Posted by: quiscus | May 20, 2011

May 20, 2011

“The Strauss-Kahn Affair: Conspiring to Reshape the Global Financial Playing Field?

In recent weeks, heroic behind-the-scenes action has been poured into talking down gold, oil and other commodity prices, and talking up the failing dollar. The blatantly overvalued euro continues to be defended by the European members of the IMF Executive Board, showing rare and total solidarity in their quest to ensure a European takes over from Strauss-Kahn. This could or might however be a lost cause for the de facto US-European bloc, still holding a massive majority of votes inside the IMF, and the power to decide how many SDRs are printed and what central bank gold reserves will be sold or swapped – but kept on the books as still belonging to national central banks.

Current events could now radically speed decisions.

The BRIC (Brazil, Russia, India, China) group, showing a lack of solidarity in jostling to get leadership of the IMF as open as Europe’s solidarity and American neutrality playacting, have very different agenda items in this global quest to prevent an epic financial meltdown. Running trade surpluses, they can finance their national budget deficits and borrow to save their fragile banking systems, as overstretched as those of the USA, Europe and Japan.

The bottom line is that the IMF, as a gold laundering entity using central bank gold may be close to its first double-or-quits crisis point in its 67 year history, and its 44 years of SDR printing.

Preventive action by the world’s few capital surplus countries could start in the very near-term future. The BRIC group could break away from the IMF system by inventing its own BRIC reserve money backed by key commodities, gold, and manufacturing power, but this would need a vast increase of their current low-level coordination of financial and monetary policies.

Not impossibly, the USA facing hyper debt could take its own unilateral action, with well-described and possibly planned actions to erect tariff barriers and heavily limit overseas holdings and use of the US dollar – that is siege economy action in a new era of isolationism marked in the geopolitical domain by abandoning the Afghan war, total disengagement from Iraq and leaving Israel to solve its long and festering problems with the Palestinians all on its own.

In the same way, Europe’s neo-colonial turf war with China and India for control over Africa’s natural resources and growing consumer markets could morph into a war for saving European moneys.

Under any scenario the Strauss-Kahn affair comes at a key moment. Attempts at saving the global economy and world moneys, since the end of 2008, have all failed, raising the stakes and risk each time. What we may now witness is historic change as the IMF’s real situation seeps and leaks out, under the tinsel wraps of just another sex scandal.”

http://globalresearch.ca/index.php?context=va&aid=24881

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