by Stephen Kovaka, CPA

Permit me to issue and control the money of a nation, and I care not who makes its laws." Mayer Amschel Rothschild  -  1838
The recent G20 meeting revealed the beginnings of a seismic shift in the world's money system.  Up until now, the United States has had the great good fortune to own the franchise on the global reserve currency.  In effect the USA, unique among the nations, has had the ability to create and spend money at will, and best of all, have it accepted at par by most foreign nations.  This franchise was acquired following the Second World War in a two step bait-and-switch maneuver.  In 1944, the Bretton Woods Agreements established a currency exchange system based on the US dollar, which in turn was anchored in a fixed amount of gold.  Seventeen years later, in 1971, the United States ended redemption of dollars in gold, effectively cutting the world's currency system adrift from its mooring to anything of real value.  But by this time, American currency and treasury bonds had become thoroughly integrated into the foundations of world commerce, and no effective protest was made.  The world was presented with irredeemable currency as a fait accompli.
The US federal government grew rapidly in size and power, far beyond the bounds of the Constitution, powered by this ability to pay for its proliferating expenditures the painless way.  They merely created large volumes of dollar account balances or Treasury debt and exported them to the rest of the world in exchange for real products.  Americans were great beneficiaries of this arrangement, and hence were ineffective in resisting the enormous growth of political government.
But all that is changing now.  As we move into the New World Order of Transnational Global Governance, the world's power elite are preparing to take back the global currency franchise from the USA.  No longer will Americans be allowed the unique benefit of owning and operating the world's money system.  That privilege will soon be assigned to "Others"
THE NEW TAXATION
The United Nations has long desired the power to directly tax businesses and individuals.  Traditionally, they got their funding by assessing each member nation for a certain portion of the UN budget.  But when countries like the USA decided not to pay as a protest against certain UN actions, the UN was powerless to enforce this tax.  Surely this was very frustrating for power hungry bureaucrats, and it underscored the fact that the UN was not a sovereign government.  They could ask for money, but they could not compel collection. 
During the last century, the power to create money (or borrow it on someone else's credit) brought with it a new type of taxation.  Now politicians could initiate spending increases without first approaching the electorate with a tax increase, and this naturally proved immensely popular with politicians.  The money is spent today, but the taxing effect on the individual's purchasing power only shows up much later in the disguised form of price inflation.  The USA, with its global reserve currency franchise, holds this inflation tax power to the highest degree.  But recent unrestrained spending, lending and bailing by the US federal government brought questions about the future of the dollar reserve currency franchise to the fore at the recent G20 meeting.  As might be expected, the news released for public consumption played down this issue, while talks behind the scenes went unreported.  Whatever immediate action is taken is likely to be restrained, disguised, and circuitous: the global elite rarely proceed toward their desired ends in a straightforward manner.  The key point is that the end of the dollar hegemony is being discussed publicly in official circles.  As Henry Kissinger (one of the elder statesmen of globalism) stated in a recent Bloomberg interview,
"I don't know whether there is a consensus on A world reserve currency, but there is developing a consensus around the world that the United States, due to its policies largely, was a major factor in producing this [economic] crisis, so that for the US to have the reserve currency, that gives us an unprecedented unique position.  It's something that many other countries are trying to overcome or to alter."
Such remarks may sound vague and inconclusive, but coming from Henry Kissinger, they signal that the global currency franchise is in play.  As a first move, the G20 created $250 billion in Special Drawing Rights (SDRs), a sort of money of account invented by the IMF in 1969, sometimes referred to as "paper gold".  This may not appear to have much practical importance, but the point is to get the ball rolling without creating too much alarm or resistance.  After further meetings and various intermediate developments, perhaps over a period of several years, we are likely to see the global currency franchise placed in the hands of some sort of international body – United Nations, IMF, BIS, World Bank, maybe even the Committee of Wise Men.  As Kissinger indicated in his interview, the USA must certainly be accommodated (i.e., gradually eased out) in this process.  On the principle of never believing anything until officially denied, headlines such as "G20 pledge on SDRs unlikely to threaten dollar" take on a sinister significance.
Nevertheless, when all has been arranged, the immense power to levy an inflation tax on the world by issuing a global currency will come at last to reside in the hands of an international bureaucracy, a Super Fed.  No longer will these people need to go to the various national governments, hat in hand, subject to a veto – they will be able to legally and directly create as much money as they dare to fund their schemes of world government. The power to tax is an essential attribute of sovereignty, and a major signpost on the road to the New World Order of Transnational Global Governance – or whatever they decide to call it.