By Michael Snyder - BLN Contributing Writer

Sometimes there are things that are so shocking that you just do not want to report them unless they can be completely and totally documented. Over the past few years, there have been many rumors about a
coming global currency, but at times it has been difficult to pin
down evidence that plans for such a currency are actually in the
works. Not anymore. A paper entitled “Reserve Accumulation and International Monetary Stability”
by the Strategy, Policy and Review Department of the IMF recommends
that the world adopt a global currency called the “Bancor” and that a
global central bank be established to administer that currency. The
report is dated April 13, 2010 and a full copy can be read here.
Unfortunately this is not hype and it is not a rumor. This is a
very serious proposal in an official document from one of the
mega-powerful institutions that is actually running the world
economy. Anyone who follows the IMF knows that what the IMF wants,
the IMF usually gets. So could a global currency known as the
“Bancor” be on the horizon? That is now a legitimate question.

So where in the world did the name “Bancor” come from? Well, it turns out that ”Bancor” is the name of a hypothetical world currency unit once suggested by John Maynard Keynes. Keynes was a world famous
British economist who headed the World Banking Commission that
created the IMF during the Breton Woods negotiations.

The Wikipedia entry for “Bancor” puts it this way….

The IMF report referenced above proposed naming the coming world currency unit the “Bancor” in honor of Keynes.

So what about Special Drawing Rights (SDRs)? Over the past couple of years, SDRs have been touted as the coming global currency. Well, the report does envision making SDRs “the principal reserve asset” as we move towards a global currency unit….

However, the report also acknowledges that SDRs do have some serious limitations. Since the value of SDRs are closely tied to national currencies, anything affecting those currencies will affect SDRs as
well.

Right now, SDRs are made up of a basket of currencies. The following is a breakdown of the components of an SDR….

*U.S. Dollar (44 percent)

*Euro (34 percent)

*Yen (11 percent)

*Pound (11 percent)

The IMF report recognizes that moving to SDRs is only a partial move away from the U.S. dollar as the world reserve currency and urges the adoption of a currency unit that would be truly international. The
truth is that SDRs are clumsy and cumbersome. For now, SDRs must
still be reconverted back into a national currency before they can be
used, and that really limits their usefulness according to the
report….

So what is the answer?

Well, the IMF report believes that the adoption of a true global currency administered by a global central bank is the answer.

The authors of the report believe that it would be ideal if the “Bancor” would immediately be used as currency by many nations throughout the world, but they also acknowledge that a more “realistic”
approach would be for the “Bancor” to circulate alongside national
currencies at first….

So who would print and administer the “Bancor”?

Well, a global central bank of course. It would be something like the Federal Reserve, only completely outside the control of any particular national government….

In fact, at one point the IMF report specifically compares the proposed global central bank to the Federal Reserve….

So is that what we really need?

A world currency administered by an international central bank modeled after the Federal Reserve?

Not at all.

As I have written about previously, the Federal Reserve has devalued the U.S. dollar by over 95 percent since it was created and the U.S. government has accumulated the largest debt in the
history of the world under this system.

So now we want to impose such a system on the entire globe?

The truth is that a global currency (whether it be called the “Bancor” or given a different name entirely) would be a major blow to national sovereignty and would represent a major move towards global
government.

Considering how disastrous the Federal Reserve system and other central banking systems around the world have been, why would anyone suggest that we go to a global central banking system modeled after
the Federal Reserve?

Let us hope that the “Bancor” never sees the light of day.

However, the truth is that there are some very powerful interests that are absolutely determined to create a global currency and a global central bank for the global economy that we now live in.

It would be a major mistake to think that it can’t happen.