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India's Central Bank Governor: "International Monetary Cooperation Has Broken Down"

Tyler Durden's picture




 

India's recently crowned central bank head (and predecessor of the IMF's Nostradamal Olivier Blanchard), Raghuram Rajan, has not had it easy since taking over India's printer: with inflation through the roof, and only so much scapegoating of gold as the root of all of India's evils, Rajan announced an unexpected 50 bps interest rate hike two days ago in an attempt to preempt the massive EM capital flight that has roundhoused Turkey, South Africa, Hungary, Argentina and most other current account deficit emerging markets. Whether he succeeds in keeping India away from the EM maelstrom will be unveiled in the coming days, although if last summer is any indication, the INR has a long way to fall.

Hinting that the worst is yet to come, was none other than Rajan himself, who yesterday in an interview in Mumbai with Bloomberg TV India, said that "international monetary cooperation has broken down." Of course, when the Fed was monetizing $85 billion each and every month and stocks could only go up, nobody had a complaint about any cooperation, be it monetary or international. However, a 4% drop in the S&P from its all time high... and everyone begins to panic.

The reason for Rajan's displeasure is because he believes that the DMs owe the EMs a favor: "Industrial countries have to play a part in restoring that, and they can’t at this point wash their hands off and say we’ll do what we need to and you do the adjustment."Sorry Raghu - Bernanke hightailed it out of here and as Citi's Steven Englander pointed out yesterday, left you "to twist in the wind." Feel free to submit your thoughts on the matter in the overflowing complaint box in the Marriner Eccles lobby.

Instead of doing this, however, Rajan continued complaining to Bloomberg:

“Fortunately the IMF has stopped giving this as its mantra, but you hear from the industrial countries: We’ll do what we have to do, the markets will adjust and you can decide what you want to do,” Rajan said. “We need better cooperation and unfortunately that’s not been forthcoming so far.”

...

Rajan said yesterday developed countries might not like adjustments emerging markets take to cope with the outflows, without elaborating on specific measures. His surprise Jan. 28 move to raise the benchmark repurchase rate by a quarter point - - adding to increases of 50 basis points since he took over the Reserve Bank of India in September -- was to stem consumer-price inflation running at close to 10 percent, he said.

 

“In an environment when there is external turmoil, we have to get our house in order and we can’t postpone that,” Rajan said. “So a collateral benefit of getting inflation down is that you also strengthen the belief in the value of the rupee.”

“When there is huge outside turmoil, even today post the Federal Reserve withdrawing stimulus further, it is extremely important that we both be seen on the same page."

You know - this is truly wonderful: for once a central banker admits that his peers are on the verge of losing control of the globe - of course not in those words as the result would be sheer panic upon the realization that central bankers are just as clueless as everyone else - because while conducting central planning in one country is somewhat feasible for a period of time, doing so across every country across currencies, and capital markets, is impossible. And the Indian knows this.

He also knows that in a worst case scenario, the Indian Rupee will crash and burn and make last year's record devaluation of the INR seem like breakfast at Gideon Gono's. Which means that doing the right thing would mean allowing the people - his people - to preserve their wealth in the only real currency that will withstand whatever Emerging Market collapse may be headed this way. Gold.

Instead, what did the Indian Central Bank do? This.

  • Jan 21 - The government raises the gold import duty by 2% to 6%.
  • Jan 22 - The government more than doubles the duty on raw gold to 5%.
  • Jan 30 - Finance Minister P. Chidambaram says there are no plans for additional taxes or curbs on gold imports.
  • Feb 1 - The Reserve Bank of India (RBI) plans to introduce three or four gold-linked products in the next few months.
  • Feb 6 - The RBI says it would consider imposing value and quantity restrictions on gold imports by banks.
  • Feb 14 - The central bank relaxes rules on gold deposit schemes offered by banks by allowing lenders to offer the products with shorter maturities.
  • Feb 20 - The Trade Ministry recommends suspending cheaper gold jewellery imports from Thailand.
  • Feb 28 - India keeps its gold import duty unchanged in its annual national budget, defying industry expectations.
  • Feb 28 - India proposes a transaction tax of 0.01% on nonagricultural futures contracts, including for precious metals.
  • March 1 - The Finance Minister appeals to people not to buy so much gold.
  • March 18 - The Reserve Bank of India says it is examining banks that sell gold coins and wealth management products to identify "systemic issues", with a view to closing any legal loopholes.
  • April 2 - The Finance Ministry suggests it is unlikely to raise the import tax on gold further to avoid smuggling and would instead introduce inflation-indexed instruments.
  • May 3 - The RBI restricts the import of gold on a consignment basis by banks.
  • June 3 - The Finance Minister says India cannot afford high levels of gold imports and may review its import policy.
  • June 5 - India hikes the gold import duty by a third, to 8%.
  • June 21 - Reliance Capital halts gold sales and investments in its gold-backed funds.
  • June 24 - India's biggest jewellers' association asks members to stop selling gold bars and coins, about 35% of their business.
  • July 10 - India's jewellers announce they might continue a voluntary ban on sales of gold coins and bars for six months.
  • July 22 - The RBI moves to tighten gold imports again, making them dependent on export volumes, but offers relief to domestic sellers by lifting restrictions on credit deals.
  • July 31 - India hopes to contain gold imports well below the 845 tonnes that were shipped last year, the Finance Minister says.
  • Aug 13 - India hikes the import duty on gold for a third time in 2013, to 10%. Duties for silver and platinum are also increased to 10%. The customs duty on gold ore bars, ore, and concentrate are increased to 8% from 6%.
  • Aug 14 - India turns the screws on gold buying again, banning imports of coins and medallions and making domestic buyers pay cash.
  • Aug 29 -  India considers plan to allow commercial banks to buy gold direct from ordinary citizens
  • Sept 19 - India hikes import duty on gold jewerly to 15%

And so on.

So thank you for your fake concern Raghuram, but if you really wanted to help your people when the hammer hits, you would lift all capital controls on gold now, and allow your population to preserve their wealth in the only way they have known for the past two thousand years - by converting it into the barabrous relic. And since you won't, enjoy reaping what you and your demented central-planning peers have sown.

 

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Thu, 01/30/2014 - 22:28 | 4386413 wee-weed up
wee-weed up's picture

No shit, Apu!

Thu, 01/30/2014 - 22:35 | 4386443 knukles
knukles's picture

Give the man a curry Slurpee and a gold shirt

Thu, 01/30/2014 - 22:46 | 4386481 markmotive
markmotive's picture

EM has been a big beneficiary of easy money. The system is as levered as it was in 2008.

http://www.planbeconomics.com/2013/07/christine-hughes-of-otterwood-capi...

 

Thu, 01/30/2014 - 23:43 | 4386598 Frozen IcQb
Frozen IcQb's picture

Raghuram,

What hypocrisy!

Moreover, Gold import should be deemed a Capital Account inflow which would increase the wealth of the country.

 

Thu, 01/30/2014 - 23:45 | 4386660 Oh regional Indian
Oh regional Indian's picture

Raguram is a banksters bankster. Straight with IMF and MIT behind him. 

