News & Analysis
IMF Is Solution to Global Crises - Strauss-Kahn
The International Monetary Fund stands ready to help riot-torn Egypt rebuild its economy, the IMF chief said Tuesday as he warned governments to tackle unemployment and income inequality or risk war. Dominique Strauss-Kahn (left) also said rising food prices could have "potentially devastating consequences" for poorer nations, and warned that Asia's fast-growing economies faced a risk of a "hard landing". Overall, according to the IMF managing director, widening imbalances across and within countries were sparking tensions that threaten to derail the fragile global economic recovery -- and could even spark armed conflict. – AFP
Dominant Social Theme: The IMF is a very necessary instrumentality.
Free-Market Analysis: It is fascinating to watch world events unfold through the prism of the Internet. In this AFP article (excerpted above), we can see clearly how Dominique Strauss-Kahn, one of the more brutal and obvious functionaries of the power elite, intends to capitalize on the current Middle Eastern turmoil for the benefit of his agency, the International Monetary Fund.
Strauss-Kahn has attempted before to use various crises before to burnish the reputation and utility of the IMF. Most recently, he gave an interview given to Der Spiegal that cast the IMF as an inevitable precursor to a world central bank. At the time, we wrote Strauss-Kahns position seemed to be that the IMF, "need only graduate from SDRs to bancors and expand its monetary authority." His comments were so extreme that our analysis concluded that the Anglo-American elite "seems to have shed any inhibitions about moving slowly or deliberately toward global governance goals."
Now, Strauss-Kahn is at it again, predicting doom and gloom – a series of fear-based dominant social themes – and proposing the IMF as the solution. In a speech made in Singapore, he claimed the IMF stood ready to help with various global imbalances, including an emergent food shortage. "The IMF is ready to help in defining the kind of economic policy that could be put in place," he asserts.
Strauss-Kahn is eager to unearth potential ruin in the Middle East. He indicated that unemployment and a growing income gap was a "strong undercurrent of the political turmoil in Tunisia." Other countries exhibited "rising social strains," and these strains, he seems to believe could lead to "rising protectionism of trade and of finance."
In the speech, Strauss-Kahn reportedly worried about protectionism as a result of potential discord between nations. Within this context, he mentioned China's undervalued yuan but did not emphasize an immediate adjustment as regards the US dollar. Such a reconfiguration ought to be a slow one to avoid shocks to the larger global economy, he indicated. "While the recovery is under way, it is not the recovery we wanted," he reportedly said. "It is a recovery beset by tensions and strains -- which could even sow the seeds of the next crisis."
He was concerned about the differing pace of different economies, which he saw as presaging the global economic crisis of 2008. "While growth remains below potential in the advanced economies, emerging and developing economies are growing much faster -- and some may soon be overheating." Presumably, he was referring to China and the BRIC countries when making this statement, as price inflation is increasingly a factor in Brazil and India as well. Finally, he mentioned food prices, reportedly pointing out that they were rising "with potentially devastating consequences for low-income countries," he added.
Strauss-Kahn, like his World Bank counterpart Robert Zoellick, believes that the global institutions have a heady role to play in easing or ameliorating the world's problems. Zoellick recently wrote an article for the Financial Times (which the Bell analyzed) making the case that the G20 itself ought to become more deeply involved in the world's food situation. We pointed out the following:
It is actually a perfect example of an elite, fear-based mechanism at work. By creating nation-states, encouraging ethnic rivalries and generally stirring the pot, the Anglosphere has ensured a level of simmering chaos that makes it difficult if not impossible for certain societies to feed themselves on a regular basis. Africa's nation-states obviously come to mind. Having helped trigger the food-crisis, the Anglosphere is now beginning to make fixing it a priority. But as with so many other endeavors (when it comes to the Anglo-American axis), one has to approach the concept of "fixing" with some trepidation ... These elite promotions tend to work as narratives, leading to the observer logically from one point to another.
One can, in fact, see in these crises and dislocations the slow circling of elite institutions. In a recent interview with Bloomberg news, Henry Kissinger commented on African and Middle Eastern unrest, saying, "This is only the first scene of the first act of a drama that is to be played out." The comment sounds more like a prediction than an observation. And food in the hands of Western elites certainly constitutes a weapon, a way of driving the world toward further sociopolitical consolidation.
