IMF Now Ready To Slam The Door On The U.S. And The Dollar

IMF Now Ready To Slam The Door On The U.S. And The Dollar

by Brandon Smith of

As I write this, the news is saturated with stories of a hostage situation possibly involving Islamic militants in Sydney, Australia [JD: see this]. Like many, I am concerned about the shockwave such an event will create through our sociopolitical structures. However, while most of the world will be distracted by the outcome of this crisis (for good or bad) for at least the week, I find I must concern myself with a far more important and dangerous situation.

Up to 40 people may be held by a supposed extremist in Sydney, but the entire world is currently being held hostage economically by international banks. This is the crisis no one in the mainstream is talking about, so alternative analysts must.

As I predicted last month in “We Have Just Witnessed The Last Gasp Of The Global Economy,” severe volatility is now returning to global markets after the pre-game 10 percent drop in equities in October hinted at what was to come.

We expected such destabilization after the wrap-up of the Fed taper, and the markets have not disappointed so far. My position has always been that the taper of QE3 made very little sense in terms of maintaining the manipulated illusion of economic health — unless, of course, the Federal Reserve was implementing the taper in preparation for a renewed financial catastrophe. That is to say, the central bankers have established the lie of American fiscal recovery and then separated themselves from blame for the implosion they KNOW is coming. If the markets were to collapse while stimulus is officially active, the tragedy would be forever a millstone on the necks of the banksters. And we can’t have that now, can we?

This is not to say that individual central banks and even currencies are not expendable in the grand scheme of things. In fact, the long-term goal of globalists has been to consolidate all currency systems and central banks under the outward control of the International Monetary Fund and the Bank Of International Settlements, as I outlined in “The Economic Endgame Explained.”

That particular article was only a summary of a dangerous trend I have been concerned about for years; namely the strategy by international financiers to create a dollar-collapse scenario that will be blamed on prepositioned scapegoats. I have no idea what form these scapegoats will take – there are simply too many possible triggers for fiscal calamity. What I do know, though, is the goal of the endgame: to remove the dollar’s world reserve status and to pressure the American people into conforming or even begging for centralized administration of our economy by the IMF.

The delusion perpetuated in the mainstream is that the IMF is a U.S.-dominated institution. I have outlined on many occasions why this is false. The IMF like all central banks is dominated by the international corporate banking cartel. Central banks are merely front organizations for globalists, and I am often reminded of the following quote from elitist insider Carroll Quigley when I hear people suggest that central banks are somehow independent from one another or that the Federal Reserve is itself the singular “source” of the world’s economic ills:

It must not be felt that these heads of the world’s chief central banks were themselves substantive powers in world finance. They were not. Rather, they were the technicians and agents of the dominant investment bankers of their own countries, who had raised them up and were perfectly capable of throwing them down.

The substantive financial powers of the world were in the hands of these investment bankers (also called “international” or “merchant” bankers) who remained largely behind the scenes in their own unincorporated private banks. These formed a system of international cooperation and national dominance which was more private, more powerful and more secret than that of their agents in the central banks.

No one can now argue against this reality after we have witnessed hard evidence of Goldman Sachs dictating Federal Reserve policy, as outlined here.

And, most recently, we now know that international bankers control political legislation as well, as Congress passed with little resistance a bill that negates the Frank-Dodd restrictions on derivatives and places the U.S. taxpayers and account holders on the hook for more than $303 trillion in toxic debt instruments. The bill is, for all intents and purposes, a “bail-in” measure in disguise. And it was pushed through with the direct influence of JPMorgan Chase CEO Jamie Dimon.

The Federal Reserve, the U.S. government and the dollar are as expendable to the elites as any other economic or political appendage. And it can be replaced at will with yet another illusory structure if this furthers their goal of total centralization. This has been done for centuries, and I fail to see why anyone would assume that globalists would change their tactics now to preserve the dollar system. They call it the “New World Order,” but it is really the same old-world monetary order out of chaos that has always been exploited. Enter the IMF’s old/new world vision.

