Editor’s Note: The following report is excerpted from Jerome Corsi’s Red Alert, the premium online newsletter published by the current No. 1 best-selling author, WND staff writer and columnist. Subscriptions are $99 a year or $9.95 per month for credit card users. Annual subscribers will receive a free autographed copy of Corsi’s New York Times best seller, “The Late Great USA.”
Increasingly, the International Monetary Fund, with the support of the United States and Russia, appears positioned to launch a one-world currency at the upcoming G-20 meeting in London.
The move is intended to be a last-ditch effort to prevent massive bank failures from occurring throughout the European Union.
The idea is for the IMF to issue at least $250 billion in Special Drawing Rights, or SDRs, to IMF member states as a method of placing a safety net under developing countries that might otherwise have to declare bankruptcy.
The idea gained momentum Tuesday when the Moscow Times published an article revealing that the Kremlin intended to use the G-20 meeting, beginning April 2, to push for the IMF to utilize SDRs as “a super-reserve currency widely accepted by the whole of the international community.”
U.S. Treasury Secretary Tim Geithner is on the record calling for the G-20 to support “substantially increasing emergency IMF resources” by up to $500 billion to deal with the global economic crisis.
“The IMF is looking for about $500 billion in SDRs in order to bail out the European Union banks that have lost trillions of dollars making loans into the Eastern European countries the EU thought would adopt the euro after joining the EU,” said Bob Chapman, author of the online International Forecaster newsletter, in a telephone interview.
“If the United States or other countries come up with $500 billion the IMF wants to back these new SDRs, the $500 billion will end up being loans to the IMF that the IMF will simply never pay back,” Chapman explained.
“SDRs under the IMF proposal before the G-20 are going to end up being a newly invented one-world currency manufactured by a one-world organization, created to ease nations out of failed fiat currencies like the dollar,” he argued.
SDRs are international reserve assets calculated by the IMF in a basket of major currencies that are allocated to the IMF 185 member nation-states in relation to the capital, largely in gold or widely accepted foreign currencies that the IMF member nation-states have on deposit.
The Washington and Kremlin-backed proposal would issue SDRs to central banks of IMF member states far in excess of any gold or currency reserves the member states have on deposit with the IMF.
The idea to use the little-understood and largely ignored SDRs as a sort of an international overdraft facility for bankrupt IMF member nation-states originated with Ted Truman, former senior official at both the Federal Reserve and the U.S. Treasury.
According to Reuters, Truman has returned to the U.S. Treasury for the last six weeks to explain his proposal to revitalize the IMF Special Drawing Rights facility with at least a $250 billion commitment from the Obama administration.
“The direction in which the IMF proposal to utilize SDRs in this novel way appears aimed at elevating the IMF to the status of a one-world bank,” Chapman said.
Chapman explained the problems that began in the U.S. with the meltdown of the subprime mortgage market have now carried into Western European banks and threaten to end up with Eastern Europe simply defaulting on trillions of dollars in EU bank loans.
Red Alert has previously reported that a 17-page report circulated quietly among EU finance ministers warned governments that toxic assets held by EU banks and investment firms could total a massive $24.7 trillion.
Red Alert’s author, whose books “The Obama Nation” and “Unfit for Command” have topped the New York Times best-sellers list, received his Ph.D. from Harvard University in political science in 1972. For nearly 25 years, beginning in 1981, he worked with banks throughout the U.S. and around the world to develop financial services marketing companies to assist banks in establishing broker/dealers and insurance subsidiaries to provide financial planning products and services to their retail customers. In this career, Corsi developed three different third-party financial services marketing firms that reached gross sales levels of $1 billion in annuities and equal volume in mutual funds. In 1999, he began developing Internet-based financial marketing firms, also adapted to work in conjunction with banks.
In his 25-year financial services career, Corsi has been a noted financial services speaker and writer, publishing three books and numerous articles in professional financial services journals and magazines.
For financial guidance during difficult times, read Jerome Corsi’s Red Alert, the premium, online intelligence news source by the WND staff writer, columnist and author of the New York Times No. 1 best-seller, “The Obama Nation.”