2ndlook

New Global Reserve Currency – Connecting the dots – Part 2

Posted in Business, Current Affairs, European History, Gold Reserves, History, Media, Uncategorized by Anuraag Sanghi on October 23, 2008

ECB’s Nowotny Sees Global `Tri-Polar’ Currency System Evolving Bloomberg.com: Worldwide

European Central Bank council member Ewald Nowotny said a “tri-polar” global currency system is developing between Asia, Europe and the U.S … leaders of the U.S., France and the European Commission will ask other world leaders to join in a series of summits on the global financial crisis beginning in the U.S. soon after the Nov. 4 presidential election, President George W. Bush, French President Nicolas Sarkozy and European Commission President Jose Barroso said in a joint statement yesterday.

European leaders have pressed to convene an emergency meeting of the world’s richest nations, known as the Group of Eight, joined by others such as India and China, to overhaul the world’s financial regulatory systems. … Sarkozy wants the G8 to consider re-anchoring their currencies, the hallmark of the 1944 Bretton Woods agreement that also gave birth to the International Monetary Fund and World Bank.

Europe’s Been Onto Something … While the US gently weeps

The EU region calling for a ‘G8 + India & China’ conference to thrash out this global monetary issue – and has been twisting the knife in the reluctant US side. The US has been dragging its feet. While the EU has been going gung-ho on this, the US has been floating many trial balloons. Warren Buffet, Paul Volcker and Lawrence Summers have been co-opted by the likely President of the US – Barack Obama. There has been talk of a manipulation in bullion prices – which may be required for re-anchoring currencies. Interesting deals – considered impossible till a few years, are being done in a tearing hurry.

Imagine! The EU in the middle of a global crisis goes out and restores diplomatic ties with Cuba.

The US Gameplan

US analysts, led by Paul Krugman, have been calling for Barack Obama (or maybe McCain) to emulate Roosevelt – who waded into WW2, with 25,000 tons of nationalized gold. If gold is nationalized, it may depress demand in the short term – giving rise to huge volatility in gold prices. But Warren Buffett has been on the silver bandwagon for a while – and that is making the gold-silver equation hazy. What if Warren Buffet becomes the new US Treasury Chief? There is the real risk of another fraud like the gold standard happening all over again.

The US has been making its moves – differently. Paul Krugman’s Nobel Prize is an indication of this. Will the US use Paul Krugman as the Keynes of the Bretton Woods. The background of Bretton Woods itself, is of course something that the US and Europe do not want the world at large to know. The other ploy that is being bandied about is the re-launch of the fraud called the Gold Standard – now in a better packing.

The Oil-Dollar Tango

The Oil-Dollar Tango

What Has Been India Upto?

While the US has been resisting calls for action, busy doing post-mortem, Asia and Europe have been moving. Interestingly, Manmohan Singh has done some huge work in the last 60 days – the nuclear deal with the USA and NSG, the IBSA Summit, the ASEAN free trade agreement – and now his three Asian nation visits. India’s Trade and Commerce Minister, Kamal Nath, has been talking about a multi-lateral set up. The UN was made to issue a statement on this. Am I reading too much into this? At times, India has seemed clueless.

After the ministerial meeting, both Prime Minister Manmohan Singh and Finance Minister PC Chidambaram talked about how the ‘developed’ world’ was now ‘listening’ to the developing world – and was willing to ‘give more representation.’

This language itself indicates the distance that the Third World needs to travel.

China and Russia

The big issue is of course, China and Russia. China has 2 trillion of US dollars – and what does China do with this? Russia has come out from a default about a decade ago – with a nearly US$400 billion reserves – flexing its muscles in Georgia and dependent on a high oil prices. What happens to Russia if a new Pacific Republic (Cuba, Haiti, West Indies, etc) were to start drilling for oil? In 5 years, the world would be awash with oil – and Russia’s mineral earnings could evaporate. This crisis seems to have made the Chinese Premier shaky. So, the world may not trust China and Russia too much. Russia and China can be the party poopers – but they cannot be the life of the party.

For financial and military reasons, the inclusion of Russia and China is useful – though not essential to the emergence of a tri-polar currency system. The cost of Russian and Chinese inclusion is high degree of influence that these ‘super powers’ will want – which the developing world will not approve.

Why supplant one form of exploitation with another?

