Lindsey Williams On Middle East Oil, China, Russia, The Dollar Collapse, & The Federal Reserve Double Cross

(Editor’s Note: For those wondering, silver is now at $33.40 an ounce.)

Alex Jones interviewed Lindsey Williams about the unrest in the middle east which will stop oil production and the plan by the elites to open up America’s oil fields when the price of oil is driven to at least $200 a barrel. He also covers the collapse of the dollar by the end of 2012 (we know it’s going to be sooner), and the deal in the 1970’s that Henry Kissinger made with OPEC to buy T-bills which will become completely worthless when the dollar collapses.  The globalists have been planning this for decades; ponder how the Arab world is going to fit into the globalist mix when nobody wants their oil, their leverage goes out the window, and they aren’t as rich as they used to be?

…1977 through 1981, an agreement was made by the then secretary of state with the OPEC oil producing countries of the world, in particular, the Middle East. They had found oil there about 60 years ago. Each one of the major oil companies, Shell, Texaco, Standard Oil, Chevron, divided the Arab world and each one of them produced an oil field. Then, of course, they became the elite, the ones that had the most and were doing the most. Then Henry Kissinger comes along as secretary of state, goes to those countries that had been produced by the major oil companies. Read the book ‘The Three Sisters’ if you’d like background on all of this, and he said, ‘I want to cut you a deal. We will be glad to buy your oil and NOT produce American oil.’ This is so important what you just said; the key to the whole thing. ‘We will not produce America’s oil fields…we will buy oil from you IF you will take a certain portion of everything that we buy oil from you and buy our t-bills, the Federal Reserve issues.’

Mr. Williams goes on to explain the planned death of the American dollar after the price of a gallon of gas skyrockets because the middle eastern countries can no longer produce oil due to civil unrest.

Here is the plan of the elite. They in turn will begin to open up America’s oil fields that they have known for years; they have known for twenty to thirty years that they existed. They are going to open these oil fields and produce from America’s own soil. Why? Because Mr. Frohm (?) said to me back in 1976; never forget the conversation, he said, “Chaplain, we will not open the Gull Island oil field and produce it for the American people until we have gotten the price of crude oil to $150 to $200 a barrel.

He then covers how none of this will affect China because of a recent agreement that was reached with Russia for all of their oil and natural gas.

Alex and Lindsey continue to stress the preparations needed for us corporate-owned moos to actually survive the endgame onslaught of the globalists that is rapidly approaching.  Remember those rocks I keep talking about?  Are you ready?

Glenn Beck, 1.31.2011: The Coming Insurrection

Glenn covers the revolution in Egypt, but goes global with his theory of world domination where a muslim caliphate controls the Middle East, Russia controls all her old satellites and part of Europe, and China controls Asia, parts of Africa, Australia and New Zealand.  It’s an interesting theory except for the fact that NONE of these ass-clowns plays well with others, and this theory does not take the global elites’ or the Vatican’s agendas into account.  Everybody should be looking at Africa.


Russia Wants Say In Fed’s Moves

Russia and China have been signaling for months that they were concerned about the dollar as the reserve currency and our government’s level of debt, but now they think they should have some say in our internal monetary policy.  Considering how far down the globalists’ garden path we have been led, they might just get their wish soon.

Russia echoes China, says U.S. should consult G20

(Reuters) – Russia sided with China ahead of the Group of 20 summit, saying on Monday the United States should consult other countries before pumping cash into its economy, but stopped short of calling the policy a mistake.

President Dmitry Medvedev will take part in the summit, where conflict is brewing over the U.S. Federal Reserve’s latest allocation of $600 billion to buy Treasury bonds — money that investors are likely to redirect into emerging markets in search of higher returns, potentially fuelling new asset bubbles.

“Russia’s President (Dmitry Medvedev) will insist …. that such actions are taken with preliminary consultations with other members of (the Group of 20 countries),” said Russian G20 negotiator Arkady Dvorkovich.

