« BACK  |  PRINT

RS

MEMBER DIARY

Geithner Planning to Replace US Dollar through IMF

Why are Democrats so eager to run up record deficits? It has emerged that one reason for the lack of fiscal concern is that Democrats support replacing the dollar with a global currency run by the International Monetary Fund. In fact, they snuck $100 billion for the IMF into the latest war supplemental bill.

Debt is killing the American Dream. We’ve mortgaged our future, and now Obama’s adding a new $1.84 trillion federal deficit. That’s four times Bush’s record deficit last year, with deficits over $500 billion annually for the next decade. The president’s gambling, doubling down, betting the farm, going “all in,” with a huge bet that could break the bank. Is this America’s last hand in a high-stakes poker game?

In addition to the $789 billion social spending plan and the $700 billion bank, auto, and insurance bailout, the government’s central bank has spent another $750 billion on mortgage-backed debt.

The world has taken notice of America’s excessive spending. Purchases of raw materials such as copper have spiked as investors try to protect themselves against the dollar’s inflation.

“The key to this week has been the Fed announcement,” said Matthew Zeman, a trader at LaSalle Futures Group in Chicago. “They’re cranking up the old printing press, so a lot of people are buying up commodities to protect against future inflation.”

We can no longer count on China to be the lender of last resort. The Chinese are aware of our overspending and have been purchasing industrial metals in place of US Treasury bonds.

China’s State Reserves Bureau (SRB) has instead been buying copper and other industrial metals over recent months on a scale that appears to go beyond the usual rebuilding of stocks for commercial reasons.

Nobu Su, head of Taiwan’s TMT group, which ships commodities to China, said Beijing is trying to extricate itself from dollar dependency as fast as it can.

China has woken up. The West is a black hole with all this money being printed. The Chinese are buying raw materials because it is a much better way to use their $1.9 trillion of reserves. They get ten times the impact, and can cover their infrastructure for 50 years.”

More countries are now exploring their options. Russia and Turkey are discussing using local currencies to conduct bilateral trade.

Brazil and China have also announced that they may ditch the dollar in place of their own currencies. The governor of China’s central bank has stated their eventual goal is to create a reserve currency modelled on the IMF.

Brazil and China will work towards using their own currencies in trade transactions rather than the US dollar, according to Brazil’s central bank and aides to Luiz Inácio Lula da Silva, Brazil’s president.

…In what was interpreted as a sign of Chinese concern about the future of the dollar, the governor of China’s central bank proposed in March that the US dollar be replaced as the world’s de-facto reserve currency.

In an essay posted on the People’s Bank of China’s website, Zhou Xiaochuan, the central bank’s governor, said the goal would be to create a reserve currency ”that is disconnected from individual nations” and modelled on the International Monetary Fund’s special drawing rights, or SDRs.

This brings us back to the IMF, for which Democrats inserted $100 billion into the war supplemental bill. This amount exceeds that of the entire bill itself, which is $95 billion. Through an accounting trick by the CBO, the IMF credit is claimed to cost only $5 billion.

A new $100 billion committed by President Barack Obama for contribution to the International Monetary Fund will make its way into war funding legislation…

The money would be part of an expanded $500 billion IMF loan fund, a cornerstone of last month’s Group of 20 nations summit in London to assist poor countries struggling through the global economic downturn.

…The Congressional Budget Office on Wednesday calculated the cost of the loan at $5 billion by accounting for heightened risk in global markets. The White House budget office had asked that the allocation not count against the budget.

What in the world is $100 billion for an international financial organization doing in a war supplemental bill?

Incredibly, Treasury Secretary Geithner has expressed support for replacing the dollar with a global currency run by the IMF.

US Treasury Secretary Tim Geithner shocked global markets by revealing that Washington is “quite open” to Chinese proposals for the gradual development of a global reserve currency run by the International Monetary Fund.

The dollar plunged instantly against the euro, yen, and sterling as the comments flashed across trading screens. David Bloom, currency chief at HSBC, said the apparent policy shift amounts to an earthquake in geo-finance.

“The mere fact that the US Treasury Secretary is even entertaining thoughts that the dollar may cease being the anchor of the global monetary system has caused consternation,” he said.

An assault against the dollar is an attack on America itself. We now know that the Democrat agenda is being spoon-fed by foreign banking elites. These slimy characters would like nothing more than to see the US dollar inflated into oblivion so that they can swoop in and buy up the country.

Get Alerts