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Thread: IMF Calls for Dollar Alternative; SDRs Could Help Stabilize the Global Financial System

  1. #1

    IMF Calls for Dollar Alternative; SDRs Could Help Stabilize the Global Financial System

    IMF Calls for Dollar Alternative


    CNN
    Feb. 10, 2011


    NEW YORK (CNNMoney) -- The International Monetary Fund issued a report Thursday on a possible replacement for the dollar as the world's reserve currency.

    The IMF said Special Drawing Rights, or SDRs, could help stabilize the global financial system.

    SDRs represent potential claims on the currencies of IMF members. They were created by the IMF in 1969 and can be converted into whatever currency a borrower requires at exchange rates based on a weighted basket of international currencies. The IMF typically lends countries funds denominated in SDRs

    While they are not a tangible currency, some economists argue that SDRs could be used as a less volatile alternative to the U.S. dollar.

    Dominique Strauss-Kahn, managing director of the IMF, acknowledged there are some "technical hurdles" involved with SDRs, but he believes they could help correct global imbalances and shore up the global financial system.

    "Over time, there may also be a role for the SDR to contribute to a more stable international monetary system," he said.

    The goal is to have a reserve asset for central banks that better reflects the global economy since the dollar is vulnerable to swings in the domestic economy and changes in U.S. policy.
    ...



    Background:




    2010: The Emerging Global Federal Reserve

    As powerful as the Federal Reserve is, just imagine how much more powerful a global Fed would be in terms of its ability to control the global economy and an emerging world currency. By Alex Newman

    2010: Waking up to a World Currency

    If global financial elites have their way, America will move quickly toward accepting a planetary fiat currency (a currency not backed by a precious commodity like gold) issued by a world central bank. by Alex Newman

    2010: IMF Report Promotes Global Fiat Currency, World Central Bank

    An April report from the International Monetary Fund promoting a world central bank and a global fiat currency went totally undetected by the global press for months, but after a blog post earlier this month, it is now in the media spotlight. By Alex Newman

    2010: IMF as the Global Federal Reserve: G20's Agenda Behind the Agenda

    A main component of the G20 Summit in Toronto was the continuing push to promote the International Monetary Fund (IMF) and the new Financial Stability Board (FSB)as the global regulators and the global Federal Reserve in the new economic order. by William F. Jasper

    2009: Global Fusion: The G20, IMF, and World Government
    The goal of the G20 is to transform the IMF into a global Federal Reserve, moving us closer than ever to the creation of a world government under the United Nations. by William F. Jasper

    2009: G20 Advances New World Order, Media Admit
    The G-20 Summit advanced more international government control of the global economy in what the world media called a New World Order. By Alex Newman

    2009: The G20 Push to "Supersize" the International Monetary Fund
    The 20G push to “supersize” and transform the International Monetary Fund (IMF) into a global Federal Reserve System has been developing in elite political and economic circles for months. By William F. Jasper


    Interesting:

    Leader of the International Monetary Fund (IMF) is a Socialist
    http://www.ronpaulforums.com/showthread.php?t=253012
    Last edited by FrankRep; 02-11-2011 at 07:57 AM.
    ----

    Ron Paul Forum's Mission Statement:

    Inspired by US Rep. Ron Paul of Texas, this site is dedicated to facilitating grassroots initiatives that aim to restore a sovereign limited constitutional Republic based on the rule of law, states' rights and individual rights. We seek to enshrine the original intent of our Founders to foster respect for private property, seek justice, provide opportunity, and to secure individual liberty for ourselves and our posterity.



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  3. #2
    Boom goes the dynamite.

    I have been sounding warning bells about this to people for a long time. People thought (probably still think) I was a tin foil hat wearing lunatic. "But we *are* the IMF." "We'll never let it happen." Blah blah blah. Ostriches better pull their heads out of the ground or they are going to get run over.
    I compiled a "brief" history of events since October 2008 that are defining the global currency war and the role that gold is playing:

    Tin Foil Hats, Economic Reality and the Total Perspective Vortex

    Also, have you contacted your Congressional Rep and asked them co-sponsor Ron Paul's Rep. Paul Broun Jr.'s HR 1098 77: Free Competition in Currencies Act?

  4. #3
    Quote Originally Posted by Bern View Post
    Boom goes the dynamite.