China has been particularly vocal in criticism of the policy, which U.S. President Barack Obama defended on Monday during a trip to India, saying the Fed’s mandate to grow the U.S. economy was good for the world as a whole.

Dvorkovich said that the Fed’s policy was an internal matter but added that previous decisions by the G20 require consultations on such issues. He said the Fed’s move may even benefit Russia because its current capital inflows were too small.

This is what happens when a country, insanely, allows a central bank to run their economy and dictate monetary policy, AND THEN that private banking cartel joins the rest of the central banks around the world (Bank Of International Settlements, World Bank, IMF).  The steady, progressive march toward the loss of American sovereignty.

Remember, the Board of Governors of the Federal Reserve cannot be impeached, the Federal Reserve doesn’t EVER open it’s books, and they can set monetary policy without so much as a ‘by your leave’ from the president or Congress. Do you want the G20 guiding the Federal Reserve, an unelected body, on what America’s monetary policy is?  I’m really looking forward to that after the rape and pillage done by Wall Street, aren’t you?

I personally am enjoying watching Ben Bernanke pull an ‘Obama’ by so far overreaching with QE2 that it will force Americans to LOOK at the Federal Reserve the same way we have been looking at the Dems and Pubs, and hopefully ignite the momentum to abolish the Fed and have a constitutional amendment passed forbidding central banks from operating in this country.

As Ron Paul stated this morning: ‘Fed Will ‘Self Destruct’ as Easing Kills the Dollar’.  We can only hope and pray that these leeches will be removed from office, charged, prosecuted and incarcerated.  Bennie and InkJets first.

Gerald Celente, 8.10.2010, And Russia Loading Iran Nuclear Facility on 8.21.2010

Gerald Celente of Trends Research being interviewed by George Noory on Coast To Coast AM (8.10.2010) about the upcoming war that Obama needs to lift America out of depression economic decline.  Considering Russia is about to load Iran’s Bushehr station on 8.21.2010, Mr. Celente is much closer to the truth than TPTB would like you to realize.  As a close friend of mine stated earlier today about the iranian nuclear threat, “start praying to whatever higher power you believe in…”.  This would be one of the reasons I am worried we won’t make it to November to flush the vermin out of our capitol.

Part 1:

Part 2, Property Taxes and Depression:

Amb. John Bolton on Russia helping Iran to establish a “functioning nuclear reactor”:

Obama Allows Russia To Sell Deadly Weaponry To Iran

There is a loophole in the latest UN draft resolution prohibiting Iran from obtaining deadly weaponry. It appears that the US is making deals behind the scenes with China and Russia to get ‘something’ passed and it would allow Iran to purchase Russian ground-to-air missiles, among other weapons which could be used against Israel and our own troops.

I personally don’t believe in the anti-Christ or the devil, but at some point somebody is going to have to ground this teenager and stop him from setting the entire world on fire.   Putting aside the fact that we believe Barry isn’t Constitutionally eligible to be president and the fact that he is trying to completely dismantle America as a free republic, is he or is he not the president of all the states?  Does not the Constitution state:

Article IV, Section. 4. The United States shall guarantee to every State in this Union a Republican Form of Government, and shall protect each of them against Invasion; and on Application of the Legislature, or of the Executive (when the Legislature cannot be convened), against domestic Violence.

Is Obama’s unwillingness to protect Arizona from an invasion of illegal immigrants not grounds for impeachment?  Are the congressional democrats that stood and applauded a foreign dignitary verbally abusing a State in the Union not enough grounds for impeachment of those criminals in congress?

Are we going to allow the Obama Administration teenagers partying in their parents’ house to decide what happens in the Middle East with nuclear weapons?  AYFKM?  Is there not one statesman left in our Legislative Branch that will put a stop to this dangerous charade known as the Obama Presidency?  Thaddeus McCotter,  Jim DeMint,  Paul Ryan, Ron Paul; are you listening?

