Post by stingray on Aug 22, 2016 7:50:18 GMT -5
A report was released from the recent IMF (International Monetary Fund) meeting on how they plan to stabilize the current economic woes that are happening worldwide. See, in the 1940’s the Bretton Woods Agreement was signed making the US dollar the world reserve currency. Other countries could hold the Dollar in their reserves knowing they could exchange those Dollars for gold. This agreement also established the IMF and the IBRD (International Bank for Reconstruction and Development).
Then in 1971 with the rising debt due to the Vietnam war, President Nixon abolished the Bretton Woods agreement and no longer exchanged the US dollar for gold with foreign countries. In many peoples eyes this was a default on payment. Ever since this time the IMF and the world economist have been doing studies on world currencies and how to best bring stability to economies world wide. Most of these studies have been how to utilize the IMF’s SDR’s (Special Drawing Rights) as a reserve currency. SDR’s are foreign to most people because they are strictly used between the IMF and countries central banks. SDR’s are a basket of currencies that include the US dollar 41.9%, the Euro 37.4%, the British Pound 11.3% and the Japanese Yen 9.4%. Countries that are in economic turmoil can exchange their reserves for these SDR’s to help stabilize their economy.
On October 1, 2016 the Chinese Renminbi, or Yuan, will be added to this basket at 10.92% decreasing the current weights to Dollar 41.73%, Euro 30.93%, Yen 8.33% and Pound 8.09%. The gloom and doomers are calling for the fall of the US dollar at this point. I guess it sells more ad space on their YouTube channels. At this point if the dollar falls the world goes with it.
Later in the month is when it gets interesting. China will be issuing bonds in SDR’S instead of the yuan. The problem at the moment with the SDR as a reserve currency is there is no volume and no demand for them due to their exclusiveness of only being utilized by central banks. But China is going to change that. China is also anticipated to have the Renminbi backed by gold or an assortment of precious metals. And there is now talk amongst the economist at the IMF to include a 6th basket in the SDR for gold. This is where the US dollar will start to feel pressure. Gold could soar to heights never before seen.
If that wasn’t enough, the IMF is in full discussions on setting up a Substitution Fund for countries interested in dumping their US Treasury reserves. This would create an immediate demand for the SDR worldwide at the amount of $10 Trillion dollars which is half of the treasuries currently issued. Over night the SDR would be in more demand than the Dollar by 250%. The unknown in this equation is what does the IMF do with all these US treasuries? As I see it, they have 3 options. Option 1, Keep them and be the largest holder of American debt outside of the US treasury dept. thus having the ability to influence US policies. Option 2, Dump them and crash the US economy overnight. Option 3, make the US reorganize their debt, like a chapter 11 bankruptcy and devalue the dollar.
This could possibly be the advent of a world currency. Successful studies have already been done of the SDR’s use in the open market. And once countries worldwide have them in their reserves, they simply offer them to their citizens in exchange for the current paper money they hold. My guess at that point instead of offering them on the open market as paper money, they will then be in digital format as a crypto-currency. The Chinese have been working with the IMF in developing a digital currency for some time.
All this can be read in detail @ www.cdfund.com/wp-content/uploads/2016/08/SDR-Special-aug2016-DEF.pdf
Then in 1971 with the rising debt due to the Vietnam war, President Nixon abolished the Bretton Woods agreement and no longer exchanged the US dollar for gold with foreign countries. In many peoples eyes this was a default on payment. Ever since this time the IMF and the world economist have been doing studies on world currencies and how to best bring stability to economies world wide. Most of these studies have been how to utilize the IMF’s SDR’s (Special Drawing Rights) as a reserve currency. SDR’s are foreign to most people because they are strictly used between the IMF and countries central banks. SDR’s are a basket of currencies that include the US dollar 41.9%, the Euro 37.4%, the British Pound 11.3% and the Japanese Yen 9.4%. Countries that are in economic turmoil can exchange their reserves for these SDR’s to help stabilize their economy.
On October 1, 2016 the Chinese Renminbi, or Yuan, will be added to this basket at 10.92% decreasing the current weights to Dollar 41.73%, Euro 30.93%, Yen 8.33% and Pound 8.09%. The gloom and doomers are calling for the fall of the US dollar at this point. I guess it sells more ad space on their YouTube channels. At this point if the dollar falls the world goes with it.
Later in the month is when it gets interesting. China will be issuing bonds in SDR’S instead of the yuan. The problem at the moment with the SDR as a reserve currency is there is no volume and no demand for them due to their exclusiveness of only being utilized by central banks. But China is going to change that. China is also anticipated to have the Renminbi backed by gold or an assortment of precious metals. And there is now talk amongst the economist at the IMF to include a 6th basket in the SDR for gold. This is where the US dollar will start to feel pressure. Gold could soar to heights never before seen.
If that wasn’t enough, the IMF is in full discussions on setting up a Substitution Fund for countries interested in dumping their US Treasury reserves. This would create an immediate demand for the SDR worldwide at the amount of $10 Trillion dollars which is half of the treasuries currently issued. Over night the SDR would be in more demand than the Dollar by 250%. The unknown in this equation is what does the IMF do with all these US treasuries? As I see it, they have 3 options. Option 1, Keep them and be the largest holder of American debt outside of the US treasury dept. thus having the ability to influence US policies. Option 2, Dump them and crash the US economy overnight. Option 3, make the US reorganize their debt, like a chapter 11 bankruptcy and devalue the dollar.
This could possibly be the advent of a world currency. Successful studies have already been done of the SDR’s use in the open market. And once countries worldwide have them in their reserves, they simply offer them to their citizens in exchange for the current paper money they hold. My guess at that point instead of offering them on the open market as paper money, they will then be in digital format as a crypto-currency. The Chinese have been working with the IMF in developing a digital currency for some time.
All this can be read in detail @ www.cdfund.com/wp-content/uploads/2016/08/SDR-Special-aug2016-DEF.pdf