    I have been sounding warning bells about this to people for a long time. People thought (probably still think) I was a tin foil hat wearing lunatic. "But we *are* the IMF." "We'll never let it happen." Blah blah blah. Ostriches better pull their heads out of the ground or they are going to get run over.
    You are absolutely correct, the IMF has been clearly stating their goals on their website (in clear view) for some time now.
    http://www.imf.org/external/pubs/ft/...2/boughton.htm

    http://www.imf.org/external/ns/search.aspx

  5. #4
    Quote Originally Posted by Bern View Post
    "We'll never let it happen." Blah blah blah. Ostriches better pull their heads out of the ground or they are going to get run over.
    I'm not saying that it will never happen, but I will say that their global currency plan is easier said than done.

    Murray N. Rothbard writes in "The Mystery of Banking"
    As Ludwig von Mises conclusively demonstrated in 1912, money does not and cannot originate by order of the State or by some sort of social contract agreed upon by all citizens; it must always originate in the processes of the free market.
    "Everyone who believes in freedom must work diligently for sound money, fully redeemable. Nothing else is compatible with the humanitarian goals of peace and prosperity." -- Ron Paul

    Brother Jonathan

  6. #5
    Travlyr - they've been actively planning and working towards this for at least the last 2 years. Rickards reported from Davos that the buzz was focusing on a different tact because the NWO stigma on an SDR move might be politically unpalatable to the masses. Looks like the G20 central banker cabal is intent to push it through anyway.
    I compiled a "brief" history of events since October 2008 that are defining the global currency war and the role that gold is playing:

    Tin Foil Hats, Economic Reality and the Total Perspective Vortex

    Also, have you contacted your Congressional Rep and asked them co-sponsor Ron Paul's Rep. Paul Broun Jr.'s HR 1098 77: Free Competition in Currencies Act?

  7. #6
    For this to actually happen, there would have to be some massive changes. Global foreign currency reserves total over $10 trillion. http://en.wikipedia.org/wiki/List_of...hange_reserves while total SDRs are only about $300 billlion. http://www.imf.org/external/np/exr/faq/sdrallocfaqs.htm Since SDRs are 42% US dollars http://www.imf.org/external/np/tre/sdr/sdrbasket.htm so if you want to replace all foreign reserves with SDRs you need to create $9.7 trillion worth of more of them. To create that, you need to have an additional $4.7 trillion of US dollars. By comparison, the current US M2 money supply is $9 trillion so you would need to increase the supply of dollars by roughly 50%.

  8. #7
    Dominique Strauss-Kahn, managing director of the International Monetary Fund, has called for a new world currency that would challenge the dominance of the dollar and protect against future financial instability.
    ...
    Strauss-Kahn saw a greater role for the IMF's Special Drawing Rights, which is currently composed of the dollar, sterling, euro and yen, over time but said it will take a great deal of international cooperation to make that work.

    "Using the SDR to price global trade and denominate financial assets would provide a buffer from exchange rate volatility," Strauss-Kahn said, while "issuing SDR-denominated bonds could create a potentially new class of reserve assets".

    Russian President Dmitry Medvedev last month said the currencies of Brazil, Russia, India and China should be included in the SDR valuation basket. The same month, Sarkozy said that the yuan should be included, and US President Barack Obama’s administration said it supports such a transition “over time”.

    However, among the yuan's drawbacks is that it is not freely traded and China's capital markets are largely closed.

    Strauss-Kahn said: "Increasing the role of the SDR would clearly require a major leap in international policy coordination. For this reason, I expect the global reserve asset system to evolve only gradually, and along with changes in the global economy."

    Strauss-Kahn's views come a week before finance ministers from the Group of 20 developed and developing nations meet in Paris to discuss proposals by French president Nicolas Sarkozy for changes to global economic governance.
    http://www.telegraph.co.uk/finance/c...-currency.html
    I compiled a "brief" history of events since October 2008 that are defining the global currency war and the role that gold is playing:

    Tin Foil Hats, Economic Reality and the Total Perspective Vortex

    Also, have you contacted your Congressional Rep and asked them co-sponsor Ron Paul's Rep. Paul Broun Jr.'s HR 1098 77: Free Competition in Currencies Act?

