It can become the focal institution for arranging swap lines emanating from central banks or financial commitments emanating from State treasuries in order to shore up a country in trouble.

The IMF is an institution of the States, by the States, and for the States. As such, it is basically anti-people and anti-liberty.

At the latest G20 summit, the members moved forward to build up the IMF:

"The world's top economic powers and the International Monetary Fund are studying creation of a global financial safety net that would give countries quick access to large amounts of cash as a way to stave off crises and discourage emerging-market nations from hoarding foreign reserves.

"In what would be a significant reordering of IMF operations, the proposals would change the agency from a solely reactive one – waiting for countries in trouble to ask for help – to a more activist organization that tries to anticipate where a crisis will spread and move in with enough money to calm markets and prevent broader problems.

"The idea may require a substantial increase in the amount of money that countries pledge to the IMF and a significant liberalization of its lending rules, potentially controversial changes."

The fiat-money financial and banking system of the world, combined with the extensive control over economies of the world’s States, have run aground on a massive reef. The rescue efforts to move the ship off the reef have been going on for several years. Now government sovereign debt problems are coming to the fore.

The G20 is seeking a patch to keep the system running. It has been patching it up for years with Basle requirements and other measures. Enhancements to the IMF have been in the works for years. Now they are much closer to realization.

If the IMF and the States had their way, they would completely control exchange rates and interest rates. They would control capital markets. They would prevent investors from enforcing any kind of discipline on sovereign borrowing and government spending.

Add this alarm bell to a long list of others. Add this grievance to a long list of others. What do they add up to? They add up to the necessity for very great political change.

Large political change demands large changes in political ideas. What most people accept as a normal relation between the individual and government has to change if a dire totalitarian outcome is not to eventuate. Most people defer to government and accept government as their master. This has to change if civilization is to survive. There is simply no alternative but to go to minimalist government and/or self-government. Heart and soul, people have to repudiate the corporative fascist and socialist structures that now dominate their lives.

The established government structures grind on inexorably in directions that have been immune to deflection. There is no option to resisting these developments in toto if one is to avoid degrading slavery. They cannot be fought on a case-by-case basis. The system has to be shattered.

Michael S. Rozeff [send him mail] is a retired Professor of Finance living in East Amherst, New York. He is the author of the free e-book Essays on American Empire.

    © 2010 Copyright Michael S. Rozeff - All Rights Reserved
    Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2014 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Free Report - Financial Markets 2014