In a very important development which reveals where the real power in the world of global financial power is headed, the IMF’s leader, Christine LaGarde, announced openly that the headquarters of the IMF may be moving in the future from the USA to China (first link). If this happens, it will be a clear indication that the USA has lost its dominant role in global monetary and financial matters and that such dominance has been transferred to China. LaGarde’s statement infers it is only a matter of time until this happens. The gravity of this statement by Christine LaGarde can scarcely be overstated. Indeed, it is so important that one can expect the US media to downgrade it or not report it so Americans do not realize how badly America’s leaders are managing the nation and its currency.
LaGarde’s comments included revealing statements that the IMF enjoys a “good relationship” with China, but that the USA is labeled an “outlier” in the current world of global finance in resisting a necessary realignment of the national quotas now allocated within the IMF’s managing structure. She also expressed the “frustration” of India and Brazil with the USA’s foot-dragging on the necessary realignment of national quota voting rights within the IMF to reflect the reality of the modern world that the US has lost significant power in the realm of world finance and other nations have gained significant power. The current voting strengths of the member nations within the IMF basically reflect the massive dominance of the USA that existed in the world after World War II. That world no longer exists. LaGarde’s statement is a further signal that the days of the US dollar’s dominance of global finance and trade are drawing to a close. Her statement, I believe, was a warning to the USA to either end its foot-dragging or the world will force a change on the USA whether it wants it or not.
Christine LaGarde also gave an interview at the Global Economic Forum in Davos that made it clear that a global re-set of the world’s currencies is going to occur in the future (second link). Her words were parsed very carefully, but I think it is clear from her statements in the first link that the global re-set of currencies will have an unfavorable impact on the value and role of the US dollar in global finance and trade. Indeed, The US dollar may suddenly or gradually lose its role as the global reserve currency or at least be devalued substantially and demoted so global trade need not be denominated in dollars any longer.
The third link contains an analysis of how the IMF’s coming re-set of global currencies may affect the USA, the US dollar and American citizens. This link, an interview with Lindsey Williams, contains more understandable language about how bad this development will be for the USA and Americans. It is well worth your time to listen to these links as your future (no matter what nation you live in) will be affected by the coming global re-set of currencies when it occurs.