US Surrendering Sovereignty to G20 through IMF

Political commentator Dick Morris has expressed alarm over plans laid out at the G-20 meeting to cede control of the American economy to emerging powers including Marxist Brazil, Communist China, and the Monarchy of Saudi Arabia.

While all eyes were on the rantings of Ahmadinejad at the United Nations, the United States — under President Barack Obama — was surrendering its economic sovereignty at the G-20 summit. The result of this conclave, which France’s President Nicolas Sarkozy hailed as “revolutionary,” was that all the nations agreed to coordinate their economic policies and programs and to submit them to the International Monetary Fund (IMF) for comment and approval. While the G-20 nations and the IMF are, for now, only going to use “moral suasion” on those nations found not to be in compliance, talk of sanctions looms on the horizon.

While the specific policies to which the U.S. committed itself (reducing the deficit and strengthening regulatory oversight of financial institutions) are laudable in themselves, the process and the precedent are frightening. We are to subject our most basic national economic policies to the review of a group of nations that includes autocratic Russia, China and Saudi Arabia. Even though our GDP is three times bigger than the second largest economy (Japan) and equal to that of 13 of the G-20 nations combined, we are to sit politely by with our one vote and submit to the global consensus. Europe has five votes (U.K., France, Germany, Italy and the EU) while we have but one.

And the process will be administered by the IMF, whose counsel to less developed nations over the past two decades has consistently called for social pain and economic austerity. The IMF’s misguided policies have been responsible for more revolutions than Marx, Engels and Lenin combined. Its bureaucrats’ arrogance is legendary and their search for appropriate punishments to fit the crime of spending too much on the poor smacks of colonialism and imperialism. They are our new overseers.

As excessive government spending and intervention shoves the US economy towards total collapse, the World Bank, IMF, and G-20 are laying out plans to rise from our ashes.

The wrenching financial crisis of the past two years will provide the catalyst for a profound change in the global economy – which, according to the man running the World Bank, will see China and India become established centres of power, the dollar eclipsed as the sole reserve currency, and Latin America, south-east Asia and Africa emerge as new sources of growth.

But as he surveys the wreckage caused by what the bank and its sister organisation, the International Monetary Fund, agree is the most severe crisis since the devastation caused by the second world war, Robert Zoellick is surprisingly upbeat about the future.

Asked by the Observer how he envisages the global economy in 20 years’ time, Zoellick says: “There will certainly be a larger role for the emerging powers, there will be multipolar sources of growth, there will be more south-south trade between developing countries.

The leader of the World Bank is angling to leverage the financial crisis centered in the Western world to launch the rise of Eastern powers.

The crisis gives us the opportunity to hasten this process. If we are concerned about the past reliance for growth on the US consumer, we have to make sure consumers in developing countries have enough finance to buy.”

Developing countries were on the rise before the credit crunch and, as the latest snapshot of the global economy released last week illustrates, their position has been strengthened by their ability to keep growing as the west teetered on the brink of a 1930s-style Depression.

America, Zoellick says, can no longer rely on the dollar ruling the roost. The euro and the Chinese renminbi are candidates to become reserve currencies.

“These annual meetings take place at a defining moment in global governance,” Strauss-Kahn says. “We have experienced unparalleled economic co-operation in the last 12 months. It has never happened in history.“

The treasonous Democratic leadership has fully endorsed and even legislated $100 billion in funding for this international coup, which is opposed by conservatives.

Responding to media reports that House Democratic negotiators have agreed to include a new $100 billion line of credit to the IMF a top priority of President Barack Obama the top Republican in the House said Tuesday he would oppose the bill.

“Let’s be clear: a troop-funding bill should fund our troops, period,” said Minority Leader John Boehner, R-Ohio. “Weighing down this critical legislation with nondefense spending will only drag this process out further and cost it essential Republican support needed for passage.”

