Tag Archives: IMF

New World Currency

This article in Huffington Post uses the term “new world order” in a novel (and optimistic) sense. Jeremiah has been warning that America will lose our dominance in international finance, and now it is happening. Punitive fines, sanctions, and currency wars are driving the world out of our currency zone.

A multi-polar financial world with new international financial centres emerging in Mumbai and Shanghai will be a more stable world.

The term “new world order” is generally used to describe a conspiracy, in which an international elite aims to create “one world government” with themselves at top. See here, for example.   The new world order described by Dr. Saidi is actually the antidote for one world government. Such are the pitfalls of using labels.

So, what about the new world order of one world government? Does that sound like a good idea to you? As always, we approach the theory by assuming that it is rational – and not a conspiracy.

We alreSorosady have a raft of supranational institutions like the IMF, the WTO, and the UN. The European Union aims to “transcend” the national governments of Europe, and already controls their currency. The leaders of these institutions may reasonably believe they’re doing the world some good. It’s human nature to believe that your outfit ought to have more funding, and more power.

Globalists, like George Soros and his various think tanks, believe that national governments are obsolete. They deny wanting a world government, but they want every issue – from welfare to monetary policy – handled by a global body.

Insofar as there are collective interests that transcend state boundaries, the sovereignty of states must be subordinated to international law and international institutions.

This amounts to world government, for all practical purposes. It promises an end to war, poverty, pollution, etc. People with this much faith in government are statists, by definition, and they believe in utopia.

SutherlandJeremiah does not have that kind of faith. He believes that the more power and personnel a government has – any government – the more despotic it will be. World government, therefore, would be a giant prison with no hope of escape, like The Hunger Games.

With globalism, as with socialism, we don’t want to get hung up on the label. We want to look at specific policies. For example, Soros and his crew want the IMF to issue the world’s reserve currency. This is obviously the enemy of human liberty. Just look at what happened to Greece, with the Euro.

This brings us back to Dr. Saidi and his multi-polar world order. We can no longer hope for the dollar to retain its reserve status. Failing that, we would rather have competing national currencies than a “new world currency” controlled by the IMF.

See also:  CFR Global Governance Program


Leave a comment

Filed under Civil Rights, Economy

The Great Federal Pump & Dump

The EU declares an emergency, closes all the banks, and confiscates €6 trillion from private savings accounts.  No, this is not a James Bond movie.  This is how the IMF thinks a wealth tax should be implemented.

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).

They have tested the plan in Cyprus, and they were pleased with the results.  Dutch finance minister Dijsselbloem declared Cyprus would be a template for future confiscations.  Dijsselbloem and the IMF have since retracted their statements.  The plan depends on surprise, after all, “before avoidance is possible.”

Here in America, we have various minimum balance at risk proposals, to restrict withdrawals from IRAs and other funds.  Americans have roughly $40 trillion of private wealth, which the government can seize at any time.  So, maybe Treasuries are a safe bet after all – as long as you hold them in China.

The Boston Consulting Group reckons our haircut would have to be about 26%.  We love this chart, with its breakdown of household financial assets “needed” and “remaining.”  Bear in mind this is old data.  The figure has certainly gone up.

BCG Chart

Jeremiah, always eager to help the federal government, stopped buying Krugerrands long enough to formulate a better plan – rob the stock market instead.  Everyone knows the market is just pumped by the Fed, and a good politician can move the Dow a hundred points in one press meeting.

Here’s how it would work.  First, Treasury Sec. Lew accumulates short positions in big, liquid, dividend paying companies – the Dow, basically.  This takes at least a month to set up – less, if you hire Goldman Sachs.  Next, have the Fed announce the end of Quantitative Easing.  For good measure, have Sen. Reid pick a fight with Rep. Boehner and shut down the government.

About ten days later, Jack Lew comes to work in his jeans, because Treasury is still shut down.  He begins to cover his shorts, ringing up huge profits, while putting cash back into the market and saving it from total collapse.  While he’s at it, the Secretary reverses and goes long.  He then notifies the Senate and the Fed, and they put the market back into a rally.