And of lots of B(i)S.

And inflation at 10%......lying statistics. It's more like 25% in things that matter, YOY.

BAsically, nice words, but the man is just another suit.

ori

Thu, 01/30/2014 - 23:53 | 4386689 wee-weed up
wee-weed up's picture

"just another suit"... or just another shit?  ;-)

(Your opinion is valued, Ori, since you're there on the ground in India.)

Fri, 01/31/2014 - 00:20 | 4386760 Oh regional Indian
Oh regional Indian's picture

HEre, people like Raghu are treated like demi-gods walking on water. Quite sickening actually, knowing what it is these guys really do and who they answer to.

Incidentally, for those payign attention, even the RBI (India's central bank) was set-up in 1933.

After that, it was a matter of time before we had our faux independence from the brits.

1933 was a big bankster victory year.

ori

Fri, 01/31/2014 - 00:43 | 4386821 prains
prains's picture

bankster = oligarch in hindu, correct?

Fri, 01/31/2014 - 00:46 | 4386830 satoshi911
satoshi911's picture

Exactly,

Now the PTB have ran India into the ground, there is NOTHING left to steal, except the temple-gold.,

The PTB did the same thing in the USA, make the hair-lip think they were free post 1776 but in reality, they were never free.

*

Now is the time for a new reset, my guess is a new civil-war in both USA and INDIA, but when the smoke clears the PTB have new folks from all sides to rule, ... no matter how many war's the PTB always come out on top.

The only problem the PTB that have today is that there are too many people in INDIA and the USA.

*

Can the world ever be free? Only by taking the war to them, by taking the war to the PTB.

Can that be done? Has it ever been done? I think so long as men's hearts can be bought with 'paper money', the PTB will win.

Fri, 01/31/2014 - 01:45 | 4386933 disabledvet
disabledvet's picture

Smooooooke on the Water...
And Fire in Your Eyes!

"Frank Zappa and the Momma's" really are running this thing this time.
Just head on down to Bollywood and everything will be fine!

I've made it!
I've found my Octupussy!
Take that Vampire Squid!

Fri, 01/31/2014 - 11:08 | 4387795 Crash Overide
Crash Overide's picture

I am pretty sure gold existed before paper, you can see where this is going. Again.

Fri, 01/31/2014 - 05:44 | 4387095 fijisailor
fijisailor's picture

Any ideas on the volume of gold being smuggled into India?  Nice to see you commenting again by the way.

Fri, 01/31/2014 - 08:49 | 4387291 Wen_Dat
Wen_Dat's picture

Willie had a some interviews the last few days. Ready to post again.

Fri, 01/31/2014 - 10:26 | 4387620 fijisailor
fijisailor's picture

Do you have a link?

Fri, 01/31/2014 - 13:13 | 4388389 Wen_Dat
Wen_Dat's picture

Sorry, was insinuating that satoshi is jim willie. I like Jim he's entertaining. Go to the public section of golden jackass and there are a few new links for audio and article.

Fri, 01/31/2014 - 00:22 | 4386752 KickIce
KickIce's picture

He was playing the paper money system to the very end and is now trying to come clean.

Otherwise known as a death bed repentence.

 

The ponzi only works as long as the politicians benefit from the system.

Thu, 01/30/2014 - 23:00 | 4386516 howenlink
howenlink's picture

That's the best news I've heard all week.

Thu, 01/30/2014 - 23:01 | 4386529 BLOTTO
BLOTTO's picture

January 30th (today) 1948: Mahatma Gandi assasinated.

Fri, 01/31/2014 - 02:24 | 4386964 Rukeysers Ghost
Rukeysers Ghost's picture

Gandhi was a Communist and the only good Communist is a dead Communist.

 

 

Fri, 01/31/2014 - 07:19 | 4387160 CoonT
CoonT's picture

Well, someone obviously forgot to post that memo; because both your country, and my province, are being run by one..

Fri, 01/31/2014 - 00:03 | 4386714 whatsinaname
whatsinaname's picture

India will be one of the countries coming out in front with or without any help from its CB. The dust has barely settled folks.

The underground economy is so strong out there that they dont need no CB to tell them how business is done.

Thu, 01/30/2014 - 22:44 | 4386474 The Vineyard
The Vineyard's picture

He should look on the brightside.  At least he's not working the counter at a 7-11.  Word.

Thu, 01/30/2014 - 23:52 | 4386686 whatsinaname
whatsinaname's picture

Gold buying aint slowing down in India. Little slow in the urban areas but its actually going up in the rural (farming areas). Farmers are converting their newfound wealth thanks to the real estate boom into Gold. And even the Finance Minister admits that smuggling is going up.

Thu, 01/30/2014 - 22:30 | 4386419 Truther
Truther's picture

I can't believe how panic immediately appeared with these fuckers, while imposing capital controls on the populace. Let them go fuck themselves. I hate this shit and all these moron central idiots of choice.

Thu, 01/30/2014 - 22:51 | 4386494 satoshi911
satoshi911's picture

The panic in INDIA is 2 years old,

You have to wonder WHY NOW is the panic being sold to the US public via the MSM?

Why now?

*

Personally I think the USA has fallen down about as much as INDIA, and those jobs will probably now return to the USA, as many in the USA live in INDIA style poverty.

Always good to point 'over there' where its worse than where we are.

Fri, 01/31/2014 - 00:25 | 4386774 KickIce
KickIce's picture

The panic may be 2 years old but this asshole has been playing the fiat game to the very end by discouraging gold sales.  Very western of him.

Fri, 01/31/2014 - 00:33 | 4386801 satoshi911
satoshi911's picture

What's he to do? His mandate is to protect the toilet paper currency, to do that you make the alternative look worse, trouble is people aren't stupid ( well they are in the USA ), so bad money is always replaced by good money.

*

I still say this story is BULLSHIT, otherwise why would it be on ZH?

Only see 2 reasons

1.) India  needs USA troops to secure the country from civil war.

2.) Goldman Sach's wants to steal the temple gold, for those who may not be aware, the 'temples' in INDIA hold the largest private stash of gold on earth, and I'm sure GOLDMAN-SACHS would kill every child in INDIA to get that GOLD.

India, is a failed British Colony, just like the USA is a failed British Prison Colony.

There is a new world order coming and the PTB in INDIA is desperate to hold UK Colonial power, trouble is they're fighting a majority, not unlike Saudi.

Most likely the political elite will use US-MIL power to steal the temple gold and then the ELITE will flee to some place like the USA where they might feel safe.

If I were a person in India, I would be HIDING the fucking TEMPLE-GOLD, cuz they are a coming.

 

 

Fri, 01/31/2014 - 00:44 | 4386823 prains
prains's picture

....isn't there a pig that needs shaving somewhere in Bing Bong Pow Province, Satoshi ??

Fri, 01/31/2014 - 00:53 | 4386845 KickIce
KickIce's picture

He's supposed to represent his people but instead he's acting just as is western counterparts.  And yes, if US citizens would do the same as the Chinese and Indian people this ballgame would already be over.