The overwhelming impetus of people like Strauss-Kahn and Zoellick is to involve their institutions in the market whenever possible. It is a template for global governance. Every human act is to managed and even micromanaged and the place for a market-driven is honored only in the breech. Soon it will exist more as a talking point than a reality.
Conclusion: As we have indicated, elite plans are almost impossible to realize. The Invisible Hand of the market will have its way no matter what. Human beings are never immune to economic law. Of course, one could argue that the power elite is well aware that its solutions merely reflect and amplify the chaos being generated. Perhaps this is actually the point.
Posted by Solution From Science on 03/03/11 02:26 PM
Thanks for useful information. It is very important for us. Food shortage is a big problem at this time.
Posted by Stephen on 02/03/11 01:24 PM
I believe the moneychangers have co-opted politicians everywhere. World government is being imposed openly and we are becoming prisoners of the system under the direction of organizations like the IMF,World Bank, U.N. etc. who are here to "help us." Yeah sure!
See: Click to view link
Posted by Bionic Mosquito on 02/02/11 10:53 PM
"IMF Is Solution to Global Crises ‒ Strauss-Kahn"
Perhaps Dominique should take his show on the road. Walk the streets of Cairo, Kabul, and Tunis. Get in touch with the real people. Tell them why he is there and tell them how he will help. Show them his success stories: job growth, price stability, rising standard of living, debt reduction, all the goodies.
Go for it, Dominique. Be a man of the people.
Posted by FLR on 02/02/11 08:56 PM
Zoellick is of German Lutheran descent. Maybe it explains his somewhat heretical commentary on gold recently?
Posted by Edward Ulysses Cate on 02/02/11 06:50 PM
This simply acknowledges the fact that financial sociopaths will never have enough; sort of like an economic black hole. Even when they "own the earth in fee-simple." Like ol' Cecil Rhodes once said, "It's a pity that we cannot annex the stars."
Posted by Peter on 02/02/11 06:24 PM
To say the least, I don't think Mr. Perkins thinks Mr. Perkins can be trusted
Posted by WD on 02/02/11 04:22 PM
Correct me if I have it wrong, but isn't Brazil doing better than just about everyone. And didn't they kick the international mobster/bankers out?
Reply from The Daily Bell
They have a central bank and bad price inflation.
Posted by Drewgreen on 02/02/11 02:28 PM
Jonny Justice, really, I won't call you an "anti-Semite"
but you do remind me of a Pakistani forum I read once, they wrote of a certain international newspaper as HINDU AND JEWISH. which I thought rather funny. I regard you in the same light.
Posted by Bob Wheeless on 02/02/11 02:16 PM
Economic recovery, economic recovery is all I hear from the yahoo's in the ECB, Fed., IMF and the bobble-head heading the US. goverment. Do these people really believe we believe the crap they're spreading is true? Give me a break.
Posted by JerseyGeezer on 02/02/11 12:59 PM
There is an excellent book, "Confessions of an Economic Hit Man", by John Perkins, that describes how nations have been economically enslaved with complicity by the IMF and World Bank. The following "Wikipedia" excerpt states:
"According to his book, Perkins' function was to convince the political and financial leadership of underdeveloped countries to accept enormous development loans from institutions like the World Bank and USAID. Saddled with debts they could not hope to pay, those countries were forced to acquiesce to political pressure from the United States on a variety of issues. Perkins argues in his book that developing nations were effectively neutralized politically, had their wealth gaps driven wider and economies crippled in the long run."
The following statement is from an interview with John Perkins: "...the decision was made to use organizations like the C.I.A. and the N.S.A. to recruit potential economic hit men like me and then send us to work for private consulting companies, engineering firms, construction companies, so that if we were caught, there would be no connection with the government." Notably, However, there have been many critics of the book who claim that the author is a conspiracy theorist who is not to be believed; however, in all fairness, many of his revelations make a good deal of sense in my view. As has been often said, "Follow the money."
