A world in economic crisis

An interview with the head of the IMF

Posted in International Monetary Fund by Aussie on October 6, 2010

The International Monetary Fund was established after the second world war. Its purpose has been to assist countries when they are unable to pay their debts.  In the past the IMF has been rightfully criticized for some of its positions. In particular it has been criticized by those who fear the establishment of a global New World Order. I do not know whether those fears are well founded, yet every now and then I hear snippets from the powers that be, that make me think that those who fear the coming of a New World Order are correct after all.

Der Spiegel has an interview with Dominique Strauss-Kain, the present director of the IMF.  According to the author of this article the IMF had become more or less irrelevant prior to the GFC but afterwards it had gained back a lot of its prestige.

The author of this article seems to like the idea of a Global economy so that the slant of the article is one that highlights a “global economic outlook”.  I would personally not agree with this point of view for a variety of reasons, including the fact that I believe in the preservation of nation sovereignty.  Even so, there are some things from this article that I wish to highlight:

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”

According to this author the New World Order was established in September 2008. This seems to be a very strange statement. What it is implying is that when the GFC was triggered by a run on banks in USA and with the collapse of Lehman bros etc. the New World Order was established!!  A conspiracy theorist would have a field day with this kind of statement.

Looking more closely at what Strauss-Kahn is stating:

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.”

The IMF, says Strauss-Kahn, warned the world about the collapse and about the American real estate bubble and its consequences, but “politicians don’t want to hear bad news.” And when the crisis arrived in the fall of 2008, as predicted, it took the old world — Europe, which always takes six months to make a decision — too long to react.

That was the time when the world was laying the foundation for a new order.

What exactly does the director of the IMF mean by NWO. It turns out he is talking about the rise of the economies of India and China and the demise of Europe and the USA (and possibly Australia).  The director speaks of Europe as “lagging behind”, but more telling is the following statement:

The new world could be a frightening place. The IMF director says: “The Europeans still believe they are the center of the world, but in reality this is not clear any longer. Currently, the question is whether Europe will remain a participant in a game with many players — that is not necessarily a given.”

Some of the more telling comments with regard to what this man believes include the following statement:

The United Nations will probably become less important; the organization is far too slow-moving and sluggish. And, if one understands DSK correctly in this point, the importance of the United States — that egomaniacal country which is incapable of action — will also decline.

This is very disturbing because it seems to feed into the fears of those who have been against the establishment of this very New World Order.  It seems to add to their fears that the current POTUS has been assisting the collapse of the USA through a series of bad economic decisions. It also feeds the idea that Øbama is following the orders of someone who actually wants to see America’s economy collapse so that this NWO can in fact be established, with China and India in the ascendancy.

It seems that the author of this article is pushing his own agenda in relation to this New World Order, and may in fact be putting words into the mouth of Strauss-Khan, who did not directly state what this author has stated. What was pointed out though, is that the USA Congress and Bush/Øbama Administrations adopted a piecemeal approach to the crisis as it loomed. (in fact the Øbama Administration has continued to not deal adequately with all of the problems associated with Fannie and Freddie that led to the crisis in September and October of 2008).

So here is some more from this interview:

What will become important, however, is the G-20, that coalition of the strongest economies, the center of power in a new world. The G-20 gave the IMF $850 billion (€620 billion) and the mission to solve the crisis. What followed, says, Strauss-Kahn, was “the biggest global coordination ever.”

and:

In Strauss-Kahn’s view, the IMF should become an administrative unit of sorts for the G-20, an agency that “tries to find solutions for global and national problems,” come up with plans and create values. “In the end we aim at much more than just the right financial and economic policies. The ultimate goal of course is world peace through economic stability.” This is the way Strauss-Kahn views his organization, and the astonishing thing is that hardly anyone, with the exception of a lone professor in Boston, disagrees with him anymore.

It seems that Strauss-Khan has fallen victim to the hype of “world peace through economic stability”. Is that really going to happen? He has also fallen for the “climate change hype”. Or at least the author of this article is pushing the “climate change” hype.

