Below we look at the recent IMF call for a global currency re-set.
Planned three years out, this IMF initiative represents yet another bushel of bankers consolidating control over global markets in the name of a COVID crisis.
But hey, another con-job beats confessing to the debt tidal-wave they alone created.
More debt and one new global currency.
Regardless of one’s interest in U.S. sports, any American audience would know I was talking absolute gibberish if I said: “Babe Ruth was the greatest quarterback who ever played for the Boston Celtics.”
In short, some nonsense is very easy to see. Our cultural B.S. detector works flawlessly.
The problem, however, with the deliberately vague jargon of financial policy makers is that most normal folks don’t speak their language.
In other words, the finance BS is harder to see coming.
There’s no shame in that.
After all, doctors, teachers, engineers, dentists, lawyers, plumbers, entrepreneurs, retail workers, pilots, soldiers, business owners etc., are not trained in such financial minutia and double-speak.
Thus, most folks have no reasonable way to know when they are being conned by fluffy financial bla, bla, bla.
Those who manage, sell and manipulate the markets know this, which is why they’ve been coning millions of investors with near total impunity for years with empty talk and unbelievable support from central banks.
BS Translators—Enter, Well…Us.
As insiders with over five decades of combined experience in the trenches of Wall Street banks, hedge funds and family offices, Tom and I are all-too-familiar with the double-speak, sales-talk, economic hypocrisy and two-sided language of the financial tarpits.
We founded SignalsMatter.com to translate this rigged-to-fail system’s “language” bluntly to the rest of you.
Toward that end, we even penned a best-selling book, Rigged to Fail, to provide this BS detecting in plain-speak.
Hundreds of you thank us each and every month, and we are honored to be a lighthouse in this deliberate fog of market nonsense.
In short, we have been sharing our BS-detector with you for a reason: So that you can be prepared for the end-game of the economic and financial con-game that has been in play since Nixon took the U.S. off the gold standard in 1971.
And speaking of BS and con-games…
Let me now share you with the most recent, and largely un-reported pile of BS to come out of the IMF last week.
The IMF Just Showed It’s Crooked-Hand for the Future Re-Set of a Broken Global Economy Heading Toward a New World Currency
Tucked into a corner of the IMF’s website, here, is a deliberately dishonest explanation of how the world economy is about to be totally re-set in the coming years.
The IMF is calling its initiative a new “Bretton Woods Moment.”
Folks, this is a big deal as well as a big con, and answers many readers’ recent questions as to how the global economy is going to end, and then be “reset.”
The Old Bretton Woods
Without diving into too much market history, let me give you a tiny primer on Bretton Woods.
In 1944, as the US emerged as the strongest power to climb out of the Second World War, the major (and deeply war-torn) countries of the world agreed to give up their own gold-standard, opting instead to peg their currencies to the then-trusted U.S. Dollar, which was itself backed by gold.
This is how the U.S. dollar became a world reserve currency. It was backed by gold, trusted and relied upon.
But in 1971, Nixon welched on the gold standard of the U.S. dollar, and thus gave a silent middle finger to all those Bretton Wood “partners” who had previously relied on the U.S. dollar as a safe, gold-backed currency.
Since that infamous moment in 1971, the U.S. currency has emerged as the global bully, and the rest of the world has essentially been in an unspoken currency war ever since, the details of which are briefly alluded to here.
The IMF’s New Bretton Woods
At a global debt-to-income ratio of 3 to 1, the global economy is effectively destroyed, and markets are effectively supported only by fake, fiat currencies printed by central banks.
This is pure market socialism. A failed experiment. Period. Full Stop.
As of 2020, the world is catching on to the embarrassing disconnect between fake (debt-driven) markets rising and real economies tanking.
The Central Bank Virus—More Devastating than COVID Excuse
100% percent of the blame for this disgraceful disconnect points directly to years and years of central bank intervention, interest-rate repression, clueless debt-policies driven by equally clueless global politicians and totally rigged stock and bond markets.
This disgraceful “central-bank experiment” with debt and its fatal destiny was in play well before COVID made the headlines. As I’ve said countless times, the central banks serve markets, not economies.
But now the sweet-talkers at the IMF are using COVID as the scapegoat for our global economic fall from grace.
This is a great irony, as it was those very same central bankers and debt-addicted policy makers who put us in this catastrophe, not a virus.