Obama promised the IMF money at April’s G-20 summit to help developing countries deal with the troubled global economy. About $8 billion for an earlier commitment for the IMF will be included.

At the G-20 meeting, disloyal American diplomats promised hundreds of billions to prop up the International Monetary Fund’s currency, termed Special Drawings Rights (SDRs).

The U.S. did, though, take the lead in getting the summit to agree on an increase in IMF rescue funds to $750 billion from $250 billion now. Japan, the European Union and China will provide the first $250 billion of the increase, with the balance to come from as yet unidentified countries.

“This will provide the IMF with enough resources to meet the needs of East European nations and also provide back-up funding to a broader set of countries,” said Brad Setser, a former U.S. Treasury official who’s now at the Council on Foreign Relations in New York.

The G-20 also agreed to an allocation of $250 billion in Special Drawing Rights, the artificial currency that the IMF uses to settle accounts among its member nations. The move is akin to a central bank such as the Federal Reserve effectively creating money out of thin air, except it’s on a global scale.

Bonds issued by the IMF are being bought up by foreign countries such as Brazil, China, and Russia.

Shortly after the September G-20 summit, it has been reported that non-US members including Russia, China and Japan have been secretly meeting with Middle-Eastern Gulf states such as Saudi Arabia to plot the removal of the American Dollar as the medium of exchange for the oil trade.

Arab oil-producing nations and some of the world’s largest oil consumers including China and Japan are reliably reported to be planning a long-term exit from pricing their oil trade in US dollars. If true, it would spell the death knell for the dollar as the world’s reserve currency and for the United States as global economic power.

…According to a leaked report from Arab Gulf oil producers, there have been a series of secret meetings in recent months between the major Arab oil producers, including Saudi Arabia, and reportedly also Russia, together with the leading oil consumer countries including two of the three largest oil import countries – China and Japan.

…Iran announced recently that in the future it would sell its oil for euros not US dollars. According to these reports, the basket of currencies would include a mix of yen, euros, Chinese yuan and gold. Brazil would reportedly join as both a producer and a consumer country.

Glenn Beck report on US dollar removal from oil trade

Libertarians are calling for a review and repeal of all supranational monetary agreements which do not conform to the Constitution of the United States of America.

International Monetary Policies

Review all international monetary agreements, especially in regards to their pursuance of the Constitution. This includes the BIS, IMF, World Bank, and the United Nations.

Determine if rule 4-2b of the International Monetary Fund that states that no member nation may have a currency backed by gold conforms to the Constitution of the United States.

Determine if the Bretton-Woods Agreement Act, Public Law 94-564 and Section 5 of the Bretton-Woods Agreement Act, 22 U.S.C. 5 286c, is in accord with the Constitution of the United States.

Determine if gold transferred and deposited by the U.S. to the IMF, BIS, and other international organizations conforms to the Constitution.

Abolish all Unconstitutional Policies

  • Repeal the Federal Reserve Act of 1913.
  • Repeal and repudiate Federal Reserve Notes as “obligations of the United States” under 12 U.S.C. section 411.
  • Repeal all gold certificates held by the Federal Reserve System, in favor of a trusteeship over the gold to be executed by the United States on behalf of the people.
  • Abolish all legal tender laws in any way, shape, or form, as advocated by Congressman Ron Paul in HR 2779 presented to Congress in 2003.
  • Repeal all Supreme Court decisions that support legal tender laws and state that they are unconstitutional.
  • Repeal all legislation that allowed for the seizure of gold coin in 1933, including the War Powers Act & the Trading with the Enemy Act, as discussed in the appended Letter to Congress.
  • Abolish all gold confiscation laws and pass news laws making it impossible to confiscate gold and silver at any time, under any circumstance, including national emergencies and acts of war.
  • Return all gold unconstitutionally seized in 1933 that is in the custody of the United States, and or the Federal Reserve, or other entities. All such gold should be given back to the American people on a per capita basis.