Fri, 01/31/2014 - 01:51 | 4386942 disabledvet
disabledvet's picture

"me me me me me me me me me me me me me meeeee me me.
me me me me me me me me me me me me meeeee me me."
"Beeker." (the King of all Muppets.)

Fri, 01/31/2014 - 02:31 | 4386967 tbd108
tbd108's picture

I know India well, having lived there off and on since 1996, and in response to the Vampire Squid's lust for the temple gold, I strongly believe that the problems that resulted from the takeover of the Sikh's Golden Temple would be a picnic by comparison if they tried to loot the major temples. The devotees are aware of the would-be looting and are carefully watching.

Fri, 01/31/2014 - 03:54 | 4387034 satoshi911
satoshi911's picture

CIVIL WAR in India, its coming an this is why.

If ever there was a non-homogenous country of religious nuts held together by the best GLUE that anglo-saxon (PTB) FIAT can buy, its fucking INDIA.

Now that the most recent 'globalization highway robbery' has run its course its time to DIME-STORE unload all of INDIA's assets and quick, just like was done in the USA long ago.

Fuck yes the 'devotees' will fight, but remember the US-MIL and their INDIAN PUPPETS have drones.

*

I'm waiting for some IMF punk to come forward and offer to store all that TEMPLE-GOLD in a safe place in Israel.

Don't laugh, the Israelis have been running the show in secret in INDIA, for a long time. No coincidence that INDIA was freed at the same time that PALESTINE was "FREED".

Fri, 01/31/2014 - 00:36 | 4386806 akak
akak's picture

So much effort and government attention on a mere "barbaric relic".

Like every other modern government, the Indian government's actions belie their true beliefs, and worries, surrounding the subject of gold.

Fri, 01/31/2014 - 01:07 | 4386873 ebworthen
ebworthen's picture

+1

Thu, 01/30/2014 - 22:30 | 4386421 FieldingMellish
FieldingMellish's picture

Hmmm... intl monetary cooperation breakdown, bank runs, sovereign debt crisis, currency crisis... good time to sell loads of gold into a very thin market all at once...

Thu, 01/30/2014 - 22:31 | 4386428 Richard Chesler
Richard Chesler's picture

...or to get on with Oceania once and for all.

 

Thu, 01/30/2014 - 22:34 | 4386433 CrashisOptimistic
CrashisOptimistic's picture

Cooperation began to breakdown when Japan starting buying ink by the barrel.  The Fed was not happy about the yen going to 120 or 130 and destroying GM and Ford.

The Euro is strong for one reason only, so they can pay GAZPROM for gas and Brent prices for oil.  When something is priced in dollars, you gotta get more of them for your printed money.

All these other EMs have to pay Brent prices too, so they are going to take a page from the EU's book and drive up their currency.  The fact that this destroys internal business simply has to take a back seat to getting oil bought. 

And that's the lesson of the future.  EVERYTHING has to take a backseat to getting the oil bought.

Fri, 01/31/2014 - 00:33 | 4386799 ReactionToClose...
ReactionToClosedMinds's picture

atta boy ..... Euro has its own multiple skeletons in the closet ... and you touched on a few..

NOT reported in your jornolist news media ..... I know some savvy German biz folk who when they let their face down (some more than typcial wine or beer or spirits) admit they are very worried about macroeconomics and their (Germany) ability to withstand it all ... without serious wealth decapitation.  Many would sincerely authentically agree to do such for 'fraternitie' but they are also cynically wise to the politcal class fake-outs ..... your sacirifice and your neighbors while somehow not so much for us (political class) or our favorites in our coalition that 'supports' political class

 

Fri, 01/31/2014 - 00:33 | 4386800 ReactionToClose...
ReactionToClosedMinds's picture

atta boy ..... Euro has its own multiple skeletons in the closet ... and you touched on a few..

NOT reported in your jornolist news media ..... I know some savvy German biz folk who when they let their face down (some more than typcial wine or beer or spirits) admit they are very worried about macroeconomics and their (Germany) ability to withstand it all ... without serious wealth decapitation.  Many would sincerely authentically agree to do such for 'fraternitie' but they are also cynically wise to the politcal class fake-outs ..... your sacirifice and your neighbors while somehow not so much for us (political class) or our favorites in our coalition that 'supports' political class

 

Fri, 01/31/2014 - 09:54 | 4387471 jerry_theking_lawler
jerry_theking_lawler's picture

the oil is the key....energy companies are staffing up BIG time....and since no-one can build a new refinery, the refineries are staffing up very handsomely....hiring engineers by the droves to add incremental capacity and for process improvements.

 

the spice.....er, i mean, the oil, is the key.

Thu, 01/30/2014 - 22:32 | 4386434 Pegasus Muse
Pegasus Muse's picture

“Politics is the art of looking for trouble, finding it everywhere, diagnosing it incorrectly, and applying the wrong remedies.” –Groucho Marx

So, too, is Central Banking. 

Thu, 01/30/2014 - 22:35 | 4386448 fonzannoon
fonzannoon's picture

India's Central Bank Governer is best exemplified by Will Ferrell here at this meeting with Ben Bernanke (Mike Myers)

http://www.youtube.com/watch?v=jLaCqrisEac

Thu, 01/30/2014 - 22:36 | 4386441 DeusHedge
DeusHedge's picture

Owe it to the US to weaken perhaps the last army that would fight for us other than our own. Our international reputation must truly precede us.

Thu, 01/30/2014 - 23:00 | 4386519 satoshi911
satoshi911's picture

India has been a secret whore to Israel for years, along with Pakistan, the shit has pissed off the populace.

Civil war is coming and the legacy of UK/Israel/USA control is fucking thin, ... very fucking thin.

If the west trys to steal the fucking TEMPLE-GOLD, you could see a lot of people in INDIA sypathazing with Muslim's.

*

Some things in life are sacred,but Goldman Sachs' wouldn't know that, ... interesting times to see how far unbridled power can take you.

Thu, 01/30/2014 - 23:00 | 4386526 WillyGroper
WillyGroper's picture

They hate us for our "FreeDumbs".

Thu, 01/30/2014 - 22:35 | 4386442 NoDebt
NoDebt's picture

"for once a central banker admits that his peers are on the verge of losing control of the globe - of course not in those words as the result would be sheer panic upon the realization that central bankers are just as clueless as everyone else -"

I wouldn't go that far.  They're not losing control just yet.  They've merely decided to start picking winners and losers, being obviously unable to save everyone.

India has been voted off the island.

Thu, 01/30/2014 - 22:40 | 4386465 satoshi911
satoshi911's picture

That is clear, SA, INDIA, ... Austraila have all gotten bitch slapped.

But to blame the FED? SHIT the $85B is to buy US-PAPER so the USA gubmint can pay its bills, and so far 'taper' is bullshit talk, and INDIA has been going to SHIT for over a year.

The real problem is that the high-tech BOOM in INDIA is KAPUT. Nobody wants to live there, and its game-over.

