G20 Pushes Globalist SDR and China’s Role

Kurt Nimmo
Infowars.com
February 15, 2011

On Monday, French Economy Minister Christine Lagarde said her country will work to realize a planned transition to a global financial system based on several international currencies. France is currently head of the G20.

Lagarde and the G20 want to undermine sovereignty of nations by moving away from national reserves into SDRs, or Special Drawing Rights issued by the International Monetary Fund.


The G20′s mid-February meeting in Paris will concentrate on “reform” of the international monetary system.

“Continuing demand for the U.S. dollar as the world’s de facto reserve currency, consequently still widening trade imbalances, and ongoing worry over how long the dollar can retain its excessively high value relative to other currencies, are sowing the seeds of renewed global financial instability,” warned Robert C. Hockett, an expert on international finance and professor of law at Cornell University.

Hockett said the Chinese yuan will likely be added to the dollar, euro, pound, and yen as one of the principal currency components of the Special Drawing Rights.

Lagarde and the G20 are currently debating the role of China. She said France favors including the renminbi in the currencies that make up SDRs even before the Chinese currency is fully convertible.

Obama’s Budget Banter Omission: The Banks Broke the Bank

Nomi Prins
Zero Hedge
February 15, 2011

Since the White House announced its 2012 budget, the requisite punditry stream has been breaking down its specific pluses and minuses. I could grab illustrative quotes from various places and people, or add to the analytical details, but for the most part, it boils down to something like this:

GOP and GOP supporters: Obama didn’t make enough spending cuts, he’s not taking this whole budget thing seriously. Oh, and about the cuts he did suggest with regard to corporate tax benefits, high-end mortgage-holder deductions and (his-own) extension of wealthy individual Bushian tax breaks – well, that’s just plain anti-American and – will kill jobs. (The fact that corporations were contributing just 6.6% and 7.2% in 2009 and 2010, of the total federal tax receipts, a 50% drop relative to the rate before the financial crisis, or about $150 billion per year, isn’t relevant in the scheme of things.) Now, where can we cut another $100 billion?


DEMs and DEM supporters: Obama inherited a bum economy, bum budget and bum deficit from Bush. And, he’s turning around the crap hand he was dealt, slowly.  That means he has to cut back on some important programs, but he’s gonna champion a high-speed railway, electric cars (to drive along side the high-speed railway?), and clean energy initiatives, and those will most certainly put millions of people back to work. Yes, he appointed Tim Geithner, one of the lead bank bailout builders, whose Treasury department colluded with the Fed, under Ben Bernanke, the other guy Obama kept on deck to help the economy, to increase the amount of US Treasury debt to $9.4 trillion from $5.4 trillion since the financial system began inhaling subsidies in the fall of 2008, and went on to post record bonuses and profits. But, he had no choice.

Paulson on Paulson: "We had no choice but to fly by the seat of our pants, making it up as we went along"

Paulson on Paulson: "We had no choice but to fly by the seat of our pants, making it up as we went along"

CLICK PLAY.  This is a must listen while you read the quotes below.  You will immediately begin hearing about Paulson's role in the crisis.

The AIG comments are especially galling and fabricated.  They are, in fact, nothing more than lies.  All conveniently told to cover-up the AIG heist.  Read more here:

• Exposed - The Lies of Hank Paulson

• How Paulson Appointees & Former GS Employees Dan Jester & Ed Liddy Colluded To Destroy AIG And Secure A Secret Bailout For Goldman Sachs

Dr. James Galbraith, Professional Fed Killer

Dr. James Galbraith, Professional Fed Killer

Editor's Note - A brilliant blast from the past that we guarantee none of you saw the first time around.  Except that is for Dr. Galbraith himself, who posted this Daily Bail story on the website for the Univ. of Texas LBJ School, where he serves as Chairman.

Video - Dr. Galbraith and Dr. Paul Discuss the Constitutionality of the Federal Reserve - July 26, 2009

Extraordinary discussion from today's hearings.  Skip immediately to the 3 minute mark.  We've always known Galbraith to be a calm, calculated truth-teller, and he doesn't disappoint here, even looking slightly possessed in this clip.  His answer doesn't come until at least the 4:15 mark.  He practically tells Paul that it's in their interest and within the original charter, for Congress to change the funding agreement for the Fed.   Watch his expressionless body as he emasculates the Fed with serene precision and then utters the most beautiful phrase of all:

• "And it seems to me that it would be the appropriate decision for Congress to make."

And then he repeats himself because that's what professional Fed killers do.
---
More from Galbraith at the same hearing....




Video:  Opening statement from Dr. Galbraith -- July 9, 2009

Outstanding remarks...couldn't agree more.

South Carolina lawmaker wants separate currency for state

By Liz Goodwin

A South Carolina state politician wants the state to develop its own gold and silver-based currency in case the Federal Reserve collapses and hyper-inflation ensues.

"If folks lose faith in the dollar, we need to have some kind of backup," State Sen. Lee Bright told the Spartanburg Herald Journal's Stephen Largen. His bill asks a committee to look into the development of a state currency, citing the Constitution and Supreme Court precedents to prove the bill's legality.

