This week, South Africa is hosting the 10th annual gathering of BRICS (Brazil, Russia, India, China, and South Africa). When the first BRIC summit was held in 2009 (South Africa was added in 2010), the world was in the throes of a financial crisis of the developed world’s making, and the increasingly dynamic BRIC bloc represented the future. By coming together, these countries had the potential to provide a geopolitical counterweight to the West.
But Western commentators have long underestimated that potential, forcing BRICS to demand greater representation in global-governance institutions. In 2011 and 2012, BRICS challenged the process of selecting leaders at the International Monetary Fund and the World Bank. But, lacking a united front behind them, a European (Christine Lagarde) and an American (Jim Yong Kim) continued to preside over those organizations. And though BRICS did get these institutions to reform their voting structures to give developing countries greater weight, the US and Europe still wield disproportionate power. Continue reading
In his farewell interview for the Financial Times, Federal Minister of Finance Wolfgang Schäuble warned of a new global financial crisis predicated upon the Quantity of Money theory that the central banks had pumped trillions of dollars into the financial system that is creating a risk of “new bubbles”. Indeed, many just do not comprehend what is going on and are blaming the new highs in share markets on concerns about the increased risks from the accumulation of more and more liquidity and the growth of public and private debt. Continue reading
With one foot out of the door of Germany’s finance ministry, the former head of the German economy, Wolfgang Schäuble, 75, delivered a fire and brimstone warning over the weekend, telling the FT in an interview that there was a danger of “new bubbles” forming due to the trillions of dollars that central banks have pumped into markets. Schäuble also warned of risks to stability in the eurozone, particularly those posed by bank balance sheets burdened by the post-crisis legacy of non-performing loans, something we warned about since 2012, and an issue which remains largely unresolved.
Taking a broad swipe at the current financial regime – which he helped design – Schauble warned that the world was in danger of “encouraging new bubbles to form”. Continue reading
Over the last couple of years I’ve been all over TV… from Fox News to CNBC, CNN and Bloomberg. I’ve been telling our fellow Americans that the financial global elite was planning to issue their own globalist currency called special drawing rights, or SDRs.
And that those elites would use this new currency to replace the U.S. dollar as the global reserve currency.
I’m sure some people in the mainstream media thought I was out of line — but the United Nations and the International Monetary Fund (IMF) have both confirmed this plan to replace the U.S. dollar is real. I’ve made this warning many times, but it seems to be falling on deaf ears. That’s why I’m writing directly to you.
Here’s the proof that the U.S. dollar is under attack, right in front of our eyes:
Shortly after yesterday’s rate hike by the Bank of Canada, its first since 2010, we warned that as rates in Canada begin to rise, the local economy which has seen a striking decline in hourly earnings in the past year, which remains greatly reliant on a vibrant construction sector, and where households are the most levered on record, if there is anything that can burst the local housing bubble, it is tighter monetary conditions. And a bubble it is, as the chart below clearly demonstrates… one just waiting for the pin, which as we suggested yesterday in “”Canada Is In Serious Trouble” Again, And This Time It’s For Real“, may have finally been provided thanks to the Bank of Canada itself. Continue reading
The International Monetary Fund (IMF) has warned at the G20 summit in Hangzhou, China, that in the face of crises, the refusal to reform how things are functioning will lead to economic weakness in the global economy. “The latest data show subdued activity, less growth in trade and a very low inflation, suggesting an even weaker global economic growth this year,” the IMF told G20 leaders.
Indeed, we are looking at 2016 coming in as the fifth consecutive year in which global growth will be below the average of 3.7% which prevailed between 1990 and 2007. The IMF said: “Without strong political countermeasures the world could suffer a disappointing growth” for several years to come. Christine Lagarde told world leaders: “Even in the longer term the outlook remains disappointing.” Continue reading
In today’s world up is down, down is up, left is right and right is left. Retaining national sovereignty is now an offense to those who want to destroy it.
The risk of countries turning their back on global co-operation is the biggest challenge facing the world, as low growth and rising inequality fuel the rise of populism, said IMF managing director Christine Lagarde.
“It did not take the Brexit vote to understand that low growth, rising inequality, and a lack of jobs have combined with social and geopolitical concerns to fuel the rise of populism and inward-looking forces,” Ms Lagarde said in the text of a speech on Thursday at the Centre for Global Development in Washington. Continue reading
Piling on to Italy’s growing mountain of worries, this evening the IMF itself warned that Europe’s third largest economy would grow by less than 1% this year and only marginally faster in 2017, slashing its previous forecasts of 1.1% and 1.25% growth for the next two years, mostly as a result of the most convenient scapegoat available in Europe at the moment: Brexit (which has become to Europe as “cold weather” has been to the US for the past two years).
