Democrats in Congress and their globalist billionaire backers are lobbying the Biden Administration to deploy hundreds of billions of dollars into the International Monetary Fund (IMF). The initiative is being advertised to “save Ukraine” and impoverished nations, but it acts as an instrument to further centralize monetary power.
In a letter this week that was signed by almost 50 democrat members of Congress, the politicians pressed the Biden Administration to infuse the IMF with $650 billion worth of Special Drawing Rights (SDRs), bringing the international institution an enormous amount of capital to increase its lending and borrowing capacity.
Last year, citing the economic pain caused by their own COVID policies, Congress passed a bill resulting in the IMF approving a $650 billion SDR package. Now, it is being rebranded to “help Ukraine.” According to the letter, Biden can approve an additional $650 billion in liquidity without any new legislation from Congress. With the stroke of a pen, Joe Biden can instruct the Treasury to send $650 billion into a black hole.
The legislators describe the proposed money creation as “a simple, rapid, and cost-free way to enable Ukraine, its neighboring allies, and developing countries to respond to, and build back better from, these combined international crises.”
Yes, they labeled it cost-free.
The below IMF infographic provides the “official” explanation for what an SDR is, and what it is based upon. In short, it empowers the IMF’s largest stakeholders with a centralized reserve token with which to lend and borrow money as it sees fit. As the infographic explains, new SDRs are allocated to member countries in proportion to their relative share in the IMF, bringing more credit power to already powerful states.
Of course, there is no benefit to the average citizen, as SDRs are controlled by the people in charge, and it can potentially increase monetary debasement.
Moreover, there is a much more nefarious agenda in play here. The real purpose of an SDR, as outlined in IMF literature, is the continuing centralization of fiat currency systems, to the point that the SDR becomes the only game in town.
As the Mises Institute explains:
“The short-term plan, therefore, is to remove any remaining checks on fiat inflation at an international level, and to allow the deficits of sovereign debtors to soar. The long-term plan … is to make SDR the global paper money.”
In the words of the late Austrian economist Murray Rothbard, the plan amounts to this reality:
“An internationally coordinated and controlled world-wide, paper-money inflation, a fine-tuned inflation that would proceed unchecked upon its merry way until, whoops!, it landed the entire world smack into the middle of the untold horrors of global runaway hyperinflation.”
This extra liquidity would allow select IMF member states to move around hundreds of billions of dollars with no oversight. The creation of more SDRs makes for an even more centralized monetary environment, in which allocations of capital are made not according to market forces, but based on the whims of unaccountable bureaucrats.