A disasterous no-climate-change scandal, the UN's IPCC disgraced, a distinguished (not any more) British scientist asked to resign his position at the University of East Anglia Climate Unit - and it's not enough. The International Monetary Fund (IMF) is proposing a $100 billion green fund to "finance low carbon development in the world's poorer countries." And guess what? George Soros is likely behind the plan.
From the Wall Street Journal:
The idea seems to be this: The central banks of developed countries would inject capital into the fund using some of their SDR allocations. The fund would then issue bonds to investors, including sovereign wealth funds that would be backed by the green fund’s capital.So, with no agreement in Copenhagen, the US will participate anyway?
The idea appears to be uncannily similar to that proposed by financier George Soros around the time of the Copenhagen meeting -– though the IMF boss didn’t give him a name check.How many water systems would $100 billion build? How many DDT sprays would it buy to abolish malaria? How many schools would it build? How many tractors would it buy?
The Wall Street Journal asks: How will it be paid for?
According to Dominique Strauss-Kahn, the IMF managing director, who made the proposal public Saturday, the capital will come from Special Drawing Rights – the IMF’s own currency — held by world’s central banks.What does "Special Drawing Rights" mean? From the IMF website:
The SDR is an international reserve asset, created by the IMF in 1969 to supplement its member countries' official reserves. Its value is based on a basket of four key international currencies, and SDRs can be exchanged for freely usable currencies. With a general SDR allocation that took effect on August 28 and a special allocation on September 9, 2009, the amount of SDRs increased from SDR 21.4 billion to SDR 204.1 billion (currently equivalent to about $324 billion).In short, the IMF says they will use their "own currency." But where does the currency come from? The international community is the answer. In 1969:
...the international community decided to create a new international reserve asset under the auspices of the IMF.Here is a more specific explanation of a Special Drawing Right (SDR):
The SDR is neither a currency, nor a claim on the IMF. Rather, it is a potential claim on the freely usable currencies of IMF members. Holders of SDRs can obtain these currencies in exchange for their SDRs in two ways: first, through the arrangement of voluntary exchanges between members; and second, by the IMF designating members with strong external positions to purchase SDRs from members with weak external positions.Similar to a carbon credit, maybe? A wealthy person with a large carbon footprint, buys carbon credits to plant a tree in a third world country?
This from the Wall Street Journal article linked in the second paragraph:
SDRs were first created and issued to IMF members in 1969 in an era of a dollar shortage, where central banks couldn’t find enough dollars and gold for their reserves. Now, after a new issue last year, the amount held in central banks around the world exceeds $300 billion.
The fund would then use that money to make grants and low-cost loans to developing countries to finance low-carbon growth.In the meantime, the people have no drinking water in their communities, no agriculture, no roads, no electricity, no way to combat malaria, but they will have a tiny carbon footprint.