In short, the foxes who have been raiding and guarding the global economic hen-house are using COVID as a hall-pass to excuse themselves of all blame and sneak in a ton of new debt paid for by a new global currency.
In simplest terms, the IMF’s solution is little more than looking for a new credit card after maxing out a prior card.
As always, the finance jocks are also using clever phrases, fancy words and the guise of humanitarian concern to pull-off an historical con, which the vast majority of the world can never and will never understand.
And trust me: The IMF doesn’t want them to understand.
But as your personal BS-Detector, let me walk you through (i.e. “B.S. Translate”) the most recent gibberish to come out of the IMF, and then explain what this means for our economic and global future in the years ahead.
And the bottom-line is this: A new global currency is being put in motion behind the curtains. It’s time for you to know what’s happening and why.
Translating IMF-BS… The Next Great Con-Job
In a fitting Russian accent remiscent of Pravda-like propaganda, the IMF spokeswoman (who I’ll refer to as the “IMF Muppet”) made many false and misleading statements which I’ll BS translate below.
As to the IMF itself, it essentially works as follows: 1) the IMF creates money to issue loans (backed by nothing) to poor and developing countries; 2) those poorer countries are then saddled with repayments they can never make and 3) are required to spend their loaned money in the richer and developing countries.
In short, the IMF is engaged in kind of benevolent façade of economic slavery and is ultimately a leach on the global economy.
For much more detail on such horrors, I highly recommend John Perkins’ book, “Confessions of an Economic Hitman.”
The IMF Muppet Speaks
As for the IMF Muppet, she says: “Today, we face a new Bretton Woods moment” and supports this grand statement with the same fear-based template all political liars and power-usurpers use.
Namely, the IMF Muppet creates fear (i.e. the COVID pretext) and then uses that fear as a pretext to come up with a great new scam masquerading as a brilliant and benevolent plan.
The new plan destroys prior economic liberties and rights, all of which are to be replaced with what the IMF Muppet calls “new negotiations” which boil down to nothing more than increasing the centralized control over currency and inflation policies (i.e. hidden taxes) under the guise of an “emergency necessity.”
The IMF Muppet refers to the “pandemic that already cost more than a million lives” … and says it alone has caused an “economic calamity that will make the world economy 4.4% smaller.”
The IMF Muppet keeps the fear template going by describing “untold human desperation in the face of …rising poverty” and refers to an $11 trillion decline in output.
What the IMF Muppet doesn’t tell you is that the $11 trillion dollar output decline was replaced by money printed from central banks around the world in 2020.
This printed money was used by broke countries to effectively buy their own government debt and counterfeit their way out of a growth “calamity” that was already a “calamity” long before the “untold desperation” of COVID.
These foxes destroying the global economic hen house also know that the interest rate payments to service the trillions of debt which they themselves created often costs more than the tax revenues these countries take in.
In short, they are caught in a vicious debt circle of their own creation.
Lie, pretend, spend and print.
More Debt, More Nonsense
That’s right. No surprise. The IMF’s answer to a global debt crisis to issue more debt. Only this time they are planning to pay for this new debt with magical beans in the form of a new global crypto currency. (More on that below.)
The IMF Muppet says that a “durable economic recovery is only possible if we beat the pandemic…” –once again setting up the bogus narrative that COVID, rather than their own policies, created the current debt crisis.
That’s like Lance Armstrong blaming his doping lies on Santa Claus.
Again, the IMF is trying to lay blame on a virus rather than on pre-COVID debt policies which they and the global central banks of the world initiated.
Their “solution” is for countries to take on even more debt from the IMF lender to “rebuild” via “vaccines and infrastructure policies.”
What the IMF Muppet is not saying, however, is that this will exponentially increase the debt levels of poorer countries.
Once Again: Focusing on Markets Rather Than Economies
Naturally, the IMF Muppet turns to the stock markets, which we all know are artificially propped up by central banks who benefit a minority of the top 10% at the expense of the bottom 90%–i.e. the real citizens of the real global economy, which is on its knees thanks to banks like the IMF.
To ensure a “long assent” of the stock markets, the IMF Muppet then warns that there will be “some volatility” and possible trouble “in the banking system” ahead, but not to worry, as new money will save the day—or at least the stock markets.
The IMF Muppet says they will try to prevent market declines by engaging in a “monetary renegotiation” which is just liar-speak for a new and far more grotesque form of economic control over once free market forces.
