We will have a mirror site at http://nunezreport.wordpress.com in case we are censored, Please save the link

Thursday, April 16, 2015

Vatican aligns with U.N. on 'world governance'

Image result for Vatican aligns with U.N. on 'world governance'

The U.N. general secretary’s appearance at an upcoming Vatican event promoting a worldwide movement to combat climate change coupled with a pontifical paper calling for the establishment of a global political, economic and financial authority cultivated by the U.N. has caught the attention of an author who believes the developments support predictions in his 2012 book.

The Vatican’s “Protect the Earth, Dignify Humanity” conference April 28, which will feature U.N. General-Secretary Ban Ki-moon, aims “to elevate the debate on the moral dimensions of protecting the environment” and build “a global movement across all religions for sustainable development and climate change.”

Thomas Horn, co-author with Cris Putnam of “Petrus Romanus: The Final Pope is Here,” notes the Vatican conference anticipates the encyclical on global warming and the environment by Pope Francis, currently scheduled for June or July publication.

Horn sees the Vatican’s attempt to join forces with the United Nations on the issues of global warming and climate change as additional evidence the Vatican is following a blueprint “for structuring the world’s political and economic authorities into a centralized world government.”

He points out that Cardinal Peter Turkson, the head of the Pontifical Council for Justice and Peace, helped write the first draft of the pope’s encyclical and also wrote a document in 2011 on behalf of the Vatican calling for establishing a global authority to eliminate economic inequalities and redistribute wealth.

Expected to attend the Vatican conference is U.S. economist Jeffrey Sachs, the head of the Earth Institute at Columbia University, and a special adviser to the U.N. chief on Millennium Development goals. Sachs also serves as the director of the U.N. Sustainable Development Solutions Network.

Horn told WND people “should sit up and take notice” of the U.N. event because of the Vatican’s Oct. 24, 2011, document authored by Turkson titled “Toward Reforming the International Financial and Monetary Systems in the Context of a Global Public Authority.”

Horn said the paper “amounted to a call by the Vatican for a global political, environmental and financial authority to be established under the United Nations.”

In the document, Turkson acknowledged “a long road still needs to be travelled before arriving at the creation of a public Authority with universal jurisdiction,”

“It would seem logical for the reform process to proceed with the United Nations as its reference,” Turkson continued, “because of the worldwide scope of the U.N.’s responsibilities, its ability to bring together the nations of the world, and the diversity of its tasks and those of its specialized Agencies.”

Turkson described the Vatican’s view of what an ethically acceptable global economic development would look like.

“The fruit of such reforms ought to be a greater ability to adopt policies and choices that are binding because they are aimed at achieving the common good on the local, regional and world levels,” he wrote.

“Among the policies, those regarding global social justice seem most urgent: financial and monetary policies that will not damage the weakest countries; and policies aimed at achieving free and stable markets and a fair distribution of world wealth, which may also derive from unprecedented forms of global fiscal solidarity, which will be dealt with later.”

Global public authority

In their book “Petrus Romanus,” Horn and Putnam said the Vatican directive attempts to devise a “moral” mandate for establishing “a global public authority” and “a central world bank.”

Horn also drew attention to “Caritas in Veritate,” or “Charity in Truth,” the third and last encyclical published by Pope Benedict XVI before he abdicated the papacy, which advocates a “World Political Authority.”

One of the global authority’s aims, Benedict said, should be to “manage the global economy; to revive economies hit by the crisis; to avoid any deterioration of the present crisis and the greater imbalances that would result; to bring about integral and timely disarmament, food security and peace; to guarantee the protection of the environment and to regulate migration.”

Benedict said that in “the face of the unrelenting growth of global interdependence, there is a strongly felt need, even in the midst of a global recession, for a reform of the United Nations Organization, and likewise of economic institutions and international finance, so that the concept of the family of nations can acquire real teeth.”

In an email to WND, Horn affirmed the conclusions of Accuracy in Media’s Cliff Kincaid after the publication of “Caritas in Veritate” in 2009.