Contours Of The Deal

The EU-USA-Asia may agree on a broad a global regulatory and oversight body to monitor and maintain oversight over a multiple currency regime – an improved, better IMF.

The new 3rd currency may take some time to figure out. Not that it is difficult, expensive, or impossible. Some of Asia may want to cling to the dollar skirt. The new currency may be an Asian-Developing world currency. This may see the emergence of a tri-polar currency regime – which the US and Europe duopoly is desperate to avoid.

The 2ndlook proposal for the Third Global Reserve Currency has been in circulation for some time now.

A New Currency Bloc – The Chinese Question

Posted in Business, Current Affairs, European History, Gold Reserves, History, language, Media by Anuraag Sanghi on October 3, 2008
Estimated Chinese Holdings

Estimated Chinese Holdings

Stumbling Block

In any new world financial reform proposal, the Chinese voice will be very important. After all they are the world’s largest creditor nation! They have US$2 trillion worth of IOUs with them. Of course, the composition of these US$2 trillion Chinese reserves is a state secret. And after the Chinese come the Japanese with US$1 trillion of reserves. Russia, India and Brazil total to another US$1 trillion.

Given the Chinese history in the last 100 years, the Chinese will not agree to any ‘hare-brained’ scheme by ‘tin-pot’ dictators, who are sitting on some raw materials – and think that the future belongs to them. The world has so many of this variety, that it does not require me to be specific.

Even a serious attempt by the EU, with the Euro, has not been able to significantly dent the dollar market share! Apart from the Euro, in the the last 10 years, there have been at least 3 half-baked – and unbaked attempts to break the dollar hegemony. So, there you have it – it is out in the open!

What can you do about the Chinese question?

The Way Out

China, in its own short term interest (importantly) and long term interest (definitely) needs to find a way out!

Buying gold in such large quantities is not possible – there will simply be no deliveries. Increasing import ‘trade volumes’ is also difficult – as what more can China import. It cannot send many more Chinese on holidays! They don’t have the single-mindedness of the Indians – when it comes to buying gold.

What it can do is buy Western firms! China has been always been a laggard in terms of growth in software! Maybe they can buy some software firms. The domestic Chinese entrepreneurial spirit has been damped in the last 100 years. What if the Chinese were to spend on some Venture Capital funds! What if China were to kick-start their fast-moving consumer goods industry by buying P&G!

The Chinese need to acquire some big ticket assets – for about US$1.5 trillion and bring down their reserves to US$0.5 trillion. This will reduce US outstanding debt, create demand for US stocks, lift the Dow Jones, and create value for the dollar. As I see it this is the only way that the Chinese can cash in their chips. The House will not let them take it away any other way.

And then the Chinese are free to join any currency bloc – or even initiate one!

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Elephants In The Room

Posted in Current Affairs, European History, History, Media, politics, Religion, Uncategorized by Anuraag Sanghi on September 15, 2008
Elephants In The Room

Elephants In The Room

Two Elephants In The Room

Most analysis fail to mention, detect (or is it mislead) the role of slavery and colonies – the twin-elephants in the Western history room. The very basis of post-medieval West has been slavery and colonialism.

Western propaganda has made slavery, an invisible factor in their success.’ And they are on the half way mark, on the erasure in popular memory, about the use of colonies for Western enrichment.

On the other hand, there are those who allege, that Westernization has progressed the world. Take Theodore Von Laue’s essay (author of The World Revolution Of Westernization) which is inspired

“by a humane and compassionate vision which most academic studies lack. Indeed, his study was motivated by his concern about contemporary sectarian strife, interstate conflicts, ecological disasters, superpower rivalry, and anti Western movements mired in nostalgia and resentment”.

The Mystery of the Dying Detective

Between 1800-1950, Western powers killed (directly or otherwise) more than 50 million people in America (the Native Americans), Africa (the Native Africans), Asia (Indians, Chinese, Arabs). This led to a situation that every other person in the West had participated in murder or massacre.

Western ambiguity towards Soviet Russia on one side, Hitler on the other – and to that add, Gandhiji’s resolute opposition to colonialism – and you have a inflammable moral situation. This moral anxiety was directly reflected in popular fiction as the detective fiction genre.

The deluge of blood and murder caused moral anxiety and was a matter of ethical dilemma amongst common folks. The pressure valve for this was popular fiction. Identifying murderers became a form of proxy, vicarious entertainment for ordinary folks.

