IMPORTANT NEWS that is rarely highlighted:
The reforms that the G20 members have planned are being delayed by the U.S. veto…
This has been ongoing since 2010.
The growing importance of the Asian Infrastructure Investment Bank (AIIB) as it prepares for launch this year prompted calls for IMF governance structure reform at a meeting of G20 finance ministers and central bank governors in Washington on Apr. 17.
Foreign news outlets suggested the battle for leadership in the IMF poses a potential threat to its dollar-denominated currency system. –english.hani.co.kr
Many researchers are expecting market volatility and crisis by years’ end, thus the scheduled G20 November 15 – 16, 2015 Summit should be marked on your calendar. ~Ron
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PDF file: Trapped in history – IMF and the US veto
“The Spring Meetings in the IMF and the World Bank start on 17 April 2015. Once again, member countries are compelled to discuss ways to overcome the longstanding gridlock in IMF governance reforms. Professor Robert Wade (LSE and DIIS) and Senior Researcher Jakob Vestergaard (DIIS) provide an up-to-date account of the increasingly desperate situation. Global economic governance is at risk, they argue, if long-overdue IMF governance reforms are not ratified. At the end of the day, it is the US veto that hinders these reforms, and the much-needed doubling of the Fund’s secure lending resources, from taking effect:
The IMF is desperately short of secure lending resources. The US Congress is blocking ratification of an agreement reached in 2010 by all member states that would almost double the Fund’s permanent or guaranteed lending resources. The US is the only country with the ability to veto major decisions. The Fund is currently relying on the good will of countries to increase its fire-power in an ad hoc way. This is not a solid foundation for the world’s main lender of last resort to governments.” –diis.dk
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G20 discusses plans to sidestep U.S. on IMF reforms -Reuters
“The Group of 20 leading economies on Friday discussed ways to raise emerging countries’ voting rights at the IMF as part of an effort to move past U.S. foot-dragging on reforms to the institution, but they failed to reach an agreement.
The IMF’s member countries agreed in 2010 to give more voting power to countries like China and India, double the Fund’s resources, and reduce the dominance of Western Europe on its 24-member board.
But the Obama administration, which supports the reforms, has been unable to persuade the U.S. Congress to pass funding changes necessary for the agreement. The United States can block the IMF reforms because it holds a controlling share of votes.”
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China Angry About Delay in Reforms on Its IMF Clout
20April 2015
[We] are upset and deeply disappointed by the current progress with regard to the reform of the shareholding system in the IMF,” the People’s Bank of China Governor Zhou Xiaochuan was quoted by China News Service as saying late last week.
The reform envisions a 6 percent shift in voting rights from developed countries to emerging economies. It has repeatedly been stalled by the US Congress because of Washington’s de facto veto right at the IMF.
[…]
He also urged more progress on other important IMF reforms, including those of the governance structure and the inclusion of the yuan in the basket of the Special Drawing Rights.
Read more: http://sputniknews.com/world/20150420/1021119184.html
Future World Foundation Reported:
https://www.futureworldfoundation.org/Content/Article.aspx?ArticleID=12029
14 April 2015
Robert Wade and Jakob Vestergaard of the Bretton Woods Project argue that the IMF’s governance reforms and financing are at risk due to the failure of U.S. leadership and the Fund’s own structural contradictions. Their report asserts that the multilateral governance system is at risk if the quota and board reforms agreed in 2010 during the financial crisis, are not ratified. As the US vote share is more than 15 per cent, it has an effective veto on any decisions requiring an 85 per cent majority. This is damaging the organisation and hampering its ability to play its proper role. Without changes to the supermajority rules, however, China may have acquired an effective veto in twenty years’ time, while the U.S. may have lost enough relative economic weight to forfeit its ability to block decisions. This prospect may be enough to induce the U.S. Congress to agree to adjust the IMF quotas, to prevent another country acquiring an effective veto.
http://www.brettonwoodsproject.org/2015/03/impasse-at-the-imf/
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Calls growing for structural reform of IMF at G20 finance ministers meeting
http://english.hani.co.kr/arti/english_edition/e_international/687605.html
Posted 20 April 2015
The growing importance of the Asian Infrastructure Investment Bank (AIIB) as it prepares for launch this year prompted calls for IMF governance structure reform at a meeting of G20 finance ministers and central bank governors in Washington on Apr. 17.