“Kincaid is right to be concerned why the leader of the worldwide Catholic Church, considered by Catholics the personal representative of Jesus Christ, has become an advocate for one of the most corrupt organizations on the face of the earth – the United Nations,” Horn said. “These developments have prophetic implications for Christians who fear that a global dictatorship will take power on earth in the ‘last days.’”

Credit to WND
Read more at http://www.wnd.com/2015/04/author-vatican-aligns-with-u-n-on-world-governance/#hQ8iFwGPY6IizOcH.99

The Underlying Root Of Jade Helm And Its Evil Fruit Are About Ready For The Harvest Of The Slaughter

635646294139640129-Walmart-closings.jpg jh15sdd.jpeg
A document from 1961 in which the US government promises the United Nations that residents of the country of America would one day be completely disarmed gives us a look at the underlying root of why Jade Helm 15 may soon bear evil fruit as it readies for the 'harvest of the slaughter' and helps us to understand why there are now foreign troops in America.

With Wal-Marts across numerous Jade Helm 15 states closing for 'plumbing problems', we're asked to remember the Wal-Mart/Department of Homeland/FEMA connection going back many years which takes on new meaning with the death of Posse Comitatus in America and the ability of the military's 'commander in chief' (Barack Obama) to seemingly do anything he'd like with our brave public servants, including using them to 'round up' American citizens who might pose a threat to the final imposition of theDepartment of State's Publication 7277, the 1961 document in which the US promises to the United Nations 'the general and complete disarmament of America'.

For those who have yet to hear of this document which offers us a 60+ year old view of what Jade Helm 15 is likely really all about, we've embedded it below for you to read for yourself as well as giving you this brief overview of the carrying out of this document that may soon lead to despicably evil actions taken by cowards against Christians, Veterans and Constitution-supporting  Americans.

In 1961, the Kennedy administration ordered a "Top Secret" study to determine what problems the United States would face if the world moved from an era of war to a golden age of peace. In other words, how to bring America into the New World Order.

In the same year that this "Top Secret" study was called, 1961, The Department of State put out a publication (#7277) called "Freedom From War, The United States Program for a General and Complete Disarmament in a Peaceful World". This publication describes a three step program to disarm the American military, shut down bases and have one military under the United Nations. This "military" would be the world wide police force to be used as "peace keepers" throughout the world. The plan would include that "all weapons of mass destruction" be eliminated with the exception of "those required for a United Nations Peace Force" (page 12 paragraph one). In order to "keep the peace, all states will reaffirm their obligations under the UN Charter to refrain from the threat of use of any type armed force" (page 16, Paragraph eight) To support the UN Charter, the average citizen will need to be disarmed; so they cannot defend themselves against these "peace keepers". You don't have to watch much news to see that today, the UN forces are used as "peace keepers" throughout the world, disarming people so they can't defend themselves against oppressive governments. To quote Sarah Brady, Chair of Handguncontrol, Inc. "Our Task of creating a socialist America can only succeed when those who would resist us have been totally disarmed."

According to this new story from Ron Ewart on News With ViewsPosse Comitatus in America has been dead since at least a 2004 DOD published document that officially spelled out its' end and warned that the insurrection act must be expanded in America. We also can see the very important Jade Helm 15 link.
The Insurrection Act is the most sweeping authority for the President to authorize and order the use of the federal troops for domestic operations. The President may not act on warning or even at the start of an incident, but must wait until the governor or a state legislature asks for federal assistance. This tends to discourage advance preparations and movements of troops-although Presidents have authorized such actions. This tiered approach in which the federal government acts only after local and state governments have failed, was workable when the cost of delayed response was acceptable, but it is inappropriate for the current situation.
This should scare the pants off you! The older Insurrection Act and the revisions thereto, have all but repealed Posse ComitatusThe President can do what he wishes, anytime he wants with federal troops. That is an awesome power.
However, contrary to what Mr. Obama might hope for, there are emerging signs that once US military members realize that they will soon be used as pawns for the rounding up and internment of Americans either before or after a 'big event' takes place, they will quickly turn away from doing the devils work and return home to protect their own families from the satanic NWO, leaving the dirty work to the hundreds of thousands of foreign troops here now. We learn from two new alerts on the website of Stephen Quayle from retired US Special Forces Ops that martial law in America may arrive very soon and many American soldiers won't allow themselves to be used as NWO pawns against Americans, necessitating foreign troops be used to carry out these illegal and immoral actions against peaceful Americans.:

Hello Steve,

Reviewing the activity on the net today, I gotta say "we're getting very lose to Martial Law". As I stated yesterday, they are purposely leaking segments of plans associated with Jade Helm, Ukraine, Russia etc. I believe they have to have Martial Law in place before the end of the year, so things are really gonna ramp up as the weather gets warmer and conditions are easier to operate in for role players/spies and other participating non-military non-combat type agencies.