Enter the super detectives, who pick out the murderer from a room full of ordinary people. Enter detectives like Auguste Dupin, of ‘The Purloined Letter’ fame, who “investigates an apparently motiveless and unsolvable double murder in the Rue Morgue.”

From 1900-1950, the most popular form of fiction was the private detective genre. Most critics and commentators write about the phenomenon of detective fiction devoid of context – and the detective fiction as entertainment or literary device only.

After de-colonisation, as mass murder went underground, the detective-murder mystery books genre faded. This category was replaced by a new theme – the axis of corporation-government international conspiracies.

Conspiracy Theory – Full Steam Ahead

The new category of popular fiction are represented by Ian Fleming, Arthur Hailey, Frederick Forsyth, Irving Wallace, Robert Ludlum, Graham Greene, John Le Carre, et al. More and more contrived, each conspiracy theory writer has been ‘inspired’ by real life incidents.

International-conspiracy-plot-CIA-FBI-KGB series of Robert Ludlum have worn thin, the spookiness of Le Carre’s Absolute Friends and Constant Gardner still work as novels representing the West.

Media and Academia

For instance, this nearly 20-page analysis about Westernization and Modernization, mentions slave once and colonialism (related words included) twice.

H.E.Professor Dr.Kishore Mahbubani, of the National University of Singapore, Dean, Lee Kuan Yew School of Public Policy has recently written a book where he talks about the seven pillars of western wisdom – a cloyingly subservient and ignorant view of the modern history. This ‘respected’ commentator, Kishore Mahbubani, fatuously, talks about the seven pillars of Western success – without once mentioning slavery and colonialism.

One writer, Franco Moretti did half the job in book Signs Taken for Wonders: On the Sociology of Literary Forms By Franco Moretti. He writes,

“The perfect crime – the nightmare of detective fiction – is the feature-less, deindividualized crime that anyone could have committed because at this point everyone is the same.” He further writes,“Yet, if we turn to Agatha Christie, the situation is reversed.Her hundred-odd books have only one message: the criminal can be anyone …”

Detective Fiction

In his entire book he does not use the words like slavery, racism, genocide, bigotry even once. The 19th century, which was based on Western bigotry, White racism, Black slavery, and assorted genocides is unrecognised in Moretti’s books.

Running or hiding? Or it a case of feeling squeamish? Perhaps, a case of queasy stomach, Franco?

Another book, The Detective as Historian: History and Art in Historical Crime Fiction, by Ray Broadus Browne, Lawrence A. Kreiser does a better job. This book examines, the detective fiction genre, with some references to slavery and child prostitution.

Jerome Delamater, Ruth Prigozy, in an essay compilation, Theory and Practice of Classic Detective Fiction’, observe that Jane Marple, along with Hercule “Poirot becomes an equal opportunity detective who really believes that anyone might commit murder”.

Dismissing the “jaundiced view of human nature,” the writers of this book, while commenting about the detective fiction genre, do not mention slavery at all – and mention colonialism and racism once each.

End Of Slavery

Western media today glosses over Western record of slavery and colonialism. This ‘collective amnesia’ about the past is widespread and blatant. Other writers forget about the causes leading to abolition of slavery. Seminal events in Haiti, Cuba, Caribbean are ignored, white-washed or brushed under the carpet.

Black emancipation in the USA is a 1970s phenomenon, 30+ years ago event – and not 200 years ago as this article in New York Times seems to make out.

One is from a member of the US Conservative Right, part of the Republican propaganda team – aapla, our own Dinesh DeSouza. He tries, speciously and very hard, to show how it is the White, Christian, Americans who actually freed the slaves – after the slaves were sold into slave by their Black Brothers. Of course, he cannot see the long history of trade in slaves, the laws and might of the State which enforced this trade, the continuing attempts (under disenfranchisement laws) to deny Blacks, their voting rights. Dinesh does a fabulous hatchet job on how the West can make me a colonial subject of the Raj again.

Another blog, by an academic, celebrates a pseudo-anniversary. This post, ‘a professor at a large state university,’ abandons academic integrity to promote propaganda, instead of academic excellence. At least, he published dissenting comments. Bro.Dinesh DeSouza does not publish dissenting comments.

