Of interest for now is the reaction of the financial media to Kahn’s arrest.  The globalists and one worlders in the media, CNBC, Wall St. Journal, the Economist, are already questioning if the institution and their programs can survive without Kahn, or the negative PR impact of the sex scandal.  They’re wondering if the Greek financial bailout will fall apart and if a potential domino effect will develop for the rest of Europe.

Really?

Realize only this, the IMF, nor the man who was at it’s helm as late as Sunday evening, Kahn, are indispensible when it comes to international finance and national debt management.

The IMF, created in the wake of World War II, was one of the first efforts at establishing an international institution that would lead to global governance and the elimination of independent countries constrained by protected boundaries.  The IMF has a 24 member-country board, with the US the largest contributor to the institutions budget.  It was established to manage the new fixed exchange rate system which was established at the 1944 Bretton Woods conference.  The IMF would be a sort of lender of last resort, lending reserves to countries that could not otherwise maintain their required fixed exchange rate values.  As we know now, this didn’t work.  The IMF, from the mid-1970’s to late 2008, had largely been relegated to the role of dealing with the financial problems of third world countries, more often then not making things worse for those countries rather than better.  They had a cookie cutter solution for all:  slash government spending, devalue your currency and then peg the currency to the US dollar or some basket of assets (typically other currencies).  (more…)