Christine Lagarde’s organization said Italy was “recovering gradually from a deep and protracted recession”, but said the healing process was likely to be “prolonged and subject to risks”. It used its article IV consultation – an annual economic and financial health check – to stress that Italy was vulnerable to a cocktail of threats that could have knock-on effects for the rest of Europe and the world. Continue reading
As it goes, the alleged Shanghai Accord was a side meeting of only a handful of economic policymakers (in Shanghai – hence the name) that took place concurrently with the G20 Summit on Feb. 26.Attendees of the clandestine powwow included U.S. Federal Reserve Chair Janet Yellen, U.S. Secretary of the Treasury Jack Lew, Christine Lagarde from the IMF, Mario Draghi from the ECB, and central bank and finance ministry counterparts from China and Japan.
The chief reason for the Shanghai Accord was to allow these choice global policymakers a chance to plan the demise of the U.S. dollar.
That’s right, Yellen and Lew are in on it. Continue reading
EUROPE’s economy is in a worse state than previously thought, shock figures revealed today, as the International Monetary Fund (IMF) urged the bloc to do more to tackle problems amid an increased risk of a global financial crisis.
Head of the Fund Christine Lagarde said action by world leaders to boost growth was becoming more urgent as threats were rising without decisive action.
Ms Lagarde urged the bloc to improve job training to tackle high youth unemployment and fight against low growth. Continue reading
Greece engaged in angry exchanges with the International Monetary Fund (IMF) over the weekend after WikiLeaks transcripts suggested that the fund was seeking to threaten Greece with a risk of default.
WikiLeaks published the text on Saturday (2 April) of an alleged conversation between three IMF officials in which they say that Greece only does what it needs to do only when it runs out of money – a situation they suggest could happen again soon.
The Greek government responded by asking the IMF whether “seeking to create default conditions in Greece, shortly ahead of the referendum in Britain, is the fund’s official position”.
Since 1947 when it really started operations, the World Bank has acted as a branch of the U.S. Defense Department, from its first major chairman John J. McCloy through Robert McNamara to Robert Zoellick and neocon Paul Wolfowitz. From the outset, it has promoted U.S. exports – especially farm exports – by steering Third World countries to produce plantation crops rather than feeding their own populations. (They are to import U.S. grain.) But it has felt obliged to wrap its U.S. export promotion and support for the dollar area in an ostensibly internationalist rhetoric, as if what’s good for the United States is good for the world. Continue reading
On Monday, the Chinese yuan joined one of the most elite clubs on the planet: the International Monetary Fund’s Special Drawing Rights basket of reserve currencies.
CURRENCY OLD WEIGHT NEW WEIGHT U.S. Dollar 41.90% 41.73% Euro 37.40% 30.93% Chinese Yuan – 10.92% Japanese Yen 9.40% 8.33% Pound Sterling 11.30% 8.09%
*Source: IMF Continue reading
If you’ve been following this site for a while you will already know who runs the show in Europe — with 2/3 of the Troika (European Commission, European Central Bank, IMF) being ran by this same nation. The remaining 1/3 (IMF) is headed by Christine Legarde, who is of French origin, yet is strongly tied to the Obama administration and serves as a hedge for American interests.
All signs surely point to a breakup of the monetary union, but what people don’t see are a parallel actions to continue further integration. It may very well break up, but there will be another union behind it rising out of the ashes: The United States of Europe. The politicians and Eurocrats are defying all logic and pushing full steam ahead, no matter the cost.
Experts may tell you it’s game over, but the Bible, God’s written word, says otherwise.
I have been warning that government can do whatever it likes and declare anything to be be a criminal act. In the USA, not paying taxes is NOT a crime, failing to file your income tax is the crime. The EU has imposed the first outright total asset reporting requirement for cash, jewelry, and anything else you have of value stored away. Continue reading
Chinese Yuan Enters Reserve Currency Status with the IMF
If World War 3 is cyber-economic (and it is), the yesterday we just saw one of our most important weapons given away. Yesterday was a huge day for China. Christine Largade, managing Director of the International Monetary Fund announced that the Yuan has just taken its place alongside the dollar, Euro, British pound, and Japanese yen as an official reserve currency. The move has been expected for a while but was delayed in August.