News

For ages, now, I have been trying to gently and diplomatically advise everyonenot to look to Baghdad for the RV triggers, but, rather, to Washington—specifically, the International Monetary Fund (IMF) and its Special Drawing Rights Partners (only four left, now); i.e., the American dollar, the British pound Sterling, the Japanese yen, and the Continetal euro. Most of us simply do not realize how powerful these guys really are. If the IMF is the Creature of Bretton Woods, then the SDRP’s are the Creatures of the IMF. Since 1969, they have called the shots, because virtually all of the world’s currencies of the industrialized nations north of the equator are indexed to the (now) dollar-pound-yen-euro consortium.

When the conditions have presented themselves such that the IMF is willing to act favorably upon them, then, and only then, will they pull the trigger on the revaluation of the IQD. Even the euro syndicate cannot act alone, for example, on the recent Greek bailout.

Stocks pared gains and the Nasdaq Composite hit a session low in afternoon trading today after a source said the European Union and International Monetary Fund will NOT release an 8 billion euro payment to Greece until after its planned referendum. Adding to market uncertainty, the U.S. Federal Reserve cut its forecast for economic growth, even as it earlier kept monetary policy steady.

This all happened because of what the IMF said and did—and nothing else. Another way of looking at it is trying to get a rezoning for a building permit without the blessings of the fire department. The fire guys have the last word.

The guys and gals of the IMF are the “fire guys” of the world’s currencies.