A Global Currency is Born(Stickied by Mod Denner)

[plastixxman]

EDIT: I am stickying YET ANOTHER BIG MOMENT IN HISTORY(if it turns out to be true, I am investigating). This is what we have talked about at naseum. THE SDR(Special Drawing Rights at the IMF or International Monetary Fund) is being made convertable into other currencies and the IMF beefing up their ability to service this type of request. If the article is even close to being right, the IMF is looking to increase their ability to leverage by a factor of 15 or more.. Going from gold reserves of 33bln to 283bln is HUGE and should be shouted from the rooftops if true..

Please read the article and THANK YOU ORGINAL POSTER FOR FINDING THIS!!! Great find...

In a new article on kitco, analyst Paul Nathan cites a report in Bloomberg http://www.bloomberg.com/apps/news?pid=20601083&sid=a_7xC2NrTkkU that the IMF and representatives from China, Russia and Brazil voted to make the SDR (special drawing right) convertable to any currency.  The first reserve of SDR's was created out of nothing at that vote, and is now availble to act as a neutral medium to move international currencies through.  Anyone with a large horde of cash can now move it around the world at will, as long as the IMF give the say so.  As I see it, this act cocks the gun for a bullet of massive, nation destroying inflation. Here's what Nathan says...


“A number of members with sufficiently strong external positions” have already said they are ready to set up or expand existing arrangements enabling the sale or purchase of SDR's, the IMF said. The lender typically acts as a broker and arranges transactions between parties at no cost.  (End News Release)

What this means is that for the first time in history we have a world central bank capable of creating money out of thin air. No longer does the IMF need to borrow money with a vote of all members plus the consent of the US congress. It can simply create whatever amount of money it needs through the creation of SDRs. Not for itself, mind you, but for the world. The SDR has been around since 1967, but never as a convertible asset. That changed Friday, August 28th, 2009.  The SDR has quietly mutated.

The decision was made August 7th, in an IMF vote. According to the IMF "global reserves will increase from just USD33bn to USD283bn or about 4% of global reserves excluding gold. In addition, the IMF will start issuing SDR notes later this year (China, Brazil and Russia will be the main buyers). These SDR notes can be counted as part of currency reserves and hence SDR assets could reach 5% of total reserve assets later in 2009 and possibly surpass GBP, JPY and CHF in importance as reserve assets."  This is a foot in the door.



the rest of the article is here  http://www.kitco.com/ind/Nathan/printerfriendly/aug312009.html

[Leonytus]

Help me understand, does this mean doom for the US dollar or no? Does it not say they are INCREASING the global USD amount?

[plastixxman]

Help me understand, does this mean doom for the US dollar or no? Does it not say they are INCREASING the global USD amount?

The wording may be a bit confusing because of the concept of describing one currency in tems of another.  If you borrow $1000 pound sterling from a British bank, but you live in america, you will probably tell your friends you borrowed around $2000 of British money.  This is because the pound sterling has about twice the value of the dollar right now.  In this case, the IMF created about $250 billion worth of SDR's.  So he is describing the SDR's in terms of their dollar value.

As of this weekend, the world is 250 billion dollars "richer". No products were produced. No taxes were raised.  Not even one cent was borrowed. The IMF simply created a bookkeeping entry on behalf of those countries it felt worthy of receiving additional reserves. The reserves, SDRs, are a claim to "hard currency". The hard currency will be provided by those with "sufficiently strong external positions”, in other words, surplus nations

[hillwalker]

I've been waiting for China and Russia to cooperate on a new international reserve currency for a little while now.

I do expect it to happen, but I don't believe anything that comes out of kitco.

[lowem]

They've gotta be kidding about the "hard currency" part.

[cygnus]

They've gotta be kidding about the "hard currency" part.

Yeah, it's even "softer" than our already "soft" fiat currency - after all, ours has at least a little bit of value backing it still...

[cz]

They've gotta be kidding about the "hard currency" part.

Yeah, it's even "softer" than our already "soft" fiat currency - after all, ours has at least a little bit of value backing it still...

Fear not, they have financial experts working "hard" to try and come up with the financial equivalent of Viagra to fix that

[haniel]

They've gotta be kidding about the "hard currency" part.

Yeah, it's even "softer" than our already "soft" fiat currency - after all, ours has at least a little bit of value backing it still...

Fear not, they have financial experts working "hard" to try and come up with the financial equivalent of Viagra to fix that

They've been fluffing the markets for months.

Don't be too optimistic, once they get things on the rise, tax payers will be asked to bend over.

[Grower]

Would someone kindly translate for the financially impaired? Thanks.

[Doomerific]

I'll take a stab. 

"When bankers compete, you win."

And when bankers don't?

Instead of the US trying to devalue it's dollar and then the Euro or the Yen fighting back with it's own devaluing to keep exports up, all the bankers can now devalue against a fiat currency with no exports, no sovereignty, no allegiance to anything other than the unstated goal of ensuring the impovershment of every human being on the planet.

When bankers collude, you lose. 

I don't have the exact mechanics of how this works figured out but my gut tells me this is what's going on. 

[plastixxman]

Well I'm still analyzing what they are likely to do in the near future exactly.  But this does give them the potential to manage capital flows and exchange rates around the world.  Think of this as a new Super Hedge Fund instead of a International Monetary Fund.  They can arrange for anyone to take positions against any currency in the world, and also to can direct capital into it.  This can affect interest rates, prices, currency valuations, credit liquidity and a governments ability to float bonds.  It can also lead to the US dollar losing its ability to inflate its value artificially against the rest of the worlds currencies which means higher prices on everything you will buy and bankruptcy for the U.S. government.

Because an S.D.R isn't based on any one nation's economic integrity, its value can be set arbitrarily, using rhetoric and finely printed spreadsheets of doctored data to justify it.  This is what the Federal Reserve does to us now.  This new set up will let them do it to the whole world, but we won't see any side benefit to our own economy at all.  Plain and simple its economic autocracy.

[Doomerific]

So Plastixx, you think they have any intention to not allow the dollar to devalue? 

It seems to me that would send the US into default which I would think would be less desireable to creditors. 

On the other hand, what is worth more to creditors; a few trillion of soon worth less dollars or an entirely new global currency in which they have at least some control?

Hmmm... maybe default it is. 

Makes me think about redoubling my preps. 

[MidWestHerbalist]

Offshore Globalist Bankers dream?
New Capstone placed?
This is a new Echelon of bankers above the Fed Reserves of the world No?

[jock]

I found this from the huffington post while googling BASEL 2, BASEL 3 compliance. don't know how relevant it is but it seems to be to do with a gold backed hard currency.

http://www.huffingtonpost.com/ellen-brown/the-bloodless-coup-of-the_b_219653.html

[StrangeFire]

China just committed to buy 50 BILLION of these new IMF bonds. I have a link but it's AP so I won't post it. Just google China buys IMF bonds. It's the first article up.