China Agreed to Buy IMF Bonds

Why should you care about the International Monetary Fund?

Read about WHY from the Official IMF website in the paragraph below.

The work of the IMF is of three main types: Surveillance involves the monitoring of economic and financial developments with provision of policy advice aimed especially at crisis-prevention. Lends to countries with balance of payments difficulties, to provide temporary financing and to support policies aimed at correcting the underlying problems. Technical assistance and training in its areas of expertise to strengthen the international financial system and preventing and resolving crises of standards and codes of good practice in its areas of responsibility, and to the strengthening of financial sectors. The IMF also plays an important role in the fight against money-laundering and terrorism.

Since the mid-20th century, the de-facto world currency has been the U.S. dollar. In March 2009, People's Bank of China, however, called for "creative reform of the existing international monetary system towards an international reserve currency," believing it would "significantly reduce the risks of a future crisis and enhance crisis management capability." and suggested that the IMF's Special Drawing Rights, a currency basket comprising dollars, euros, yen and could serve as a super-sovereign reserve currency, not easily influenced by the policies of individual countries. Obama disagreed saying the U.S. dollar is too strong now. What is behind Obama's comment, "too strong now"? Hmmn... Did Obama's comment carry any weight at all? Read on.

On July 10, Russian President Dmitry Medvedev illustrated his call for a supranational currency to replace the dollar by pulling from his pocket a sample coin of a “united future world currency.”

“Here it is,” Medvedev told reporters today in L’Aquila, Italy, after a summit of the Group of Eight nations. “You can see it and touch it.”

The coin, which bears the words “unity in diversity,” was minted in Belgium and presented to the heads of G-8 delegations, Medvedev said.

The question of a supranational currency “concerns everyone now, even the mints,” Medvedev said. The test coin “means they’re getting ready. I think it’s a good sign that we understand how interdependent we are.”

Medvedev has repeatedly called for creating a mix of regional reserve currencies as part of the drive to address the global financial crisis, while questioning the U.S. dollar’s future as a global reserve currency. Russia’s proposals for the G-20 meeting in London in April included the creation of a supranational currency.

The Chinese connection: China expects to sell off $2 Trillion in foreign-exchange reserves to buy IMF bonds to reduce its exposure to the U.S. dollar. Extending the IMF practice where members make their contributions in their local currencies, China demonstrated its developing financial strength. Using the yuan, China is the first nation who agreed to purchase $50 Billion in bonds in IMF Special Drawing Rights, the super-sovereign reserve currency funds.

Could it be that if a country wanted to buy goods and services from China that they could borrow the yuan from the IMF, pay interest and use the yuan instead of the U.S. dollar as the trade currency? Hmmn......

Good-by United States States Dollar. Hello, Welcome to your new IMF World Order Monetary System enabled by Barrack Hussein Obama, Ben Beranke and Timothy Geithner.

Just a Question: Why is the United States the largest borrower of IMF Funds in 2009? $37.2 Billion or 17% of available funds. (The closest countries behind are France at 7% and Germany 5%) You did not hear about this yet? Hmmn.......