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    Socialist IMF Head Calls for Global Currency

    The head of the International Monetary Fund (IMF) Dominique Strauss-Kahn is a member of France’s Socialist Party. As one of the 187 member countries, U.S. taxpayers pay roughly 17 percent of the IMF’s total funding.  Dominique Strauss-Kahn even unsuccessfully ran for president of France on the Socialist ticket in 2007. Rumors have been circulating that the socialist may be challenging current French President Nicholas Sarkozy in 2012.

    Dominique Strauss-Kahn has made his political views clear. In April 2010, the IMF released a report called the “Reserve Accumulation and International Monetary Stability.” The report was full of extensive IMF jargon. However, it’s worth a read to discover what the IMF is scheming. The report reads:

    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’.

    The international bureaucracy has proposed a global currency to honor the father of Keynesian economics- John Maynard Keynes. As an influential economist of the 21st century, Keynes was the antithesis of free markets and limited government. He believed that massive government intervention in the marketplace would somehow lead to prosperity.  In 1940, John Maynard Keynes first developed the idea of a supranational currency, called the bancor, to be the world's key currency. When asked about the long-term effects of his economic policies, Keynes famously replied “in the long run we are all dead.”

    A global currency would grant even more power to the international bureaucracy while failing to stabilize the global financial system. The IMF fully intends to push for a dollar alternative. Just last week, the IMF released another report praising the idea. In a recent speech, Socialist Dominique Strauss-Kahn said there is “a sense that money sometimes flows around the globe in too-volatile a fashion and that countries need a more stable, more predictable external environment in order to prosper.”

    How would the global currency work? In the IMF report it says:

    One option is for bancor to be adopted by fiat as a common currency (like the euro was), an approach that would result immediately in widespread use and eliminate exchange rate volatility among adopters (comparable, for instance, to Cooper 1984, 2006 and the Economist, 1988). A somewhat less ambitious (and more realistic) option would be for bancor to circulate alongside national currencies, though it would need to be adopted by fiat by at least some (not necessarily systemic) countries in order for an exchange market to develop.

    Who would print and administer the “bancor?” A global bank modeled after the Federal Reserve. The report continues:

    A global currency, bancor, issued by a global central bank (see Supplement 1, section V) would be designed as a stable store of value that is not tied exclusively to the conditions of any particular economy. As trade and finance continue to grow rapidly and global integration increases, the importance of this broader perspective is expected to continue growing… The global central bank could serve as a lender of last resort, providing needed systemic liquidity in the event of adverse shocks and more automatically than at present. Such liquidity was provided in the most recent crisis mainly by the U.S. Federal Reserve, which however may not always provide such liquidity.

    It sounds like a conspiracy theory. But I urge you to check out the report for yourself on the IMF's website. The International Monetary Fund (IMF) is a threat to America’s sovereignty. As Dominique Strauss-Kahn said about the European Union, “the centre must seize the initiative in all areas key to reaching the common destiny of the union, especially in financial, economic and social policy. Countries must be willing to cede more authority to the centre.” A global currency and bank would be a huge step towards a global government.