From what I have researched and spent hours, days months and years analyzing, war and civil unrest are set to happen very soon-given the indicators. The question is, "will GOD show humanity mercy and give us more time"?. Well, if they keep messing with CERN probably not. 

It's feels like we're living in an insane asylum, and I wish I was joking!! SEAL MAN!
This is no surprise at all. I believe that when martial law is instituted, a few months later the world will change forever, everyone on the planet will be effected. I have been a trainer for 20 years, from spec ops, sniper (My pedigree: Carlos Hathcock was my instructor), emergency management, police operations and the list goes on.

When you train troops, whatever you are training for needs to coincide/happen in short order/be used shortly after the training completes or your troops loose their edge.

Again, I believe the rounding up will mainly happen after the big event. Yes, some will occur before hand, but limited.

I also believe that the bulk U.S. personnel will walk away due to the magnitude of the event after emergency evacuations is exhausted, that is why there is so many foreign troops involved. Also, I see a percentage of foreign troops heading back home, what is left of it, because the event drives them to view things as "what's the point".

What does this all create? It sets the perfect stage for the antichrist to come on stage, and he will come as a peacemaker for all nations/have all the answers (One part of The Great Deception).
Intellihub shares with us why the shutdown of various Wal-Mart superstores across southern Jade Helm 15 states is so important and how Wal-Mart links to the DHS and FEMA go back many years.

In a report published in July 2014 on Intellihub.com, Shepard Ambellas outlined a plan by the Department of Defense and FEMA to use, “abandoned or unused department stores, shopping malls and warehouses as camps to accommodate the mass human influx from South America.”

Although FEMA has used a massive influx of immigrants as the reason for needing detention centers, their power to control the entire country in the event of a martial law scenario could easily lead them to use the centers for American citizens.
You can see the 'Freedom From War and the US Program for General and Complete Disarmament' embedded below. We have to ask, how does the US government plan for a 'peaceful world' when they're getting ready to kill every American who doesn't abide by their terms? Would that be called the biggest contradiction of all-time? 

The videos below look more into Jade Helm 15 including the 1st one showing actual recent drills in Yuma, Arizona as well as videos on the criminalization of political dissent and the Wal-Mart closures in Jade Helm 15 states with the end of Posse Comitatus in America in much more detail including the fact that no permits have yet been sought to do any Wal-Mart plumbing work!




