G20 Pushing New Global Finance System

G20 Pushes Globalist SDR and China’s Role

February 15, 2011

Infowars.com - On Monday, French Economy Minister Christine Lagarde said her country will work to realize a planned transition to a global financial system based on several international currencies. France is currently head of the G20.

Lagarde and the G20 want to undermine sovereignty of nations by moving away from national reserves into SDRs, or Special Drawing Rights issued by the International Monetary Fund.

The G20′s mid-February meeting in Paris will concentrate on “reform” of the international monetary system.

“Continuing demand for the U.S. dollar as the world’s de facto reserve currency, consequently still widening trade imbalances, and ongoing worry over how long the dollar can retain its excessively high value relative to other currencies, are sowing the seeds of renewed global financial instability,” warned Robert C. Hockett, an expert on international finance and professor of law at Cornell University.

Hockett said the Chinese yuan will likely be added to the dollar, euro, pound, and yen as one of the principal currency components of the Special Drawing Rights.

Lagarde and the G20 are currently debating the role of China. She said France favors including the renminbi in the currencies that make up SDRs even before the Chinese currency is fully convertible.

In 2009, Zhou Xiaochuan, China’s central bank’s governor, said he wants a new globalist reserve currency to be controlled by the International Monetary Fund.

On Monday, Japan acknowledged that China’s economy is now the second-largest. Due to China’s furious growth, the country is expected to surpass the United States as the world’s largest economy by 2030.

China outpaced the United States in manufacturing this year. In 2009, the U.S. created 19.9 per cent of world manufacturing output, compared with 18.6 per cent for China, with the US staying ahead despite a steep fall in factory production due to the global recession, according to Global Insight, a U.S.-based economics consultancy.

The G20 is dedicated to transforming the IMF into a globalist version of the Federal Reserve. The authoritarian slave labor nation of China plays an instrumental role in this proposed transformation.

During recent G20 meetings, China worked closely with the United Nations to replace the dollar as the world’s reserve currency. China’s central bank insists the dollar’s global role allowed the U.S. to borrow cheaply abroad, fueling the credit boom that led to the financial crisis.

“A new world order is emerging,” declared former British Prime Minister Gordon Brown at the conclusion of the London G20 summit. Brown later characterized the globalist takeover scheme as the emergence of “one global progressive family.”

The IMF considers China – with its authoritarian government and a slave labor workforce – as the economic model of the future.

“The signals being sent by Brown, Sarkozy, Strauss-Kahn, Geithner, German Chancellor Angela Merkel, and others should be setting off high-decibel alarm bells,” William F. Jasper wrote after the London summit in 2009. “We are witnessing the demolition of our constitutional system and the piecemeal replacement of it with world government. Over the coming months, the architects of this new global system intend to wring every opportunity possible out of the current economic crisis to bulldoze through our constitutional checks and balances that stand in the way of empowering the IMF, the WTO, and the United Nations.”

France Wants New Global Finance System

February 14, 2011

RTE News - France will help the transition to a global financial system based on 'several international currencies', the French Economy Minister said today.

France, as current head of the Group of 20 countries, will help the transition to a global financial system based on 'several international currencies', French Economy Minister Christine Lagarde said today.

Lagarde, speaking ahead of a G20 finance ministers meeting in Paris on Friday and Saturday, said the world had to move on from the 'non-monetary system' it now has to one 'based on several international currencies'.

Accordingly, France wants to see less need for countries, especially the emerging economies, to accumulate huge foreign reserves, she said.

At the same time, international capital flows should be better regulated and the role of the Special Drawing Rights issued by the International Monetary Fund should be reinforced by the inclusion of China's yuan in the system.

China, whose booming economy now ranks second only to the US in size after overtaking Japan, has accumulated massive forex reserves of more than $2.5 trillion on the back of its sustained trade surpluses and foreign fund inflows.

Washington says the build-up reflects an unfair undervaluation of the yuan, a charge Beijing rejects.

France has previously said it wanted to see the global financial system reduce its reliance on the dollar for a more broad-based arrangement.