*

India is not unlike IRELAND a few years ago, ... BOOM years and then KAPUT.

INDIA would be smart to do an ICELAND to the IMF, but I think not, given a UK COLONY they will fuck their citizens in the ASS, just like the USA.

*

Even if INDIA did an ICELAND "TELL THE IMF TO GO FUCK ITSELF", its still would not fix a dirty caste society, that is still in the dark ages of poverty and swimming in human shit.

INDIA is much like AFRCIA (KENYA), had its good time and now it reverts to former itself.

Thu, 01/30/2014 - 23:05 | 4386538 NoDebt
NoDebt's picture

Even if I agreed with all that (which I don't, although you have some good observations), you just..... use too many damned words to get your point across.  You're all over the freaking map, literally and figuratively.  My brain hurts when I read your posts.  Do you have A.D.D.?

You are explaining shit to people who don't need the long-hand version.  You can short-cut it and we'll still get it.  Swear to God, we're not all stupid.  Treat us as such and it's offensive.

Remember, when you're explaining, you're losing.

 

Thu, 01/30/2014 - 23:17 | 4386567 satoshi911
satoshi911's picture

Pot Calling the kettle stoned? xxxoooxxx

*

How about taking a deep breath, and talking issues? Rather than generality's?

*

I write the way I write, you write the way you write. Get over it.

*

Let's see ZH, 80% trolls (ZH bots, BTC bots, GS bots ), 18% morons (IQ<100) , and 2% interesting people ( have traveled ). Trouble is the 2% don't know how to turn off the /sarc, /snide, and /stupid most of the time.

 

Fri, 01/31/2014 - 07:03 | 4387143 Scarlett
Scarlett's picture

As far as I know, you are the biggest moron of the house.  Congrats!

Fri, 01/31/2014 - 07:44 | 4387096 tip e. canoe
tip e. canoe's picture

ICELAND "TELL THE IMF TO GO FUCK ITSELF"

sorry, but Iceland absolutely did NOT tell the IMF to go fuck itself.   they told their banks' creditors (including non-citizen depositors) to go fuck themselves

Though bank creditors, many of them hedge funds, are still trying to recoup their money, Iceland’s approach has won praise from the International Monetary Fund and from numerous economists, including Nobel Laureate Paul Krugman.

http://business.financialpost.com/2014/01/27/let-banks-fail-icelands-pla...

how could they do this successfully without going into an absolute tailspin?    they got a loan from guess who?

the I Muthafuckin F

After some initial doubts it became clear to the government that it had no other option than to seek help from the IMF. The fund would not only provide financing and expertise, but also some much-needed credibility.

http://www.voxeu.org/article/iceland-s-programme-imf-2008-11

Iceland + Japan = the potential future template for the US?

Thu, 01/30/2014 - 22:42 | 4386473 knukles
knukles's picture

Easy...
This is the Land of Mother Theresa, gold shirts, Bollywood, the Very Best Caste System in the World and curried shit.

Fri, 01/31/2014 - 01:04 | 4386867 ebworthen
ebworthen's picture

knukles - Sometimes your wit goes completely unappreciated.

Thu, 01/30/2014 - 22:36 | 4386447 Coke and Hookers
Coke and Hookers's picture

The main objective of central banks is to defend the modern fantasy based economic system against reality. Good luck with that.

Thu, 01/30/2014 - 22:49 | 4386478 OC Sure
OC Sure's picture

The MAIN objective of CBs it to enable those who produce nothing to steal from those who produce everything. It is not a fantasy, though, the invisible hand of Adam Smith has been replaced by the iron fist of the bureacrat / corporate quisling.

Thu, 01/30/2014 - 22:54 | 4386499 satoshi911
satoshi911's picture

Adam Smith has been replaced by Goldman Sachs, backed by the full unbridled power to murder via the US-MIL.

 

Fri, 01/31/2014 - 01:55 | 4386947 disabledvet
disabledvet's picture

It works right up to the point where Boris Yeltsin jumps up on the tank with his "mega phone" and screams "LICK MY BALLS!"

Thu, 01/30/2014 - 22:35 | 4386449 satoshi911
satoshi911's picture

I like to SEE some BASH INDIA here, we don't see it often enough, given the majority of the HUMAN english writing bots here work at INDIAN CALL CENTER's, they normally don't like this subject to come up.

*

Let me just say, I think of a more shitty country going to the TOILET, look at all the rapes recently of of white-women in INDIA,... I mean something is going down, and something is changing and its clear that UK Norm's of human decency are waning.

It's like Indian's have found their ball's.

*

So, BASH on ...

Let me just say that INDIA had a GOOD 20+ years in technology and in investment, and now the money is leaving cuz INDIA is a real fucked up place, the money is going to ASIA,.... CHINA/ASEAN.

So this GUY can suck IMF cock and plead his case to the goldman-sach's masters, ... but who fucking cares?

 

The money was made, and now its leaving, this is how shit ends.

 

Thu, 01/30/2014 - 22:43 | 4386450 HardlyZero
HardlyZero's picture

Raghuram Rajan and India are now 'IMF ready'.

Thu, 01/30/2014 - 22:41 | 4386466 Silver Garbage Man
Silver Garbage Man's picture

When the money's gone, the friendship goes into the shitter.
This is nothing new.

Thu, 01/30/2014 - 22:47 | 4386485 satoshi911
satoshi911's picture

Yes the money is gone,

Now ... what's a mother to do?

 

1.) suck IMF cock for money?

2.) start a war?

3.) fuck the people, whore the women and children

4.) sell the INDIAN (TEMPLE) gold to goldman-sachs? for penny's on the dollar

Me thinks that its #4, INDIA gold held by the temples is one of the largest hordes on earth, ... a smart politician could steal that gold and then become an IMF director and get the fuck out of INDIA.

 

Fri, 01/31/2014 - 01:58 | 4386948 disabledvet
disabledvet's picture

"Your Mission...should you choose to accept it...is to take out the Big Buddha." (cue Mission Impossible music.)

Fri, 01/31/2014 - 04:13 | 4387046 satoshi911
satoshi911's picture

USA HEGEMONY MY ASS

Well VET,

Think about it, all in the USA has been stolen, by the 1950's the great forests were decimated, most USA oil was gone,

In the 1930's depression, young ameriKKKa was still a rich nation,

By the 1970's Nixon bankruptcy, all was gone, oil was gone, the USA had no gold,

In the 1980's RAYGUN robbed all private pensions and replaced CASH with IOU's making BUFFET RICH,

Today there is nothing left in the USA to steal, just a FAT federal work force FED worthless fiat.

Now INDIA still has 100's of billions of REAL SOLID GOLD just waiting in those temples to be plundered.

*

What should the NAZI's do? Let INDIA go Al-queda, then invade INDIA to save them, and go straight to the GOLD, you can be sure  as we talk the NSA is listening and watching them bury that gold.

 

Thu, 01/30/2014 - 22:43 | 4386477 satoshi911
satoshi911's picture

10+ years ago, most didn't speak english in CHINA, and if you wanted to OFFSHORE ameriKKKan jobs you went to INDIA, where they spoke UK-ENGLISH,...

