Strauss-Kahn, IMF Scam Fails, the Debt Crisis Crescendo
(Market Oracle) -- by Andrew McKillop --
...Strauss-Kahn had played a kingpin role is reassuring capital markets, debt-strapped governments and opinion formers by operating a global-size version of what started in the USA with the Paulson plan in the dying days of the G W Bush presidency, late 2008.
This was a losing quest, but Strauss-Kahn's failure was only known to insiders - and his enemies. The scope of the challenge resumes in a few figures.
After a declining trend in the 1990s, US national debt dramatically increased from US$ 5.7 trillion in January 2001 to $10.7 trillion at the end of 2008, and then $14.3 trillion through April of 2011 when the debt reached 98 percent of 2010 GDP of the USA.
The approximately US$ 3.6 trillion added to US national debt since the end of 2008 is more than double the market value of all private sector manufacturing in 2009 ($1.56 trillion), more than three times the market value of spending on professional, scientific, and technical services in 2009 ($1.07 trillion), and nearly five times the amount spent on non-durable goods in 2009 ($722 billion). Only taking interest paid on Federal debt in the first six months of the present financial year (October 2010-April 2011), nearly $245 billion, this is equal to more than 40 percent of the total market value of all private sector construction spending in 2009 ($578 billion)...
Right through his tenure as IMF chief, Strauss-Kahn not only trawled the comfort ladies, but also worked hard to ramrod the ultimate in shock treatment for the global economy: the selective demonetization of the US dollar, the world's prime reserve currency. The basic plan is simple: cancel and dishonor debts in US dollars through reducing or completely stopping dollar convertibility, for example by limiting the use and the holding of the US dollar to US citizens, only. Another version is to create and launch a new reserve currency, linked with the dollar, at a very favourable double conversion rate for the dollar: debts in dollars will be depreciated; holdings in dollars by US citizens and US-favoured corporations will be appreciated, when the new money is introduced. The inflation which comes with this will help mask the depreciation of debt and appreciation of holdings. Within six months, a fait accompli will be created, with no way back.
From December 2009, Strauss-Kahn went public with his new money initiatives, under the imprimatur of the IMF, with the Green Energy Fund proposal to fight climate change in low income countries with a fund built from the IMF's own printable money - SDRs - starting at the equivalent of $ 100 billion. Other versions of this plan by Strauss-Kahn and his personal team were advanced, at growing scales and declining credibility, through March-April 2010, but were each time shot down by capital surplus countries led by China and including the Arab petro states, Russia, India, Brazil and Argentina.
Each time, the Straus-Kahn target was to exchange US dollars for new money, and dissolve US debt in new and printable fiat paper money. recycling wealth from the few capital surplus countries to the OECD debtor countries, headed by the US but including all EU27 states and Japan.
From mid-year 2010 the European PIIGS crisis only got worse, as US debt also worsened, forcing Strauss-Kahn to shelve public airing of his pipedreams and concentrate on saving both the euro and the dollar. The role of recycling and siphoning capital surpluses from smaller players with big holdings, starting with the Arab petro states and small island tax haven states, became more important than ever, as remarks by Strauss-Kahn and variable geometry allies and friends like George Soros, at the 2011 Davos Forum suggested to observers able to cut through the counter-noise. Likewise the role of SDR allocations and plans for radically increasing the production or issuance of SDRs most surely placed Strauss-Kahn in private conflict with very big players, starting with the US and China.
The latest plan was almost ready for launch, 14 May. Federal officials invited Strauss-Kahn to New York, arranged the hotel and travel, and set the agenda for a final review before going public on Strauss-Kahn's last plan to roll US debt into European debt, in which the Federal Reserve, and all its State banks, as well as European central banks would disappear. We know what happened, next...MORE...LINK
Comment by "Chris Moore" on The Pale Male Paradox: How White Men Achieve Most and Are Vilified Worst, by Tobias Langdon - And it’s natural that whiteness would be most vilified precisely because it’s most valuable in maintaining the modern world and western hegemony. One rea...
1 day ago