IMF Managing Director Dominique Strauss-Kahn Calls for New Global Approaches to Post-Crisis World

Editor's Note:  Can anyone say "Problem, Reaction, Solution"?  Clearly the global elites are capitalizing on the Global Political Awakening; in large part, deliberately engineered by them, to make the people of the world beg for a New World Order in the form of a One World Government and Global Currency.  You can certainly plan on the economic crises to worsen significantly before the solution is fully implemented.


“In designing a new macroeconomic framework for a new world”, he stated, “the pendulum will swing—at least a little—from the market to the state."

IMF

In a speech entitled “Global Challenges, Global Solutions” at George Washington University in Washington, D.C. today, Mr. Dominique Strauss-Kahn, Managing Director of the International Monetary Fund (IMF), called for a new approach to economic policymaking in the wake of the recent global crisis. He singled out three areas for improvement: a new approach to macroeconomic and financial sector policies, a new approach to social cohesion, and a new approach to cooperation and multilateralism.

Discussing the current economic situation, Mr. Strauss-Kahn noted that the global recovery is unbalanced both between and within countries, and the global outlook is still beset by uncertainty. He pointed in particular to the Middle East, noting that it is going through an “historic transformation” as “citizens are seeking greater freedom, and a fairer distribution of economic opportunities and resources”. The immediate challenge for the Middle East, he stated, was “to preserve social cohesion without undermining macroeconomic stability”.Turning to global macroeconomic policies, Mr. Strauss-Kahn argued that policy must go beyond price stability, and look to financial stability, incorporating macro-prudential tools. The crisis has showed the value of fiscal policy, which had been the “neglected child” of the policy toolkit. Mr. Strauss-Kahn also called for more progress with financial sector reform, including across borders, and called for a financial activities tax.

“In designing a new macroeconomic framework for a new world”, he stated, “the pendulum will swing—at least a little—from the market to the state, and from the relatively simple to the relatively more complex”.

Mr. Strauss-Kahn called for policymakers to pay more attention to inequality and social cohesion. “The lethal cocktail of prolonged high unemployment and high inequality can strain social cohesion and political stability, which in turn affects macroeconomic stability.” He suggested that inequality, which was a factor in the Middle East, might also have been among the root causes of the global crisis, and that sustainable global growth is associated with more equal income distribution.

“We need a new form of globalization, a fairer form of globalization, a globalization with a more human face”, he said. “The benefits of growth must be broadly shared, not just captured by a privileged few. While the market must stay center stage, the invisible hand must not become the invisible fist”.

Mr. Strauss-Kahn stressed the virtues of enhanced cooperation and multilateralism in the post-crisis world, noting that “the great challenges of today all require a collective solution”. He cautioned countries against using currencies or trade restrictions for short-term gain.

“In such a world, multilateral institutions—as forums of global cooperation—will become even more important. But they must stay relevant. They must adapt to the new globalization,” Mr. Strauss-Kahn stated. He pointed out that the IMF is striving to better understand the complex interconnections running through the global economy and to strengthen its ability to prevent crises, not only manage them. But this requires legitimacy, he noted, making the recent IMF governance reforms particularly important.

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US Treasury's Geithner to visit China March 31

Editor's Note: Finalizing plans for a global currency perhaps?  

US Secretary of the Treasury Timothy Geithner
© AFP/Getty Images/File Alex Wong

AFP

WASHINGTON (AFP) - US Treasury Secretary Timothy Geithner will visit China next week, joining a group of G20 officials to discuss the global monetary system, the Treasury said Friday.

Geithner will attend finance ministers, central bankers and other officials from the Group of 20 in the eastern city of Nanjing, as debate rages about global economic imbalances, caused in part by China's rise.

The group will "discuss reforms to the international monetary system and the importance of the G20 maintaining its focus on supporting a sustainable global recovery," the Treasury said.
Chinese officials have already declared the vexed topic of the yuan's alleged undervaluation -- a hot issue between Washington and Beijing -- will not be up for discussion.

"The renminbi exchange rate is not on the agenda," Foreign ministry spokeswoman Jiang Yu told reporters on March 15, using China's official name for its currency.


The issue has been a major sticking point between Washington and Beijing, with US officials blaming it in part for the the United States' $273 billion trade deficit with China last year.

