IMF Bailout for Ukraine and a New World Currency

By:  Alex Newman
05/07/2014
       
IMF Bailout for Ukraine and a New World Currency

The International Monetary Fund announced a bailout of the new Ukrainian regime using the proto-global currency known as Special Drawing Rights.

While much of the world was distracted by the supposed clash over Ukraine between Russian strongman Vladimir Putin and Western politicians, the International Monetary Fund announced a bailout of the new Ukrainian regime denominated in the IMF’s increasingly influential proto-global currency known as Special Drawing Rights, or SDRs. Analysts are warning that the developments could have profound implications for the global monetary system and the economy — and especially for the United States, which is stealthily being set up for economic calamity as the U.S. dollar continues on the road to losing its prized status as the world reserve currency.

The controversial planetary entity and its Western apparatchiks, along with various communist and socialist dictatorships and the United Nations, have long been agitating to ultimately dethrone the embattled U.S. dollar. Top-level American officials at the U.S. Treasury and the Federal Reserve have been helping them along. The dollar’s place as the global reserve currency would be filled by the IMF’s SDR, currently composed of a basket of currencies that includes dollars, British pounds, euros, and Japanese yen. The IMF, the UN, and multiple national governments have all openly advocated precisely such a plot in reports and statements made in recent years. The Obama administration, meanwhile, has exploited the Ukraine crisis to further empower the IMF while reducing U.S. influence

In bailing out the new Ukrainian government, the IMF announcement of its decision — taken with approval from Russian authorities despite the alleged East-West brouhaha — referred to SDRs on multiple occasions. The press release noted that the IMF board had agreed to a two-year “Stand-By Arrangement” that “amounts to SDR 10.976 billion (about US$17.01 billion, 800 percent of quota).” The approval under the Fund's “exceptional access policy,” the statement said, “enables the immediate disbursement of SDR 2.058 billion (about US$3.19 billion), with SDR 1.29 billion (about US$2 billion) being allocated to budget support.”

It is not the first time the IMF has relied on SDRs, which were originally created in 1969, for bailing out governments that agree to its demands. Iceland, for example, was also bailed out by the IMF amid the financial crisis with loans denominated in SDRs, which the Fund uses as its "unit of account." However, the move in Ukraine has attracted the attention of prominent analysts including currency expert and best-selling author Jim Rickards, as well as Robert Wenzel, editor of the Economic Policy Journal. “The U.S. has never really stopped promoting SDRs as a global currency,” Wenzel noted. “Now Ukraine is being bailed out with this global government souped up money.”

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