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Thread: The start of a world currency? China Moves Forward With SDR Issuance In August

  1. #1

    The start of a world currency? China Moves Forward With SDR Issuance In August

    Is this the beginning of a world currency?

    Opinion pieces in the media and speculation by informed sources prepared us for the launch of an instrument most people don’t know about earlier in 2016. Then the International Monetary Fund (IMF) itself published a paper discussing the use of private sector SDRs in July and a Chinese central bank official confirmed an international development organization would soon issue SDR bonds in China, according to Chinese media Caixin.

    Caixin now confirmed which organization exactly will issue the bonds and when: The World Bank and the China Development Bank will issue private sector or “M” SDR in August.

    The so-called SDR are an IMF construct of actual currencies, right now the euro, yen, dollar, and pound. It made news last year when the Chinese renminbi was also admitted, although it won’t formally be part of the basket until October 1st of this year.

    How much? Nikkei Asian Review reports the volume will be between $300 and $800 million and some Japanese banks are interested in taking up a stake. According to Nikkei some other Chinese banks are also planning to issue SDR bonds. One of them could be the Industrial and Commercial Bank of China (ICBC) according to Chinese website Yicai.com.

    The IMF experimented with these M-SDRs in the 1970s and 1980s when banks had SDR 5-7 billion in deposits and companies had issued SDR 563 million in bonds. A paltry amount, but the concept worked in practice.

    The G20 finance ministers confirmed they will push this issue, despite private sector reluctance to use these instruments. In their communiqué released after their meeting in China on July 24:

    “We support examination of the broader use of the SDR, such as broader publication of accounts and statistics in the SDR and the potential issuance of SDR-denominated bonds, as a way to enhance resilience [of the financial system].”

    They are following the advice of governor of the People’s Bank of China (PBOC), Zhou Xiaochuan, although a bit late. Already in 2009 he called for nothing less than a new world reserve currency.

    Special consideration should be given to giving the SDR a greater role. The SDR has the features and potential to act as a super-sovereign reserve currency,” wrote Zhou.

    Seven years later, it looks like he wasn’t joking.
    http://www.zerohedge.com/news/2016-0...ssuance-august
    A sense of danger gives birth to fear. And fear is the time-honored cross for the crucifixion of liberty.



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  3. #2
    SDR cannot be a world currency. It cannot replace the dollar/ Euro/ British Pound/ Yen because it is made up of those. To replace them would mean there would be zero dollars, yen, Euros, pounds which means the SDR would also cease to exist. Also there are only about $300 billion worth of them in the entire world. Thus it is not even a reserve currency. It isn't even a currency actually.

    The bonds are not backed by the IMF or directly related to them but are being created by Chinese banks. Not much market expected for them either.

    http://asia.nikkei.com/Politics-Econ...ke-yuan-global

    Beijing's strong push for SDR-denominated bonds could lead to some purchases by Chinese banks and foreign banks operating in the country. But the lack of past floats by U.S. or European financial institutions suggests that potential demand is thin.

  4. #3
    Quote Originally Posted by Zippyjuan View Post
    SDR cannot be a world currency. It cannot replace the dollar/ Euro/ British Pound/ Yen because it is made up of those. To replace them would mean there would be zero dollars, yen, Euros, pounds which means the SDR would also cease to exist. Also there are only about $300 billion worth of them in the entire world. Thus it is not even a reserve currency. It isn't even a currency actually.

    The bonds are not backed by the IMF or directly related to them but are being created by Chinese banks. Not much market expected for them either.

    http://asia.nikkei.com/Politics-Econ...ke-yuan-global
    Who said anything about replacing those currencies? Let's say 1 SDR = 1 yen, 1 dollar and 1 Euro. Who's to say that China couldn't accept 1 SDR to manufacture something or sell something for it?
    A sense of danger gives birth to fear. And fear is the time-honored cross for the crucifixion of liberty.