Or for this matter this book review in The Times (from London) about slavery – which doesn’t once mention the one reason, why slavery was abolished – Haiti and slave revolts in the Caribbean.

What most of this coverage of mainline and popular press fail to mention is the determined Black struggle for overthrow of slavery. Between 1789-1833, more than 20 slave rebellions occurred in the Caribbean – one every 2 years. It were these slave revolts that ‘persuaded’ the West to abolish slavery. In the USA, about 200 slave uprising and revolts occurred in the USA before the Civil War.

Another aspect which is not mentioned is the significant reason for unpopularity of slavery in the US North. The reason was the depressing effect of slavery on wages and employment. Poor (free) whites had to compete with slave labour for employment – and that was a non-starter.

Birth Of Freedom – Haiti

The USA and the West has been at war (or by proxy) with the Black Republics of Haiti, Cuba, Greneda for the last 200 years. Fuelled by a desperate desire to show White superiority. By a need to white wash history. To hide the origins of their misbegotten wealth – built on the foundation of the skeletons of dead and surviving slaves.

Haiti gave the world freedom. Not America – which claims itself to be a land of the free (as long as you are white). For this reason, Haiti must now be protected – by the rest of the world. Make Haiti a UN protectorate. All the superpowers to be forced to declare Haiti as off limits.

Haiti must succeed.

Similar campaigns by paid Western hacks have distorted analysis on population studies and environment.

The Importance Of Being Earnest

With nearly 190 sovereign nations in the world, with large income disparities, political disequilibrium, there is a crying need for an objective analysis of what works, successful national models, productive economic modelling which can serve as templates.

Western intellectual and military aggression, at times distorts this analysis – and raises questions regarding intentions and objectives.

PT Barnum – Seven Pillars of Western Wisdom

Sanitize and smuggle

With passage of time, the real harm to the Indian society by some of the foreign rulers is forgotten. For instance, the Mughal period saw the impoverishment of the Indian farmer, due to uncertainty over land title, whimsical tax regimes – and not the religious agenda, which has been ‘sold’ to Indians. By latter colonial rulers, the British.

We may see a repeat of the same phenomenon, this time, seeing the colonial rule through rose-tinted glasses. Colonialism was an unmitigated disaster – and should be clearly remembered as such.

We may see attempts to cover up the colonial misrule, by ‘academics’ whose motives are not always obvious or in the open. One such ‘academic’ is Kishore Mahbubani.

Kishore Mahbubani

Kishore Mahbubani

Gushing Press

H.E.Professor Dr.Kishore Mahbubani, of the National University of Singapore, Dean, Lee Kuan Yew School of Public Policy has recently written a book.

In an interview with The Times Of India he opined, a cloying, subservient and ignorant view of the modern history. “Asia has benefited immensely from the western seven pillars of wisdom — free market, science and technology, meritocracy, pragmatism, culture of peace, rule of law and education” says Mahbubani.

On Mahbubani, comments The Economist, very patronisingly, “Kishore Mahbubani makes some sensible recommendations.” Strangely, The Economist, says this is “an anti-Western polemic, designed to wake up Americans and Europeans by making them angry. In that goal, it will certainly be successful.” Reportedly, The Economist, has decided that Kishore Mahbubani is an “Asian Toynbee preoccupied with the rise and fall of civilisations.”

Echoing The Economist, is The Shanghai Daily, which pronounces “Singaporean author Kishore Mahbubani has been likened to an Asian Toynbee”. Joining the fray, The Deccan Herald chips in with “Kishore Mahbubani is the ultimate foreign policy guru.” Niranjan Rajadhyaksa of The Mint (a HT-WSJ publication) intones,“Asia has both suffered and learnt a lot from the West … Mahbubani has been extremely fair.”

I tried disagreeing. I thought I had overwhelming evidence. But after the Mahbubani experience, with liberal doses of assistance from St.Barnum’s (patron saint of propaganda), I must admit, I was enlightened.

And I also want to know, who your PR agency is, Kishorbhai!

Ulta Chor Kotwal Ko Datein

1. Free Markets

I was a non-believer in Western commitment to free markets. After reading Kishore Mahbubani, I realized, I was reading too much propaganda about how Indian mangoes could not be exported to USA for the last 18 years – because of pesticide residues.