The IMF Muppet says this new “monetary negotiation” will help the world address the low productivity and low growth crisis we are now in.
What the IMF Muppet is not saying is that printing money and creating more debt does not lead to greater productivity, just rising asset prices like stocks, bonds and real estate. This is a fact, not opinion.
The IMF is effectively saying it will do whatever it can to keep the stock markets from suffering a natural (and needed) crash, and claims this will help prevent further “wealth inequality,” which is simply, well, a total lie.
Another Insider Solution to Prop Markets at the Expense of Financial Freedoms
The crony capitalism of the IMF allows richer countries and banks to enjoy low rates while developing and poorer countries pay rates at nosebleed levels that keep them forever drowning in debt created by the IMF.
Thus, for all my polo friends in Mexico, Argentina, Chile and other South American or developing countries, be prepared to get shafted yet again by banks like the IMF…
Finally, the IMF Muppet comes to the real heart of the matter, i.e. their proposed “monetary reforms,” which essentially boils down to a new and even more authoritarian debt scheme to maintain the status quo.
The New Bretton Woods…
The IMF’s solution is a that “a New Bretton Woods is needed.”
This translates to higher taxes, higher government interference, and the creation of a new central bank digital currency at a global level that will tear away even more sovereign freedoms and individual liberties.
“Stronger Institutions” are needed, according to the IMF Muppet—which translates to you need to pay more taxes.
A New Global Currency in Play
In the same way that individual countries in the European Union gave away their sovereign freedoms by adopting a single euro-based currency, the IMF is calling for a similar policy at a GLOBAL level—namely a new global currency.
This, of course, is a dangerous game—one the Brits “exited from” and which the Germans are already getting sick of—and yet the IMF wants to make this failed currency solution a failed global policy…
In simple-speak, the IMF doesn’t want countries to have control over their own currencies and policies.
In the past, the IMF tried to create a global currency based on a basket of currencies called “Special Drawing Rights” or “SDR’s,” an idea which fell flat on its face.
But now, using the COVID “crisis” (aka “opportunity” for more fear-based centralized manipulations), the IMF is setting the stage for a centralized global digital currency akin to the common currency now in play in the EU, and which the UK rightly rejected from day 1, and ultimately finalized in its “Brexit” divorce hearings.
What does this mean for now?
Well, the IMF is essentially forward guiding more printed currencies i.e. “broad support” and debt “accommodation” for the otherwise Frankenstein-dead stock and bond markets.
Expect volatility ahead, as well as more disgraceful support for trending/rising risk asset prices despite a global economy tanking by every metric known to mankind.
In addition, the IMF is signaling more consolidated central bank steroids until such time as a new global digital government currency (as opposed to private digital currency, like Bitcoin) is agreed to during a second “Bretton Woods” Re-set.
This means less free market forces, less free choices among investors and nations and more Orwellian consolidation of financial power at the IMF and central bank level.
In short, we are talking about pure market socialism masquerading as “global cooperation.”
Clear winners and losers will emerge in the coming years based upon Crony-Arrangements between the IMF, the World Bank, and the larger central banks.
As usual, the clear losers will be poorer countries saddled with more debt mis-categorized by this IMF Muppet as “support.”
Gold, however, appears to be another clear winner going forward, as the new global currency to be created cannot simply be a new fiat currency replacing an old fiat currency. In short, it will need to be backed by gold rather than just hot air.
Certain private banks will fall, and others will rise, depending on how certain debt instruments are re-packaged and re-set, but more on this in future reports.
For now, the most important point I’m trying to make clear to readers is that a major debt and currency re-set is being planned behind the curtains of a totally failed economic experiment organized by the very idiots who got us into this mess in the first place.
And please, don’t just think COVID created the need for this.
In fact, our book came out warning of this pending debt disaster just 1 week before COVID even made its first headline.
Folks, the system has been rigged and continues to be rigged.
COVID is simply a great pretext to accelerate a great con-job set in motion years ago under a cancer called “debt” which the IMF Muppet and others in this rigged game call “support.”
But there you have it…
The big question going forward is will you be prepared for the changes to come?
Are you thinking for yourself or letting puppet media pushers and IMF double-speakers make you feel safe in group think like this:
As always, we’ll be keeping you updated and posted as this latest “Re-set” narrative moves closer toward fruition and Capitalism, which the elites killed, falls even further into distant memory.
Matt & Tom