A Global Currency is Born(Stickied by Mod Denner)

[Hard Assets]

The posted article was written on Aug 28th and we are talking about it now ? WTF does that mean?  Are we that far behind the curve?

What does this mean?

"The International Monetary Fund said it today pumped about $250 billion into foreign-exchange reserves worldwide, acting on an April call from leaders of the Group of 20 nations to boost global liquidity. "

Leaders from BRIC raised the roof in April. Is this a warm-up? Is the US pissed? Is this to satisfy the BRIC leaders? WTF does this REALLY mean?

Is this why gold has had a run this week? Can someone talk english to me please?

Are the BRIC countries exerting pressure and are they succeeding or is the IMF doing the brush off scenario?

Where are we going from here? Is this an avenue for the China and BRIC to dump USD?



Where the fuck is Jeromie?

[ninakat]

Hard Assets, I think it means the dollar is going to be toast a lot sooner than many had expected. And I remember reading about the SDRs back then, if memory serves. But what's interesting is that the date of Aug. 28 should have been known by a lot more analysts as one of those dates to watch, and yet I don't recall anybody saying "things will get interesting after Aug. 28."

Perhaps Jim Sinclair's seemingly bizarre countdown to Nov. 7 (or is it Nov. 6?) is based on a similar date that's either published or, more likely, not published. He seems VERY confident. Even if nothing happens, we certainly live in interesting times.

Bottom line advice: (1) Get all your last minute preps done NOW, just in case. (2) Grab some popcorn and relax.

[Grower]

Read some of the gold threads in Financials. It's explained a couple of times there in ways that seemed to make sense to me, and that's saying something!

[roccman]

Hard Assets, I think it means the dollar is going to be toast a lot sooner than many had expected. And I remember reading about the SDRs back then, if memory serves. But what's interesting is that the date of Aug. 28 should have been known by a lot more analysts as one of those dates to watch, and yet I don't recall anybody saying "things will get interesting after Aug. 28."

Perhaps Jim Sinclair's seemingly bizarre countdown to Nov. 7 (or is it Nov. 6?) is based on a similar date that's either published or, more likely, not published. He seems VERY confident. Even if nothing happens, we certainly live in interesting times.

Bottom line advice: (1) Get all your last minute preps done NOW, just in case. (2) Grab some popcorn and relax.

NOOOOOOOO - it can't be so!!!! The dollar will not collapse!!! - Karl Denninger

[Candace66]

Special Drawing Rights
General and Special SDR Allocations

...The allocation is designed to provide liquidity to the global economic system by supplementing the Fund’s member countries’ foreign exchange reserves.

So they're creating "money" out of thin air to offset all the toxic assets out there? 

How do I, a peon, go about buying some of these SDR's?   

[graveday]

You, as a peon, cannot own them.  They own you.

[JB]

This is simply a partial follow-up to the decisions taken by the G20 Heads of States during their Washington, D. C. November 2008 and April 2009 London summits...

The IMF's reserves (which were very low with respect to the recognized potential problems lying ahead...) are being boosted, with the agreement of its member governments (including the US which holds a de facto veto on all key related decisions), to be able to better handle the economic tsunami that is coming. After all, one of the primary IMF missions is to help stabilize the economies of countries facing financial collapse...

The methodology by which the IMF reserves are being boosted is somewhat equivalent to "creating money out of thin air" because the IMF's ultimate financial backing is the balance sheet of its member countries, a significant number of which are in the deep red zone...

However, if "red" China can be convinced of pouring part of its $ US 2 trillion cash reserve into this new IMF "adventure", so much the better. It remains to be seen how and with which countries the IMF will use its newly increased (economic Red Cross type) "helping" potential.

I hope Dominique does not find a way to lavishly treat a new mistress with part of it or a way to finance a renewed bid for the French presidency...

JB

[Voice of reason]

UN finally comes out and says it:
"New Currency Is Needed to Fix Broken Confidence Game"

http://www.bloomberg.com/apps/news?pid=20601087&sid=aSp9VoPeHquI

[lowem]

UN finally comes out and says it:
"New Currency Is Needed to Fix Broken Confidence Game"

Yep, CONfidence Game all along.

[JB]

UN finally comes out and says it:
"New Currency Is Needed to Fix Broken Confidence Game"

http://www.bloomberg.com/apps/news?pid=20601087&sid=aSp9VoPeHquI

Fortunately for the US, the U.N. trade and development agency (UNCTAD) is not the U. N. General Assembly or the U. N. Security Council...

However, UNCTAD's economic diagnostic of the present economic situation is to a large extent correct. The present level of economic activity is only sustained because governments are providing economic stimulus packages, most of which are based on rapidly dwindling international credit lines and outright money printing... 

On a historical scale, this cannot last very long and cannot offset the fundamental paradigm shift that has occurred i.e. there is no more cheap low EROEI energy available to sustain economic activity.  In fact the global energy supply is rapidly dropping and whatever is left is more costly by the minute...

Unless someone rapidly finds a NEW cheap low EROEI energy source and has the economic muscle and time to substitute it for present energy sources, we are heading for a tremendous plunge in standard of living... which is a diplomatic way of saying that we are going to experience something comparable, albeit on a much grander scale, to the Easter Island civilization implosion.

JB

[graveday]

But without the nice tourist attraction sculptures and archeological conundrums. 

[nepenthean]

SDR are as much shite as any other fiat currency. It is not backed by a preponderance of GOLD. Screw all currencies. They will ALL depreciate against gold.

[graveday]

Well, I still have special drawing rights at my credit union, heh.  Here is a guy that purports to put his money where his mouth is.  His mouth can get kind of foul, and he can appear exceedingly arrogant, hey, it's money, but he is at least fun and succinct.

http://itsnotrealmoney.com/2009/09/07/trader-to-put-his-ta-where-his-mouth-is/

[J.A.F.O.]

I've been watching this particular issue developing for a long time now..  a global currency (undermining national sovereignty) is the first step towards a global government..

There is a very good article on it at GlobalResearch.ca It's long, but most importantly, it spells things out clearly in words those of us who are not financial wizards can understand.

The Financial New World Order: Towards a Global Currency and World Government

[Peelo]

I've been watching this particular issue developing for a long time now..  a global currency (undermining national sovereignty) is the first step towards a global government..

I really doubt that Global Government is what they are after.
 More likely they just want to weaken any democratic power that people have and let organisations like WTO run things instead.