New World Order?

Another reason to believe this is a System Crisis; Not Just Systemic has emerged. I briefly mentioned in that post that the end game could be a consolidation of monetary power into the hands of the IMF, which will certainly be reasoned as "steps towards global stability" (sarcasm). Certainly the Chinese have already been jawboning for that via IMF reserve notes, but now the idea is spreading to the G-20:

Writedowns

That represents the economic pain of a financial crisis that began in August 2007 and has since cost banks almost $1.3 trillion in writedowns and losses, forcing them to seek support from governments and to choke off credit to consumers and businesses.

Having committed $2 trillion in fiscal packages to save their economies, the leaders today said they would “deliver the scale of sustained fiscal effort necessary to restore growth,” while ensuring budgets are sustainable in the long-term. While Obama and Brown have pushed for more cash, European leaders argue they’ve spent enough and faster.

As it becomes inundated with requests for loans from troubled economies including Pakistan and Hungary, the IMF was told it will receive $750 billion to boost its firepower. Multilateral development banks including the World Bank will receive at least $100 billion.

In return for contributing to the fillip, emerging markets such as China and Brazil will receive more of a say in the fund, the G-20 said. The IMF will also use revenue from sales of its gold reserves to aid the world’s poorest countries and its next leader will no longer automatically be a European.

Here is the bottom line; while this is by no means proof that the global economic leaders are looking to central global planning via the IMF as monetary chieftain, its a step in that direction. The world's currencies are being devalued by global borrowing. With all of these bail out and stimulus measures across the globe, who is going to pay for this? Taxpayers by means of tax and inflation (a hidden tax).

I've said it before, shifting to a coordinated world currency is still a fiat currency, it changes nothing but power and confidence. That confidence will eventually collapse under the reigns of instability if that were to occur.

It's also apparent the IMF is going to continue to sell gold, most likely in attempts to keep prices at bay. They will fail at this.

I do not embrace much of this reform being announced. It places more power on regulators who failed to see the problem and changed rules to exacerbate the problem long before crisis emerged.

• Glass-Steagal was repealed
• The SEC created the rating agency oligopoly
• The SEC waived net capital requirement ratios for the now defunct premier investment houses on Wall Street
• The promotion of "affordable housing" through Fannie & Freddie
• Greenspan's "sweeps"
• Federal reserve managing of interest rates

There are scores of other examples, but I'll leave it short and sweet. Did any good come from these government interventions? Why should shifting more power to the IMF be any different?

With this latest policy, global taxpayers will now foot another $750 billion to save corrupt and failed institutions.