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Steps Toward Britain's Anti-Dollar Agenda

July 5, 2009 (EIRNS)—Two steps towards implementation of the G20 agenda, that was decided last April 1 in London, after President Barack Obama agreed to the British line, have brought the world closer to a disastrous dumping of the dollar as the international reserve currency. Lyndon LaRouche has repeatedly warned that such a move would be folly, as most of the world trade and economic assets are denominated in dollars, and has attacked the "chaos faction" which is pushing for it.

The International Monetary Fund issued bonds for the first time in history on June 30, thus uttering currency outside government control. The Special Drawing Rights-denominated bonds were mainly purchased by China, Russia, India, and Brazil, with China requesting $50 billion, and the others $10 billion each. SDRs are a form of international currency, replacing, de facto, the U.S. dollar, that have so far been used as unit of account. When a country applied for SDRs, the loan was denominated in a national currency. For instance, if the country wanted U.S. dollars, its SDR account was debited, and America's SDR account was credited. The same goes for other national, or regional, currencies such as the euro. But now, SDRs are taking on an autonomous life. If China, or any other bond-purchasing country wishes to cash its bonds, it can choose to do it in currencies other than the dollar.

At the same time, the bonds are generating a new market, i.e., they are traded on the same terms as sovereign state bonds. This means they have a price tag, and are subject to derivatives trading. They are given a rating by private rating agencies (of course, higher than that of governments) and credit default swaps (CDS) are issued against them. This gives the British the ability to manipulate the price of SDRs against the dollar and other national currencies. In this, we have the seed crystal of a shift from a dollar-based system to an entirely supranational system.

At the same time, the Bank for International Settlements—which acted in the 1930s as the British oligarchs' vehicle for bringing Hitler into power, and which President Franklin Roosevelt was attempting to close down at the time of his death—became the forum, on June 28-30, for statements by central bank heads of China, Brazil, Argentina, the Philippines, along with the head of the Arab Monetary Fund, about alternative reserve currencies, "global super-currencies," and trade without the dollar. A China-Brazil deal for trade between the countries independent of the dollar, was reportedly reached at the BIS.

At the April 1 G20 summit in London, Obama agreed with the British to grant the BIS additional powers over national authorities, including through the BIS-controlled Financial Stability Board (FSB). The Financial Stability Forum was thus transformed from an advisory body, into an international regulatory body, with powers to enforce regulatory, foreign exchange, "risk," and other "standards and codes" upon individual central banks and national governments. The FSB is headed by Italian central bank head Mario Draghi, a Goldman Sachs investment bank veteran, who is a leading British agent in Italy, heading the so-called "Britannia Party."

"International Payment and Settlement" is one of the "Global Standards" which the FSB was put in charge of enforcing at that G20 meeting. This new Standards Committee is headed by Lord Turner of the British Financial Services Agency. Players who are duped into the scheme of "gradually shifting out of the dollar" might believe in the wisdom of small steps. However, there might be no next step after the small step.