Today is different, everybody in CHINA is requried to learn english, and to get a good job in china, you have to be at level-6, ...

Thus there is NO fucking reason for a factory, or anything to be in INDIA,...

It' game-over for the INDIA economy, now they have to build their own domestic consumer culture, but to do that requires doing away with the CASTE system,

CLASS WAR is coming to INDIA, and I mean CIVIL WAR,

Smart money is exiting INDIA and quick.

Thu, 01/30/2014 - 23:12 | 4386557 yogibear
yogibear's picture

KABOOOM!

Thu, 01/30/2014 - 23:21 | 4386583 satoshi911
satoshi911's picture

Let's NOT forget that SMART-MONEY left the USA in the 1980's.

India in some way's is very much like the USA, but worst of all they're NOT homogenus.

Here's a far out guess for you ZH'ers to ponder.

Imagine that INDIA brings up like YUGOSLAVIA, I mean INDIA is largely a different buch of people that all hate each other...

There is more to this than just money,

Probably in IMF code what this bitch is REALLY asking for is NSA/CIA aka IMF money to beef up the MILITARY in INDIA to prevent a PRO-ISLAM COOP.

Could happen? FUCK YES

 

Fri, 01/31/2014 - 01:04 | 4386863 ebworthen
ebworthen's picture

Well, there won't be any reason to have a factory in India until the U.S. is at war with China.

Fri, 01/31/2014 - 05:36 | 4387089 satoshi911
satoshi911's picture

USA&CHINA to Merge and Murder the World

Until now the US and China seem to be the main actors on the stage to force the world to accept the IMF/SDR currency system.

However, Europe has an important role to play on the issue of a reform of the global monetary architecture. The initial reaction from the EU to the Chinese proposal was negative. The European Economic and Monetary Affairs Commissioner, Joaquín Almunia,..

"It is true that a weakening of the US currency, which is an implication of central banks’ shifting away from the US dollar, that still doesn't justify Europe adopting the CHINA/USA SDR system"

Uncle Sam is smart, and he knows that his MILITARY and CHINESE LABOR/MONEY can and will rule the world, ONLY EUROPE opposes the New World Order

*

Please understand if there is a war it will be USA/CHINA versus EUROPE, just like in the past.

*

Please consider folks that if the USA goes to war, it will be in EUROPE, they're the only place on earth where the 'citizens' aren't sheep.


 

Fri, 01/31/2014 - 09:57 | 4387482 jerry_theking_lawler
jerry_theking_lawler's picture

the same will happen to China in less than 10 years....already, companies are moving operations to eastern Europe, Mexico, and for God's sake back to America...

it is all hinged on taxes, wages, and security.

Thu, 01/30/2014 - 22:47 | 4386486 Urban Redneck
Urban Redneck's picture

Raj,

In case you didn't get the message several months ago-- Angela needs her gold back and now Jamie has joined Bill Dudley in needing to restock the cupboards... so the beatings will continue until your disposition (of Au) improves.

Now get cracking and go shake down some temple trusts for a couple thousand tons.

Regards,
TPTB

Thu, 01/30/2014 - 22:52 | 4386498 Leonardo Fibonacci2
Leonardo Fibonacci2's picture

Can you please say it in punjabi

Thu, 01/30/2014 - 22:55 | 4386509 buckwheat5000
buckwheat5000's picture

I can solve that problem quick!! it's easy. India should make gold and silver coins as money, this way they can buy all they want and it won't get tied up in hoarded savings.

 

I can see this happening, go india!!

Thu, 01/30/2014 - 23:09 | 4386549 yogibear
yogibear's picture

"India's Central Bank Governor: "International Monetary Cooperation Has Broken Down""

LOL, guess you don't get it India and China. The US Federal Reserve played a currency war and you chumps lost.

Bernanke and the Fed told you to play by their rules and now you feel like fools.

 

Fri, 01/31/2014 - 03:06 | 4386999 SAT 800
SAT 800's picture

You're just not being co-operative enough with us; whine, whine. whimper.

Thu, 01/30/2014 - 23:34 | 4386614 Reaper
Reaper's picture

Is there honor among central bankers? Or trust? Or compassion? Fool central bankers' currencies are soon devalued.

Thu, 01/30/2014 - 23:38 | 4386625 lasvegaspersona
lasvegaspersona's picture

It was Rajan who noted last year that if Indians had invested in GLD, the country would have been credited with 'Foreign Investments' and their capital account would be better off. I think he is a smart guy but still has to keep the rupee going.

Indian will do quite well when the dust settles. Some estimates have gold in private hands in India at 30,000 tons. That would make it the most gold rich country on Earth. When the time comes it will be just as important that the people have gold as the countries central bank....unless you are a power mad dictator....

Fri, 01/31/2014 - 08:57 | 4387303 Global Observer
Global Observer's picture

Almost all of the gold in private hands in India is jewellery. Except under desperate circumstances, it is not used as exchange for anything except other gold jewellery. For monetary purposes, it could as well be non-existent.

But I agree with your assessment that they will do well when the dust settles. Not because of their gold holdings, but because majority still believe wealth is created by humans being productive and not by speculation and "invetsments".

Fri, 01/31/2014 - 00:13 | 4386744 Duc888
Duc888's picture

 

 

Don't worry, Oblabla will pull another EO out his ass and fix it.

Fri, 01/31/2014 - 00:39 | 4386814 TrustbutVerify
TrustbutVerify's picture

Indians should be putting their money into a MyRA!  

Fri, 01/31/2014 - 01:00 | 4386856 ebworthen
ebworthen's picture

"International monetary cooperation has broken down."

Thank God.  When do we roll the guillotines and rope the hanging trees?

Fri, 01/31/2014 - 02:42 | 4386976 yogibear
yogibear's picture

Go long boiled rope and guillotines.

Fri, 01/31/2014 - 03:11 | 4387005 Kirk2NCC1701
Kirk2NCC1701's picture

He should have said: "Holy Cow, International Monetary Cooperation Has Broken Down".

Quick, find that SOB with the Golden Chain-Mail Shirt!

Fri, 01/31/2014 - 03:13 | 4387007 Schmuck Raker
Schmuck Raker's picture

Good.

Fuck all y'alls.

Fri, 01/31/2014 - 04:19 | 4387051 satoshi911
satoshi911's picture

INDIA is GOLDMAN SACHS ...

Federal Reserves' true history, ownership, and ... Today the Federal Reserve Bank is still owned and controlled by the ... Rothschild financed IBM, supply machines to the Nazis which produce .... This task was split amongst the international bankers from, Kuhn Loeb, Goldman Sachs, the Warburgs, ...

