Bitcoin Forum

newly published IMF strategy document calls for the implementation of a global currency, called the “bancor”, to stabilise the international monetary system, while acknowledging that only a monumental shift toward acceptance of globalism will make it possible in the short term. The IMF blueprint, authored by Reza Moghadam, director of the IMF’s strategy, policy and review department, has stayed under the radar for three months. However, an article on the Financial Times blog alphaville, entitled IMF blueprint for a global currency – yes really, today highlights the document and the clear strategy of the global financial body. “…in the eyes of the IMF at least, the best way to ensure the stability of the international monetary system (post crisis) is actually by launching a global currency.” Izabella Kaminska notes. “And that, the IMF says, is largely because sovereigns — as they stand — cannot be trusted to redistribute surplus reserves, or battle their deficits, themselves.” A chart within the document, innocuously titled Reserve Accumulation and International Monetary Stability (PDF link) (http://www.imf.org/external/np/pp/eng/2010/041310.pdf)

wow!!!!

but they will likely develop their own and see bitcoins as competition

So the IMF thinks governments can not manage the currencies responsably (which I happen to agree) but then the solution is to give control to the IMF itself. Yeah, right.

Dont they already have this? Its called an SDR.
http://en.wikipedia.org/wiki/Special_Drawing_Rights (http://en.wikipedia.org/wiki/Special_Drawing_Rights)


In b4 "amero".

The answer is not a gigantic centralised world currency it is millions of competing currencies that no one state controls. Look at the trouble thats happened with the Euro when they centralised everything. What are they going to do if people refuse to trade in their "bancor" ?

Not exactly.  The SDR is more of an international currency between nations, not intended to actually trade among individuals.


Something I once read in the last book of some religious collection comes to mind at this point.

Where can I buy shares in the IMF ;)

Seriously though... I wonder if there's a way to benefit from their already significant power (such as owning Iceland etc)

No kidding!!!! :o

  Alex Jones describes this scenario on Coast To Coast AM - Mar 8th, 2011
  Here's part 3 of 12 of the day's show in which Bancor is mentioned:
  http://www.youtube.com/watch?v=p2bmG4IlEqk

Boo unto the Devilish IMFs!

BitCoin is the answer to the World's Problems of economiks! Why introduce this so-called "Bancor" as a global super-currency, when at the end of the day it will suffer from the same flaw as all national currencies face? The fact that it is controlled by a bank, which is, essentially, what the IMF is!

Woe unto them!

Use BitCoins!

You said it.

This is a very old scheme and one  that gets trot out every now and then.  Keynes suggested the development of a global fiat currency.  The idea being that keynes felt a debt backed fiat currency was good, because it allowed manipulation of the markets by the central bank to even out cyclical economic developments.  I think we've all seen how well that idea works in the last few decades, but nonetheless.  Instead of instituting the Bancor, the USD became the world reserve fiat currency through the bretton woods agreement (more on the details of the original plan for bretton woods can be found on wikipedia).  This eventually fell apart, and all ties to the gold standard, as well as the pegging of several international fiat currencies to the dollar, were lost under nixon's administration, partly due to out of control spending in vietnam and domestically under LBJ (sound familiar?) and international discontent with US foreign policy in the early 1970s.  Part of the problem with having the USD as a reserve currency, which is IMHO causing many of the current economic woes, is the issue with trade deficits.  The issue is known as the Triffin dilemma:


Triffin dilemma

This is where short-term domestic and long-term international economic objectives can conflict when a currency is also a reserve currency. [1]

The Triffin dilemma or paradox: the conflict between the benefits and costs of a country with a reserve currency running a large current account deficit. The reserve-currency country enjoys the consumption benefit of running a trade deficit, while the rest of the world benefits from the additional liquidity, which helps facilitate trade, The cost comes from the declining value and credibility of any currency which runs a persistent trade deficit - eventually leading to a reluctance of creditors to hold the reserve currency. [2]

(from lexicon.ft.com)

In other words, it is, in the short term, both beneficial to the US to borrow money, and beneficial to our creditors, because it injects liquidity into their markets (effectively printing them money).  Long term, however, the currency is devalued and everyone will end up sitting on useless assets backed by unmanageable debt.  This is the state we are now in, I don't know if total collapse is coming, but I would be extremely surprised if the status quo of the USD being the world reserve currency can be maintained much longer.  Currently, however, there is no replacement.  The bancor would be a hard sell, given the incompetence of the UN and the IMF, and each member state's sovereignty issues, the euro is only marginally healthier than the dollar at the moment, the chinese refuse to even float the renminbi so it's unrealistic to expect central banks to hold it as a reserve.  In short, barring a return to an commodity based reserve (gold? palladium? silver? oil? a basket of valuable commodities?) the system is going to fall apart sooner or later, creating the bancor now, or worse (and more likely) trying to use SDRs as an international reserve, is too little too late.

Oddly enough, the triffin dilemma is sort of a larger version of the mortgage crisis in the US.  The banks knew that their debtors could not pay them back, and yet in the short term the loans were still mutually beneficial.  The banks got a mortgage agreement, that could be used as a cash like asset, and the debtor got a house, which he had no intention of paying for.  Until it exploded it looked great for everyone, because the debtor assumed the house would go up in value and he could sell it for a profit at any time, and the banks assumed the debt was backed by the value of the house, which would increase anyway.  The inflation of housing prices due to the fraudulent creation of money (creation of debt is creation of money in the current system), led the asset (housing) to form bubble that popped, and now the entire world is paying the price for what was, in essence, a giant counterfeiting scheme.

It will go like this, "Well, you just didn't get the right people in charge of your money. But it's ok, we found them, and it's us." Then people will start hoarding FRNs and an "underground" market (the real market) will spring up. The government will no longer recognize their status as legal tender. At first, they'll refuse to enforce contracts in FRNs. Then they'll start arresting people. Then the world economy will end up like Zimbabwe and we'll start all over again.

This has been in progress for a very long time.

1. Create several semi-global currencies - Euro for Europe, Amero for America, Pan Asian for Asia.
2. Abolish these and create one global fiat disaster, called Bancor.
3. ?? ??
4. PROFIT !!!!

Ah, and later, create new world order.

They aren't even hiding this anymore, but talking straight about creating new world order:
http://www.youtube.com/watch?v=gP99suaJQxM

Yeah, more centralisation, that'll work ... idjits.

Here here people. Gather round. I, too believe that the governments cannot control your currencies properly.

Please, allow ME to take better control over them.

So, lots of time gone since the topic started...

Is Bitcoin == Bancor soon ?

no

Goooood luck with that IMF. Countries are not going to want to give over their sovereignty of currency to you, but always fun to see a nice power grab on a global scale!

why?

Bancor is not something new.  :D


http://www.businessinsider.com/britain-regulate-bitcoin-legitimate-currency-2014-8?IR=T

More than 70 years ago Britain’s John Maynard Keynes (of Keynsian economics fame) suggested a “world reserve currency” called the Bancor. The idea didn’t take off then, but in the here and now the regulation of virtual, stateless currencies could be a small step in that direction.

I really don't see how they think this will do any better than the Euro.

Acceptance by different countries is the key.
But if an idea hasn't taken off for more than 70 years, maybe there is something wrong with it.  ;)

Yes, the wrong timing. the production and technology haven't developed to a specific level.

Even if production/ technology advance, there is a human element to it.
You have to get 100+ countries to agree to use it. There are a lot of big egos involved and this could be very tough.