My observations on the power structure that we continue to accept.
There is growing concern over the upcoming G20 Summit in London this Thursday as well there should be. I believe that the average citizen shies away from the subject of money/economics on a country-wide or global scale because of the overwhelming amount of complexity that has been created around trading of stocks and other investment activities. However, it is very important that we not be intimidated by all the various financial/economic concepts because in the end, they merely serve to strengthen the grandest of illusions under which humanity has been spellbound for a few hundred years – money.
The first thing you need to know is who the players are in this summit. The finance ministers and central bank governors of the twenty economically wealthiest nations comprise the membership that includes Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom and the United States of America, and also the European Union who is represented by the rotating Council presidency and the European Central Bank.
The International Monetary Fund (IMF), the body that officiates and provides leadership over the G20 Summit, consists of the same 185 countries that are part of the World Bank. Since the IMF has 185 members, why are only 20 being invited to a meeting that has goals of overhauling the global economic/financial system? Both the IMF and the World Bank have their origins based on actions by a precursor group of the United Nations to fight economic instability and poverty yet, there are still seven nations who are UN members but don’t meet the criteria to be a member of the IMF and World Bank. The problem such a gathering presents is the exclusion of 176 countries (there are approximately 195 countries recognized by the U.S. but the U.N. only recognizes 192) that are left out of this process and have no voice in the how monetary/economic policy is developed. There is an even higher level of banking power known as The Bank for International Settlements that provides leadership, policy guidance and loans to the world’s central banking systems exclusively.
The next thing you need to know is the shift in the balance of economic power based on currency that Brazil, Russia, India, and China are proposing that has everyone worried about the possibility of a one-world currency. In 1969, the IMF created Special Drawing Rights (SDRs) to support the fixed exchange rate system in which participating countries needed to have reserves of gold and U.S. dollars in order to buy domestic currencies on the foreign exchange market. Since there was not enough gold or dollars available internationally, SDR currency was changed from gold and U.S. dollars to a mixture of widely-accepted currencies that include the dollar, the sterling pound, the euro, and the yen. Each country receives an allotment of this currency mix which also translates into voting rights within the IMF based on a series of five, complex formulas. Of course, the U.S. has a whopping 16% share while nearly all other countries have less than 1% (Germany has the 2nd highest level of voting rights at a little over 5%). Consider what is being discussed at the upcoming summit as a very slight adjustment to accommodate the allocations to emerging economies. Special Drawing Rights are supposed to be based upon a country’s creditworthiness and currently, the U.S. has the largest national debt in the world. Given the fact that Brazil, Russia, India, and China own a great deal of that debt, this gives them leverage to eventually have the currencies in the SDRs on par with their own currencies.
The last thing you need to know is that in a world where most countries use a fiat currency system (money not backed by reserves of gold or other widely-accepted commodities but by faith), there should NEVER be a shortage of money or credit in the banking system since they are the ones that make the rules and control the supply of money. They can print up as much money as they like and pass it out to EVERYONE (they’re already doing it for everyone except regular citizens) and that would actually help them actually eliminate the poverty they claim they want to end. Let’s look at the mission statements of the world’s top banking organizations:
IMF
The International Monetary Fund (IMF) is an organization of 185 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
World Bank
At the World Bank we have made the world's challenge—to reduce global poverty—our challenge.The Bank's focuses on achievement of the Millennium Development Goals that call for the elimination of poverty and sustained development. The goals provide us with targets and yardsticks for measuring results. Our mission is to help developing countries and their people reach the goals by working with our partners to alleviate poverty. We address global challenges in ways that advance an inclusive and sustainable globalization—that overcome poverty, enhance growth with care for the environment, and create individual opportunity and hope.
If these powerful organizations were sincere about their missions, there would be a LOT less poverty in the world. However, they are in the business of perpetuating debt and with 185 countries/central banks as members, I think the utter failure in achieving their missions speaks volumes about the true intent of banks and governments toward the citizens of this planet. They could end so much suffering at any time by making rules about money that benefit the many instead of the few. Add all the economic rhetoric you would like but it still boils down to an elaborate ponzi scheme that keeps most of the world’s population oppressed.