The speculation abounds with whom the Top IMF post will be given to.
But firstly last week the IMF issued this statement to the US, Which we must keep in mind due to current events.
"Last week, the International Monetary Fund urged the United States to "urgently" address its problems, saying the country stands out as the only large advanced economy with a fiscal deficit that will increase in 2011 from 2010, despite the ongoing economic recovery."(end snip)
So, There was a "warning" of sorts..and look what has now happened to the Head of the IMF?
Traditionally, the IMF head is a European, but now pressure is comming from China."Chinese Foreign Ministry spokeswoman Jiang Yu told a regular news briefing on Tuesday said that the selection for leadership of the IMF should be based on "fairness, transparency and merit."
Wow, that's the pot calling kettle black.
Lipsky, the replacement of DSK is stepping down in August and with so much power via China, the US debt comes to mind here, China or one of their representatives could be a contender for the head position.
This has the Europeans nervous..
And the USA even more nervous with mounting debt issues with China
"Holding $US1.2 trillion of US debt is a fast-growing risk to China. Traders have a theory about why the euro is reasonably stable amid a broadening debt crisis: Asian central banks are converting proceeds from recent intervention moves into other currencies. ''Asian central banks'' has become a euphemism for China, whose reserves now exceed $US3 trillion."
"Zheng, an executive vice-president of the China Centre for International Economic Exchanges, wrote in the China Daily that the ''root cause'' of the financial crisis was US ''long-term abuse'' of sovereign credit. He called for the Group of 20 nations to devise a multicurrency system."
AND this from HERE:
"This enough-is-enough dynamic was on display last week as the leaders of Brazil, Russia, India, China and South Africa, the BRICS economies, met in the Chinese resort city of Sanya. Chinese President Hu Jintao called for reform of international monetary and financial systems." (end snip)
So Who will be calling the shots? and to whose favour? Who is to benefit?
Looks like the BIG MONEY POWER cartels are having a factional spat.
There will be more scapegoats.
Maybe even whole countries.
snips from HERE
Europe and Asia Set for Battle over Top IMF Post
The post is traditionally occupied by a European; a French national has run the IMF for 26 out of the past 33 years. But a power shift at the fund towards emerging nations could lead to a bitter dispute over the succession this time round, with analysts saying China may decide to flex its muscles to try to get an emerging market candidate into the job.
The distribution of power at the IMF still mirrors the old economic order. Among the 24 directors are nine Europeans and the vote of the US member counts four-fold. The Brazilian director represents nine countries and his vote has a weighting of just 2.4 percent.
For decades, the deal has been that a European runs the IMF and an American deputizes to him and gets the top job at the World Bank, which provides credit to developing countries. (end snip)
But who "owns" America's debts? who are the DEBT holders?...the Chinese.
Chinese Foreign Ministry spokeswoman Jiang Yu told a regular news briefing on Tuesday said that the selection for leadership of the IMF should be based on "fairness, transparency and merit."
Formally, the decision on the IMF chief is taken by the 24 executive directors, but they act on the instructions of their respective governments. It will be up to the leaders of the most powerful nations to hammer out a deal.
Other names being put forward include Turk Kemal Dervis, a promising candidate if the post is not to go to a European, while men from India, Mexico and South Africa are also in the running.
Their prospects will hinge on whether the governments of emerging nations can agree on a compromise candidate this time." (end snips)
Looks like China's "representatives" are in for a chance?
We see HERE that China is making deals with nations such as Brazil to conduct trade in yuan. And this is not an isolated incident.
THEN, There is this From HERE:
Emerging economies flex muscle in IMF battle:
The battle to succeed Mr Strauss-Kahn, who is alone in a cell at the city's notorious Rikers Island jail, heated up when China, Brazil and South Africa challenged Europe's long-standing grip on a job that is pivotal to the world economy.
This marks the first time that China, the Fund's third largest member, has weighed in early and so publicly on an IMF selection debate.
South Africa's Finance Minister Pravin Gordhan and a senior Brazilian government official, who asked not to be named, both said the next IMF chief should be from a developing country, pressing forward a case to give emerging economies a greater say in world affairs.(end snips)
It's obvious that there is a battle going on of Monetary ideologies and alliances and the money powers are not happy how the progress is continuing...
Is this a turning point in world financial Powers?
The birth of a Monetary New WORLD Order?
Who is pulling the strings here?
Who will be the next scapegoat?
And Who will benefit.
See Penny for your thoughts HERE for more.