Fri, 01/31/2014 - 05:07 | 4387076 satoshi911
satoshi911's picture

IMF is just another name for Goldman Sachs

 IMF, CFR, Kissinger, Rothschilds and The .... Discusses United Nations and One World Government. ... "Goldman Sachs" is found in (888) CFR Documents

Fri, 01/31/2014 - 04:20 | 4387052 Global Observer
Global Observer's picture

India has practically zero gold production. So any gold Indians buy has to be paid for using a trade surplus they don't have (India runs an annual trade deficit even excluding gold imports). While demand for gold bullion is a recent trend in India (rich guys parking their saving in gold), India has always had a huge demand for gold jewellery across all economic sections. The only way India can finance such an increase in gold demand (with increased current account deficit) is if there are capital account inflows. In other words if there not sufficient capital account inflows (controlled by foreign investor confidence and not under the control of the Indian Government or its Central Bank) to meet the increased demand for imports, the currency has to depreciate to increase the price of imported goods across the board in the Indian currency thus depressing the demand for imported goods. However, a depreciation in the Indian currency will lead to loss of investor confidence and will reduce the capital account inflows further and further depreciation in the currency. That will stabilise at a value where the imports and exports are nearly equal. However, across the board increase in the price of all imports will mean a huge increase in the domestic price of oil (India imports most of its crude) and across the board increase in the domestic price of everything dependent on transportation, something no country can afford. So the government chose to make importation of non-productive assets like gold more expensive, thus limiting the demand for gold imports, keeping the current account deficit at a level equal to the capital account surplus and maintaining the value of the currency and foreign investor confidence. So every step taken by the Indian government and its Central Bank in this matter is in the larger interests of the country as a whole.

Raghuram Rajan's remarks have to be read in the context of an impending change in the global monetary system. China has already called for an end to the US$ hegemony. Other EMs too are facing high volatility because of the decisions of the Fed. So the EMs have an interest in a currency for international trade that is stable and whose volume cannot be expanded or contracted at the choice of a single Central Bank. The ideal would be an IMF reformed (in terms of voting rights) to reflect today's economic reality, issue and manage a currency in which international trade can be conducted and trade surpluses saved in. However the West and in particular US seems averse to the idea of giving up free lunch that comes with being the issuer of the global reserve currency. That is likely what Rajan seems to mean when he talks about international monetary cooperation breaking down. But the EMs have an alternative, of creating their own monetary institution on the lines of what is being negotiated for IMF reform and trading in the currency of that institution. Trade with those outside this institution can continue to be conducted in USD, EUR, GBP or JPY or any outside currency the institution is ready to accumulate, but by exchanging the new trading currency for these currencies or vice-versa, except that none of the participating countries will be directly exposed to any of these currencies, since none of them will be individually holding any of those currencies. Since this bloc will have huge surplus of these currencies (China's and Russia's accumulated savings) and will be net accumulator of these currencies, the bloc will be a bloc with a trade surplus, its currency can be expected to strengthen against the outside currencies. As these currencies start depreciating the bloc can be expected to expand with more net exporters preferring to park their savings in a non-depreciating currency that is available only to member countries. The member countries can decide the exchange rate of their national currency for this currency. Members running trade deficits can borrow from those running trade surpluses with the bank as the mediator i.e with no creation of new money thus preserving its value. Since this currency will not be available to anyone other than the Central Banks of the bloc, currency speculators will be completely neutralised. Investors from outside the bloc wishing to invest in the bloc too will be limited by the access to this currency that their own countries have. Effectively even the "investors" from countries which have nothing to offer but their currency that they can print at will, too will be neutralised. On the whole a completely welcome prospect for the EMs and nightmare for those in the developed world.

Fri, 01/31/2014 - 05:04 | 4387074 satoshi911
satoshi911's picture

ideal would be an IMF (GOLDMAN SACHS) reformed (in terms of voting rights) to reflect today's economic reality, issue and manage a currency in which international trade can be conducted and trade surpluses saved in. However the West and in particular US seems averse to the idea of giving up free lunch that comes with being the issuer of the global reserve currency

*

The USA is pretty much toast, yep they're a mercenary army for hire, and yep the greatest nation in debt, ... and yep a 300 year old prison colony, but the PTB doesn't need to consider asking the USA for permission

Besides, under the current "GOLDMAN SACHS" IMF-SDR deal, the USA, JAPAN, CHINA, and RUSSIA will get to 'withdrawl' all the SDR's they want.

I do agree that the political class is fearful as they'll lose ALL control, as once 'money' all comes from the IMF aka UN, aka Goldman-Sachs, then of course politicians lose all power.

Make no mistake that the IMF-SDR rule's mean UNLIMITED FIAT for all super-powers. Nothing really changes, it just means that the USA no longer has to be the world's policeman in plain sight.

Behind the scenes of course SDR's will be backed by the full power of the US-MILITARY.

Fri, 01/31/2014 - 05:31 | 4387088 tip e. canoe
tip e. canoe's picture

at the risk of being labelled a globalist by a nimrod, the idea of having a super-sovereign entity that manages trade imbalances and which requires a 85% yea count to get any resolution passed -- avoiding the (tyranny of the) 51% majority problem and the practical impracticalities of achieving 100% consensus on anything -- is not necessarily a bad idea in theory.

the practical problems of this are, as you say, are

(a) the voting rights are way out of whack and the current beneficiaries of that imbalance won't acquiesce without a shit ton of kicking and screaming.

(b) as has been proven on a sovereign level, numbers can and will be fudged to ensure a particular desired outcome contrary to the interests of others.

(c) the IMF's brand is in the shitter all across the "developing" world...and for good reason.

and there's also the big issue of who's the enforcer and who watches the watchmen.

as far as UNLIMITED FIAT is concerned, personally i think the first sovereign who says fuck it and issues an equity-based currency is the one who eventually will call the shots.  if it ever gets that far, that is.

Fri, 01/31/2014 - 05:45 | 4387093 satoshi911
satoshi911's picture

Sovereignty is the quality of having independent authority

Right now ONLY europe opposes.

I see this problem as largely cuz the PEOPLE of EUROPE, don't want the EURO either.

The biggest problem here is controlling the PEOPLE. The USA & CHINA have their people under the YOKE.

The wild card here is EUROPE.

Unlimited FIAT it is call it what you want, and I will call it what they say "To each according to his NEED".

Uncle-Sam will need a lot of SDR-FIAT, to police the new world order.

*

There are a lot of liars in this game, and I know that even ZH's own Charles Smith, a loyal IMF player try's to portray the IMF-SDR as not a win-win, but the fact is that if the USA&CHINA and GOLDMAN-SACHS are going 3-way, and only EUROPE is opposed, you know something really stinks.

Hell EVEN PUTIN has said "I LIKE IT :)"

The problem is EUROPE doesn't want to give up even more Sovereignty

*

The Brand of SDR being sold by CHINA/USA is created by GOLDMAN-SACHS, and all are on BOARD, except EUROPE.

Now the problem is selling it to the EUROPE people, fuck the USA people, it will always be kardashian twat 24/7, ... they don't care or know.


