Taxing the banks and using the proceeds to fund the IMF’s activites. Now there’s a proposal everyone can get behind, right? Well, no actually. Not when you realize that the IMF and World Bank represent a centralization of banking power outside of national jurisdiction. Not only is the chain of accountability that much further removed from national voters than their own national central banks (which are bad enough), but the IMF and World Bank are known to engage in predatory lending practices which seek to leverage debt in developing nations to enable the wholesale exploitiation of national resources by multinational corporations. And today’s global tax trial balloon is a completely transparent power grab. It’s not the only one, either. The UN’s environmental head wants a global carbon tax. This is an emerging pattern. A de facto world government is being announced and assembled out in the open, and it has to be stopped. It’s the same method that was used in the Soviet Union to render local councils vestigial bodies, stripped of their power as control was centralized in the hands of the Supreme Soviet and the Politburo. If that isn’t enough to convince you this isn’t the road forward, then at least consider the fact the national banks are simply going to pass this additional cost on to you.
Flashback: G20 nations meet as protests flare on issue of international banking regulation | IMF approves $13bn gold sale to boost lending fund | China Set to Buy $50 Billion in IMF Notes | China calls anew for super-sovereign currency | No one talking about dumping dollar: China minister | China explores buying $50bn in IMF bonds | Chinese economists deem huge holding of US bonds “risky” as Geithner visits | A Bigger, Bolder Role Is Imagined For the IMF | UK PM reveals G20 plan to boost IMF by $1 trillion, hails new world order (again) | UN & IMF Back Agenda For Global Financial Dictatorship | IMF poised to print billions of dollars in ‘global quantitative easing’ | Gordon Brown seeks sweeping reforms to give IMF global ’surveillance role’ | IMF may need to “print money”, act as “world’s central bank” as crisis spreads | Globalists Exploit Financial Meltdown In Move Towards One World Currency | World needs new Bretton Woods, says Brown | IMF prescribes state regulation of ‘global financial order’ | Bilderberg Seeks Bank Centralization Agenda | Banks face “new world order,” consolidation: report
Kevin Carmichael, The Globe and Mail
October 2, 2009
The International Monetary Fund appears poised to throw its weight behind the idea of requiring banks to pay for financial crisis insurance.
Speaking to reporters as economic officials from around the world gather for several days of meetings in Turkey’s biggest city, Managing Director Dominique Strauss-Kahn said the IMF will spend the next several months reviewing proposals that would see banks set aside a portion of their profits to mitigate the cost of systemic failure.
Leaders from the Group of 20 commissioned the study after their summit in Pittsburgh last week. While still far from making any conclusions, Mr. Strauss-Kahn signalled that he is sympathetic to the idea, saying governments could force financial institutions to contribute to a fund that could act as insurance or help low-income countries that end up sideswiped by another global credit crisis. [Ed. Note: You bet he is.]
“The financial sector is creating a lot of systemic risk for the global economy,” Mr. Strauss-Kahn said. “It’s just fair that such a sector would pay some part of its resources to mitigate the risk they are creating themselves.”
Mr. Strauss-Kahn’s comments must be taken seriously because the IMF has emerged as a significant force in the fight against the financial crisis.
The fund last year said the G20 would need to come up with fiscal stimulus packages equal to 2 per cent of their combined gross domestic product, a call the leaders of the group heeded with uncommon haste and co-operation.
The G20, which includes developed nations such as Germany and bigger emerging markets such as Brazil, asked the IMF in Pittsburgh to monitor its progress in reviving the global economy by providing “candid” advice on how the member countries respond to a pledge to avoid domestic policies that harm the stability of the global economy. [Ed. Note: That's step one - the 'voluntary' stage.]
Prime Minister Stephen Harper and his G20 counterparts also used the 9,300-word communique they issued at the end of their two-day summit to ask the IMF to review how “the financial sector could make a fair and substantial contribution toward paying for any burdens associated with government interventions to repair the banking system.”
But just because the G20 is serious about seeking the IMF’s advice doesn’t mean its members are going to accept it.
Finance Jim Flaherty said there has been no discussion about imposing any sort of levy on the financial system, adding that he and his colleagues are focused on regulations that will ensure banks keep enough money in reserve to get them through any trouble.
Mr. Flaherty said he has no interest in any policy that amounts to a tax on banks. [Ed. Note: Jim, call me - we need to talk.]
“That will make for a lively discussion I’m sure, if he brings that up,” Mr. Flaherty told reporters shortly after arriving in Istanbul Friday.
Mr. Strauss-Kahn, a former French finance minister, was clear that one popular idea for curbing excesses in the financial system that won’t be getting his support is the Tobin Tax, which he dismissed as “overly simplistic.”
Devised by Nobel laureate James Tobin in the 1970s, the tax was originally envisioned as a way to slow currency speculation by applying a small levy on each transaction, with the revenue going to the United Nations to help poorer countries. Even though most economists doubt the practicality of the proposal, the Tobin Tax has been revived as policy makers and academics debate ways to curb the excesses that led to the financial crisis.
Adair Turner, the chairman of Britain’s Financial Services Authority, raised the idea of using a Tobin Tax to shrink the size of London banks and other financial institutions in August. French President Nicolas Sarkozy also advocated a tax on financial transactions at last week’s G20 meeting.
“I don’t think that the very simplistic idea of just putting a tax on transactions will work; for many technical reasons I think it’s very difficult to implement,” Mr. Strauss-Kahn said.
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