A year ago, while Obama was still being bathed in his glorious Messiah glow, the idea of impeachment proceedings being called in the democrat controlled House was a pipe-dream.  Now the only question is whether we make it to November without a major incident.

“As a possible last minute, deal sweetener, the US dropped sanctions against Russian’s arms dealers doing illicit business with Syria as well as Iran.”

Interesting Update:
17 States Now Filing Versions of Arizona’s Immigration Bill SB 1070

What’s the teenager going to do now? Smoke, drink, keep partying?

Obama Hobbles Us As Russia Makes The World More Dangerous

Obama Hobbles Us As Russia Makes The World More Dangerous

It’s a new day, a new Monday, and I am waiting to see what Obama and his henchmen have in store for us after his Sunday golf game.  Meanwhile, I have some very bad news.  On March 25th, barely two weeks before Obama took nukes off the table, Russia decided to unveil their Club-K Missile System.  Yeppers, it’s gonna be a rough week, and you are going to be able to ask that long standing question one more time, “Is Obama Too Stupid Or Too Dangerous To Serve?”

Russia to submit data about new Club-M missile system

Rosoboronexport and Morinformsistema-AGAT corporation for the first time in Middle East will present information about mobile coastal missile system Club-M, modular missile system Club-U, and container missile system Club-K, reported Wednesday Federal Service for Military Technical Cooperation (FSMTC).

From Russia with Love: Death in a Box

By Chet Nagle

Media ignore the disasters, praying they will go away, but two effects of White House foreign policy are already on display this week. Traffic jams caused by Washington’s ballyhooed “Nuclear Summit” are missing two motorcades. It seems that Britain’s Prime Minister Gordon Brown and Israeli Prime Minister Benjamin Netanyahu have something better to do than meet with the Obama administration. Oh dear.

Why are such important leaders uninterested? Mr. Brown’s parliament officially noted the Obama administration has killed the “special relationship” (and Brown didn’t need any more DVDs); Mr. Netanyahu didn’t want to be sent home without dinner again. Kim Jong-il, North Korea’s Dear Leader, and President Mahmoud Ahmadinejad of Iran were simply too busy making nuclear weapons to take time out for any “Nuclear Summit.”

But the White House soldiers on anyway, heedless of these unfortunate setbacks. After all, there is that wonderful Nuclear Policy Review in which the Obama administration promises they will not nuke any nation that attacks the United States with biological or chemical weapons, as long as the attacker has signed the Non-Proliferation Treaty. What a relief for Iran, Syria, and Islamic terrorists everywhere! And then there is the new START treaty with Russia that the White House plans to use to eviscerate our nuclear arsenal. Fortunately, an event took place that should help the Senate decide whether or not to ratify START; a Russian company just announced they are ready to sell a deadly new cruise missile system on the global market – the Club-K Container Missile System. (emphasis mine)

What is it? Simple. It is four cruise missiles and a launch system packaged in a standard 40-foot shipping container. These are the containers you see on ships in every major harbor, on railroad flatcars, and rolling down our highways on flatbed trucks. The graphic below shows a small commercial ship, like hundreds of such vessels near American shores right now. This one has a Club-K container on board. You can see that the top of the container has folded open, and the four missiles are erected in their launch tubes. If that image does not make your skin crawl, then go to the Russian company website and watch a video that shows the system in action.

The animated movie shows the Club-K System in action. To the strains of “Born Free,” a beautiful nation of palm trees and beaches is seen loading shipping containers on ships, trains, and trucks to be sent to a nearby country. The neighbor is shown in somber shades of gray. Once they arrive at the launch positions the shipping containers open, the cruise missiles are boosted out of the launch tubes and travel hundreds of miles to destroy the gray neighbor’s tanks, planes and ships. The missiles shown in the video are armed with conventional warheads, not nuclear weapons. But what if they were carrying nuclear warheads? And what if, in a different movie, just one of those containers was put on a commercial ship that was sent to our Atlantic coast? Or to our Pacific coast, or the Gulf, or the Great Lakes? To find it, the Coast Guard and Navy would have to be very lucky indeed. But there is an even worse scenario.