India, (wrongly) disallowed imports of allegedly, ‘over-priced, gas-guzzling, polluting’ Harley-Davidson motorcycles. USA, in turn taught India a thing or two about free trade. After a sufficiently, enlightened India, lifted restrictions on imports of Harley-Davidson motorcycles, pesticide residues disappeared, and the US allowed imports of Indian mangoes again.

I am sure that Indian farmers, with some devious trickery, ensured that pesticide residues vanished.

For the last 300 years, the West restricted imports of fabrics and garments. Dhaka’s de-urbanization due to this in the 1800-1900 is written into history – wrongly. The last law was the MFA agreement which created a quota-based regime for textiles, in the West.

Agricultural subsidies of nearly US$20 billion dollars by USA and EU, to their farmers are also in the spirit of free trade. For the benefit of the starving Rest, the West is giving these subsidies to Western farmers, to lower food prices. How does it matter that the agricultural economy of the recipient nations gets destroyed!

West Is Best!!

Things like non-tariff barriers are hokum and over-worked Eastern imagination. The story of repeated and frequent rejection of mushroom exports from India is also in the spirit of free trade.

Indian applications for ‘equivalence’ certificates have been pending with EU for the last 7-8 years – and not processed for the last 7-8 years due to lack of manpower. Interim annuals approvals are given instead – in the spirit of free trade, after some ‘concessions’.

Of course, the Western zeal for free trade extends to enforcing opium trade (just ask the Chinese). Kishorebhai, I only wish, ignorant Easterner that I am, is that we in India can enforce ‘free trade’ in opium today in USA and the Europe.

When the ignorant East, did not see the benefits of Western invention of free trade, the West was compelled to use force (remember Commodore Perry? For more details, ask the Japanese).

St.Barnum’s Says

Mahbubani’s assertions are right. These ‘facts’ above are like a bikini. What they reveal is indicative, what they conceal is vital! In this case, the Western spirit of free trade. How can the ignorant East, question Western wisdom – or ethics, integrity, motives? Of course, all these cases and incidents are a conspiracy to defame the West.

2. Science & Technology

Before Western invention of Science and Technology, what did the East know?

Zilch. Zero. Sifr. Shunya. That is all. This claim about India inventing the zero and infinity is probably right. Because they had infinite knowledge about Zero – and nothing else. All their books about geometry (Aryabhatta, Bhaskara) are just figments of Eastern imagination. Eastern knowledge about eclipse prediction has now been proved wrong by Kishore Mahbubani’s expose. Indian shipbuilders and steel technology was just puffery – as demonstrated by Kishore Mahbubani.The Hulk Dropped The Easter Island Statues

Of course as Hegel said, there is no African history. I realize after reading Kishore Mahbubani’s interview that there is only Western Science and Technology. It must have been some Westerners behind the ‘achievements’ of China, Africa and India.

How ignorant I was before being enlightened by Kishorebhai!

PT Barnum adds – Are you not forgetting the option of crediting aliens?

3.Meritocracy

Poor ‘Blacks’!

They were always mislead by their leaders. The only place in the world that they could find equity, was in the West. If the West had not ‘bought’ these poor ‘Blacks’ and allegedly ‘enslaved’ them, they would have still have been in Africa – and lost the benefits of the Western meritocracy. Some Black leaders are today claiming that they have even contributed to Western technology.

The sheer audacity!

Xenophobia

Similarly, if the Gypsies had not left India, (supposedly) a thousand years ago, they would have lost all the benefits of Western civilization. Early Punjabi settlers in USA did not properly understand their position in Western society. They were basically inferior people who demanded equality to their White masters.

This mis-perception, of course, created misdirected protests. These ignorant immigrants from the East did not properly understand Western meritocracy.

The Wisdom Of St.Barnum If Japanese and Chinese immigrants faced discrimination in the USA, it was their fault – why did they have to look different?

4. Pragmatism

I agree that the West is truly pragmatic!

Dr.RA Mashelkar, a senior scientist and administrator, writes:

“A recent study by an Indian expert group examined randomly selected 762 US patents, which were granted under A61K35/78 and other IPC classes, having a direct relationship with medicinal plants in terms of their full text. Out of these patents, 374 patents were found to be based on traditional knowledge …”

After annihilating the Australian Aborigines, the Australian Government decided to apologize. What more does the world expect? This apology from the magnanimous West was as pragmatic as anyone can get! Kishorebhai, we have a saying in India, about cats going on a pilgrimage after killing a hundred rats. In this case, of course, the West went one better. They killed millions of humans – and apologized for that!