  9. #8
    The Federal Reserve better stop jacking around with our money.
    ----

    Ron Paul Forum's Mission Statement:

    Inspired by US Rep. Ron Paul of Texas, this site is dedicated to facilitating grassroots initiatives that aim to restore a sovereign limited constitutional Republic based on the rule of law, states' rights and individual rights. We seek to enshrine the original intent of our Founders to foster respect for private property, seek justice, provide opportunity, and to secure individual liberty for ourselves and our posterity.



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  11. #9
    Quote Originally Posted by FrankRep View Post
    The Federal Reserve better stop jacking around with our money.
    + rep
    "Everyone who believes in freedom must work diligently for sound money, fully redeemable. Nothing else is compatible with the humanitarian goals of peace and prosperity." -- Ron Paul

    Brother Jonathan

  12. #10
    Quote Originally Posted by Bern View Post
    Travlyr - they've been actively planning and working towards this for at least the last 2 years. Rickards reported from Davos that the buzz was focusing on a different tact because the NWO stigma on an SDR move might be politically unpalatable to the masses. Looks like the G20 central banker cabal is intent to push it through anyway.
    From Davos:
    Rickards continues:

    ďSo there is a search for an alternative and again Iíve identified gold and SDRís as two alternatives. The third path that Iíve talked about is just chaos...People put off decisions or donít come up with a good alternative for too long and things just kind of break down.
    How about real and honest? The good alternative has been proposed, used for 5000 years, was chosen by the marketplace, and is too difficult to use in transactions today because of the legal tender laws and taxation. Real money is the honest alternative.

    There is a new entry if you think of this as a horse race. You know I had three horses in the race, gold, SDRís and chaos. Thereís a fourth horse that has entered the race. I think the main advocate for this is Professor Barry Eichengreen of University of California Berkley. He is a leading intellectual student and author on the gold exchange of the 1920ís. So at least in academic circles when you talk about the failure of the gold exchange standard in the í20ís and 30ís all eyes point to Barry Eichengreen, heís the leading scholar in that area.

    What he is saying and what a lot of people in Davos are talking about is this idea of multiple reserve currencies. Right now the dollar is far and away number one. There are other reserve currencies, stirling, yen, Swiss francs and of course the Euro all play a roll, but the US dollar is between 65% or so, somewhere in that range of all reserves held around the world, not counting gold.

    The idea is that it doesnít have to be a world where the dollar dominates or the dollar goes to zero...But you could have a world where you have maybe four reserve currencies and they all have maybe 25 or 30% of the action, give or take...Something like that did exist in the 1920ís where the dollar and the stirling were side by side, neither one totally dominated...so itís a plausible hypothesis.

    People point to that as a way to say see, the dollar doesnít have to collapse completely. We donít have to go back to gold, we just need to make room at the table for these other reserve currencies.

    When asked if this was a new end game for the dollar Rickards responded, ďIt is a new end game and like I say, to me it is a horse race. There were three entries, now there are four and this is what they are talking about. If you think about the other three entries, they are all more or less extreme.

    Jim Rickards gets into much more detail on this subject and he also discussed the gold market including Chinese and Russian buying of gold as well as other critical monetary events.
    What does he mean, "We don't have to go back to gold?"

    We want to go back to gold, JIM! Or at least back to real money. Everything else is fakery and theft.
    "Everyone who believes in freedom must work diligently for sound money, fully redeemable. Nothing else is compatible with the humanitarian goals of peace and prosperity." -- Ron Paul

    Brother Jonathan

  13. #11
    Jim was reporting on what he was hearing at the conference. If you follow his writings or TV appearances much, you will see that he personally believes that gold/honest money is going to eventually win the day. The market will gravitate towards them regardless of what TPTB want. If you have two hours, the presentation he gave to an audience of Pentagon peeps is insightful:

    http://www.ronpaulforums.com/showthr...ional-Security

    You can also read his twitter feed for some interesting nuggets from time to time:

    http://twitter.com/jamesgrickards
    Last edited by Bern; 02-23-2011 at 07:35 AM.
    I compiled a "brief" history of events since October 2008 that are defining the global currency war and the role that gold is playing:

    Tin Foil Hats, Economic Reality and the Total Perspective Vortex

    Also, have you contacted your Congressional Rep and asked them co-sponsor Ron Paul's Rep. Paul Broun Jr.'s HR 1098 77: Free Competition in Currencies Act?



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