"The Horrors Of The Illuminati" With John Breaux

DHS To Purchase 62 Million Rounds Of AR-15 Ammo

Image result for DHS To Purchase 62 Million Rounds Of AR-15 Ammo

Paul Joseph Watson:  The Department of Homeland Security is set to purchase over 62 million rounds of ammo typically used in AR-15 semi-automatic rifles, just weeks after the ATF was forced to back down on a ban on M855 bullets.
posting on FedBizOpps.gov this week reveals that the DHS is looking to contract with a company to provide 12.6 million rounds of .223 Remington ammunition per year for a period of five years – totaling 62.5 million bullets.
The solicitation explains that the purchase is intended, “to achieve price savings over the current .223 Rem duty ammunition.” The bullets will be used by U.S. Customs and Border Protection agents nationwide for “training” purposes.
The .223 Remington is one of the most common rifle cartridges in use in the United States and is used both in bolt action rifles and semi-automatic rifles such as the AR-15 and the Ruger Mini-14.
In 2013, following concerns about the DHS buying large quantities of several different types of ammunition, weapons manufacturers noted that the feds may have been attempting to control the ammunition market by forcing manufacturers to hold back stock from general sale.
“If they periodically do this in increments, they’re going to control how much ammo is available on the commercial market,” a weapons manufacturer told Michael Savage, adding that the contracts with bullet manufacturers stipulate that everything made goes to the government as the number one priority before it is allowed to enter the commercial market.
In March 2013, Californian Congressman Doug LaMalfa and 14 of his House peers wrote a letter to the Department of Homeland Security demanding to know why the federal agency was buying so many rounds of ammunition and whether the purchases were part of a deliberate attempt to restrict supply to the American people.
DHS to Purchase 62 Million More Rounds of AR-15 Ammo
“The extraordinary level of ammunition purchases made by Homeland Security seems to have, in states such as my own, created an extreme shortage of ammunition to the point where many gun owners are unable to purchase any,” LaMalfa wrote in the letter.
The bulk purchase follows attempts by the Bureau of Alcohol, Tobacco and Firearms to ban M855 ammo, another popular round for AR-15’s used by hunters. The ATF justified the ban by claiming that the bullets were “armor piercing” and a threat to law enforcement officers.
After being on the receiving end of a huge backlash, the feds were forced to back down and ATF director B. Todd Jones subsequently tendered his resignation. Democratic Congressman Steve Israel called the ATF backdown “cowardly” and vowed to revive the ban.
The ATF’s threat to ban the ammo temporarily caused prices of the bullet to surge more than double in price.
Although federal agencies are increasingly hiding their purchases by limiting public information on fbo.gov, it can still be conservatively estimated from available data that the feds have purchased at least 2.11 billion rounds of ammunition since April 2012:
Date Reported            Agency                 Amount                  Caliber       
April ’12 – Feb ’13           Various             2,000,000,000              Various
03/25/13                             DHS                      360,000                    .40 S&W
07/26/13                            NOAA                      72,000                     .40 S&W
07/26/13                            Army                     2,550,000                7.62x39mm
07/26/13                            Army                       425,000                 9x18mm Makarov
08/19/13                             TSA                       3,454,000                 .357 SIG
02/11/14                             DHS                        141,000                  .308 Remington
04/22/14                            DHS                     25,000,000                12 Gauge
05/22/14                            TSA                      24,000,000                .357 SIG
04/15/15                            DHS                     62,000,000                .223 Remington
TOTAL                                                      2,118,002,000
That’s enough ammo to kill around 30% of the world’s population.
Furthermore, U.S. soldiers were shooting around 5.5 million rounds of ammunition per month during the war in Iraq, or 66 million rounds annually. Using that figure, the feds have stockpiled enough ammo over the past two years to fight a 32-year war.
So what do you think?
Credit to marketdailynews.com/

Walmart Closings, Jade Helm And The China Connection- Are Some Walmart Supercenters Being Refitted Into 'Processing' Centers For Americans?

By Susan Duclos

With the recent announcement that multiple Walmarts would be closing due to "plumbing issues," at the same time, many in states where the controversial Jade Helm 15 military exercises are set to take place across the the US, some are saying their "alarm bells" are ringing as they feel they are witnessing a series of events happening simultaneously within America that lead them to believe the US is preparing to declare martial law and start rounding up citizens for processing.


On March 13, 2015 ANP reported "From July 15th to September 15th of 2015, the US Army's Green Berets, US Navy Seals, US Marines Special Ops Command and US Air Force Special Ops Command will be taking part in 'Jade Helm 15', 8 weeks of night time drills in 7 states in the southwestern portion of America," with two additional states being added by March 23, 2015, those being Florida and Mississippi.


Colorado has since pulled out of the Jade Helm exercises.

The states slated to participate are Florida, Mississippi, Texas, New Mexico, Arizona, California, Nevada and Utah. Texas and Utah are listed as "hostile" in the leaked documents which exposed Jade Helm 15 to the general public. A portion of California was listed as an "insurgent pocket."


On March 28, 2015, ANP reported on a massive martial law roundup drill, captured on video, that took place in Florida, where helicopters, vans and DoD personnel were rounding up citizens as part of a military exercise that was not revealed to Florida residents until after the exercise had already begun. April 12, 2015, ANP reported on a massive military convoy was spotted in Oklahoma, heading towards Texas, images seen here.