In support of his various policy reviews, treaties, and summits, the Obama administration says the most dangerous threat facing the world today is terrorists armed with nuclear weapons. But the likelihood of terrorists building or even stealing an atomic bomb is remote. It is much easier for them to get anthrax, nerve gas, or radioactive dust from spent nuclear power plant fuel rods. With the pin point accuracy of a single Club-K Container Missile System they could easily kill tens of thousands of Americans, and make the hearts of four major cities uninhabitable for decades. It is likely we would not know who fired the missiles until long after Americans died. We might never know who did it, especially if the attackers sank the small cargo ship right after launching the attack.

The jihad warriors of Islam are planning to kill Jews and Christians and all infidels who do not submit to Shariah law. They tell us that every day. Perhaps one of them is in Moscow right now, walking into number 29 Entuziastov Avenue. The sales manager of Concern Morinformsystem-Agat will be happy to show him the latest model of the Club-K system. Contributing editor Chet Nagle is a Naval Academy graduate and Cold War carrier pilot who flew in the Cuban Missile Crisis. After a stint as a navy research officer, he joined International Security Affairs as a Pentagon civilian – then came defense and intelligence work, life abroad for 12 years as an agent for the CIA, and extensive time in Iran, Oman, and many other countries. Along the way, he graduated from the Georgetown University Law School and was the founding publisher of a geo-political magazine, The Journal of Defense & Diplomacy, read in over 20 countries and with a circulation of 26,000. At the end of his work in the Middle East, he was awarded the Order of Oman in that allied nation’s victory over communist Yemen; now, he writes and consults. He and his wife Dorothy live in Virginia.

(H/T BB)

Polish President Dies In Plane Crash(UPDATED)

From the NY Times:

No Survivors in Crash of Flight Carrying Polish Leader

MOSCOW — A plane carrying the Polish president, Lech Kaczynski, and his wife crashed in western Russia on Saturday morning, and there were no survivors, according to Russian media.

Officials did not immediately have information on the identities of the dead.

A spokeswoman for the emergency management ministry said on Russian television that the plane, a Tupolev 154, crashed as it was landing in Smolensk, and 87 people on board had died.

Mr. Kaczynski had been due in western Russia to commemorate the anniversary of the murder of thousands of Polish officers by the Soviet Union at the beginning of World War II.

The ceremonies were to be held at a site in the Katyn forest close to Smolensk, where 70 years ago members of the Soviet secret police executed more than 20,000 Polish officers captured after the Soviet Army invaded Poland in 1939.

From AP:

Polish leader among 132 dead in Russia jet crash

MOSCOW (AP) — Polish President Lech Kaczynski and his wife died Saturday along with 130 others when their plane crashed while coming in for a landing in western Russia, officials said.

The head of Russia’s top investigative body, Sergei Markin, said there were a total of 132 people on the plane, a Tu-154.

Kaczynski, 60, became president in December 2005 after defeating Tusk in that year’s presidential vote.
The nationalist conservative was the twin brother of Poland’s opposition leader, former Prime Minister Jaroslaw Kaczynski.

UPDATE: 4.10.2010:

I know people are wondering if this was an act of terrorism, and no one can or will say if it is right now.  All I had to do though was see this new story from the BBC to realize that there is more to this story than they are telling.

Polish President Lech Kaczynski dies in plane crash

Polish President Lech Kaczynski and scores of others have been killed in a plane crash in Russia.

Polish and Russian officials said no-one had survived after the plane apparently hit trees as it approached Smolensk’s airport in thick fog.

Poland’s army chief, central bank governor, MPs and leading historians were among more than 80 passengers.

They were flying in from Warsaw to mark 70 years since the Katyn massacre of thousands of Poles by Soviet forces.

As well as the president and his wife, Maria, a number of senior officials were on the passenger list.