Western practice of Pragmatism at its best!

St.Barnum sez – What could be more pragmatic? I agree with Kishore Mahbubani!The Pollution Conundrum

5. Culture Of Peace

The Native Americans were wiped out – nearly the entire race! Today they are a relic – a tourist attraction! Like rare animals in a zoo!

Aborigines in Australia have similarly been annihilated. Two world wars in a space of 40 years. The entire Jewish population of the world has been reduced to 10 million – by the West.

But, Kishore Mahbubani says, the Western civilization is about peace! And he is right!

These wars were forced upon the West – and were fought to bring peace on Earth. Now since there are no Native Americans  and Aborigines, how can there be a war with the Native Americans and Aborigines. Similarly, if there are no Jews, there cannot be a war with the Jews. The West is also trying to cleanse the earth of all Muslims. Then there cannot be a war with Muslims also.

St.Barnum pays a tribute to Kishore Mahbubani – Kishorebhai, you concept of culture of peace is stunning to say the least. Hats off.

6.Rule of Law

Completely true and a matter of fact!

Consider the Western laws on slavery! And those related to minorities! Or current laws in the UK and US to deal with terrorism.

The disenfranchisement laws came into effect by the 1890’s – that continue till today. This ensured that the disproportionate numbers of ‘Blacks’ could not vote – and George Bush became the President of the USA for the 2nd time. After some 60,000 ‘Black’ Voters were disenfranchised, George Bush technically, won by less than 1000 votes (most of the disenfranchised voters were expected to vote against George Bush).

Petty crime (where poor) ‘Blacks’ were convicted in higher ratios were grounds for disenfranchisement. These laws ensured that 10 times higher number of ‘Blacks’ were disqualified compared to Whites. If that is not bad enough, it continues till now. Such tactics continue to be used to limit Black participation in democracy.

In 1904, the US pressured Tomas Estrada Palma, a ‘puppet’ Cuban President, to sign the Platt Amendment. This allowed US intervention in Cuban affairs, if ‘vital’ US  interests were at risk (meaning at US will) – finally modified only in 1934. The many laws which made Gypsy hunting legal – like laws which made hunting animals legal. The latest news in that Italians are going to crack down on Gypsies – as per a EU law.

St.Barnum confirms – Yes, Kishore Sir! The West believes in laws.

The Usual Suspects

7.Education

I must admit, that Western education does achieve its goals!

West does produce leaders, generation after generation, who relentlessly execute the same agenda. The annihilation, the massacre, the pogroms – against natives in America and Australia, minorities like Gypsies, Jews and various Christian sects. The kidnapping of Aboriginal and Gypsy children. The massacres in Africa – from Roman times to 20th century. And now the specter of Islamic Demonization.

St.Barnum adds – This degree of continuity and consistency is missing with others. There is something about Western education Mr.Mahbubani, I agree.

Country Model of the West

The real country model that the West manages itself on is something else Mr.Mahbubani. Loot – of gold, resources, ideas. And slavery. Add significant amounts of fraud.

Nothing more and nothing less. And their strategy to ‘white wash’ this – propaganda. With Kishorebhai’s plausible sincerity, I am not quite able to decide if Kishorebhai is an innocent and ignorant victim of Western propaganda or a part of the propaganda.

Either way, his book and his ideas are trash – and this post is a case of intellectual slumming.

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The World Financial System – Shape of Things To Come …

Posted in Current Affairs, Gold Reserves, History, Satire by Anuraag Sanghi on March 14, 2008

The US President, flanked by Treasury Secretary, Jack Fleischacker, and Paul M.Gruber, Governor, European Central Bank, in a stunning move, announced the merger and re-capitalisation of the IMF and World Bank – a plan to rescue world economy. Forth Knox

IMAR

The new entity has been named as International Monetary Authority & Reserve (IMAR) – and will operate from Paris. It has been given the responsibility for world’s economic stabilisation.