Also in Oklahoma, we see a SQ alert, which states "We were in Tulsa yesterday on a scheduled flight and were delayed for a time while F16s were training at the airport which is a joint use airport and has a National Guard wing established. The strange thing about this is that they were flying with full bomb, missile and long range tank loads. I have not seen this at civilian airports before although I am sure it has been done as there are military aircraft based there. I think this was part of the Jade Helm 15 Drill."


Comparing the sudden announced Walmart closings, where in some cases even employees were not informed until just hours before, we see multiple locations are in some of the same states that Jade Helm exercises, other military drills and military movement, is scheduled, has taken place or been captured on camera.

CaliforniaFloridaTexas and Oklahoma.

Walmart operates over 4,000 stores in the US, with over 3,000 of them being "supercenters," meaning stores that offer food, a pharmacy and are generally  much larger than regular Walmarts. Walmart supercenters are considered the largest supermarket chain in the US.

Not only are these stores located in states recently in the news for the aforementioned reasons, but all the Walmarts that "abruptly" announced these closures, laying off hundreds of employees, are supercenters, and all stating the issue causing them to close for the same "six month" period was "plumbing."

According to ABC Action News, "none of the five affected stores have sought any plumbing permits for future repairs."

Via an email forwarded to ANP, we see that in the opinion of one former military man, "Walmart's are outfitted with extensive communications, communications that are identical from store to store and even country to country," stating he believes "the primary purpose for Walmart's, similar stores and malls will be for supply depots for military and initial staging area for local civilians to be processed (clothes ID's etc.), then moved to sanctuary's/FEMA camps after processing." He continues on to point out "the delivery entrances and storage are already set up."

Another forwarded email shows the concern some US citizens are feeling from recent events:

Closing THAT MANY stores for 6 months, coincidentally during Jade Helm sets off more alarm bells that one can possibly imagine. IF these stores are being refitted to such an enormous extent, one must wonder just WHAT they are being refitted for? Just plumbing? That's a WHOLE LOT of plumbing! What would require that much plumbing?


Detention centers? Processing centers? Centralized and controlled distribution centers? What ever the case, closing that many of the country's main food distribution stores will almost certainly cause scarcity for consumers, regardless of real food availability. This almost HAS to be martial law.Perhaps it is related to the planned financial collapse. What ever really is up...SOMETHING IS UP!..

Those emails are not the only example of concern as InfoWars reports that customers and employees affected by these sudden closures are also expressing skepticism about the state reason for these particular stores closing.

Employees and customers are not buying Walmart’s explanation that it is closing five nationwide stores for six months due to “plumbing” issues, with questions swirling about the sudden closures that left hundreds of workers unemployed.

Henry Kissinger famously stated "Control oil and you control nations; control food and you control the people."

For the last year we have been seeing alerts, a couple shown below are a representation of the type of concerns people from smaller towns have been expressing about Walmart and food shortages.

April 14, 2015:

“Here in Butte MT. The super Walmart has had " Last chance" signs on manyitems all winter. I worked for Walmart years ago and never saw thesebefore. I asked the employees what it meant. They all said they had no ideawhat they were. They had never been told about last chance stuff. But thespots where these items were have not been replenished. In fact this pastmonth the shelving has been spread out and the refrigerated/frozen itemsare spread out thinly to keep it from looking too bare. My husband is anover the road truck driver and tells me he's seen the same issue all over.Especially in the west. He is also seeing the military equipment movementALOT. Anyway, I had told him months ago that I thought the stores weregoing to close . So glad the aware are stocking up.P.S. The Albertsons grocery chain was abrubtly bought out by the Stokes andswitched over night. They bought out the Safeway too apparently and maybetrue value hardware. All quite suddenly.