They included the army chief of staff Gen Franciszek Gagor, central bank governor Slawomir Skrzypek and deputy Foreign Minister Andrzej Kremer. (emphasis mine)

World leaders including Russian Prime Minister Vladimir Putin, German Chancellor Angela Merkel and UK Prime Minister Gordon Brown offered their condolences to Poland.

Mr Kaczynski, who had fewer powers than the prime minister but had a significant say in foreign policy, was a controversial figure in Polish politics.

He had advocated a right-wing Catholic agenda, opposed rapid free-market reforms and favoured retaining social welfare programmes.

Dollar Losing Reserve Status?



We have been watching Ben Bernanke juggle the fiery pins of zero interest rate, monetizing the debt, and running the printing presses 24/7 for well over a year now, and we have been listening to the Russians and Chinese call for a new world reserve currency for months. It is not official yet, but it appears that our dollar is about to be booted from the table.  I personally believe that the title of this article from the NY Post is misleading, but the information that it contains shows the trend, and I am looking for corraboration in other sources.

Dollar loses reserve status to yen & euro

Ben Bernanke‘s dollar crisis went into a wider mode yesterday as the greenback was shockingly upstaged by the euro and yen, both of which can lay claim to the world title as the currency favored by central banks as their reserve currency.

Over the last three months, banks put 63 percent of their new cash into euros and yen — not the greenbacks — a nearly complete reversal of the dollar’s onetime dominance for reserves, according to Barclays Capital. The dollar’s share of new cash in the central banks was down to 37 percent — compared with two-thirds a decade ago. (emphasis mine)

Currently, dollars account for about 62 percent of the currency reserve at central banks — the lowest on record, said the International Monetary Fund.

Bernanke could go down in economic history as the man who killed the greenback on the operating table.

After printing up trillions of new dollars and new bonds to stimulate the US economy, the Federal Reserve chief is now boxed into a corner battling two separate monsters that could devour the economy — ravenous inflation on one hand, and a perilous recession on the other.

“He’s in a crisis worse than the meltdown ever was,” said Peter Schiff, president of Euro Pacific Capital. “I fear that he could be the Fed chairman who brought down the whole thing.”

Investors and central banks are snubbing dollars because the greenback is kept too weak by zero interest rates and a flood of greenbacks in the global economy.

They grumble that they’ve loaned the US record amounts to cover its mounting debt, but are getting paid back by a currency that’s worth 10 percent less in the past three months alone. In a decade, it’s down nearly one-third.

Yesterday, the dollar had a mixed performance, falling slightly against the British pound to $1.5801 from $1.5846 Friday, but rising against the euro to $1.4779 from $1.4709 and against the yen to 89.85 yen from 89.78.

Economists believe the market rebellion against the dollar will spread until Bernanke starts raising interest rates from around zero to the high single digits, and pulls back the flood of currency spewed from US printing presses.

“That’s a cure, but it’s also going to stifle any US economic growth,” said Schiff. “The economy is addicted to the cheap interest and liquidity.”

Economists warn that a jump in rates will clobber stocks and cripple the already stalled housing market.

“Bernanke’s other choice is to keep rates at zero, print even more money and sell more debt, but we’ll see triple-digit inflation that could collapse the economy as we know it.

“The stimulus is what’s toxic — we’re poisoning ourselves and the global economy with it.”

Thomas Palley, economist from New America Foundation believes that the dollar falling is not necessarily a bad event since it will make American goods cheaper to the rest of the world, but I urge you to take everything with a grain of salt. A taste of what New America is after the vid, and ask “who benefits?”

Economist: The dollar is like democracy

New America Foundation:

Founded 1999, to “bring exceptionally promising new voices and new ideas to the fore of our nation’s public discourse. Relying on a venture capital approach, the Foundation invests in outstanding individuals and policy solutions that transcend the conventional political spectrum.”