You can read the whole article here


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2 Responses

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  1. Carlyle said, on October 7, 2010 at 3:59 am

    Guess who? (if you email me, I can tell you a story unrelated to your business here).

    Thank you for directing my attention to this article. It just furthers my deeply held position that the IMF and WB are both useless, at best, and more likely counterproductive and perhaps even bordering on “evil”.

    Nobody can convince me with any observations, facts, or proofs that they have “done some good” or been a “positive force” – ever. The reason being is that I will counter that the same good could have been achieved more easily and cheaper with a different mechanism – and a mechanism less hostile to USA.

    The best way to understand these organizations is to imagine that the US, predominantly, and to a lesser extent other giants of Western Civilization, give 100’s of billions of $$$ to the United Nations, and then sit back and let the maggots at the United Nations distribute it in whatever twisted manner amused them and suited their anti-American agenda du jour.

    This article is also a masterpiece of self-aggrandizement by this self-righteous bureaucrat. Western world becoming irrelevant? US becoming irrelevant? Only the IMF stands out as THE beacon of hope? Where does he think the input of money into his empire comes from? USA, THAT’S WHO! Or more precisely, we borrow it from China and give it to the IMF. What fools we be! What ARE we thinking?

    The US needs to not just disassociated with, but RUN LIKE HELL AWAY FROM, the UN, the WB, and the IMF. See how cocky they will all be after that?

    By the way, there is another great evil brewing – and this really is EVIL. Many Patriots are scared spitless that some sort of NWO or World Monetary Standard is imminent. Sorry, we are already there – since from before 1950. We just haven’t understood it or even recognized it. The US Dollar is such a standard. It has been the World Reserve Currency (i.e. the base of the worldwide pyramid) all this time. And since 1971 it has not even been propped up by Gold or any other sort of thing with intrinsic value. The ENTIRE Western World (and a significant part of the rest) are all an intertwined Fiat Money scheme (yes, I mean “scheme” in the most negative way possible) of defying gravity by everybody holding everybody everybody up – WITH NO BASE. Without the Gold Standard under the dollar, the dollar has literally become a “slightly better among equals”. With the overall National Debt and our HUGE outstanding obligations to China specifically, we aren’t even “slightly better anymore”. At best we are co-equal, and maybe worse than some, and declining.

    Unless somebody drives a stake through the heart of the IMF – and I mean SOON – their Fiat Money (i.e. the stuff THEY make up out of thin air) – otherwise known by the arcane name of Special Drawing Rights (SDRs) – will become the worldwide reserve currency.

    Which brings us full circle back to this guy’s assertion that the IMF is the “new boss in town”. He may be right. If that happens, all the other nations will no longer have any vested interest in the US Dollar retaining value. They will cease doing all the little things they are now doing to nudge the Dollar. The Dollar will then decline precipitously – certainly to 50-75% of it’s current value, and likely in the range of 10-25%. And if this event transpires, this steep devaluation of the Dollar will all happen within a year or less. People holding Dollars (worldwide) will panic and want to convert their Dollars to something better before the rate plunges even further. This in turn will cause the rate to plunge faster.

    Of course this will mostly affect average people the most. The large holders of Dollars will know ahead of time – or certainly in real time – and will be at the front end in beginning a quiet movement from Dollars to something else. But, you say, surely we will notice that and we too can be on the front end? Well, you better wake up. Research for yourself how many countries and big private holders of money are RIGHT NOW doing exactly this. OMINOUS. Take heed. The big blazing finger has already begun tracing out the Handwriting On The Wall.

    Other than that, things are pretty quiet – – –

  2. ozzieaussie said, on October 7, 2010 at 6:31 am

    I have not finished reading the article. I think that there is plenty to criticize, especially the role of the IMF and in particular Tim Geithner for the lack of recovery in the Japan economy.

    This might be something that will remain on my reading list for the time being.


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