Another alert was sent to me this morning by Steve Quayle, who has been documenting these witness accounts in his Alert section, which states "

Steve, I was in my local Walmart in Boone NC, yesterday.. I too notice empty spaces on shelves, the deli meat was not as full as usual and some things like their slaw were not present. I did not go up and down the frozen food sections, but the one I did you can see things spread out , or just one to three bags of different types of Tyson products. Usually there is a bunch of food items in bulk in the main aisles along the grocery dept, Progresso soups, Libby Vegetables, cereal etc...there were none...no large 25 lb bags of sugar or flour either, the sugar stock was not full. Thanks to you and Hawk I went to pick up some more Borax..I picked up 2, which left about 4 on the shelf that item is usually stocked well. The cold bins where they keep franks or Bologna, or other meats were less then 1/2 full....They also are pulling items to the front of the shelf so it appears to be full but there may be only 2. Yes, I too have seen last chance tags also, it usually means they will no longer carry an item.I wanted to share this with you to confirm that this is happening in another part of the country. Gary the butcher told me that he heard beef and pork will be going up even more, he said get what pork you can now.. Folks need to get what they can while they can.Thank you both for all your alerts and info to try and help those with ears to hear and eyes to see prepare. May GOD bless you and keep you safe.

By 2011 it was reported that over 200 Walmarts had opened up in over 101 Chinese cities with other reports detailing China and Walmarts' connections, which brings us back to the comment from the military man quoted above about how Walmarts extensive communications systems that are identical from store to store and country to country, meaning they "they know how the stores operations work, how they are laid out and how things can be reconfigured."

This brings us to the final SQ alert from April 13, 2015:

While the young black man was trying to pull out the manual ladder we heard the equipment that has the warning signal when it is backing up. My husband & I looked to see a Chinese man in his late 20's very physically fit, like a soldier, driving an automated lift. It was apparent that he was using more sophisticated automated equipment that the average employee was not allowed to use. It also appeared he was a man with authority. The average employee had to use the manual ladder. This Chinese man was clearly someone with more authority. He spoke English but with a VERY HEAVY Mandarin accent as if he just stepped off the boat from China. 

My husband & I couldn't help but notice it appears WalMart is now operated by Chinese management, possibly even military management, that are still more out of site from the average American shopper. As if they are keeping them in the back. We sense it is only a matter of days before our local WalMart is completely and overtly run by the Chinese, possibly even the Chinese military. No more just "Made In China" but now owned, operated, and controlled by the Chinese. Lord have mercy!

We live in an area of Appalachia that is predominately southern anglo farmers. We would love to know if anyone else is seeing this?

The China connection could be very important if we look at the big picture, see the US Dollar is at the high end of the scale of how long any nation keeps it's world reserve currency status, the amount of money we owe China, the amount of land China already owns in the US, the push to replace the Dollar with the RMB, their recent successes in getting many US allies to join their China-led investment bank, and the 2012 call by China to disarm Americans.


Is the US government preparing for an all-out economic collapse with Jade Helm, on behalf of the Chinese? Are Walmarts in the poorer areas being closed down to "control the food," send those that are hungry scavaging to the more affluent areas, and to set off food riots, which would give the government a reason to declare martial law? Are some Walmart Supercenters being retrofitted to prepare to turn them into some type of processing centers for Americans after they have rounded them up as they practiced doing in Florida last month? Will they be used as China's C3 (Command, Control And Communication)?

Has the endgame we have heard so much about.... finally arrived?


