Lagarde Hints At IMF Being Based In China In Future

In a comment sure to stir up questions over dollar hegemony (and new world order conspiracy thoughts), IMF Managing Director Christine Lagarde admitted during an event today in Washington that The International Monetary Fund could be based in Beijing in a decade.

As Reuters reports, Lagarde said that such a move was "a possibility" because the Fund will need to increase the representation of major emerging markets as their economies grow larger and more influential.

"Which might very well mean, that if we have this conversation in 10 years' time...we might not be sitting in Washington, D.C. We'll do it in our Beijing head office," Lagarde said.

Lagarde's comments build on questions raised in May on The IMF's push for World Money... Yi Gang, the Deputy Governor of the People’s Bank of China disclosed to the IMF panel that,

“China has started reporting our foreign official reserves, balance of payment reports, and the international investment position reports.”

 

“All of these reports, now, in China are published in U.S dollars, SDR and Renminbi rates… I think that has the advantage of reducing the negative impact of negative liquidity on your assets.”

What that means in real terms is that China views the opportunity of being a part of the exclusive world money club as an opportunity to diversify away from the U.S dollar.

The Bank of China official took that message even further saying that he hopes that China could lead in world money operations by integrating it into the private sector.

Yi Gang

“If more and more people, companies and the market use SDR as unit of accounts – that would generate more activity in the market with focus on the MSDR. [The hope would be] that they could create more products and market infrastructures that would be available for trade products to be denominated in SDR.”

The People’s Bank of China official referenced how this trend was already underway. Just last year Standard Chartered bank began to maintain accounts in SDR’s. “In terms of the first and secondary markets they will develop fairly well.”

Perhaps the most important segment that the Chinese official signaled was his reference that, “The Official Reserve SDR (OSDR) that allocation from the IMF is very important. [This allows] Central Banks to make the SDR an official asset, and easier for them to convert that asset into the reserve currency they need.”

What that means is that China will become an even greater player in the world money market.

Nomi Prins, an economist and historian stated when analyzing China’s economic positioning, “The expanding SDR basket is as much a political power play as it is about increasing the number of reserve currencies for central banks for financial purposes.”

*  *  *

As a reminder, the IMF's bylaws call for the institution's head office to be located in the largest member economy and since the IMF was launched in 1945, that has always been the United States, which currently has an effective veto over IMF decisions with a 16.5 percent share of its board votes.

But, as Reuters notes, economists estimate that China, with growth rates forecast above 6 percent, will likely overtake U.S. gross domestic product sometime over the next decade to become the world's largest economy in nominal terms.

 

Some, including the IMF, have argued that China already contributes more to global growth on a purchasing power parity basis, which adjusts for differences in prices.

The IMF last revised its quota system, or voting structure in 2010, but is set to launch another review next year.

Nothing lasts forever...

Comments

Dragon HAwk Mon, 07/24/2017 - 20:40 Permalink

Now that's a slimy pair of paws posing for a picture if i ever saw one. SDR's backed in Gold but they  hold the Gold. I see a slight problem with that.

Justin Case Dragon HAwk Mon, 07/24/2017 - 23:21 Permalink

As Michael Hudson said, the parisite has to stay alive and therefore must move to a new host. Merica is finished. China is the new host. The new currency will be the SDR for global trade and countries will use domestic currencies. Gold will earn you mileage at the global trade table. So Russia and China are stackin. Russia has zero debt.The US ripped off the Dragon Family's gold. They issued them special numeric treasury bonds. They were confiscate at a border crossing. There was over a billion dollars seized. The bonds were deemed as counterfeit, but they were special issue to the Dragon family. They want their gold back.A mysterious trillion dollar lawsuit filed on November 23, 2011 in the U.S. District Court for the Southern District of New York, claims that 145.5 billion dollars worth of gold was secretly given to the U.S. government in the mid-1930s by the then Nationalist government of China for safekeeping. [1] The lawsuit claims that 1934 U.S. Federal Reserve notes were issued to the Chinese government, and the gold transferred to the Federal Reserve Bank. [2] It is claimed that a total sum of almost one trillion dollars representing both the principal and accumulated interest of the 1934 Federal Reserve notes was fraudulently taken from the plaintiff, Neil Keenan, an agent for the owners, a mysterious Asian entity called “The Dragon Family.” What makes the lawsuit worth paying attention to is that involves the unresolved June 2009 "Chiasso incident" where two Japanese citizens were caught on a train in Italy near the Swiss border town of Chiasso, while traveling with 134.5 billion dollars in US Federal Reserve notes, bonds and other financial instruments. [3] The "Chiasso incident" involves a separate but complementary set of high denomination US Federal Reserve notes that have a similar origin, history and ownership. The U.S. District Court lawsuit has aroused considerable controversy over its authenticity and the ownership of the 145.5 billion in Federal Reserve notes, bonds and other financial instruments. The lawsuit was filed by William Mulligan Jr and Justin Gardner from Bleakley Platt and Schmidt, a reputable New York law firm. [4]   The principal plaintiff in the lawsuit, Neil Keenan, claims to have been defrauded by a number of official government agencies and political figures including a little known organization called the Office of International Treasury Control (OITC), and its principal officers Dr Ray Dam (President) and David Sale (Deputy Chief of the Council for Cabinet of OITC). On the other hand, Sale claims that Keenan and his accomplices fraudulently gained possession of the bonds from the OITC. Importantly, neither of the two parties contesting ownership of the bonds dispute their validity.http://exopolitics.org/archived/Study-Paper-13.htm

In reply to by Dragon HAwk

RedBaron616 Mon, 07/24/2017 - 20:53 Permalink

Good! Let China pay for the IMF as well. If China follows IMF direction, their economy will be in the toilet even faster than they can do it themselves! Bon Voyage, IMF!

opport.knocks Mon, 07/24/2017 - 21:24 Permalink

There has been speculation for a while that the Jew World Order would head there next after they cannibalize what is left of the USA. Though what I personally know of the Chinese they would not tolerate their BS. Who knows for certain, if the state can maintain tight control through a small elite group at the top it could work.The USA had to be crushed via a huge debt Ponzi, too many "freedoms" running around loose could cause trouble.

Infinite QE Mon, 07/24/2017 - 21:35 Permalink

The zionist progression has been UK>America>China as they will now use China as their world enforcer for a world set to be run out of Jerusalem. Trump is the last stooge and set to usher this in under President Kushner.