Foreign news outlets suggested the battle for leadership in the IMF poses a potential threat to its dollar-denominated currency system.
The South Korean Ministry of Strategy and Finance reported on Apr. 19 that finance ministers from G20 member countries at the summit issued a joint statement demanding “IMF governance structure reforms” and “interim steps” for adequately reflecting the aims of the reform plans to the IMF Board of Governors.
The move would entail making changes to the different countries’ shares that put them more in line with the terms of the reform plan even without ratification from US Congress, the ministry explained.
An earlier agreement to reform the governance structure to give emerging countries like China, Brazil, and India a greater voice to reflect their larger economic scale was reached at the 2010 G20 summit in Seoul.
A more specific agreement indicated that six percent or more of the advanced economies’ shares would be given to emerging economies. The US currently holds as 17.7% share in the IMF, compared to just 4.0% for sixth-ranked China. Japan ranks second with 6.6%, followed by Germany (6.1%), France (4.5%), and the United Kingdom (4.3%). South Korea’s share is 1.4%, which puts it in 18th place.
But the agreement has been stymied for the more than four years since by the US Congress’s refusal to ratify it. As the IMF’s largest shareholder, the US is the only country with veto power.
The reason the China-led AIIB is drawing such a strong response – with 57 countries participating so far – could have to do with the disproportionate share of the IMF in US and European hands. Indeed, the G24 group of emerging economies made vocal demands at the summit for implementation of the IMF governance structure reform plan.
Foreign news outlets read the change as a result of the imminent AIIB launch. Japan’s Nihon Keizai newspaper reported that the China-led AIIB was “raising hopes at the G20 Meeting,” with “many expressing displeasure with the US for neglecting IMF reforms.”
The report called the situation a “turning point for the US-led international currency system with the IMF and World Bank.”
The BRICS Development Bank, an effort spearheaded by Brazil, Russia, India, and China to counter the US-led World Bank and IMF, is expected to go into operation as early as late this year.
By Kim So-youn, staff reporter
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Lord Blackheath discussed Banking fraud, Gold & Monetary system in detail at the House of Lords in England in 2012. For those of you who have not yet seen his testimony, please take 11 minutes of your time and watch it:
Uploaded on Feb 17, 2012
“Lord James of Blackheath, House of Lords February 16 2012
Breaking news Lord James of Blackheath has spoken in the House of Lords holding evidence of three transactions of 5 Trillion each and a transaction of 750,000 metric tonnes of gold and has called for an investigation.
I think there are three possible conclusions that may come from it. I think there may have been a massive piece of money laundering committed by a major government which ought to know better and that it has effectively undermined the integrity of the British bank the Royal Bank of Scotland, in doing so. The second alternative is that a major American department has an agency that has gone rogue on it because it has been wound up and has created a structure out of which they are seeking to get at least 50 billion Euros as a payoff. And the third possibility is that this is an extraordinarily elaborate fraud which has not been carried out but which has been prepared in order to provide a threat to one government or more if they don’t pay them off. So there are three possibilities and this all needs a very urgent review.
My Lords, it starts in April and May of 2009, with the alleged transfer to the United Kingdom, to HSBC of a sum of 5 trillion dollars and seven days later, in comes another 5 trillion dollars to HSBC, and then 3 weeks later another 5 trillion. 5 trillion in each case. Sorry. A total of 15 trillion dollars is alleged to have been passed into the hands of HSBC for onward transit to the Royal Bank of Scotland and we need to look at where this came from and what the history of this money is. And I have been trying to sort out the sequence by which this money has been created and from where it has come from for a long time.”
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Wow, I knew the US was blocking IMF reforms. I had no idea they were doing the same with the G20.
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This is the same coin, meaning the G20 members are also members of the IMF.
The G20 in 2010 had agreements to amend the IMF to reflect the G20 or the emerging markets and China real value; in other words to increase the influence of non-West cabal.
The U.S. Congress has stalled this agreement by not ratifying it.
The possibility of Congressional ratification (survival of the IMF) or the obsolescence of the IMF are the major questions. Either way a major change to the IMF is underway and the shift of influence within the international monetary system.
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