Geithner will also meet his Chinese counterparts to "discuss the global outlook and the economic relationship between the two countries in advance of the 2011 US-China strategic and economic dialogue."

Earlier this month Chinese central bank governor Zhou Xiaochuan reiterated that policymakers would stick to a "gradual approach in exchange rate reform".

Beijing believes a sudden adjustment in the value of the currency would hurt the country's vast manufacturing sector, potentially triggering the loss of millions of jobs and causing social unrest.

The thinly-traded yuan has weakened slightly in the past month, moving from 6.58 to the dollar at the end of February to around 6.56 on Friday.

In the first half of 2010 it was trading at around 6.83.

© AFP -- Published at Activist Post with license 

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Leftist “Economic Terrorists” Are Patsies For The Real Economic Terrorists

INFOWARS-The controversy generated around the remarks of former SEIU official Stephen Lerner and his plan to rally unions, lawmakers, student groups and community organizers around a plan to crash the stock market, destroy big banks and redistribute wealth in America by destabilizing the country will be exploited by the real financial terrorists when they decide to launch the next false flag attack on the U.S. economy.

During a closed session at a Pace University forum last weekend, Lerner divulged his plan to seize back the trillions stolen by big banks through a series of actions designed to “destabilize” financial markets.

“Lerner’s plan is to organize a mass, coordinated “strike” on mortgage, student loan, and local government debt payments–thus bringing the banks to the edge of insolvency and forcing them to renegotiate the terms of the loans. This destabilization and turmoil, Lerner hopes, will also crash the stock market, isolating the banking class and allowing for a transfer of power,”reports Business Insider.

“Lerner’s plan starts by attacking JP Morgan Chase in early May, with demonstrations on Wall Street, protests at the annual shareholder meeting, and then calls for a coordinated mortgage strike.”

Despite ominous warnings from the likes of Glenn Beck, that Lerner’s comments represent the left’s “economic terrorism playbook” in their bid to “take down capitalism” in the United States, in reality it wasn’t leftist activists or unions that used economic terrorism to oversee the 2008 financial collapse and the subsequent heist in the form of the bailout, it was powerhouse financial firms like JP Morgan, Goldman Sachs, and their allies inside the Bush and Obama administrations.

If we’re talking about “economic terrorists” then look no further than former Goldman Sachs CEO and Bush Treasury Secretary Hank Paulson. The initial $700 billion dollar TARP bailout that was passed in October 2008, which laid the foundation for subsequent unchecked bailouts that eventually soared past the $20 trillion mark, was rammed through on the back of threats of martial law, stock market collapses, and food riots by none other than Paulson himself. This is real economic terrorism, and not just a bunch of SEIU leftists blowing hot air, but Glenn Beck didn’t seem very interested in reporting on it at the time, having been a staunch advocate of the TARP bailout from the very start.

During a conference call on September 19th 2008, around two weeks before the TARP legislation was eventually approved by both the Senate and Congress, Paulson threatened lawmakers with dire consequences if they didn’t pass the bailout.

As we reported at the time, on October 2, Democratic Congressman Brad Sherman gave a stunning speech on the House floor during which he decried the fact that, “Many of us were told in private conversations that if we voted against this bill on Monday that the sky would fall, the market would drop two or three thousand points the first day, another couple of thousand the second day, and a few members were even told that there would be martial law in America if we voted no.”

Speaking on Tulsa Oklahoma’s 1170 KFAQ, when asked who was behind threats of martial law and civil unrest if the bailout bill failed, Senator James Inhofe named Treasury Secretary Henry Paulson as the source.

“Somebody in D.C. was feeding you guys quite a story prior to the bailout, a story that if we didn’t do this we were going to see something on the scale of the depression, there were people talking about martial law being instituted, civil unrest….who was feeding you guys this stuff?,” asked host Pat Campbell.

“That’s Henry Paulson,” responded Inhofe, “We had a conference call early on, it was on a Friday I think – a week and half before the vote on Oct. 1. So it would have been the middle … what was it – the 19th of September, we had a conference call. In this conference call – and I guess there’s no reason for me not to repeat what he said, but he said – he painted this picture you just described. He said, ‘This is serious. This is the most serious thing that we faced.’”

Inhofe said that Paulson told members of Congress the crisis would be “far worse than the great depression” if Congress didn’t authorize the bill to buy out toxic debt, a proposal “which he abandoned the day after he got the money,” added Inhofe.