Senior Staff as of October 2006: President and CEO Ted Halstead, VP Michael Calabrese, VP Rachel L. White, and many lesser directors on salary.

Board of directors as of October 2006: Eric A. Benhamou (Chair), James Fallows, Francis Fukuyama, Ted Halstead, Noosheen Hashemi, Laurene Powell Jobs, Kati Marton, Walter Russell Mead, Lenny Mendonca, Steven Rattner, Eric Schmidt, Anne-Marie Slaughter, Christine Todd Whitman, Daniel Yergin, Fareed Zakaria.

Official Website:

Founding Date:

NameOccupationBirthDeathKnown for
Steven C. ClemonsPundit1962 Senior Fellow, New America Foundation
James FallowsJournalist2-Aug-1949 Atlantic Monthly
Francis FukuyamaAuthor27-Oct-1952 The End of History and the Last Man
Flynt LeverettGovernment6-Mar-1958 Former National Security Council staffer
Walter Russell MeadAuthor12-Jun-1952 Special Providence
Eric MindichBusiness1967 Eton Park Capital Management
Jim PinkertonPundit11-Mar-1958 Fox News Watch
Diane RavitchGovernment1-Jul-1938 Education reformer
Eric SchmidtBusiness1955 CEO of Google
Bernard L. SchwartzBusiness12-Dec-1926 CEO of Loral Corporation, 1972-2006
Anne-Marie SlaughterGovernment27-Sep-1958 Director of Policy Planning, State Dept.
Laura D. TysonEconomist28-Jun-1947 Dean of London Business School
Christine Todd WhitmanGovernment26-Sep-1946 GWB’s first head of EPA
Daniel YerginAuthor6-Feb-1947 The Prize
Fareed ZakariaJournalist20-Jan-1965 Newsweek foreign affairs

From Wiki:

The New America Foundation is a non-profit public policy institute and think tank located in Washington, D.C.. It was founded in 1998 by Ted Halstead, Sherle Schwenninger, Michael Lind and Walter Russell Mead.

In 2007 Steve Coll, a former managing editor of The Washington Post, succeeded Ted Halstead as President of the New America Foundation. Well-known board members include political commentator Fareed Zakaria, Christine Todd Whitman, international relations theorist Francis Fukuyama, Atlantic Monthly correspondent James Fallows, former Federal Reserve Vice Chairman Roger Ferguson, and economist Laura D’Andrea Tyson. Google‘s CEO, Eric Schmidt, is chairman-elect of the foundation.[1].

Get Ready For The G20

The imminent approach of the G20 meeting in London on April 2nd should produce some fireworks considering all the talk about a super-reserve currency, and now, a new global reserve currency put forth by Russia and China.  Hmmm…Russia and China calling for a new global currency.  Something about that just seems a bit hinky.  If you are one of those readers that feel like the economists are talking over your heads, I want to help break it down and make it more manageable.  You NEED to understand what has happened and what is happening right now.

For those of you that are not up on this particular topic, a few definitions, (you knew that was coming), are in order:

G20 Major Economies:

The G-20 (more formally, the Group of Twenty Finance Ministers and Central Bank Governors) is a group of finance ministers and central bank governors from 20 economies: 19 of the world’s largest national economies, plus the European Union (EU). It also met once at heads-of-government level, in November 2008. Collectively, the G-20 economies comprise 85%[3] of global gross national product, 80% of world trade (including EU intra-trade) and two-thirds of the world population.[2]

The G-20 is a forum for cooperation and consultation on matters pertaining to the international financial system. It studies, reviews, and promotes discussion among key industrial and emerging market countries of policy issues pertaining to the promotion of international financial stability, and seeks to address issues that go beyond the responsibilities of any one organization.  Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, United Kingdom, United States.

International Monetary Fund:

The International Monetary Fund (IMF) is an international organization that oversees the global financial system by following the macroeconomic policies of its member countries, in particular those with an impact on exchange rates and the balance of payments. It is an organization formed to stabilize international exchange rates and facilitate development.[2] It also offers financial and technical assistance to its members, making it an international lender of last resort. Its headquarters are located in Washington, D.C., USA.

