IMF AND G20 MOVING FORWARD ON PLAN B
The year
is coming to an end and as expected the 2010 IMF Quota and Governance Reforms
have not been passed through the US Congress. True to her word, Christine
Lagarde has been quick to respond to the lack of movement on the reforms and
has issued a press release.
Things
will now begin to escalate across a broad spectrum, with instability in the USD
expanding and global stock markets adjusting dramatically. We can
also likely expect increases in the valuations of gold as the liquidity crisis
deepens and global money seeks liquidity outside of the dollar. The
propaganda promoting US instability will increase internationally and the
script stating alternative sources of liquidity must be utilized will
begin to be distributed to global media outlets.
The press release can be read here. The text can also be read below.
Ms. Christine Lagarde, Managing Director of
the International Monetary Fund (IMF), made the following statement today:
“The IMF’s membership has been calling on and
was expecting the United States to approve the IMF’s 2010 Quota and Governance
Reforms by year end. Adoption of the reforms remains critical to strengthen the
Fund’s credibility, legitimacy, and effectiveness, and to ensure it has
sufficient permanent resources to meet its members’ needs.
“I have now been informed by the
U.S. Administration that the reforms are not included in the budget legislation
currently before the U.S. Congress. I have expressed my disappointment to the
U.S authorities and hope that they continue to work toward speedy ratification.
“As requested by our membership,
we will now proceed to discuss alternative options for advancing quota and
governance reforms and ensuring that the Fund has adequate resources, starting
with an Executive Board meeting in January 2015.”
Those “alternative options” can be reviewed here.
The
blatant disregard by the US Congress towards the Executive Branch and
Treasury, as well as the IMF and G20 countries is staggering. Whether you agree
with the reforms or not, the fallout from this will be huge. It could
potentially create the pretext for the exchange of USD in foreign reserve
accounts with SDR securities, through the substitution accounts which we
have discussed many times. Which may have been the plan all a
long. Expect to see almost immediate escalations stemming from this
moment. – JC
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