In March of 2009, China’s central bank proposed an international reserve currency in view of the shaky status of the American dollar. China has a right to worry because of the billions of dollars they have invested in U.S. trade. The inflationary tactics being used by President Obama as he attempts to "stimulate" the American markets by pouring new money into circulation is only resulting in the speedy death of the American dollar.
Zhou Xiaochuan, the central bank’s governor in China, said that this reserve currency would be "disconnected from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currencies". On June 7, 2009, the president of the World Bank, Robert Zoellick, issued a statement saying that China’s requests could be the turning point for a global recovery.
The last G20 meeting in London, England, gave birth to the creation of $250 billion in a new currency entitled, "special drawing rights" (or SDR), which is a new form of "basket" currency that will now be used by the International Monetary Fund. It is interesting to note that this currency is not owned by any single country, but was voted into circulation by the G20 leaders and the IMF.
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| Gordon Brown and Zhou Xiaochuan |
The (role of the SDR) "serves as the light in the tunnel for the reform of the international monetary system," Zhou Xiaochauan said in April of this year. He continued, "The price is becoming increasingly high, not only for the user’s, but also for the issuer’s of the reserve currencies. A super-sovereign reserve currency not only eliminates the risks inherent in a credit-based currency such as the dollar – in contrast to one backed by gold – but also makes it possible to manage global liquidity. This will significantly reduce the risks of a future crisis and enhance crisis management capability."
In the documents released by the world leaders after the G20 Summit, there was a statement that said, "There is now a world currency in waiting. In time, SDRs are likely to evolve into a parking place for the foreign holdings of central banks, led by the People’s Bank of China." And, "The creation of a Financial Stability Board looks like the first step towards a global financial regulator." By this they mean a global bank.
During the G20 Summit, the major theme that was discussed was the implementation of greater policing by the International Monetary Fund. World leaders also granted greater power to the IMF, stating that in this way, there were less chances of another economic crisis such as the one we are now experiencing. We know from reading the MICHAEL Journal that this is not the case. The lending at interest that is advocated by the IMF is the very reason for our financial crisis.
Gordon Brown is among those who are pushing to see "the IMF reformed to become a ‘global central bank’ closely monitoring the international economy and financial system."
In October of 2008, Gordon Brown wrote a piece for the Washington Post in which he elaborated this idea. "This week, European leaders came together to propose the guiding principles that we believe should underpin this new Bretton Woods: transparency, sound banking, responsibility, integrity and global governance. We agreed that urgent decisions implementing these principles should be made to root out the irresponsible and often undisclosed lending at the heart of our problems. To do this, we need cross-border supervision of financial institutions; shared global standards for accounting and regulation; a more responsible approach to executive remuneration that rewards hard work, effort and enterprise but not irresponsible risk-taking; and the renewal of our international institutions to make them effective early-warning systems for the world economy."
The pyramid of debt that the IMF and the World Bank have created is crushing the entire world. Increasing the debts and lending more money to each country will only enslave them further, and the International Bankers know that very well. In Canada, $75 billion dollars were poured into the economy in such a way that the Canadian people were not even aware it was happening. In the United States Obama’s $800 billion dollar stimulus package only reinforced the already astronomical debt the American people are suffering under. This forces a dramatic inflation, causing the devaluation of currency and accelerating the crisis.
The Economic Times published an article saying that, "The world is not yet ready for an international reserve currency, but is ready to begin the process of shifting to such a currency. Otherwise, it would remain too vulnerable to the hegemonic nation." Later The Economic Times again stated: "the world certainly needs an international currency."
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