Slate's Annie Lowrey tracks down similar bills in Georgia and Virginia, and points out that the legislation reflects a larger trend of state politicians wading into monetary policy. A bill in Georgia would require all debts to the state be paid in pre-1965 gold and silver coins. The Virginia proposal would let the state print its own money. Meanwhile, one politician in Utah wants to cut out the middleman entirely and allow the state's residents to run their very own mints.


Advocates of currency alternatives to the dollar argue that the Federal Reserve's quantitive easing techniques will lead to inflation. Texas GOP Rep. Ron Paul, who won the Conservative Political Action Committee's presidential candidate straw poll last week, has been Congress' most visible anti-Fed leader. Paul argues the Fed devalues the dollar, and proposes that the United States should gradually return to gold-backed currency.

In addition to the nightmarish logistical challenges involved with a state adopting a new currency, Lowrey points out that commodity-backed currencies can also experience volatility. For example, if a state collects income taxes in gold and then a big new gold mine is discovered, the metal's value would decline--together with the state's revenue holdings.

So for now, it's probably bests for individual consumers to refrain from shifting over to sovereign state currencies--especially since none of the recently introduced currency bills stands a strong chance of passing. However, for numistmatists looking to make a political statement, the Ron Paul silver dollar will likely appreciate--especially since federal authorities raided the libertarian minting operation that marketed it back in 2007.

Bill Isaac Vs. Hank Paulson's Bailout Machine -- How The Former FDIC Chairman ALMOST Stopped TARP

Bill Isaac Vs. Hank Paulson's Bailout Machine -- How The Former FDIC Chairman ALMOST Stopped TARP

The little-known story behind the House's initial rejection of TARP from Bill Isaac's new book Senseless Panic.

--

Bill Isaac was Chairman of the FDIC from 1981-1985 during one of the most tumultuous decades in American banking.  He oversaw the banking system during the Latin American debt crisis and the severe recessions of the early 1980's, and tried -- against enormous political pressure -- to head off the looming S&L crisis before it got worse.  As many know, the S&L clean-up cost taxpayers hundreds of billions of dollars, but had Congress taken Isaac's prescient advice earlier in the decade, the ultimate costs would have only been an estimated $2B.

Fast forward to 2008.  On September 18, Paulson and Bernanke had convinced the Congressional leadership that a bank bailout plan had to be passed immediately or else the entire global economy would collapse.  In his new book, Senseless Panic: How Washington Failed America, Isaac writes:

• "Having served as chairman of the Federal Deposit Insurance Corporation (FDIC) during the banking and S&L crises of the 1980's, I was disturbed, even angry, about the events that led up to the bailout plan itself.  I was so upset that I wrote an opinion piece opposing the bailout plan that ran in the Washington Post of Saturday, September 27."

In his op-ed, Isaac pointed out that several of the ostensible reasons for why we had to pass the TARP bill just didn't make sense.  For instance, the claim that TARP had to be passed because there was a run on money market funds was completely specious as the U.S. Treasury had announced their blanket guarantee on September 19.  Similarly, if the proponents of TARP wanted to claim that ordinary depositors were scared of bank failures, then why not be more clear about "the fact that the FDIC fund is backed by the full faith and credit of the government"?  (This is more or less what the FDIC did anyway, when it raised the deposit insurance limit to $250,000.)  Besides, Isaac wrote, "[t]his is how the FDIC handled Washington Mutual. It would be easy to announce this as a temporary program if needed to calm depositors."  As with so many of the government's excuses for TARP, actions that had already been taken disproved the claims for why TARP was necessary.

Read the article

QE2 Is a Total Failure and Bernanke Is Delusional About Inflation

Bob Chapman
International Forecaster
Feb 14, 2011

The discontent and seeds of rebellion existed for a long time in Egypt as it has in many other countries. The major powers of the world were content with Mr. Mubarak, especially the US, which gave him $60 billion over 30 years and allowed him to move $70 billion over that period into secret bank accounts in England, Switzerland and Europe, while Egyptians lived on the edge of starvation over that time frame. Both the US and UK never saw a dictator they didn’t like. This was their dictator, as was his predecessor. Mubarak did exactly as he was told including doing everything Israel desired. Mubarak represented stability even though his subjects barely survived. Most of the aid sent by the US was used to keep the military and Secret Police strong to enforce his powerful hold over the people. Thus, the US was happy to have such a “moderate” in power. He helped keep Egypt and Israel in a sea of tranquility in the desert. Mr. Mubarak was a model dictator.

Hunger and tyranny only last for so long and then one way or another they come to an end. You might say that the rebellion in Tunisia against another dictator was the catalyst or forerunner of what happened in Egypt. This was to be where it would all begin. We had seen many such operations over the past 50 years. In both countries the groundwork was all there, poverty, lack of proper food and spiriling food and other costs. All of the change agents were on the scene coordinating the well prepared uprising. The president and his entourage left the country of course accompanied by 1-1/2 tons of gold.

Mubarak in Egypt was better prepared. He had been moving out the wealth of the starving Egyptian people systematically for years having been well schooled by his handlers in London and Washington. This planned uprising was not what the planners had expected, particularly in Egypt. More violence was expected.