While the investment universe has been mesmerized by the deterioration of the Russian Ruble and oil prices, the IMF has been a busy little bee hive…

In articles over the past year, I have warned that the plan to dethrone the dollar and replace it with the special drawing rights basket currency system would be accelerated after it became clear that the U.S. Congress would refuse to pass the IMF reforms of 2010 proclaiming “inclusiveness” for developing economies, including the BRICS nations. The latest spending bill removed any mention of IMF reforms. The IMF, under Christine Lagarde, has insisted that if the U.S. did not approve its part of the reforms, the IMF would be forced to pursue a “Plan B” scenario. The details on this “plan B” have not been forthcoming, until now.

The Financial Times reported on the IMF shift away from the U.S. by asserting the authority to remove the veto power America has always enjoyed over the institution. This action is a stark reminder to mainstream talking heads and to those who believe the U.S. is the core economic danger to the world that the IMF is NOT an extension of American policy. If anything, the IMF and the U.S. are extensions of international banking power, just as the BRICS are nothing more than puppets for the same self-serving financial oligarchy clamoring for the same IMF-controlled paradigm, as Vladimir Putin openly admitted:

“In the BRICS case we see a whole set of coinciding strategic interests. First of all, this is the common intention to reform the international monetary and financial system. In the present form it is unjust to the BRICS countries and to new economies in general. We should take a more active part in the IMF and the World Bank’s decision-making system. The international monetary system itself depends a lot on the US dollar, or, to be precise, on the monetary and financial policy of the US authorities. The BRICS countries want to change this…”

And of course the Chinese have pronounced their fealty to the IMF global currency concept:

The world economic crisis shows the “inherent vulnerabilities and systemic risks in the existing international monetary system,” Gov. Zhou Xiaochuan said in an essay released Monday by the bank. He recommended creating a currency made up of a basket of global currencies and controlled by the International Monetary Fund and said it would help “to achieve the objective of safeguarding global economic and financial stability.”

The BRICS are not the only nations demanding the U.S. lose its supposed “influence” over the IMF.  Germany, the core economic pillar of the EU, called for America to relinquish its veto power back in 2010 just as the reforms measure was announced.

The IMF decision to possibly eliminate U.S. veto power and, thus, influence over IMF decisions may come as early as the first quarter of next year. This is the great “economic reset” that Largarde has been promoting ad nauseam in multiple interviews and speeches over the past six months. All of these measures are culminating in what I believe will be a more official announcement of a dump of the U.S. dollar as world reserve currency.

Along with the imminent loss of veto power, I have also written on the concerns of the coming SDR conference in 2015. This conference is held only once every five years. My suspicion has been that the IMF plans to announce the inclusion of the Chinese yuan in the SDR basket and that this will coincide with a steady dollar dump around the globe. Multiple major economies have already dropped the dollar in bilateral trade with China, and engineered tensions between the U.S. and the East have exacerbated the issue.

The timing of the SDR conference has now been announced, and the meeting looks to be set for October of 2015. Interestingly, this linked article from Bloomberg notes that China has a “real shot” at SDR inclusion and official “reserve status” next year, but warns that the U.S. “may use its veto power” to stop China’s membership. I have to laugh at the absurdity of it all, because there are many people in the world of economic study who still believe the developments of globalization and fiscal distress are all “random.” I suppose that if it is all random, then it is a rather convenient coincidence that the U.S. just happens to be on the verge of losing veto power in the IMF just before they are about to bring the BRICS into the SDR fold and supplant the dollar.

This is it, folks; this is the endgame right in front of our faces. The year of 2014 is the new 2007, with all the negative potential but 100 times more explosive going into 2015. Our nation has wallowed in slowly degrading financial conditions for years, hidden by fake economic statistics and manipulated stock prices. All of it has been a prelude to a much more frenetic and shocking event. I believe that we will see continued market chaos from now on, with a steep declining trend intermixed with brief but inadequate “dead cat” stock bounces. I expect a hailstorm of geopolitical crises over the next year to provide cover for the shift away from the dollar.

Ultimately, the death of the dollar will be hailed in the mainstream as a “good and necessary thing.” They will call it “karma.” They will call it “progress.” They will even call it “decentralization” and a success for the free market. But it will not feel like a positive development for the American public, who will suffer greatly as the dollar crumbles. Only those educated in the underpinnings of shadow banking will understand the whole thing is a charade designed to hide the complete centralization of sovereign economic governance into the hands of the globalists, using the IMF and BIS as “fiscal heroes,” saving the world from a state of economic destruction the elites themselves secretly created.


