IMF Global Currency Master Plan Flies Under the Radar

by Rocky Vega.

With the rather ho-hum title, “Reserve Accumulation and International Monetary Stability,” one would hardly expect the dry-sounding April 13th IMF paper to essentially come to the conclusion that the final long-term idea to “mitigate demand and diversify supply of reserves for IMS stability” is to institute a global currency. Where’d that come from? A recent article mines the few months-old IMF paper… to understand how it could be interpreted as the IMF’s blueprint for a global currency.

From the Financial Times Alphaville:

“…in the eyes of the IMF at least, the best way to ensure the stability of the international monetary system (post crisis) is actually by launching a global currency. And that, the IMF says, is largely because sovereigns — as they stand — cannot be trusted to redistribute surplus reserves, or battle their deficits, themselves.

“The ongoing buildup of such imbalances, meanwhile, only makes the system increasingly vulnerable to shocks. It’s also a process that’s ultimately unsustainable for all, says the IMF.”

And, from the IMF report:

“From SDR [Special Drawing Rights] to bancor. A limitation of the SDR as discussed previously is that it is not a currency. Both the SDR and SDR-denominated instruments need to be converted eventually to a national currency for most payments or interventions in foreign exchange markets, which adds to cumbersome use in transactions.

“And though an SDR-based system would move away from a dominant national currency, the SDR’s value remains heavily linked to the conditions and performance of the major component countries. A more ambitious reform option would be to build on the previous ideas and develop, over time, a global currency. Called, for example, bancor in honor of Keynes, such a currency could be used as a medium of exchange — an ‘outside money’ in contrast to the SDR which remains an ‘inside money’.”

Interestingly, “in honor of Keynes” isn’t necessarily a good time… or a worthwhile honor. Yet, there it is, splayed out for all to see… the IMF busily at work on a global currency.

You can read more details in Financial Times coverage of the IMF blueprint for a global currency.

Best,

Rocky Vega,
The Daily Reckoning

Rocky Vega is publisher of Agora Financial International, where he advances the growth of Agora Financial publishing enterprises outside of the US. Previously, he was publisher of The Daily Reckoning, and founding publisher of both UrbanTurf and RFID Update -- which he ran from Brazil, Chile, and Puerto Rico -- as well as associate publisher of FierceFinance. Rocky has an honors MS from the Stockholm School of Economics and an honors BA from Harvard University, where he served on the board of directors for Let?s Go Publications, Harvard Student Agencies, and The Harvard Advocate.

  • a devils advocate

    They will turn to plastic and wire transfers of virtual money accounts. They will also know where you are at any given moment. Be ready. Here it comes.

  • Sir_Gresham

    So, we are supposed to trust the same people that have destroyed the dollar system? Once confidence is lost it is lost forever. Decentralize money. Put it into the hands of the people via gold/silver. Commence one time increase of purchasing power via gold/silver. Since Crimex won’t do it the free market will. In the end, centralized planning DOES NOT work.

  • wasckly wabbit

    it will only work if the people let it work dont use there system and they will we wont have to be ready for it use gold silver and barter system

  • Ty

    And a nice “toldya so” to all those that thought it was a crazy conspiracy theory.

    Now, about the WHO using flouride and immunization to keep populations unhealthy and cloudy headed so they don’t or can’t oppose global government……

  • a devils advocate

    “In the end, centralized planning DOES NOT work.” Nothing and that is a big nothing will work any more. And thinking that turning to gold and silver will work is a pipe dream of major proportions.

  • Ty

    But planning for trade in gold and silver is a step in the direction of a barter system where people truly consider value over currency numbers. People tend to shift importance when they have to think in terms of number of meals something equals, days of shelter and the like. Right now some still think medical care isn’t over priced. This is because insurance covers it and the numbers they see are compared to mortgages, college education and Wall Street wages. When such things are compared to necessary items in their every day life, perceptions will definitely change.

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