Fri, 01/31/2014 - 06:09 | 4387110 tip e. canoe
tip e. canoe's picture

although i reserve the right to alter my opinion as conditions warrant, i think your analysis on this particular issue is damn close to spot-on.

if you marry this analysis with FOFOA's freegold concept of the EURO's hidden design, it makes perfect sense why Germany is having beaucoup problems getting their gold back.   in the end, the FED may give them an offer they can't refuse :: we'll give you your gold, but we'll give it to the IMF and they'll put in your allocation stash and you can withdraw it in paper gold aka SDR's.

find it kind of strange that all past & potentially future world wars center around a similar issue and seem to have Germany as the fulcrum.

Fri, 01/31/2014 - 07:30 | 4387162 Ghordius
Ghordius's picture

tip e. canoe, you understood Satoshi911's rant? then you are ahead of me

why "hidden design" of the EUR? why Germany as the fulcrum? Germany is only "at the fulcrum" of that all because of the post-WWII gold location issues

the plain and visible design of the ECB is simple: detach monetary policy from one nation's fiscal and trade balance policies. the rest is just continental european national bank traditions

it's like saying: no painkillers and aspirins. you have a fiscal issue? fix it. you have a trade issue? fix it. through laissez-faire (aka markets) or through gov intervention. usually it takes seven years, if you take painkillers (aka devaluation) you might stretch or even postpone the painful adjustments over decades

meanwhile the IMF "thing" is way more complex. as an org, the IMF wants to expand it's scope. and for that it's asking for more share capital

the US is unwilling to pay, even for past share capital, China and others are threatening to set up their own IMF if they don't get more shares (and voting rights)

the SDR scheme is, at it's best, a cushioning tool. it can't be a balancing tool, not on the long run

continental europe is "at the fulcrum" only because it's adopting neutral policies, and leaving the hegemonic coalition and the new wannabes fight it out between themselves

Fri, 01/31/2014 - 07:42 | 4387190 tip e. canoe
tip e. canoe's picture

haha, glad you showed up, had one ear tuned to how you would respond to the latest tinfoil construction.  not sure how ahead i am, more like behind maybe?   as always, it all depends upon one's point of reference.

i understand how the IMF is currently functioning as a cushion, but the original concept of such an org (the bancor idea) was as a balancing tool, yes?  the hegemon (you know who) just warped the original concept to serve & protect its interests as hegemon (and allow unfettered access for its neo-colonial corporate creations to go in and bust out joints aka "3rd world countries").

before i put any more feet in mouth, let me ask, what is your opinion on A/FOA/FOFOA's hypothesis of the Euro as being an eventual vehicle for "freegold"?

Fri, 01/31/2014 - 08:15 | 4387206 Ghordius
Ghordius's picture

yes, a cushioning tool. yet the very idea that SDR can serve as a balancing tool is utter bogus, unless you do follow Lord Keynes advice, which is nothing else than the parable of the Pharao that dreamt of seven fat cows and seven thin cows, i.e. of saving when feasible and spending when needed

trade is the motor. finance is the balancing tool. look at the history of the UK. first, trade powerhouse (also thanks to the Imperial System of importing raw materials and exporting finished goods, so leveraging capital investments). then investor in foreign countries, which balances the excess of capital. then living on capital "rights", then spending most of it during harsher times

gold used to be the balancing tool for a while, because it flowed in balance in the opposite direction of trade balances

FOFOA? he has two insights: the role of gold for the portfolio of the strong hands (what he calls the "Giants") and the willingness of Europe to accept a return of gold as a balancing tool... if China and the US agree on that

so yes, he is right in the sense that the EUR's setup is neutral versus gold. and gold would need no more than that

Fri, 01/31/2014 - 08:29 | 4387253 Ghordius
Ghordius's picture

btw, it's more of a hegemonic coalition. a multi-tiered hegemonic coalition, not that dissimilar with the ancient Roman method of having first tier allies (foederati) and second tier allies (socii). In Rome's case this also resulted in the Social War (91-88 BC), which nearly resulted in Italy being formed as a federation... without Rome

the tiers are painfully obvious when it comes to spying: the Five Eyes, the Nine Eyes, the Fourteen Eyes and the wildcards China and... Israel

currently, the hegemonic coalition is having it's little spying social war conflict mainly because many europeans are pissed about entering negotiations where American and Chinese counterparts have already knowledge of every freaking strategy discussed confidentially beforehand

this was bearable when it was only Israel, which is a small economy, or the Five Eyes members, which "have to be supported". but it's damn annoying when it's China

Fri, 01/31/2014 - 21:15 | 4390167 satoshi911
satoshi911's picture

GOLDMAN BANGALORE IMF

It's not a 'cushion' its a PIG TROUGH

The USA FED controls the worlds biggest pig trough for free feeding, and the by 'gentlemans agreement' all the world shall feed from one trough, and then only 'good pigs' can eat and others can starve.

The only opponent to goldman-sachs IMF-SDR world domination is EUROPE.

Yes, I agree that this is the reason that GERMANY cannot get their GOLD back, because this is leverage, once GERMANY has their GOLD back, then it will be a BIG FUCK YOU to the GLOBALISTS ( goldman sachs IMF )

 

Fri, 01/31/2014 - 05:48 | 4387098 satoshi911
satoshi911's picture

a.) that's why I have always said it will be backed by the full power of the US-MILITARY

The NSA/CIA spy machine is the enforcer in this new world order currency scam to control the world.

Fri, 01/31/2014 - 05:51 | 4387101 satoshi911
satoshi911's picture

b.) all politics are local, and always will be ...

Butt and the big butt here is that the TRIFFIN DILEMMA is killing the USA, and CHINA is trying to give the USA triage before it goes full SUICIDE

Doesn't anybody see this? It's like  the USA has gone full retard and CHINA/RUSSIA are protecting their own interests.

 

Fri, 01/31/2014 - 07:28 | 4387171 Ghordius
Ghordius's picture

the Triffin Dilemma is bogus. otherwise I agree with most of your post

Fri, 01/31/2014 - 05:52 | 4387103 satoshi911
satoshi911's picture

c.) The IMF/Goldman-Sachs is the brand with the greatest killing power in all human history.

Russia and CHINA respect POWER,

All power comes from the GUN - MAO

 

Fri, 01/31/2014 - 06:57 | 4387136 Global Observer
Global Observer's picture

I don't think any of the EMs are looking for an IMF with an ability to create unlimited number of SDRs and loan them out/give them away.

At an international level there is no need to keep expanding the money supply, since total balance of trade between all countries is zero. For one country to run a trade surplus, at least one other country has to run a trade deficit. Any initial account balances will reflect only the maximum deficit a country can run without needing to borrow at an interest from someone willing to lend from available balances. Of course, the initial balances will have to reflect the current accumulated trade surplus for those holding large amounts of that for them to be even interested in the proposal. Since those with accumulated trade surpluses continue to be running a trade surplus, those running trade deficits would need to accomodate that demand. Countries like the USA with accumulated trade deficits denominated in their own currency (reflected in the currency held by foreigners) will too negotiate for large initial balances although they don't desrves to start with anything other than zero, if not negative balance. It is unrealistic to expect others will deny them that.

