PROMOTING SUPERHEATED ECONOMICS IS CLIMATE CRIMINALITY - Having allowed the economies of so many countries to reach critical levels of debt based on the Alice in Wonderland printing press, almost all borrowers will come to realize that lending has been based on unsustainable principles, making those who thought they were doing well, potentially bankrupt in real terms as the world's population increases - and food becomes the common denominator.

It is it important to maintain debt at sustainable levels in dealing with climate change and food shortages arising from desertification and over fishing, where the IMF's clock was not showing the correct time. Borrowers and creditors need to address rising debt vulnerabilities and maintain debt sustainability, amidst the harsh truths now being revealed.

The International Monetary Fund (IMF) is an international organization headquartered in Washington, D.C., consisting of:  "189 countries working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world."

That was all based on a lie, on currency that could never be redeemed: "I promise to pay the bearer on demand .." When of course the Gold Standard was abandoned to allow development above anything resembling solid reserves, like food on the tables for every person on the planet.

Formed in 1945 at the Bretton Woods Conference primarily by the ideas of Harry Dexter White and John Maynard Keynes, it came into formal existence in 1945 with 29 member countries and the goal of reconstructing the international payment system. It now plays a central role in the management of balance of payments difficulties and international financial crises. Countries contribute funds to a pool through a quota system from which countries experiencing balance of payments problems can borrow money. As of 2016, the fund had SDR477 billion (about $666 billion).

Through the fund, and other activities such as the gathering of statistics and analysis, surveillance of its members' economies and the demand for particular policies, the IMF works to improve the economies of its member countries. The organization's objectives stated in the Articles of Agreement are: to promote international monetary co-operation, international trade, high employment, exchange-rate stability, sustainable economic growth, and making resources available to member countries in financial difficulty.

The current Managing Director (MD) and Chairman of the International Monetary Fund is noted French lawyer and former politician, Christine Lagarde, who has held the post since 5 July 2011.

THE G20 HEADS OF STATE (2020) A - Z

ENVIRONMENT

IMF policies have been repeatedly criticized for making it difficult for indebted countries to say no to environmentally harmful projects that nevertheless generate revenues such as oil, coal, and forest-destroying lumber and agriculture projects. Ecuador, for example, had to defy IMF advice repeatedly to pursue the protection of its rainforests, though paradoxically this need was cited in the IMF argument to provide support to Ecuador. The IMF acknowledged this paradox in the 2010 report that proposed the IMF Green Fund, a mechanism to issue special drawing rights directly to pay for climate harm prevention and potentially other ecological protection as pursued generally by other environmental finance.

While the response to these moves was generally positive possibly because ecological protection and energy and infrastructure transformation are more politically neutral than pressures to change social policy. Some experts voiced concern that the IMF was not representative, and that the IMF proposals to generate only US$200 billion a year by 2020 with the SDRs as seed funds, did not go far enough to undo the general incentive to pursue destructive projects inherent in the world commodity trading and banking systems-criticisms often leveled at the World Trade Organization and large global banking institutions.

In the context of the European debt crisis, some observers noted that Spain and California, two troubled economies within Europe and the United States, and also Germany, the primary and politically most fragile supporter of a euro currency bailout would benefit from IMF recognition of their leadership in green technology, and directly from Green Fund–generated demand for their exports, which could also improve their credit ratings.

There are a number of organizations that exist with a claim to promoting world peace and societal projects for the good of mankind. These include the United Nations, the World Bank, the International Monetary Fund (IMF) and many smaller concerns that grant aid suitable projects. In addition there are incentives by most countries to promote clean energy and blue growth, all aimed at keeping the status quo.

THE DEBT SUSTAINABILITY FRAMEWORK

Low-income countries (LICs) face significant challenges in meeting their development objectives, including the Sustainable Development Goals (SDGs), while at the same time ensuring that their external debt remains sustainable. In April 2005, the Executive Boards of the Fund and the Bank endorsed a joint framework for debt sustainability assessments (DSAs) in low-income countries. The aim of the DSF is to guide borrowing decisions of low-income countries in a way that matches their need for funds with their current and prospective ability to service debt, tailored to their specific circumstances. 

