IMF Article Predicts New World Order

thedailybell.com
Wednesday, October 06, 2010

Germany Opposed To Unconditional IMF Safety Nets ... Germany is opposed to the setting up of 'global financial safety nets' under the aegis of the International Monetary Fund, a Deutsche Bundesbank official said Tuesday. The official told journalists that the mechanisms proposed by the G-20 group of nations, would create moral hazard by obliging countries to provide unlimited liquidity without conditions in times of financial stress. The comments come as the German delegation prepares to fly to Washington DC for the autumn meetings of the IMF and World Bank ... The IMF's willingness to provide loans under the PCL to countries which, in its own words, "may not meet the FCL's high qualification limits" appears to have raised hackles at the Bundesbank, which has consistently opposed any dilution of the IMF's principles of only lending against strict commitments to sustainable fiscal and monetary policy. The initiative to expand such "safety nets" is part of the G-20's efforts to make the international financial system more stable. It has been promoted by South Korea and has received some limited support from France and U.K. – WSJournal.com

Dominant Social Theme: The world needs a central bank and the IMF is ready to be one.

Free-Market Analysis: As we have written plenty of times before, it's startling to see how fast the Anglo-American power elite is willing to move now toward a more specific and comprehensive global governance. When we read this article, even just the beginning, it was obvious to us what was going on. And then we came to this sentence: "It means a de facto obligation to provide unlimited liquidity in euros...but the IMF is not a central bank for the world." Exactly. Is there a sub dominant social theme in the article. Perhaps so: "Pushback will continue but the IMF's expanded role is inevitable.

Indeed, the IMF is being cast in some places as an inevitable precursor to a world central bank. It need only graduate from SDRs to bancors and then expand its monetary authority. Of course we've covered this evolution in the past, but we didn't take it very seriously. The world moves slowly and is a complex place. But as we've seen (and commented on) over the past year, the Anglo-American elite seems to have shed any inhibitions about moving slowly or deliberately toward global governance goals.

It is in a race of some sort, though who or what it is running from or towards is not clear. But in picking up the pace in a kind of mad dash toward some unseen finish line, it is abandoning at least a century of deliberate, promotional construction designed to bring Western citizens in line with its goals. We've written we have no explanation. Let's say for argument's sake there are 6,000 in the ranks of the Anglo American familial elite. That still leaves six billion people that one needs to "bring along" presumably. But convincing people seems about the last thing on the mind of elite these days so far as we can tell. In aggregate, it gallops madly forward, careening out of control, oblivious to obstacles, increasingly leaving a trail of ruin behind.

The bluntest and most alarming presentation we've read recently regarding the IMF comes from Germany's powerful Spiegel magazine. This is ironic, given that the Germans, as we can see from our initial article excerpt above, are the lone power standing up to the IMF's efforts to remake itself (with fairly blinding speed) into a global central bank. But it is this article we will spend the rest of our time analyzing. It deserves all of our attention – and yours, though trying to describe this article leaves one almost without words. It is so fulsome, so slavishly admiring, so ... craven in its intention to please the powers-that-be that it is a truly remarkable example of a certain kind of journalism. It is available in its entirety (translated) online and we would urge anyone to read it. Here is how it begins:

Three years ago, the International Monetary Fund was irrelevant, an object of derision for all opponents of globalization. Under director Dominique Strauss-Kahn (above left) and as a result of the global economic crisis, the IMF has since become more influential -- governing like a global financial authority. It is also putting Europe under pressure to reform.

The building that houses the headquarters of the global economy is a heavily guarded, 12-story beige structure in downtown Washington with a large glass atrium and water bubbling in fountains. The flags of the 187 member states are lined up in tight formation.

Visitors walking into the office building find the cafeteria on the right, where many meetings are held. There, experts in their shirtsleeves, their jackets draped over the backs of chairs, drink lattes out of paper cups and talk countries into crises or upturns. A little farther down the hallway is the Terrace, the IMF building's upscale restaurant where the director receives official guests.

On a Tuesday afternoon in late September, as the first leaves are falling from trees outside, the director, wearing a blue suit and a blue tie, is sitting on a blue couch high up in his office at the headquarters of the International Monetary Fund (IMF), outlining his idea of a new world. Some of it already exists, in the form of a new world order established in September 2008 to replace the one that was collapsing at the time. The result wasn't half bad -- but it is robust?

There is nothing halfhearted in this voluminous portrait of Dominique Strauss-Kahn and the reinvention of the IMF. In the first four paragraphs descriptions like "global financial authority" and "new world order" and "new world" are strewn about with all the subtlety of an IMF bailout itself. The very next paragraphs read as follows:

'The Money Is The Medicine' ... These are important times for humanity. The crisis has forced everyone to see many things from a new perspective. Now the IMF is preparing for its annual meeting on Oct. 8. Can it live up to expectations, and can it police the new global economic order and keep global banks in check? "You have to imagine the IMF as a doctor," says Dominique Strauss-Kahn, the 61-year-old director of the International Monetary Fund. "The money is the medicine. But the countries -- the patients -- have to change their habits if they want to recover. It doesn't work any other way." He smiles benevolently as he says these things, his eyes disappearing behind small cushions of wrinkled skin.

Money is not medicine of course. The IMF, with its history of reducing middle classes around the world to ruin, is nothing like a doctor. After reading it, if one still believes in such a thing as freedom in the world, one wants to take a long bath. There is a brutal deliberateness about the language (assuming the translation is accurate), which must be calculated.

Full article HERE