Subject: Intelligence Brief #137 Open Discussion of the SDR


Below is an article from cnnmoney.com stating that the IMF is now openly admitting to the end of the dollar as the world reserve currency.  The stakes in this game are high.  You can be sure this means that everything is already in place to switch to a new currency.  This gives high credibility to the reports of a dollar devaluation between March and June of 2011. 
 
Hillary Clinton, chief of the Dept of State has flamed suspicions of an unprecedented event by calling home "ambassadors from almost all 260 U.S. embassies, consulates and other posts in more than 180 countries are expected to convene at the State Department for what's being billed as the first meeting of its kind."  This in an age of emails, fax, satelite communications, video-conferencing, and yet they spend the time and expense of meeting together.  Could it be for the soon devaluation of the dollar?  
 
In a related article it appears Obama has warned the military to be prepared for food riots in the US as early as April 2011.  The extreme weather and other natural disasters have driven down the global food supply.  The military and police have altered their tactics in recent years to crowd control and riot suppression.  This has been well documented by Alex Jones and others.  The picture below was taken at a joint training session of police and military for operation "Vigilant Guard".  We will have shortages here in the US.  Food will be available but at a significantly higher cost than it is today.  Can you afford your food bill if it doubles or quadruples in 2011? 
 
  
The Pentagon is Training for Food Riots in the U.S.
 
I have asked you repeatedly to prepare.  I have asked you to buy food and water reserves for as far out as you can.  By buying food now you are locking it in at today's prices.  I have asked you to take your money out of the bank and buy physical silver.  You may be down to 4 to 6 weeks left to prepare.  If the Rapture happens during that time or soon after the supplies you leave behind will help family members.  Being Raptured with money in the bank helps no one. 
 
Tim  

Obama Orders Military To Prepare For Spring Food Riots

by TheTotalCollapse.com on January 13, 2011

 
A grim report prepared by France's General Directorate for External Security (DGSE) obtained by Russia's Foreign Intelligence Service (SVR) states that president's Obama and Sarkozy have 'agreed in principal' to create a joint US-European military force to deal exclusively with a Global uprising expected this spring as our World runs out of food.
 
According to this report, Sarkozy, as head of the G-20 group of developed Nations, called for and received an emergency meeting with Obama this past Monday at the White House wherein he warned his American counterpart that the shock rise in food prices occurring due to an unprecedented series of disasters was threatening the stability of the entire World and could lead to the outbreak of Total Global War.
 
Just last week French Prime Minister Francois Fillon underlined that one of France's top G-20 priorities was to find a collective response to 'excessive volatility'in food prices now occurring, a statement joined by Philippe Chalmin, a top economic adviser to the French government, who warned the World may face social unrest including food riots in April as grain prices increase to unprecedented highs.
 
The fears of the French government over growing Global instability was realized this past week after food riots erupted in Algeria and Tunisia and left over 50 dead. So dire has the situation become in Tunisia that their government this morning rushed in massive amounts of troops and tanks to their capital city Tunis and instituted a Nationwide curfew in an order to quell the growing violence.
 
 
Robert Zoellick, president of the World Bank, further warned this past week that rising food prices are 'a threat to global growth and social stability' as our World, for the first time in living memory, has been warned is just 'one poor harvest away from chaos'.
Important to note about how dire the Global food situation has become is to understand the disasters that have befallen our World's top wheat growing Nations this past year, and who in descending order are: China, India, United States, Russia, France, Canada, Germany, Ukraine, Australia and Pakistan.
 
From China's disaster: 2010 China drought and dust storms were a series of severe droughts during the spring of 2010 that affected Yunnan, Guizhou, Guangxi, Sichuan, Shanxi, Henan, Shaanxi, Chongqing, Hebei and Gansu in the People's Republic of China as well as parts of Southeast Asia including Vietnam and Thailand, and dust storms in March and April that affected much of East Asia. The drought has been referred to as the worst in a century in southwestern China.
 
From India's disaster: A record heat wave and growing water crisis in India are forcing politicians to consider implementing user fees and other measures to conserve water. Sri Lanka's President Mahinda Rajapaksa yesterday instructed ministers and officials to prepare a strategic plan to face an impending food crisis as there were signs that the World is to confront a food shortage by next April.
 
From Russia's disaster: (10% of total World's output, 20% for export) they were hit by the highest recorded temperatures Russia has seen in 130 years of recordkeeping; the most widespread drought in more than three decades; and massive wildfires that have stretched across seven regions, including Moscow.
 
From France's disaster: The French government lowered their wheat crop forecast by 2.7% over last year due to drought and cold weather.
 
From Canada's disaster: Record setting drought has affected their main grain producing provinces in the Western part of their Nation.
 
From Ukraine's disaster: (the World's top producer of barley and sixth biggest of wheat) hit as hard as Russia by fire and drought to the point they have halted all their exports of grains in 2011.
 
From Australia's disaster: Fears of a Global wheat shortage have risen after the Queensland area of Australia was hit by calamitous flooding. Andrew Fraser, Queensland's State Treasurer, described the floods as a 'disaster of biblical proportions'. Water is covering land the size of France and Germany. It is expected to reach over 30 feet deep in some areas in coming days.
 
