Gordon Brown as the next head of the IMF? What a splendid idea – at least as long as Charlie Sheen is not available.
No seriously, the despicable, interventionist IMF and the unpopular etatist Brown – a perfect match –perfect, I hope for further discrediting the global paper money bureaucracy, the new political elite lording it over us at our expense, the guys who brought you the crisis and now promise to fix everything – with more paper money and more debt and more policy interventions.
Here is a man who was never elected Prime Minister by popular vote but put in that position by the kind of backroom-dealmaking that is the hallmark of such institutions as the IMF; a man who left his country in a veritable mess, first and foremost in a dreadful recession that Brown tirelessly blames on the bankers – conveniently forgetting that he himself bathed for a decade in cheap money, taking credit (no pun intended) for the get-rich-quick housing boom while vaingloriously pronouncing the ‘end of boom and bust’, and spending with cheerful abandon the borrowed billions that will now be a millstone around the necks of generations of British taxpayers. Under Blair/Brown the share of government spending in the overall economy has risen to levels higher than in World War I and only ever exceeded during the height of the war effort in World War II. In 2009, when the public sector spent more money than all private enterprises and private citizens combined, then Prime Minister Brown declared to his chums at The Guardian newspaper, “Laissez-faire has had its day.”
Well, maybe – under Gladstone.
And now he slips with ease into a senior position in the global paper money bureaucracy to make his expertise, knowledge and experience available to many nations around the world. As we have seen, under the state-bank alliance, for the bankers, failure is not an option. And for the politicians, after failure, there are many options.
As a friend of mine and former IMF insider told me once: The IMF exists for one purpose and one purpose only – for the benefit of those who work for it.
In 1976, the American economist and speculator, the late Howard S. Katz wrote a book that – albeit flawed – proved somewhat prophetic although it is now out of print and almost forgotten. The title was ‘The Paper Aristocracy’. In it, Katz predicted the rise of a new elite, a powerful new aristocracy, the unique privilege of which being the right to legally create money from nothing. This new aristocracy would exercise substantial control over the broader economy by printing paper money and thus providing credit from nothing– as opposed to backed by savings. This aristocracy consists of –naturally- the government, now no longer restricted in its spending by what it can collect in taxes which are never that popular; the state central bank that administers the state’s money monopoly; and the banking sector to which the paper-money franchise is generously extended. And, importantly, the Paper Aristocracy also includes a range of interventionist institutions, such as the World Bank, the IMF, the EBRD and others, that benefit from the paper money infrastructure, often by making it their job to apparently correct or ‘fix’ the various dislocations that the global patchwork of politicized local fiat monies necessarily creates but that are never openly linked back to the disruptive effects of paper money expansion.
Read more at Paper Money Collapse.