China and the US: Frenemies with Benefits

China and the US: Frenemies with Benefits

by James Corbett
December 14, 2014

This article originally appeared in The Corbett Report Subscriber newsletter on December 13, 2014. To subscribe to the newsletter and become a member of The Corbett Report website, please sign up for a monthly or annual membership here.

Depending on which columnist you follow or which headline writer you trust, this month is either the month that the Chinese economy officially overtook the US to become the world’s largest, or it isn’t. The quibbling comes after the latest data dump from the IMF tallying the GDP of the world’s economy. According to the data, China’s economy just leapfrogged the US with an estimated 2014 output of $17.6 trillion to America’s $17.4 trillion, representing 16.5% of the global economy vs. 16.3%.

The catch? These GDP figures are based on purchasing power parity (PPP), an economic measure that compares output in real terms, ignoring exchange rate fluctuations. Traditionally, global GDP figures have been calculated in US dollar terms to paint a more accurate picture of how much a country’s economy is “worth” on the global market. When measured in these terms, not much has changed. The US is still the world’s largest economy, with 22% of global GDP, the Eurozone as a whole is second with 17%, and China comes in third at a respectable (but still lagging) 11%.

Regardless of these numbers or the trends that underlie them (no one denies that the emerging economies of Asia are growing in importance on the global stage or that China is on pace to overtake the US economy given current growth rates), perhaps the real story is the way it was reported in the first place. Breathless headlines boldly proclaiming that “The American Century [has] come to an end” (quick! someone tell PNAC!) or purporting to explain “what’s really scary” about this development seem to bolster a narrative that we’ve been hearing for a long time now (and all the more of late): China is the US’ main rival, and the competition may not be so friendly.

This is, of course, the New Cold War narrative, and although a lot of the attention has been shifted onto Russia this year, China has for years been painted as the new Red menace for the 21st century. At the surface level all the pieces seem to be in place: an unfamiliar language and culture; a population that in sheer numbers dwarfs that of the US; a totalitarian one-party government; a growing military capacity; cheap labor; and a seemingly unstoppable drive to take America’s place as the world’s economic superpower. And so the pieces of the “New Cold War” narrative have been carefully put into place over the past decade: China is taking over Africa; China’s Navy and Air Force represent a threat to American allies and interests in the Pacific; China is hacking into American businesses, and even the US government itself; and China is creating an alternative economic and financial infrastructure to unseat the US as the world’s undisputed economic superpower and world reserve currency issuer. Meet the new boogeyman (same as every boogeyman before it).

Despite the tenor of that previous paragraph, it should be noted that there is some degree of truth to each one of these claims. In a sense, the “New Cold War” is a real phenomenon. But as listeners to my recent podcast on “China and the New World Order” know, there is a broader story to be told here, one in which this battle of the nation-states is itself just the product of a manipulation that is taking place at a higher level. This manipulation is being produced by a global oligarchy that includes members of both the traditional establishment (Rockefellers, Rothschilds, Warburgs, etc.) and their supposed Chinese “enemies” (Dengs, Wangs, Chens, etc.).

So what does this actually mean? After all, as we’ve already said those tensions and rivalries in the “New Cold War” narrative do have some truth to them and they are taking place. Does it matter if the banksters and their cronies are all connected behind the scenes? Well of course it does. Take some interesting developments from just the past few weeks by way of example.

Earlier this month the 7th China-US Internet Industry Forum took place in Washington. As CCTV reports, the event brought together “over 150 government officials, industry leaders and academics to discuss the reality and prospects of cooperation on cyber issues between the two countries.” The keynote speakers? Catherine Novelli, US Undersecretary of State for Economic Growth, and Lu Wei, Minister of the Cyberspace Administration of China. While this all sounds very innocuous, it should be noted that CCTV (unsurprisingly) fails to point out that Lu Wei is responsible for some of the most draconian censorship in one of the most heavily controlled countries on the planet. Since taking the position, he has begun a crackdown on what was already one of the most severely censored internet populations in the world, reining in the country’s social media outlets and overseeing a system where those deemed to be responsible for spreading “false rumors” about the government online can be jailed.