From Pakistan's disaster: Floods have submerged 17 million acres of Pakistan's most fertile crop land, have killed 200,000 herd of livestock and have washed away massive amounts of grain and left farmers unable to meet the fall deadline for planting new seeds, which implies a massive loss of food production in 2011, and potential long term food shortages.
 
Not only have the vast majority of our World's top wheat producers been affected, but also one of the main grain producing regions on the Planet, South America, has been hit by disasters too where an historic drought has crippled Argentina and Bolivia, and Brazil, that regions largest Nation, has been hit with catastrophic floods that have killed nearly 400 people in the past few days alone.
 
Even the United States has been hit as a catastrophic winter has seen 49 of their 50 States covered by snow causing unprecedented damage to their crops in Florida due to freezing weather, and record setting rains destroying massive numbers of crops in their most important growing region of California.
 
And if you think that things couldn't get any worse you couldn't be more mistaken as South Korea (one of the most important meat exporters in Asia) has just this past week had to destroy millions of farm animals after an outbreak of the dreaded foot-and-mouth disease was discovered.
 
To how horrific the Global food situation will become this year was made even more grim this past month when the United States reported that nearly all of their honey bee and bumblebee populations have died out, and when coupled with the 'mysterious' die-off of the entire bat population in America means that the two main pollinators of fruit and vegetable plants will no longer be able to do their jobs leading to crop losses this report warns will be 'biblical and catastrophic'.
 
Chillingly to note is that after meeting with Sarkozy, Obama began implementing his Nation's strategy for keeping the truth of this dire events from reaching the American people by ordering all US citizens to have an Internet ID so that they can be tracked and jailed should they begin telling the truth.
 
And so today, as agricultural traders and analysts warn that the latest revision to US and Global stocks means there is no further room for weather problems, a new cyclone is preparing to hit Australia, brutal winter weather in India has killed nearly 130, and more snow is warned to hit America, and we're not even two full weeks into 2011. May God have mercy on us all.
 

IMF calls for dollar alternative

February 10, 2011 

NEW YORK (CNNMoney) -- The International Monetary Fund issued a report Thursday on a possible replacement for the dollar as the world's reserve currency.
 
The IMF said Special Drawing Rights, or SDRs, could help stabilize the global financial system.
 
SDRs represent potential claims on the currencies of IMF members. They were created by the IMF in 1969 and can be converted into whatever currency a borrower requires at exchange rates based on a weighted basket of international currencies. The IMF typically lends countries funds denominated in SDRs
 
While they are not a tangible currency, some economists argue that SDRs could be used as a less volatile alternative to the U.S. dollar.
 
Dominique Strauss-Kahn, managing director of the IMF, acknowledged there are some "technical hurdles" involved with SDRs, but he believes they could help correct global imbalances and shore up the global financial system.
 
"Over time, there may also be a role for the SDR to contribute to a more stable international monetary system," he said.
 
The goal is to have a reserve asset for central banks that better reflects the global economy since the dollar is vulnerable to swings in the domestic economy and changes in U.S. policy.
 
In addition to serving as a reserve currency, the IMF also proposed creating SDR-denominated bonds, which could reduce central banks' dependence on U.S. Treasuries. The Fund also suggested that certain assets, such as oil and gold, which are traded in U.S. dollars, could be priced using SDRs.
 
Oil prices usually go up when the dollar depreciates. Supporters say using SDRs to price oil on the global market could help prevent spikes in energy prices that often occur when the dollar weakens significantly.
 
The dollar alternatives
 
Fred Bergsten, director of the Peterson Institute for International Economics, said at a conference in Washington that IMF member nations should agree to create $2 trillion worth of SDRs over the next few years.
 
SDRs, he said, "will further diversify the system."
 
Dollar firms after starting 2011 weak
 
The dollar has been drifting lower so far this year as the global economy improves and investors regain their appetite for more risky assets such as stocks and commodities.
 
After rising above 81 in early January, the dollar index, which measures the U.S. currency against a basket of other international currencies, eased below 77 earlier this week.
 
However, the dollar was higher Thursday against the euro, pound and yen as disappointing corporate results weighed on stock prices following several days of gains on Wall Street. The rally in the commodities market also cooled, with the price of oil and metals backing off recent highs.
 
In addition, renewed concerns about the debt problems facing troubled European economies put pressure on the euro and supported the dollar. The yield on Portugal's benchmark bond rose to a record high Wednesday, and borrowing costs for Ireland, Spain and Greece remain elevated.
 
"The market is shedding risk, with equities and commodities weakening and the U.S. dollar broadly stronger" said Camilla Sutton, currency strategist at Scotia Capital.
 
Traders were also digesting comments from Federal Reserve chairman Ben Bernanke, who told Congress Wednesday that despite a strengthening economic recovery, the unemployment rate remains high while inflation is "still quite low."
 
Those remarks reaffirmed the view that "the Fed would be very slow to tighten policy given its dual mandate of price stability and employment," analysts at Sucden Financial wrote in a research report.
 
Bernanke also urged lawmakers to come up with a "credible plan" to bring down "unsustainable" federal budget deficits.
 
"We expect that the outlook for the U.S. fiscal position will weigh heavily on the U.S. dollar in the quarters ahead," said Sutton. In the near-term, however, she said "a strengthening growth profile" could help provide "a temporary period of dollar strength."