The Governing Council Members will initially comprise of 3 internationally respected financial authorities and investors. The Chairman is likely to be Barran Wolfet and his team members are Sorg Goros and Rim Joggers. “The selection of the Governing Board was done on the basis of consensus and the expertise of the incumbents. This is not the time for being narrow – when the future of the global financial system is at stake.”, said Governor Gruber.

Capital Subscriptions

The US has subscribed to promissory notes worth 25,000 tons of gold, currently held at Fort Knox. The ECB will subscribe to the tune of 20,000 tons of gold – to be held at various European national Government vaults. Australia and Canada have also announced subscriptions to the tune of 10,000 tons of gold each to be held in bonded vaults at Montreal and Canberra respectively. Britain and Switzerland have committed 5000 tons – out of the Bank of England and Schweizerische Nationalbank Eiffel Tower(SNB) reserves. These countries will be allocated voting rights proportionately, based on IMAR gold reserve subscriptions.

The US dollar will now be backed by IMAR promisorry notes – which President Jack Boucher, asserted will create confidence in the US dollar – and in the world financial system.

Governor Gruber remarked,”The Bretton Woods Agreement has facilitated a “historic economic expansion in the global trade” – and this new measure will further strengthen the Bretton Woods system. IMAR single-point agenda is stabilization of the global economy.” Country reserves will be nominated on the basis of IMAR promissory notes – and countries will report on these regularly. Total monetary aggregates for the national economy will also see a change. “Old economic measures like M3 money figures will no longer be relevant in the era of derivatives and options”, said Gruber.

The ASEAN, Chinese and Japanese Governments have cautiously welcomed this move, with a joint declaration saying “this will hopefully lend some stability to the US dollar – and the trillions of reserves that we maintain”. The new martial law administrators in the South African Government are due to the announce their subscriptions soon. Saudi Arabia, Iraq, the UAE and Singapore have announced that they will be committing substantial assets towards their share of subscriptions. Russia is still undecided – and expected to approve soon.

CriticismBack From The Brink

India has criticised the move strongly. Prime Minister, Sonia Gandhi said, “this new system will perpetuate existing economic systems and divisions.” Iran’s President, Mohammed Hussaini bluntly dismissed this development and said, “the developing world will not have a voice in the new organization.”

The new Indian Finance Minister Banta Singh said,”This will not help in restructuring the international finacial systems. This is not the ‘new financial architecture’ that we are want.” When asked what his ideas were were declined to reveal them, as “it too premature.”

The IMAR Governor, Wolfet rejected the criticism, saying, “IMAR will be a international body – for implementing a rescue plan for the world economy. Developing Countries will have 50% representation on the Director’s Register. They, can get even higher voting rights by increased subscriptions. Our past experience shows that countries print currency – and risk global financial equilibrium. We cannot allow that to happen again.”

US and the EU have also announced a doubling in aid allocations. Instead of outright grants in aid, transfers will now be based on mutual trade norms. African countries, for instance, will be able to develop trade with the West – while receiving aid. EU and USA will commit to specific trade volumes, such that Africa will be able to develop, for instance, its mining and resource based industries.

Currency Fluctuations

Inflation & M3 FiguresGovernor Gruber claimed that “currency fluctuations are a thing of the past, as trade will now be denominated by currency demand and supply. International currency acceptance will be determined by IMAR reserves of each currency system.”

Gold ReservesGold Bars

The most interesting part of this development is the quantum of gold being committed by the subscribers. The ECB and the Federal Reserve have been able to fulfill their subscriptions based on gold reserves that they have enhanced in the last few months.

It is being whispered that Barran Wolfet and his team members, Sorg Goros and Rim Joggers had played a major role in the enhancement of these gold stocks – and the formation of IMAR. Initially named as Global Financial Reserve Authority for Development, the IMAR idea was first tossed out over a dinner at the famous Les Ambassadeurs eatery – which offers a classic cuisine by the Ducasse-trained chef, Jean-François Piege.

Want to decode this news? What this really means for you! Ask St.Barnum, The Propaganda Slayer.

Post Script

On 8th October, 2008, it was reported, that both the Republican and Democratic  candidates concede that Warren Buffet

would be a good replacement for current Treasury Secretary Henry Paulson who is standing down at the end of the current administration.

“I think the first criteria, would have to be somebody who immediately Americans identify with. Immediately say we can trust that individual,” said McCain. Buffett, chief of the Berkshire Hathaway holding company, has supported Obama in the race for the White House.

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