Inhofe was referring to the fact that after promising the money would be used to buy up toxic debt, Paulson, the former CEO of Goldman Sachs, pulled a bait and switch and ordered the money be injected directly into banks.

This is genuine economic terrorism – using your position as Treasury Secretary to threaten martial law and a collapse in society to get a bill passed that hands your bankster buddies billions, and eventually trillions, in stolen bailout funds.

In comparison to the brazen financial terrorism that was exercised to get the bailout passed, Paulson makes Stephen Lerner look like a pussycat.

Although Lerner’s rhetoric is bold and aggressive, the idea that a gaggle of leftists can get together and crash Wall Street, bring down major banking institutions, and launch a successful revolution against mortgage companies, is ambitious to say the least.

What’s more likely to happen is that the financial terrorists who caused the crash in the first place, the offshore banks and Wall Street itself, will use Lerner and his ilk as patsies on which to blame the next big engineered collapse of financial markets.

When the next phase of the economic false flag is set in motion, leftists and Democrats will be blamed for the turmoil, while the real culprits, the financial power structure itself, will once again evade scrutiny.

Remember, the insiders make money whether markets are on the up or in a state of collapse. The insiders are the only ones to benefit from dramatic movements in financial markets.

With the U.S. approaching insolvency we are just around the corner from the next big leg down of the financial collapse. When it happens, the government and the establishment media will use Lerner and his ilk as scapegoats, despite the fact that the staged collapse will have been triggered by the same financial institutions and offshore banks that set in motion the 2008 collapse to enrich their own coffers and re-structure the global financial system in their image.

The Pentagon’s attempt to blame the 2008 meltdown on “foreign financial terrorists” gives us a clear indication that the establishment is on the lookout for patsies on which to pin the blame for the next act of financial terrorism.

While Glenn Beck worries about Lerner’s fanciful dreams of a mass redistribution of wealth, the real agenda that the genuine financial terrorists seek to achieve only accelerates, namely a global currency controlled by a global central bank as part of the imposition of a global government.

—

Paul Joseph Watson is the editor and writer for Prison Planet.com. He is the author of Order Out Of Chaos. Watson is also a regular fill-in host for The Alex Jones Show.

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Secretive Plan For a Global Currency

Excerpt from "The Global Economic Crisis: The Great Depression of the XXI Century"

Ellen H. Brown
Global Research

By acting together to fulfill these pledges we will bring the world economy out of recession and prevent a crisis like this from recurring in the future. We are committed to take all necessary actions to restore the normal flow of credit through the financial system and ensure the soundness of systemically important institutions, implementing our policies in line with the agreed G20 framework for restoring lending and repairing the financial sector. We have agreed to support a general SDR allocation which will inject $250bn into the world economy and increase global liquidity.– G20 Communiqué, London, April 2, 2009

Towards a New Global Currency?

Is the Group of Twenty Countries (G20) envisaging the creation of a Global Central bank? Who or what would serve as this global central bank, cloaked with the power to issue the global currency and police monetary policy for all humanity? When the world’s central bankers met in Washington in September 2008 at the height of the financial meltdown, they discussed what body might be in a position to serve in that awesome and fearful role. A former governor of the Bank of England stated:

The answer might already be staring us in the face, in the form of the Bank for International Settlements (BIS)... The IMF tends to couch its warnings about economic problems in very diplomatic language, but the BIS is more independent and much better placed to deal with this if it is given the power to do so.[1]

And if the vision of a global currency outside government control was not enough to set off conspiracy theorists, putting the BIS in charge of it surely would be. The BIS has been scandal-ridden ever since it was branded with pro-Nazi leanings in the 1930s. Founded in Basel, Switzerland, in 1930, the BIS has been called “the most exclusive, secretive, and powerful supranational club in the world.” Charles Higham wrote in his book Trading with the Enemy that by the late 1930s, the BIS had assumed an openly pro-Nazi bias, a theme that was expanded on in a BBC Timewatch film titled “Banking with Hitler” broadcast in 1998.[2] In 1944, the American government backed a resolution at the Bretton Woods Conference calling for the liquidation of the BIS, following Czech accusations that it was laundering gold stolen by the Nazis from occupied Europe; but the central bankers succeeded in quietly snuffing out the American resolution.[3]