Reply from The Daily Bell
We have mixed feelings about Mr. Perkins. Does he offer free-market solutions? Not so sure ...
Posted by William3 on 02/02/11 12:55 PM
"The IMF is a very necessary instrumentality."
The sarcasm reverberates brutally. One can envision Strauss-Kahn actually saying this on TV with a serious look on his face.
Posted by Aldo on 02/02/11 12:46 PM
Strauss-Kahn/IMF trolling for a new victim to claw their way back from bankruptcy – see link:
Click to view link
Posted by Spectator on 02/02/11 12:19 PM
Time for another photo request--you have been showing some gorgeous photos lately--at least titillating us with the borders!
Posted by Sovereignthink on 02/02/11 12:11 PM
What a Great Article. Thank you for the perspective and insight. Absolutely Clear and to the Bone.
Every human act is to 'be' managed and even micromanaged and the place for a 'free' market-driven economy is honored only in the breech. Soon it will exist more as a 'double-think' 'information-holed' talking point than a reality.
This is almost impossible to realize, as the human spirit is infinite in its potential and individual capacity. The Power of the Natural Liberty in Humankind cannot be contained for long.
However how much will the Global Elite's Governance and Control be allowed destroy and how many more hundreds of millions murdered by Central Governments in this new century by that 'hidden' and not so invisible hand?
We are either;
Under the Double Eagle of Global Central Tyranny
Under the Double Eagle of Local Individual Liberty
(full under the double eagle)
Click to view link
Posted by Johan on 02/02/11 11:50 AM
These people and organisations must just love when these things happen. News channels must thrive on wars for example... The Iraq war on CNN for example was almost like entertainment... An exciting daily tv-series that one had to follow... "Bring out the Popcorn..."
They must love seeing people suffer since it means they can fill their own pockets... Horrible people...
We help You find work and prosperity in Asia
Click to view link
Posted by James Downey on 02/02/11 11:29 AM
I would like to see just one instance where the IMF, or International Mafia Family, has improved the economic position of any country. By that I mean, the people of any country.
This is a criminal outfit to begin with, and is a partner with the Federal Reserve and other central banks.
Strauss wants to change his name to big brother.
Like the UN, it is time to rid ourselves of the IMF, World Bank, Federal Reserve and all other central banks.
Posted by OF on 02/02/11 11:08 AM
There is a very interesting article by Bill Gross on the Burning Platform...
Posted by Achille Tendon on 02/02/11 11:02 AM
As not every one knows it: the IMF is the spearhead of the banking elites !!!
Posted by Michael Rivero on 02/02/11 10:55 AM
Sure the IMF is the solution. That's why in every nation that is trying to kick out their government we see all those signs saying "IMF go home!"
Click to view link
The IMF is just the Federal Reserve on Steroids; a private central bank with a license to print up paper money and use it to enslave entire nations to debt.
Posted by Jonny Justice on 02/02/11 10:42 AM
How long will I have to tolerate this labeling "Anglo-American" Power Elite? It may be Anglo in title, but not in substance. Anglo's, per se , do not run the global credit money system and control said governments: AIPAC, Strauss-Kahn, Zoellnick, Trichet, Ben Shalom Bernanke, Greenspan, Rothschild, Bernard Baruch, Lloyd "Doing God's Work" Blankfein at Goldman Sachs, Martin "The State is the Only Eternal Verity" Wolf at Financial Times, Paul Krugman, Freidrick Mishkin, Larry Summers, Christine Romer, Wolfawicz, Perl, Rahm Israel Immanuel, David Axelrod, and on and on, infinitim.
It is Semitic, face it. They all call for another layer of debt. Is there anyone whom, throughout the ages, carries a reputation for the promotion of usury? H-E-L-L-O ! And remember, there is no money: there is only debt: money IS debt: and debt is money-- and THEY issue it. They control mass media, too.
Pointing this out is called "anti-Semitism". Conversely, one of my favorites is Peter Schiff, so nobody place that label on me, please. However, one must stay observant. And remember that the "disproved" Protocols call for world rule via 1) a super-nation state, Israel, and 2) a supra-national state, the IMF and / or UN (both their creations).
Reply from The Daily Bell
Where do they live?