SIX (SUGGESTED) STEPS TOWARD A COOLER PLANET

1. TRANSPORT: Phase out polluting vehicles. Governments aim to end the sale of new petrol, and diesel vehicles by 2040 but have no infrastructure plan to support such ambition. Such infrastructure should exceed the performance of fossil fuel filling stations, prolong EV battery life and provide power grids with a measure of load leveling. Any such system should seek to obviate the provision of millions of fast charge points to include fuel cell cars, where implementation could otherwise prove to be a logistical nightmare. This may involve international agreement as to energy storage format and statute to steer OEM vehicle makers to collaborate as to future proofing, to include green hydrogen.

Marine transport can be carbon neutral given the right policy incentives, with phased transition in specific stages such as not to unduly penalize present investment in LNG shipping and other recent MARPOL compliant IC powered vessels. Future cargo vessel should be at least in part powered by renewable solar and/or wind energy, on the road to zero carbon, making allowances for technology catch-up. A scrappage scheme might encourage fleet operators to accelerate shipping upgrades, and a fund for radical innovation that would not otherwise qualify under in-situ programmes (such as Horizon Europe) might be introduced - with fast-track, reduced, form-filling and open-loop decision making, such that applications may be tweaked rather than struck out.

Air travel powered by kerosene should attract hefty mitigation offset, where low carbon alternatives should be encouraged such as electric air transport.

2. RENEWABLES:  Renewable energy should replace carbon-based fuels (coal, oil and gas) in our electricity for homes, factories, heating and transport. Coal and nuclear power plants should be phased out.

3. HOUSING: On site micro or macro generation is the best option, starting with new build homes that are both affordable and sustainable by design to replace crumbling housing stocks. Encourage building in timber to provide carbon lock from a renewable natural resource. Planning policies should be updated to outlaw unsustainable development, with harsh financial penalties for kleptocratic local authorities, especially those with a history of corrupt practices (from historic similar fact evidence files).

4. AGRICULTURE: We need to grow more trees to absorb carbon emissions from a growing population, unregulated/unrestricted air travel. New homes should be timber where practical as a priority. We should promote reductions in food waste and the eating of foods that use less energy to produce. Educate children on these matters in schools and via campaigns such as no meat Mondays, should be part of ordinary study. Polluted fish from fisheries, might be replaced with fish farmed by aquaculture inland, rather than risk carcinogens from our seas.

5. INDUSTRY: Factories should be aiming for solar heating and onsite renewable energy generation. EV parking and even service facilities should be part of new industrial estates as part of any building permissions - with subsidies or tax reductions as incentives to property developers.

6. POLITICS: - National governing bodies need to adopt rules to eliminate administrative wastages, to include scaling down spending on (showboat) war machines, increasing spend on educating the public and supporting sustainable social policies that mesh with other cultures. This includes fostering policies and making funds available to close links in the technology chain to make up for lost time. Kleptocratic empire building must cease in the search for natural equilibrium.

International aid should not be provided to regions that cannot support life naturally. Land reclamation should be outlawed, and a solid currency system based on the ability of the planet to provide food for a growing population, such as a $Food Standard, such as to index link food production (security) to prevent unrestricted (artificial) money lending and superheated economies. There should be a policies of zero trust and full accountability.

Taxes collected from citizens in any form should only be spent on services they are collected for. Road Fund Licences, for road building, National Health Insurance Contributions, for health facilities, etc. The spend of other taxes such as Income and Value Added, should be fully accounted for to prevent slush fund payouts, for defence contracts, for example.

All policies should be SDG and Human Rights compliant, with exceptions needing to be openly qualified and justified, with effective remedy (right of challenge) to a higher national tribunal/court at every level, and to the international court of justice, where a national remedy conflicts. A lack of transparency and accountability would be one of the main reasons for challenge - because such decision making is highly suspect.

IMF CONTACTS

IMF Europe Office in Paris and Brussels

Paris
64-66, Avenue d’Iena
75116 Paris, France
Tel.: + 33 (1) 40 69 30 70

Brussels
8 Boulevard de Berlaimont
1000 Brussels, Belgium
Tel. : +32 (0) 2 221 5130