However, the USA is extremely unlikely to accept such a monetary system voluntarily, since it is not possible to sell it internally. Such an international monetary system will mean an end to free capital flows out of the USA. In the new system, capital from a country can flow out only if the country has a current account surplus or at least a large account balance. Even if the US begins with a large iniitial balance, given that it is a net importer, it will not be long before the balances will be significantly depleted. If the US allows free capital outflow, the balances will be depleted in no time. Those who wish to move their capital around the world wouldn't like that. Those who believe in consumption without any value addiition (i.e majority of Americans), wouldn't like the idea that they have to actually export something of value to the rest of the world in order to import things of value.

So any reform of the international monetary system will come only when the Americans can no longer exchange their dollars for things of value in the international market. But since six Western Central Banks (of USA, EU, UK, Canada, Japan and Switzerland) have entered into currency swp arrangement, it is not possible for one these currencies to become unacceptable for international payments without the others also being rejected. Since there are no other serious contenders for international payment, the only way the system will change is if some countries outside the US control lanuch an exclusive international trading currency that can inspire confidence especially in the oil exporting countries. It is only a matter of time before it is launched.

Fri, 01/31/2014 - 05:25 | 4387083 satoshi911
satoshi911's picture

SDR has had only a limited use as a reserve asset and its main function has been to serve as the unit of account of the IMF and some other international organizations. Volumes speak for themselves: at the beginning of 2009 the cumulative allocations of SDRs amounted to only 21.4 billion

[ Sort of smells like BITCOIN, and artificial CAP but like BTC a new cap can be pulled out of your ass daily. Today the SDR  CAP is 10X-100X bigger than initially, but don't worry, the CAP can and will be INFINITE, because it by design  Goldman Sachs has given itself unlimited FIAT power to control winners & losers forever with NO possible CAP. ]

A sudden change of course for the SDR occurred when, in March 2009, the Governor of the People’s Bank of China, Zhou Xiaochuan, underlined the presence of the Triffin dilemma and put forward a proposal with a number of actions to promote the use of the SDR as a supra-sovereign reserve currency stating that, even if until now SDR’s role has been restrained by limitations “it serves as the light in the tunnel for the reform of the international monetary system”

[ The Chinese see the SDR as the '1000 points light' that BUSH loved so much. But they are right, the TRIFFIN DILEMMA clearly shows that any country that is reserve-currency, must plunder the world, and MURDER its own citizens - USA. CHINA doesn't want reserve status, but it also doesn't trust the USA to be the Keystone Cop in Charge of the playground. CHINA trust Goldman-Sachs, because China respects POWER, real power ]

 

UN General Assembly (also known as the Stiglitz Commission) puts forward some proposals, regarding the opportunity to: 1) make SDR issues automatic and regular, 2) adjust total issues in a counter-cyclical way; 3) allocate SDRs with criteria based on need and not merely on quotas. The IMF should also be able to provide additional liquidity in case of shortage

 

[ SDR withdrawl is based on NEED, according to MARX, from each according to his ability, to each according to his need, in other words uncle-sam will get all he wants or needs. ]

Until now the US and China seem to be the main actors on the stage. However, Europe has an important role to play on the issue of a reform of the global monetary architecture.

 

[ No problem, most in EUROPE don't want the EURO either, but the USA/NSA/CIA/CHINA are already in BED on this thing, and EUROPE will get fucked in the ass, what the hell do you think the war in UKRAINE is about? ]

 

 

 

Fri, 01/31/2014 - 05:25 | 4387084 fijisailor
fijisailor's picture

India is ready now to officially declare that gold is money.  Problem fixed.

Fri, 01/31/2014 - 07:02 | 4387138 Pseudonymous
Pseudonymous's picture

 

"International Monetary Cooperation Has Broken Down"

No, Mr. Rajan, it is only your crappy idea or model of international monetary cooperation that has predictably broken down.

Gold is a global monetary cooperation model, tried and tested.

Silver is a global monetary cooperation model, tried and tested.

Bitcoin is an global monetary cooperation model, working very well so far, and in any case a lot to learn from.

All those three are exactly this - voluntary cooperative efforts - they have never depended on any coercion or aggression or secrecy in order to work well. In fact they couldn't work properly otherwise. Don't ask "where do I put the printing machine" or "where do I put the siphon".

Fri, 01/31/2014 - 08:00 | 4387203 Global Observer
Global Observer's picture

He is obviously referring to the current international monetary paradigm. How much of global trade is done in gold, silver or bitcoin?

I understand that those who have accumulated gold and silver assuming they can become idle rich once they can convince everyone else that these are the only viable instruments of payment for trade are frustrated that day hasn't yet come. But that day is never going to come since those not holding gold and silver are not morons to make the gold and silver speculators rich simply by accepting to return to these metals as payment in trade. In countries where majority people still do something productive to earn their fiat currency, fiat currency will continue to hold value. China, India, Russia etc have no real need to abandon their fiat currencies and start using gold and silver. If you live in the USA, gold and silver may come in handy preserving purchasing power when the US enters hyperinflation.

Bitcoin can be useful if you wish to escape capital controls in moving your money around, since it can be transferred without requiring any government consent.

For a very long time to come, fiat currencies will continue to be the medium of exchange for commerce in politically stable societies and between politically stable societies. Sure gold and silver can become currency once again if the country you live in loses any semblance of order or stability. But the world as a whole is not descending into chaos anytime soon, so fiat currencies will continue to rule.

Fri, 01/31/2014 - 14:40 | 4388694 akak
akak's picture

 

For a very long time to come, fiat currencies will continue to be the medium of exchange for commerce in politically stable societies and between politically stable societies.

Claims the stalwart defender of the (corrupt and unsustainable) financial and monetary status-quo.

I'm sure the same kind of claims were being made in 14th century China as well, after almost 100 years of officially-imposed fiat currency --- and just before the death of said currency, and the 600 year return to precious metal-backed money.

 

Fri, 01/31/2014 - 07:24 | 4387164 TheCosmicTaco
TheCosmicTaco's picture

Who is this fucker for telling developed countries what to do? Nobody tells an Indian what to do. No rich Indian keeps his stash in motherhumping rupees... not even this joker, I bet.

Fri, 01/31/2014 - 08:44 | 4387165 TheCosmicTaco
TheCosmicTaco's picture

On the Taco Experience Index, India rates minus zero. On the diarrhea experience index, India is world class. Good thing there's no such item as a curried taco...

Fri, 01/31/2014 - 07:41 | 4387166 TheCosmicTaco
TheCosmicTaco's picture

Sorry for the double post. WiFi speeds in Laos suck.

Fri, 01/31/2014 - 09:03 | 4387320 nathan1234
nathan1234's picture

Raghuram Rajan is a Wall Street plant to control the Indian Central Bank. He was groomed for this post a long time ago . Check his antecedents

Wall Street is aware of just were the Indian Politicians have stashed their wealth and how much. They have them by their balls or tits as the case may be. They dictate terms. India has been sold out  by their own politicians led by an Italian Empress and her nincompoop son

 

 

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