So did Novelli use this opportunity speaking with her New Cold War counterpart to stand up for the good old American values of free speech and freedom of expression that supposedly underpin the West’s thriving “democracies?” Hardly. She instead urged deeper US/China cooperation on their “common interests on cyber issues.” What “common issues” could those be other than the urge by both governments to censor, control and crack down on online dissent? Did she use her soapbox at the forum to chide American companies like Yahoo, Google and Microsoft operating in China for playing along with draconian Chinese censorship rules? Fat chance. The event was co-sponsored by Microsoft itself along with the “Internet Society of China,” a “non-governmental” organization which is “supported” by Chinese government ministries in creating “self-disciplinary regulations” for the Chinese internet in which companies like Microsoft “voluntarily” agree to prevent the online spread of any information that Chinese authorities disapprove of.

This phony US/China rivalry couldn’t be more transparent if a high-ranking US politician got on national television and demanded that the American government implement Chinese-style censorship controls on the internet. Oh, wait, Joe Lieberman did exactly that in 2010.

(And let’s not forget when Jay Rockefeller said it would have been better if the internet had never existed.)

But this is only one example of how the supposed US/China rivalry isn’t such a rivalry after all. Another case in point, as we pointed out in these pages last week, is that the biggest winner in the current oil price nosedive (initiated by the Saudis at the behest of the US) is not the US at all, but the Chinese. Fears of a supply glut caused by OPEC overpumping are being dispelled by the gradual realization that China, already the world’s largest oil importer, will simply increase imports in an effort to boost reserves. Forecasts show that China may boost its oil imports by as much as 700,000 barrels a day next year, accounting for more than half of the projected glut. The current craziness on the oil markets is like manna from heaven for the Red Dragon economy, which has openly talked about expanding its reserves from current levels (the equivalent of 30 days’ imports) to 100 days’ worth of imports in the next 6 years. It’s almost like the US is giving its frenemy a hand out to help make Kissinger’s prediction that hydrocarbon wars will drive international conflict in coming years a self-fulfilling prophecy.

There are any number of similar events in the headlines that point to this deeper connection. Just last week the US Air Force confirmed it is looking into sending satellite data directly to the Chinese government instead of routing that data through the State Department as is current practice. Earlier this month it was revealed that NASA Administrator Charles Bolden made an unannounced and unreported visit to meet Xu Dazhe, director of the China National Space Administration, where the two “agreed to strengthen communications and exchanges.” And who can forget last month’s much-ballyhooed US/China climate deal (although you might not have heard that military agreements were signed at the same time)? The point should be obvious to anyone who watches the news with this viewpoint in mind; far from mortal enemies in a winner-takes-all deathmatch for the global economy, the US and China cooperate on key issues across the board. Anyone who needs further elaboration on this cooperation or the players behind it need only refer to my above-mentioned podcast.

But the question is: what is the point of this collaboration and what is it aiming at? Is it merely a vehicle for the further enrichment of the oligarchy? Is it just about money? Surely there is money to be made at every stage of this rigged contest: military-industrial contractors are directly and undeniably profiting from the increased tensions in the Asia-Pacific; China continues to receive an enormous influx of investment and capital from US firms setting up branches in their country as the US-based megacorporations benefit from cheap Chinese slave labor goods; the Rockefeller-Kissinger-establishment connected Citic Group is now expanding apace after having effectively gone public earlier this year. Business is good for the Maurice Strongs and Desmarais and other elite insiders who began setting up shop in China decades ago.

But this isn’t primarily about money. After all, the banksters at the top of the power pyramid have all the money they could ever want at their virtual fingertips. They can just type it into existence. At the end of the day, this isn’t about money but power. The “great conflict” of the 21st century is going to be used for the same purposes as the great conflicts of the 20th century: to steer the world ever further into a global governmental system that consolidates and expands the power of these oligarchical interests, whether they be “American” or “Chinese” or “assorted other” (as if the global jetset really cares what country’s emblem is stamped on their passports).

A window into this fact is provided by a revealing Bloomberg report released yesterday: “Yuan Has Real Shot at IMF Blessing on Reserve Status.” The report details how the IMF will be reviewing the make-up of its Special Drawing Rights (SDR) basket of currencies next year and how the Chinese yuan is at the top of the list to be included in that basket. SDRs are a type of “currency” issued by the IMF and held as foreign exchange reserve assets by central banks. The SDR (ISO currency code: XDR) is actually a claim that can be redeemed in one of four currencies which represent the world’s major reserve currencies: the US dollar, the Japanese yen, the Euro and the British pound.

