Dominique Strauss-Kahn was trying to torpedo the dollar

Wow. So DSK was zeroing in on US Treasuries as well as the dollar? That's the whole shooting match.

So, what type of progress was he making in converting USDs to SDRs? According to Reuters:

"The IMF general resources credit outstanding increased to 65.5 billion Special Drawing Rights, or SDRs, ($104 billion) on May 12 from 6.0 billion SDRs at December 2007. The so-called new arrangement to borrow, which came into effect on April 1, increased the IMF's available lending resources to 269 billion SDRs on May 12 from 120 billion SDRs on March 31."

Not a bad start for such an ambitious project. It looks like DSK's dream of dethroning the dollar as the de facto "international currency" was beginning to gain momentum. (Nobel prize winning economist Joseph Stiglitz has said that the transition from dollars to SDRs "could be phased in within the next year.") But didn't he know that his actions would anger some very powerful and well-connected people?

Well, if he did; he never let on. In fact, he started mucking around in other stuff, too, like when he intervened on behalf of Irish taxpayers, trying to protect them at the expense of foreign bondholders. That's a big "No no" in banker's world. They keep a list of "people who count," and taxpayers are not on that list. Here's an excerpt from the Irish Times:

"Ireland's Last Stand began less shambolically than you might expect. The IMF, which believes that lenders should pay for their stupidity before it has to reach into its pocket, presented the Irish with a plan to haircut  30 billion of unguaranteed bonds by two-thirds on average. (Irish finance minister) Lenihan was overjoyed, according to a source who was there, telling the IMF team: "You are Ireland's salvation."

"The deal was torpedoed from an unexpected direction. At a conference call with the G7 finance ministers, the haircut was vetoed by US Treasury Secretary Timothy Geithner who, as his payment of $13 billion from government-owned AIG to Goldman Sachs showed, believes that bankers take priority over taxpayers. The only one to speak up for the Irish was UK chancellor George Osborne, but Geithner, as always, got his way. An instructive, if painful, lesson in the extent of US soft power, and in who our friends really are.

"The negotiations went downhill from there. On one side was the European Central Bank, unabashedly representing Ireland's creditors and insisting on full repayment of bank bonds. On the other was the IMF, arguing that Irish taxpayers would be doing well to balance their government's books, let alone repay the losses of private banks."

So, Strauss-Kahn stuck up for Irish taxpayers over the banks, the bondholders, the ECB, and the US Treasury. Naturally, that made him persona non grata among the ruling throng.

And, there's more, too, because Strauss-Kahn's vision was not limited to currency alone, but involved broad structural changes to the IMF itself that would have reversed decades of neoliberal policies. DSK had settled on a new approach to policymaking; one that would abandon the worst elements of globalization and put greater emphasis on social cohesion, cooperation and multilateralism. Here's an excerpt from the speech titled "Human Development and Wealth Distribution" he gave in November 2010:

"....Adam Smith -- one of the founders of modern economics -- recognized clearly that a poor distribution of wealth could undermine the free market system, noting that: "The disposition to admire, and almost to worship, the rich and the powerful and"neglect persons of poor and mean condition"is the great and most universal cause of the corruption of our moral sentiments.

"This was over 250 years ago. In today's world, these problems are magnified under the lens of globalization....globalization also had a dark side. Lurking behind it was a large and growing chasm between rich and poor -- especially within countries. An inequitable distribution of wealth can wear down the social fabric. More unequal countries have worse social indicators, a poorer human development record, and higher degrees of economic insecurity and anxiety. In too many countries, inequality increased and real wages stagnated -- failing to keep up with productivity -- over the past few decades. Ominously, inequality in the United States was back at its pre-Great Depression levels on the eve of the crisis....

"An immediate task is to end the scourge of unemployment....Progressive taxation can also promote equity through redistribution, and this should be encouraged....'Inequality is corrosive'....'it rots societies from within,' it illustrates and exacerbates the loss of social cohesion....the pathology of the age and the greatest threat to the health of any democracy."

Can you believe it? DSK is lecturing bankers about redistribution? That's not what they want to hear. What they want to hear is why ripping off poor people actually makes the world a better place. DSK's speech just shows that he wasn't drinking the Koolaid anymore. He was becoming a nuisance and they needed to get rid of him.

Does that mean he didn't rape the woman who was in his hotel room?