The International Monetary Fund was created in 1944 [1], with a goal to stabilize exchange rates and assist the reconstruction of the world’s international payment system. Countries contributed to a pool which could be borrowed from, on a temporary basis, by countries with payment imbalances. (Condon, 2007)

The IMF describes itself as “an organisation of 185 countries (Montenegro being the 185th, as of January 18, 2007), working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty”. With the exception of Taiwan, North Korea, Cuba, Andorra, Monaco, Liechtenstein, Tuvalu, and Nauru, all UN member states participate directly in the IMF. Most are represented by other member states on a 24-member Executive Board but all member countries belong to the IMF’s Board of Governors.

World Bank:

The World Bank is an international financial institution that provides financial and technical assistance[2] to developing countries for development programs (e.g. bridges, roads, schools, etc.) with the stated goal of reducing poverty.

The World Bank differs from the World Bank Group, in that the World Bank comprises only two institutions:

Whereas the latter incorporates these two in addition to three more:[3]


The President of the Bank, currently Robert B. Zoellick, is responsible for chairing the meetings of the Boards of Directors and for overall management of the Bank. Traditionally, the Bank President has always been a U.S. citizen nominated by the President of the United States, the largest shareholder in the bank. The nominee is subject to confirmation by the Board of Governors, to serve for a five-year, renewable term.[4] (emphasis mine)

Mr. Zoellick is a CFR member, as is Timothy Geithner and most of the people surrounding B. Hussein Obama.

And my personal favorite that I am sure a few of you have heard about by now:

Commission of Experts of the President of the United
Nations General Assembly on Reforms of the International Monetary and
Financial System

Here is a snippet from their most current recommendations on March 19th, 2009, to the United Nations:

1. A New Global Reserve System
47. The global imbalances which played an important role in this crisis can only be addressed if there is a better way of dealing with international economic risks facing countries than the current system of accumulating international reserves. Indeed, the magnitude of this crisis and the inadequacy of international responses may motivate even further accumulations. Inappropriate responses by some international economic institutions in previous economic crises have contributed to the problem, making reforms of the kind described here all the more essential. To resolve this problem a new Global Reserve System—what may be viewed as a greatly expanded SDR, with regular or cyclically adjusted emissions calibrated to the size of reserve accumulations—could contribute to global stability, economic strength, and global equity. Currently, poor countries are lending to the rich reserve countries at low interest rates. The dangers of a single-country reserve system have long been recognized, as the accumulation of debt undermines confidence and stability. But a two (or three) country reserve system, to which the world seems to be moving, may
be equally unstable. The new Global Reserve System is feasible, non-inflationary, and could be easily implemented, including in ways which mitigate the difficulties caused by asymmetric adjustment between surplus and deficit countries.

2. Reforms of the Governance of the International Financial Institutions
48. There is a growing international consensus in support of reform of the governance, accountability, and transparency in the Bretton Woods Institutions and other nonrepresentative institutions that have come to play a role in the global financial system, such as the Bank for International Settlements, its various Committees, and the Financial Stability Forum. These deficiencies have impaired the ability of these institutions to take adequate actions to prevent and respond to the crisis, and have
meant that some of the policies and standards that they have adopted or recommended
disadvantage developing countries and emerging market economies. Major reforms in the governance of these institutions, including those giving greater voice to developing countries and greater transparency are thus necessary.

49. The reform of the World Bank’s governance structure should be completed swiftly. For the second stage of the reform, focussing on the realignment of shares, three criteria could be taken into account: economic weight, contribution to the development mandate of the World Bank (for example, measured in terms of contributions to IDA and trust funds), and the volume of borrowing from the Bank.

50. For the IMF, serious consideration should be given to restoration of the weight of basic votes and the introduction of double or multiple majority voting.

