Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Intel Empire Fights Back with Rocket and Alder Lake! - 24th Jan 21
4 Reasons for Coronavirus 2021 Hope - 24th Jan 21
Apple M1 Chip Another Nail in Intel's Coffin - Top AI Tech Stocks 2021 - 24th Jan 21
Stock Market: Why You Should Prepare for a Jump in Volatility - 24th Jan 21
What’s next for Bitcoin Price – $56k or $16k? - 24th Jan 21
How Does Credit Repair Work? - 24th Jan 21
Silver Price 2021 Roadmap - 22nd Jan 21
Why Biden Wants to Win the Fight for $15 Federal Minimum Wage - 22nd Jan 21
Here’s Why Gold Recently Moved Up - 22nd Jan 21
US Dollar Decline creates New Sector Opportunities to Trade - 22nd Jan 21
Sandisk Extreme Micro SDXC Memory Card Read Write Speed Test Actual vs Sales Pitch - 22nd Jan 21
NHS Recommends Oximeter Oxygen Sensor Monitors for Everyone 10 Months Late! - 22nd Jan 21
DoorDash Has All the Makings of the “Next Amazon” - 22nd Jan 21
How to Survive a Silver-Gold Sucker Punch - 22nd Jan 21
2021: The Year of the Gripping Hand - 22nd Jan 21
Technology Minerals appoints ex-BP Petrochemicals CEO as Advisor - 22nd Jan 21
Gold Price Drops Amid Stimulus and Poor Data - 21st Jan 21
Protecting the Vulnerable 2021 - 21st Jan 21
How To Play The Next Stage Of The Marijuana Boom - 21st Jan 21
UK Schools Lockdown 2021 Covid Education Crisis - Home Learning Routine - 21st Jan 21
General Artificial Intelligence Was BORN in 2020! GPT-3, Deep Mind - 20th Jan 21
Bitcoin Price Crash: FCA Warning Was a Slap in the Face. But Not the Cause - 20th Jan 21
US Coronavirus Pandemic 2021 - We’re Going to Need More Than a Vaccine - 20th Jan 21
The Biggest Biotech Story Of 2021? - 20th Jan 21
Biden Bailout, Democrat Takeover to Drive Americans into Gold - 20th Jan 21
Pandemic 2020 Is Gone! Will 2021 Be Better for Gold? - 20th Jan 21
Trump and Coronavirus Pandemic Final US Catastrophe 2021 - 19th Jan 21
How To Find Market Momentum Trades for Explosive Gains - 19th Jan 21
Cryptos: 5 Simple Strategies to Catch the Next Opportunity - 19th Jan 21
Who Will NEXT Be Removed from the Internet? - 19th Jan 21
This Small Company Could Revolutionize The Trillion-Dollar Drug Sector - 19th Jan 21
Gold/SPX Ratio and the Gold Stock Case - 18th Jan 21
More Stock Market Speculative Signs, Energy Rebound, Commodities Breakout - 18th Jan 21
Higher Yields Hit Gold Price, But for How Long? - 18th Jan 21
Some Basic Facts About Forex Trading - 18th Jan 21
Custom Build PC 2021 - Ryzen 5950x, RTX 3080, 64gb DDR4 Specs - Scan Computers 3SX Order Day 11 - 17th Jan 21
UK Car MOT Covid-19 Lockdown Extension 2021 - 17th Jan 21
Why Nvidia Is My “Slam Dunk” Stock Investment for the Decade - 16th Jan 21
Three Financial Markets Price Drivers in a Globalized World - 16th Jan 21
Sheffield Turns Coronavirus Tide, Covid-19 Infections Half Rest of England, implies Fast Pandemic Recovery - 16th Jan 21
Covid and Democrat Blue Wave Beats Gold - 15th Jan 21
On Regime Change, Reputations, the Markets, and Gold and Silver - 15th Jan 21
US Coronavirus Pandemic Final Catastrophe 2021 - 15th Jan 21
The World’s Next Great Onshore Oil Discovery Could Be Here - 15th Jan 21
UK Coronavirus Final Pandemic Catastrophe 2021 - 14th Jan 21
Here's Why Blind Contrarianism Investing Failed in 2020 - 14th Jan 21
US Yield Curve Relentlessly Steepens, Whilst Gold Price Builds a Handle - 14th Jan 21
NEW UK MOT Extensions or has my Car Plate Been Cloned? - 14th Jan 21
How to Save Money While Decorating Your First House - 14th Jan 21
Car Number Plate Cloned Detective Work - PY16 JXV - 14th Jan 21
Big Oil Missed This, Now It Could Be Worth Billions - 14th Jan 21
Are you a Forex trader who needs a bank account? We have the solution! - 14th Jan 21
Finetero Review – Accurate and Efficient Stock Trading Services? - 14th Jan 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Another Gust of Stench from IMF