Credit to allnewspipeline.com

IMF fears 'cascade' of woes as Fed crunch nears

Image result for IMF fears 'cascade' of woes as Fed crunch nears
The United States is poised to raise rates much more sharply than markets expect, risking a potential storm for global asset prices and a dollar shock for much of the developing world, the International Monetary Fund has warned.
The IMF fears a "cascade of disruptive adjustments" as the US Federal Reserve finally pulls the trigger for the first time in eight years, ending an era of cheap and abundant dollar liquidity for the international system.
The Fed's long-feared inflexion point is doubly treacherous because investors seem ill-prepared for what lies ahead, and levels of dollar debt outside the US have reached an unprecedented extreme. The Fund said future contracts are pricing in a "much slower" pace of monetary tightening than the Fed itself is forecasting.
The crunch comes as the world economy remains becalmed in 2015 with stodgy growth of 3.5pc, held back by another set of brutal downgrades for Russia and string of countries in Latin America. Emerging markets face a fifth consecutive year of slippage as they exhaust the low-hanging fruit from catch-up growth and hit their structural limits.
The IMF's World Economic Outlook forecast that rich economies will clock up respectable growth of 2.4pc this year after 1.8pc in 2014 as fiscal austerity fades and quantitative easing lifts the eurozone off the reefs, but there will be no return to the glory days of the pre-Lehman era.
"Potential growth in advanced economies was already declining before the crisis. Ageing, together with a slowdown in total productivity, were at work. The crisis made it worse," said Olivier Blanchard, the IMF's chief economist.
"Legacies of both the financial and the euro area crises — weak banks and high levels of public, corporate and household debt — are still weighing on growth. Low growth in turn makes deleveraging a slow process."
The world will remain stuck in a low-growth trap until 2020, and perhaps beyond. The Fund called for a blast of infrastructure spending by Germany and others with fiscal leeway to help break out of the impasse.
The report said markets may have been lulled into a complacency by the lowest bond yields in history and a strange lack of volatility, seemingly based on trust that central banks will always come to the rescue. Any evidence that the fault lines of the global financial system are about to be tested could "trigger turmoil", it warned.
"Emerging market economies are particularly exposed: they could face a reversal in capital flows, particularly if US long-term interest rates increase rapidly, as they did during May-August 2013," it said.
The IMF said the probability of recession had risen in a number of countries, including most of Latin America (Source: IMF)
The Fund said yields on 10-year US Treasuries had fallen 80 basis points from October to January due to spillover effects from QE in Europe and Japan, but this sets up the potential for an even sharper spring-back once the Fed tightens in earnest.
The big worry is what will happen to Russia, Brazil and developing economies in Asia that borrowed most heavily in dollars when the Fed was still flooding the world with cheap liquidity. Emerging markets account to roughly half of the $9 trillion of offshore dollar debt outside US jurisdiction.
The IMF warned that a big chunk of the debt owed by companies is in the non-tradeable sector. These firms lack "natural revenue hedges" that can shield them against a double blow from rising borrowing costs and a further surge in the dollar. There has already been a trial run of what can go wrong with the much smaller scale of borrowing in Swiss francs.
"The balance sheet shock generated by the sudden large appreciation of the Swiss franc on some countries in central and eastern Europe with sizable domestic mortgage lending in that currency highlights the nature of these risks," it said.
The BRICS club is no longer in a fit state to handle the full consequences of a dollar shock, with the exception of India, the lone star with 7.5pc growth this year and next. India will overtake China in 2015 for the first time in modern memory.
Russia's economy will contract by 3.8pc this year as the full impact of the oil price crash and Western sanctions both bite deeper. Brazil faces a long slump, shrinking by 1pc in 2015, with barely a flicker of recovery in 2016.
While China is expected to avoid a hard-landing, its growth will slow yet further to 6.3pc next year. The Fund hinted that the much-trumpeted reforms so far add up to little and have yet to put the country on a viable course.
"Vulnerabilities have been building. Rebalancing toward domestic demand has so far been driven primarily by rapid growth in investment and credit, an unsustainable pattern of growth," it said.
The IMF said shifting exchange rates are usually a good thing, so long as they are not too violent. It disputed claims by other global watchdogs that "currency wars" amount to a race to the bottom with no net benefit for the world as a whole.
It calculates that global GDP is boosted by an extra 0.5pc over a two-year period if exchange rates are allowed to take the strain. Devaluations tend to work asymmetrically. They act as a shock absorber, helping to avert extreme stress that could spin out of control in the most vulnerable economies.
Deflation poses less of a risk to the economy as it did six months ago, although Japan's battle with falling prices continues (Source: IMF)
They also "redistribute demand" towards those countries - chiefly in Europe at the moment - that need stimulus but cannot act because rates have already hit zero. The countries on the other side of the ledger with a rising exchange rate have the luxury of offsetting the blow to growth by tightening more slowly. The net outcome is that monetary policy is relaxed for the world as a whole.
Whether intended or not, the IMF has just outlined why it would be an extremely bad idea if the international system returned to the fixed exchange rigidities of the Bretton Woods era.
Credit to The Telegraph