You probably can’t bag more than $1 trillion this way, but – unlike the IMF plan – you can repeat it as needed.  You rob basically the same people as in a bank job, but it’s a lot easier.  You don’t need currency controls, riot police, or cash sniffing dogs at the airport.

See also:  IMF Plan for Global Wealth Confiscation

Leave a comment

Filed under Economy

Women Are Better

margaret-thatcher-2Hanna Rosin needs to decide whether she is a feminist or a Democrat.  In CNN Opinion this week, she makes a simplistic argument that “women are better” at public policy. 

The three examples of bad nasty men all happen to be Americans – and Republican.  She then lumps together Chancellor Merkel (a fiscal conservative) with Fed Governor Yellen (a liberal).

Does Minority Leader Pelosi, also a woman, have nothing to do with the gridlock in Congress?  What about that icon of female leadership, Lady Thatcher?  She is inconvenient for a thesis which holds that women are all good liberals and men are macho warmongers.

Since Ms. Rosin insists upon the dreadful Christine Lagarde, we must remind her that Lagarde heads the IMF only because of an absurd prejudice in favor of Europeans.  Jeremiah wanted Ngozi Okonjo-Iweala.

Two South American countries teeter on the brink of socialist collapse.  One is run by a man, Nicolas Maduro, and the other a woman, Christina Fernandez.  Two women are competing to lead South America’s most successful economy, Chile.  One is a socialist and the other is a conservative.

Female leaders are not more or less liberal, peaceful, or competent than their male colleagues.  It’s silly to presume someone’s political alignment based only on gender.  It is, in a word, sexist.

Leave a comment

Filed under Civil Rights

Socialism Implodes in Greece

Nations face the same budget constraints as households.  They cannot spend more than they earn, without going into debt, and they will not be long in debt before the collector comes calling.  A surprising number of people can’t grasp this simple fact, including people who are in charge of national budgets.

Greece’s budget deficit is 12.7% of GDP, and now they can’t get financing.  Prime Minister George Papandreou has resisted making any budget cuts.  He is a socialist, and committed to his welfare state.

“We want to be able to borrow on the same terms as other countries in the euro zone,” he said.  This is like having a 500 FICO score and wondering why you can’t buy a car.

We want to be able to borrow on the same terms as other countries

Sadly, the Greek public has become dependent on handouts from the state.  This is a moral weakness Jeremiah sees developing in America, too.  Greeks are now rioting over losing their entitlements.  A responsible government would face the fact that outsiders, like Germany, are not obliged to bail them out.

But this is not a responsible government, and Mr. Papandreou is not facing facts.  Instead, he is blaming “speculators” for manipulating the debt market.  The socialists are blaming “the bourgeois,” of all things, and government officials are even blaming the Nazis.

To read the popular press, you would think that the IMF and the ECB had mounted an armed invasion of Greece.  The bottom line is that the Greek government needs a loan, and there is no one foolish enough to give them one.  Whatever agency steps in – probably the IMF – will demand austerity measures.  Mr. Papandreou must either implement the measures or face default.  For a household, this is like choosing between bankruptcy and the credit counselor.

And so it goes.  First comes socialism, then comes the debt crisis, and finally the IMF to pick up the pieces.  The budget deficit in America is 10.6%.

See also: Greece’s Budget Crisis

Leave a comment

Filed under Finance

Dollar Threatened As Reserve Currency

The Wall Street Journal reports today that the dollar has hit an annual low against the Euro.   A weak dollar isn’t all bad.  It can improve sales for American exporters.  The scary thing about today’s fall is the reason it happened.  The IMF is planning to develop a new instrument which will replace the dollar as a reserve currency.

Having the mighty dollar as the world’s safe-haven currency gives us some advantages.  Fiscal surplus countries like China pretty much have to lend to us.  Once the IMF currency kicks in, financing the national debt will cost a lot more.

Leave a comment

Filed under Finance