51. Elections of the leaders of the World Bank and the International Monetary Fund should take place under an open democratic process.

I wonder how the Council on Foreign Relations that has appeared to be the front man for the world central bankers are going to like losing control of the World Bank?

Which brings us to the current situation of Russia, China and TurboTax Timmie all thinking that maybe it might be a good idea.

China calls for new global currency

China is calling for a new global currency controlled by the International Monetary Fund, stepping up pressure ahead of a London summit of global leaders for changes to a financial system dominated by the U.S. dollar and Western governments.

The comments, in an essay by the Chinese central bank governor released late Monday, reflects Beijing’s growing assertiveness in economic affairs. China is expected to press for developing countries to have a bigger say in finance when leaders of the Group of 20 major economies meet April 2 in London to discuss the global crisis.

A reserve currency is the unit in which a government holds its reserves. But Zhou said the proposed new currency also should be used for trade, investment, pricing commodities and corporate bookkeeping.

Beijing has long been uneasy about relying on the dollar for the bulk of its trade and to store foreign reserves. Premier Wen Jiabao publicly appealed to Washington this month to avoid any steps in response to the crisis that might erode the value of the dollar and Beijing’s estimated $1 trillion holdings in Treasuries and other U.S. government debt.

The currency should be based on shares in the IMF held by its 185 member nations, known as special drawing rights, or SDRs, the essay said. The Washington-based IMF advises governments on economic policy and lends money to help with balance-of-payments problems.

Then we all know TurboTax Timmie being open to a new currency and then “clarifying his statement” as the value of the dollar dropped 1.2%.  Even I, with no college education would KNOW not to make that mistake, unless I was TRYING to tank the dollar.

Forex: Dollar shakes on Geither’s comments of a new global reserve currency (Barcelona) – The Dollar has shaken strongly across the board after the U.S. Treasury Secretary, Timothy Geithner, affirmed he was open to consider China’s idea of moving towards an Special Drawing Right (SDR) linked currency system. The USD has reached new session low against JPY, EUR and GBP, against CHF, the Dollar has reached the 1.1165 important support.

Geithner said he was open to considering expanding an SDR although he admitted not even reading China’s proposal yet. Furthermore, he added that the dollar’s future role will be determined by good U.S. policy.


And to be fair, here is the clarifying (with bold emphasis mine.)

A global ‘super currency’ to replace the buck? No, but . . .

On a day when the dollar had every right to rally given surprisingly upbeat U.S. economic data, Treasury Secretary Timothy F. Geithner briefly knocked the greenback for a loop.

From Bloomberg News:

Geithner was initially asked at a Council on Foreign Relations event in New York about proposals from People’s Bank of China Gov. Zhou Xiaochuan for a new international reserve currency. Geithner said, “As I understand his proposal, it’s a proposal designed to increase the use of the International Monetary Fund’s ‘special drawing rights.’ And we’re actually quite open to that.”

Some currency traders suddenly choked, reading into Geithner’s comments that the U.S. was “open to” the idea of a new currency that might someday usurp the dollar’s role as the preeminent holding of governments and institutional investors worldwide.

Within minutes of Geithner’s remarks, the dollar slid. The DXY index, which tracks the dollar’s value against six major currencies, fell 1.2% before stabilizing and creeping back up. The euro surged to $1.365 from $1.345.

From Bloomberg:

Roger Altman, who worked with Geithner as deputy Treasury secretary in the Clinton administration, later asked Geithner whether he wanted to “clarify” his remarks.

“I’d like to ask one final question, in effect on behalf of the market,” said Altman, founder of Evercore Partners Inc. “Let me ask the question this way: Do you see any change over the foreseeable future in the basic role of the dollar as the world’s key reserve currency?”

Geithner responded by saying that “I think the dollar remains the world’s dominant reserve currency.”

So ladies and gentlemen; get ready for more and ever increasing amounts of stupidity coming our way….have you taken measures to keep your families safe and fed in the months ahead?

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