Politics / Global Financial System Apr 16, 2012 - 01:26 PM GMT

By: Pravda

Politics

International Monetary Fund Senior Resident Representative in Russia, Odd Per Brekk has recently made a surprisingly lucrative suggestion to the international community. According to Mr. Brekk, one should invest their money in the development of national economies rather than saving up the funds on bank accounts. If something happens, the IMF will be there to help the country in trouble. The idea seems to be perfect, but there is a downside to it.


It would at first be good to strain our memory to recollect what kind of organization the International Monetary Fund is. The year 1944 - the peak of WWII. The Soviet troops were in fierce battles with Nazi Germany, but the USA called an international conference in Bretton Woods. Why? They did not discuss anything related to the struggle against fascism during that conference. The delegates from 44 countries gathered in Bretton Woods to discuss the post-war financial world order.

Everyone knows that the world split into two after May 5, 1945. The countries that accepted the USSR's socialist plan decided to follow their own path of development. The rest that thanked the USA and its allies for "liberation" found themselves in the zone of influence of the International Monetary Fund, which was actually founded during the Bretton Woods conference. There were officials from 44 countries participating in the conference, as we mentioned above. However, only 29 were listed as the founders of the IMF. This detail was not important at all at that time.

It was much more important, and it still remains so, that the main founder, administrator and sponsor of the financial organization was the United States of America. This country, due to its geographical and political reasons, did not suffer much in the global bloody massacre in the first half of the 20th century. Moreover, the USA gained incredible profit from the war: the US dollar became the basic currency in international settlements.

Many years have passed since that time. However, the principles and grounds remain the same. It is an open secret that any loan from the IMF to any country is connected with certain terms and conditions. A country that receives a loan from the IMF will have to take off its last shirt for that. The IMF and its principal beneficiary - the USA - miraculously receive more than just a lot in return.

Why did Mr. Brekk become so generous then? Anyone who can count to three may realize that the USA owns more than just the basic share of finance, whereas all other members are supposed to pay their shares in the same currency. One should bear in mind that this system works in spite of the fact that the USA's foreign debt is more than just enormous. Moreover, the BRICS countries have recently decided to establish their own development bank. Therefore, there is no better way to do away with the problems of one state and destroy competitors than tempt more or less developing states into making investments in their own development.

However, this suggestion implies serious investments in the economy of the United States in the first place. What if there is a country that faces the urgent need of finding a certain amount of currency assets? Is there a guarantee that this country will receive them? If it does, what kind of bonus will the country have to pay to the IMF? There are no answers to these questions.

Russia and China, formerly one of the largest buyers of US treasuries, have been reducing their share in national gold and currency reserves for years already. The statement from Mr. Brekk does not smell good at all.

Ilya Nikonov

Bigness

Pravda.ru

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.

Pravda Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

peter
17 Apr 12, 15:00
USSR nostalgies

What is this guy smoking? "The countries that accepted the USSR's socialist plan..." Can you name one country that accepted the plan and was not "liberated" by the Red Army tanks? And was not sold at Yalta?


ernie messerschmidt
18 Apr 12, 12:53
Egypt

how 'bout Egypt? at any rate, the communist movement was very strong in Europe and the world and to imply that it was only forced on countries militarily is incorrect. Many 3rd world countries, including India, chose a socialist framework. Do you think the American occupation of Europe, continuing today, is for anything other than maintaining international finance's chokehold on Europe, which now may be breathing it's last gasps of relatively non-feudal air? See http://truth-out.org/news/item/8558-the-european-stabilization-mechanism-or-how-the-goldman-vampire-squid-just-captured-europe


Post Comment

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

6 Critical Money Making Rules