A study of The Fed, IMF, World Bank and WTO<br />ECONOMIC TERRORISMPRESENTED BY:SOOBIANSHADAB<br />
FEDERAL RESERVE<br />The Federal Reserve, informally known as The Fed is the Central Bank of the United States. It was created in 1913 with the enactment of the Federal Reserve Act.<br /> Its duties today, according to official Federal Reserve documents, are to conduct the nation's monetary policy, supervise and regulate banking institutions, maintain the stability of the financial system and provide financial services to the U.S. government, and foreign official institutions.<br />
IMF<br />The International Monetary Fund was conceived in July 1944 originally with 45 members and came into existence in December 1945 when 29 countries signed the agreement.<br /> The IMF was important when it was first created because it helped the world to stabilize the economic system. The IMF works to improve the economies of its member countries.<br />The IMF describes itself as "an organization of 193 countries , working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty".<br />
WORLD BANK<br /><ul><li>The World Bank is an international financial institution that provides loan to developing countries for capital programs. The World Bank has a goal of reducing poverty.
By law, all decisions of world bank must be guided by a commitment to promote foreign investment, international trade and facilitate capital investment.
The World Bank is one of five institutions created at the Bretton Woods conference in 1944.
World Bank is based in Washington D.C , by custom, it is headed by an American.</li></li></ul><li>WTO<br /><ul><li>The World Trade Organization (WTO) is an organization that intends to supervise and liberalize international trade.
The WTO's predecessor, the General Agreement on Tariffs and Trade (GATT), was established after World War II in the wake of other new multilateral institutions dedicated to international economic cooperation — under the Bretton Woods institution known as the World Bank and the IMF.
The organization officially commenced on January 1, 1995 under the Marrakesh Agreement, replacing the General Agreements on Tariffs and Trade (GATT), which commenced in 1948.
The organization deals with regulation of trade between participating countries; it provides a framework for negotiating and formalizing trade agreements, and a dispute resolution process aimed at enforcing participants' adherence to WTO agreements.</li></li></ul><li>BUT........<br />THE REALITY IS…….<br />
BRIEF HISTORY OF CURRENCY ,TRADE AND BANKING<br />Trade is as old as civilizations. In earliest days Barter System was basis of exchange.<br />As per the need GOLD STANDARDS overtook Barter System.<br />Gold’s Value remains same in any country . Gold was acceptable in all nations with any king’s seal on it.<br />The earliest evidence of money-changing activity is depicted on a silver drachm coin from ancient Hellenic colony Trapezus on the Black Sea, (modern Trabzon) 350–325 BC, presented in the British Museum in London. <br />
The first state deposit bank, Banco di Saint Giorgio(Bank of St. George), was founded in 1407 at Geneo ,Italy.<br />The name bank derives from the Italian word banco "desk/bench", used during the Renaissance by Florentine bankers, who used to make their transactions above a desk covered by a green tablecloth. <br />In fact, the word traces its origins back to the Ancient Roman Empire, where money lenders would set up their stalls in the middle of enclosed courtyards called macella on a long bench called a bancu, from which the words Banco and bank are derived.<br />
FED is……<br />In 1913 some 15/16 private banks formed a greater bank to save each other bankruptcy.<br />FED is a private central bank.<br />Whistle Blower magazine named it as THE FEDERAL RESERVE: FRAUD OF THE CENTURY<br />
FED( A private bank!) issues currency notes and monitors monetary policy of America.<br />Under law it was made mandatory for all banks to enter Federal Reserve Act.<br />
In 1933 American president passed the orders to deposit all gold coins and bullion with the FED or with the Federal reserve System.<br />Gold was $20 an ounce in 1933 .<br />In 1934 another law was passed that people can buy gold from banks but at $35 an ounce which means that value of gold was devalued within a year. <br />
IMF is……..<br />The primary mission of the IMF is to provide financial assistance to countries that experience serious financial and economic difficulties In return, countries are usually required to launch certain reforms, which have often been dubbed the "Washington Consensus"<br />
WB is……..<br />In Masters of Illusion: The World Bank and the Poverty of Nations (1996), Catherine Caufield argued that the assumptions and structure of the World Bank harms southern nations. Caufield criticized its formulaic recipes of "development". To the World Bank, different nations and regions are indistinguishable and ready to receive the "uniform remedy of development". She argued that to attain even modest success, Western practices are adopted and traditional economic structures and values abandoned.<br />
World Bank represents 186 countries, it is run by a small number of economically powerful countries. These countries choose the leadership and senior management of the World Bank, and so their interests dominate the bank.<br />In the 1990s, the World Bank and the IMF forged “Washington Consensus”, policies which included deregulation and liberalization of markets, privatization and the downscaling of government. Though the Washington Consensus was conceived as a policy that would best promote development, it is criticized for ignoring equity, employment and how reforms like privatization were carried out.<br />President of World bank is always a citizen of the United States, nominated by the President of the United States and the US has a veto on some constitutional decisions with just over 16% of the shares in the bank.<br />
WTO is………….<br />Because of corporate control of food distribution, as many as 800 million people worldwide suffer from chronic malnutrition. According to the Universal Declaration of Human Rights, food is a human right. In developing countries, as many as four out of every five people make their living from the land. But the leading principle in the WTO's Agreement on Agriculture is that market forces should control agricultural policies-rather than a national commitment to guarantee food security and maintain decent family farmer incomes. WTO policies have allowed dumping of heavily subsidized industrially produced food into poor countries, undermining local production and increasing hunger.<br />
Increase in Inequality<br /> Free trade is not working for the majority of the world. During the most recent period of rapid growth in global trade and investment (1960 to 1998) inequality worsened both internationally and within countries. <br /> The UN Development Program reports that the richest 20 percent of the world's population consume 86 percent of the world's resources while the poorest 80 percent consume just 14 percent. <br /> WTO rules have hastened these trends by opening up countries to foreign investment and thereby making it easier for production to go where the labour is cheapest and most easily exploited and environmental costs are low.<br />
Suggested Readings<br />"The United Nations is Zionism. It is the super government mentioned many times in the Protocols of the Learned Elders of Zion, promulgated between 1897 and 1905."<br />Henry Klein, New York, Jewish Lawyer, in Zionism Rules the World, 1948.<br />"This movement among the Jews is not new. From the days of Spartacus Weishaupt to those of Karl Marx, and down to Trotsky (Russia), Bela Kun (Hungary), Rosa Luxembourg (Germany), and Emma Goldman (United States), this world-wide conspiracy for the overthrow of civilization and for the reconstitution [reconstruction] of society on the basis of arrested development, of envious malevolence, and impossible equality, has been steadily growing."<br />Winston Churchill in Illustrated Sunday Herald, 8th February, 1920.<br />