In her latest interview Nomi Prins dives deep into what is happening within the International Monetary Fund (IMF) and central banks within what she defines as the Artisanal Money Era. In the discussion Prins’ gets to the heart of what all of this means for the everyday person just trying to stay afloat.
After being asked about Central Banks and what ordinary people need to know she responded, “The power that some of these central banks have had with the Federal Reserve, ECB, The IMF… Has really increased tremendously in terms of not just interest rates that were prevailing (which were negative to zero) but also the way in which they are moving economic growth, or stifling economic growth by instead fortifying financial institutions and private banks.”
“They have taken a multiplied role beyond what their stated purpose was in terms of politics, economics and financial systems than they have in the past. They are not stopping. It is a new era we are in. I call it an artisanal money era. They create money. They move money. They have always done that but now it has more power attached to it from a political and economic standpoint.”
Nomi Prins has worked as a managing director at Goldman-Sachs and as a Senior Managing Director at Bear Stearns, as well as a senior strategist at Lehman Brothers and analyst at the Chase Manhattan Bank. She is a best selling author and historian that is currently working on a book, Artisans of Money.
During the interview she was asked by Edward Harrison of RT: “The IMF has long been dominated by the west. Recently it made the Chinese Yuan has become a part of the Special Drawing Rights, the international currency, that is has. Is this a sign that that the center of gravity is moving away from the western economies?”
Nomi Prins did not mince words when responding to the question of “world money” after saying, “Absolutely. It is a sign that has been growing because of the financial crisis that was caused by the western banks – predominantly the U.S but also Europe as well. As a result other countries, China in particular, has stood up and said “we don’t want to be impacted from a currency standpoint, an economic standpoint or a financial system standpoint by something that can behave so recklessly…”
She went on to note that, “Part of where the IMF has come and changed their basket to include the Yuan is to make sure their is another voice at the table. It is not just the IMF that is changing. The New Development Bank (NDB), or the BRICS bank, that is headquartered in Shanghai. They have developed in order to be able to provide funds for infrastructure and other types of longer term development projects to emerging countries by emerging market countries.”
“All of that is really in contrast to the danger that had been imposed on the entire system by the western banks.”
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This story originally appeared in the Daily Reckoning