In an article over at Spiegal Online, we find that the Federal Reserve is to be scrutinized by the International Monetary Fund (IMF):
Officials with the International Monetary Fund (IMF) have informed Bernanke about a plan that would have been unheard-of in the past: a general examination of the US financial system. The IMF's board of directors has ruled that a so-called Financial Sector Assessment Program (FSAP) is to be carried out in the United States. It is nothing less than an X-ray of the entire US financial system.
As part of the assessment, the Fed, the Securities and Exchange Commission (SEC), the major investment banks, mortgage banks and hedge funds will be asked to hand over confidential documents to the IMF team. They will be required to answer the questions they are asked during interviews. Their databases will be subjected to so-called stress tests -- worst-case scenarios designed to simulate the broader effects of failures of other major financial institutions or a continuing decline of the dollar.
Under its bylaws, the IMF is charged with the supervision of the international monetary system. Roughly two-thirds of IMF members -- but never the United States -- have already endured this painful procedure.
For seven years, US President George W. Bush refused to allow the IMF to conduct its assessment. Even now, he has only given the IMF board his consent under one important condition. The review can begin in Bush's last year in office, but it may not be completed until he has left the White House. This is bad news for the Fed chairman.
When the final report on the risks of the US financial system is released in 2010 -- and it is likely to cause a stir internationally -- only one of the people in positions of responsiblity today will still be in office: Ben Bernanke.
Who knew that the Fed could be trumped by another agency? This, to me, is the writing on the wall of sorts. It's interesting that the Fed could actually be beholden to any agency anywhere but think about the implications if they do not cooperate: an international loss of confidence in U.S. currency and a run on U.S. investments. The Fed seems to be cornered by other banks and financial forces gaining in power worldwide. We have a dollar crisis looming. Could the Federal Reserve become the scapegoat? Of course, we would need a new central bank with better and broader controls over a new monetary base. The Amero, perhaps?
Will our money be controlled by an international force? If so, that force will become the new lawmaker in town. And the nation's legislatures, forever beholden to the money needed for them to buy votes, will salute and do whatever is demanded of them as will the majority of the people in this country. Hey, maybe we'll get another stimulus check if we cooperate!