  5. #4
    Quote Originally Posted by twomp View Post
    Who said anything about replacing those currencies? Let's say 1 SDR = 1 yen, 1 dollar and 1 Euro. Who's to say that China couldn't accept 1 SDR to manufacture something or sell something for it?
    The plan is to eventually replace the national currencies with a single global unit of account but only after the global SDR is more mainstream and accepted as a unit of account. It would be unlikely for the yen to go to direct 1-1 parity with a dollar but 100 yen to 1.00 dollar is only a decimal point placement issue, a couple zeros. I think to get a parity, it would be something like 100 yen, 1 dollar, 1 pound, 1 euro, 1 yuan under a physical gold backed yuan (or perhaps 10 yuan, depending on what the gold to yuan ratio ends up being....10 yuan is almost one troy ounce silver, 1 dollar is one troy ounce silver...hmm). It's just decimal placement games and those matter much less when the "money" is all digital instead of paper. At least paper has to be reprinted when zeros get added on or removed. Is 105 yen any different than $1.05?
    Last edited by devil21; 08-02-2016 at 02:50 AM.
    "Let it not be said that we did nothing."-Ron Paul

    "We have set them on the hobby-horse of an idea about the absorption of individuality by the symbolic unit of COLLECTIVISM. They have never yet and they never will have the sense to reflect that this hobby-horse is a manifest violation of the most important law of nature, which has established from the very creation of the world one unit unlike another and precisely for the purpose of instituting individuality."- A Quote From Some Old Book

  6. #5
    I'm glad that you've been keeping up with this stuff, devil20. I had a thread on it but I basically abandoned it given that there was such little interest in those particular goings-on.

  7. #6
    Fiat is dead. Peer to peer will take over.

  8. #7
    Quote Originally Posted by kfarnan View Post
    Fiat is dead. Peer to peer will take over.
    My money is on gold or silver.

  9. #8
    Quote Originally Posted by Madison320 View Post
    My money is on gold or silver.
    Yeah , I already have stuff that is acceptable all over the world.



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  11. #9
    Quote Originally Posted by oyarde View Post
    Yeah , I already have stuff that is acceptable all over the world.
    You been hoarding more beads?
    Pfizer Macht Frei!

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  12. #10
    Quote Originally Posted by Danke View Post
    You been hoarding more beads?
    Of course.

  13. #11
    Quote Originally Posted by Natural Citizen View Post
    I'm glad that you've been keeping up with this stuff, devil20. I had a thread on it but I basically abandoned it given that there was such little interest in those particular goings-on.
    It's 21

    Who knows what they have up their sleeve to make it all happen but seems to me that if a single NWO unit of account is the goal where no individual corporate national government or associated central bank holds an out-sized influence, and I'm sure it is the goal, that most of what passes as global economics today is geared toward reaching parity between currencies. The next step is declaring them all gold backed (but not really, since they wouldn't be directly redeemable for gold and the rapidly diminishing purchasing power of those currencies would put metals out of the reach of all but the most wealthy). Then lastly doing away with the national currencies and instituting the "gold backed" digital global unit of account.

    Bankers and their sponsors end up again holding title to everything of substance and the little people chattel slaves are ultimately left with imaginary digits in a computer, legal title to nothing whatsoever and everything that the little people use is only "rented" from TPTB. There's the "no private property" mantra behind Agenda 21/2030/20XX coming into view...aka the new Golden Age of Osiris....back to ancient Egypt days of tiny elite bloodline ruling class and everyone else is but a daily slave. The NWO is really just the ancient OWO.

    I've always thought bitcoin and the like were test-beds for the global digital gold backed unit of account. Gotta work out security issues and kinks and whatnot, as well as conditioning the masses to understand it (as far as a banker wants the chattel to understand the operations of "money", that is) and become accustomed to it, before launching anything large scale.
    Last edited by devil21; 08-03-2016 at 01:53 PM.
    "Let it not be said that we did nothing."-Ron Paul

    "We have set them on the hobby-horse of an idea about the absorption of individuality by the symbolic unit of COLLECTIVISM. They have never yet and they never will have the sense to reflect that this hobby-horse is a manifest violation of the most important law of nature, which has established from the very creation of the world one unit unlike another and precisely for the purpose of instituting individuality."- A Quote From Some Old Book

  14. #12
    LibForestPaul
    Member

    I do not see this happening. In fact, if this does happen, it would trigger WW3. The elites will not play nice with each other. Chinese, Japanese, Russians, Israelis, British, Indians, seriously, pray it never comes to pass.



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