In Tragedy and Hope: A History of the World in Our Time (1966), Dr. Carroll Quigley revealed the key role played in global finance by the BIS behind the scenes. Dr. Quigley was Professor of History at Georgetown University, where he was President Bill Clinton’s mentor. He was also an insider, groomed by the powerful clique he called “the international bankers.” His credibility is heightened by the fact that he actually espoused their goals. Quigley wrote:

I know of the operations of this network because I have studied it for twenty years and was permitted for two years, in the early 1960’s, to examine its papers and secret records. I have no aversion to it or to most of its aims and have, for much of my life, been close to it and to many of its instruments... In general my chief difference of opinion is that it wishes to remain unknown, and I believe its role in history is significant enough to be known...

The powers of financial capitalism had another far-reaching aim, nothing less than to create a world system of financial control in private hands able to dominate the political system of each country and the economy of the world as a whole. This system was to be controlled in a feudalist fashion by the central banks of the world acting in concert, by secret agreements arrived at in frequent private meetings and conferences. The apex of the system was to be the Bank for International Settlements in Basel, Switzerland, a private bank owned and controlled by the world’s central banks which were themselves private corporations.[4]

The key to their success, said Quigley, was that the international bankers would control and manipulate the money system of a nation while letting it appear to be controlled by the government.

The statement echoed one made in the 18th century by the patriarch of what became the most powerful banking dynasty in the world. Mayer Amschel Bauer Rothschild is quoted as saying in 1791: “Allow me to issue and control a nation’s currency, and I care not who makes its laws.” Mayer’s five sons were sent to the major capitals of Europe – London, Paris, Vienna, Berlin and Naples – with the mission of establishing a banking system that would be outside government control. The economic and political systems of nations would be controlled not by citizens but by bankers, for the benefit of bankers.

Eventually, a privately-owned “central bank” was established in nearly every country. This central banking system has now gained control over the economies of the world. Central banks have the authority to print money in their respective countries, and it is from these banks that governments must borrow money to pay their debts and fund their operations. The result is a global economy in which not only industry but government itself runs on “credit” (or debt) created by a banking monopoly headed by a network of private central banks. At the top of this network is the BIS, the “central bank of central banks” in Basel.

Behind the Curtain

For many years the BIS kept a very low profile, operating behind the scenes in an abandoned hotel. It was here that decisions were reached to devalue or defend currencies, fix the price of gold, regulate offshore banking, and raise or lower short-term interest rates. In 1977, however, the BIS gave up its anonymity in exchange for more efficient headquarters. The new building has been described as “an eighteen story-high circular skyscraper that rises above the medieval city like some misplaced nuclear reactor.” It quickly became known as the “Tower of Basel.” Today the BIS has governmental immunity, pays no taxes, and has its own private police force.[5] It is, as Mayer Rothschild envisioned, above the law.

The BIS is now composed of 55 member nations, but the club that meets regularly in Basel is a much smaller group; and even within it, there is a hierarchy. In a 1983 article in Harper’s Magazine called “Ruling the World of Money,” Edward Jay Epstein wrote that where the real business gets done is in “a sort of inner club made up of the half dozen or so powerful central bankers who find themselves more or less in the same monetary boat” – those from Germany, the United States, Switzerland, Italy, Japan and England. Epstein said:

The prime value, which also seems to demarcate the inner club from the rest of the BIS members, is the firm belief that central banks should act independently of their home governments... A second and closely related belief of the inner club is that politicians should not be trusted to decide the fate of the international monetary system.[6]

In 1974, the Basel Committee on Banking Supervision was created by the central bank Governors of the Group of 10 nations (now expanded to twenty). The BIS provides the twelve-member Secretariat for the Committee. The Committee, in turn, sets the rules for banking globally, including capital requirements and reserve controls. In a 2003 article titled “The Bank for International Settlements Calls for Global Currency,” Joan Veon wrote:

The BIS is where all of the world’s central banks meet to analyze the global economy and determine what course of action they will take next to put more money in their pockets, since they control the amount of money in circulation and how much interest they are going to charge governments and banks for borrowing from them...

When you understand that the BIS pulls the strings of the world’s monetary system, you then understand that they have the ability to create a financial boom or bust in a country. If that country is not doing what the money lenders want, then all they have to do is sell its currency.[7]

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