Every five years, the SDR “basket” is reviewed to see if it needs to be adjusted, either in valuation or composition. The Chinese central bank began lobbying for the yuan to be included in the SDR basket in the wake of the Lehman collapse, but the 2010 basket review concluded the currency was unsuitable for inclusion because, although it was a rising currency in international trade at the time, it was not seen to be “freely usable.” In the past five years the world has seen the rise of a yuan that is now the second most used currency in international trade settlement, undergirds a growing Dim Sum bond market that is currently valued at over $120 billion, and is freely traded in Hong Kong, Singapore, Frankfurt, London and elsewhere.

Now the IMF confirms that the yuan is going to be a priority for assessment when the SDR basket review takes place next October. In an email to Bloomberg, they write: “there have been a number of developments regarding the RMB’s international use, and the upcoming review would take stock of these developments.”

reservestatusIf the yuan is added to the SDR basket next year then we will be one step closer to a development that we’ve been talking about here at the Forecaster for years and will likely be tracking for years to come: the dethroning of the US dollar as the world reserve currency. What is significant about this emerging development is not so much that the US is descending in power and China rising as the global economy shifts, but the way in which that shift is taking place. If these trends continue, for the first time in history we will NOT be living in an era dominated by a clear-cut imperial power controlling a world reserve currency (Pax Americana in the 20th century or the British Empire before them or the French before them or the Dutch before them or the Spanish before them…) but a multipolar world where unaccountable global institutions like the IMF will be the key determinants of our economic life. This is a clear step toward the globalized vision of the one-world-order oligarchs who are pupeteering the governments of China, the US, and most other countries in our modern era. And it is not a step that is taking place randomly or by accident.

As the US/China “rivalry” heats up in the coming years, each nation-state in this contest has a part to play. The US is the aging, bloated empire, increasingly paranoid about defending its former glories and using up its political, military and economic capital at an ever faster pace in order to do so. The Chinese, meanwhile, can preach about the virtues of the “de-Americanized world” and be the good guy in the Good Cop, Bad Cop scenario with their ‘alternative’ (globalist) development banks and (globalist) ratings agencies and (globalist) financial bodies. Regardless of who “wins” this conflict, globalist institutions and financial structures will continue to grow in power and importance, exactly as planned.

It’s a nearly perfect trap. There is only one thing that can stop it: an informed public. And how exactly can we do that? Well, that’s a question for next week…

Sydney, Australia Siege Wreaks Of BS | #SydneySiege

I’ll continue to update this post with information on the Sydney, Australia “terror” incident. Whether staged or organic, one thing is for sure. The Australian government will use this to take away more of its citizens’ freedoms.

“Terror” drill held at same exact Lindt Cafe location In Sydney last year >> [5/2/2013] Australian Defence Force counter terrorism operation halts Sydney CBD | STUNNED onlookers couldn’t believe their eyes as an army counter terrorism operation in Martin Place unfolded before them in the early hours of the morning.

The “Shape-Shifting Sheik” and the “Sydney Siege” | Suspect had multiple aliases, granted political asylum by Australian government, interviewed by Australian media, spent years as fake pro-Western “Shia’a cleric” condemning Iran and Syria before recently “converting” to Sunni and supporting ISIS.

Sydney Siege Aftermath: Australian Government Seeks More Anti Terrorism Laws

Was the #SydneySiege a Propaganda Fail? – The Asia-Pacific Perspective

Show notes:
Sydney siege gunman was known to Australian authorities
Australian Defense Forces Conducted Terror Drills In Exact Location Of Sydney Siege 1 Year Before
Who Created Cartoon Character “Man Haron Monis” Behind “Sydney Siege” Circus?
Queensland police ordered onto streets in response to Martin Place siege
Government to outlaw ASIO torture (for now)

Who Created Cartoon Character “Man Haron Monis” Behind “Sydney Siege” Circus? | Previously an outspoken critic of Iranian government, was interviewed by Australian media in 2001, loved Western society…

Problem – Reaction – Solution & the Sydney Terrorist Incident Connection

America’s Terrorist Mercenaries Wreck Havoc in Sydney

Also see: