Very interesting article putting a lot of topics/agendas into perspective. This is Why Rickards is Wrong http://www.silverdoctors.com/this-is-why-rickards-is-wrong/#more-43479
Cannot understand how an 'SDR' - 'Special Drawing Right' which is simply a right to borrow from the IMF can ever be a Reserve Currency. The IMF has about 2700 tons of Gold, and also some foreign Currency to an unknown amount that I know of, somebody here will know. AFAIK, that cannot be the basis of a Reserve Currency! As the wise lady said, "Please Explain". OC
One XDR currently equals AUD$1.64 so it is considered a form of currency. Whether it becomes reserve is something to be answered in the future.
SDR are already used as reserves. Will it be used for settlement and to price commodities in for trade? Not sure if it makes any difference honestly. Power will go from the US fed to IMF. Same prison, same guards, different uniforms.
Just think, a new Reserve (FIAT) Currency backed by SFA, ("Full Faith and Credit of the IMF"). Progress! Stand back and wait for the International IMF levy on ALL countries, (In the 100s or even 1000s of billions) OC
They would still try a SDR basket of currencies before a gold backed currency imo. A fractionally backed gold SDR would be the way I want it to go so that'll never happen.
"They would still try a SDR basket of currencies". I presume the currencies would come from a levy, and would include the Zimbabwe Dollar? I would rather have a fully gold backed Chinese Yuan! JMO OC
You know they could make virtually any story up and the people would buy into it. They could go what you said and tax 50% of everything in the entire world and feed the world some nonsense story and people would probably believe it.
I don't agree with everything that Rickards says, but the article linked in the OP misrepresented Rickards' arguments in many ways. It was so badly incorrect that either author hasn't read Rickards' work, has a personal beef with him, or is a couple of sandwiches short of a picnic ... or perhaps all three. Given that Rickards routinely critiques banks, the finance industry, various Federal Reserves, and the US government, the claim that "he's been lifetime 'front man' for the most powerful interest groups that control this country behind the scenes" is a bit bizarre ... until you then read the responses to the piece, which up the ante by making ad hominem attacks because Rickards was a lawyer - and then go on to wonder if he is 'the front man for the Devil himself' or a Mason! Ho hum. If you're going to waste precious minutes of your life reading that piece, make sure your tinfoil hat is nearby.
SDRs already becoming more and more prominent in mainstream Mailing Standards of the United States Postal Service - International Mail Manual http://pe.usps.com/widgets/hyperlin...1:9080/text/imm/immc3_006.htm&links=SDR #hit0 323.62 Accepting Clerk's Responsibility Convert the U.S. dollar amount to the special drawing right (SDR) value and enter it in the SDR value block. For example: INSURED VALUE $100.00 (U.S.) 65.80 SDR Won't be long until being used at Coles and Woolies
As with James Rickards I have read both Currency Wars and Death of Money I found them both very informative, although I must admit a few chapters into DOM I wrote the following post as I too had some thoughts enter my mind about Rickards and his involvement with government agencies SDRs and whether he was just another shrill. Although I came to the conclusion that he simply likes to name or organisation drop in order to boost his own ego, credibility, and book sales. http://forums.silverstackers.com/topic-52577-the-biggest-theft-in-the-history-of-mankind.html
Old Codger: http://www.theepochtimes.com/n3/514449-james-rickards-china-planning-to-displace-dollar/2/ http://www.ingoldwetrust.ch/interview-jim-rickards-on-the-death-of-money
every time I look at this heading I hear this song in my head [youtube]http://www.youtube.com/watch?v=ki6YTXyITaQ[/youtube]
pmbug, Will not argue with your #12, but WHY are they grabbing every ounce of gold on the planet they can get their hands on? And just saying that "there is no Chinese Bond market" means nothing, they can start one tomorrow if they wish. And i cannot understand how an SDR is a "type of money", AFAIK, it is more like an undrawn 'Mastercard' limit. The IMF only has 2700 tons of gold plus currency reserves, and I cannot see that being anywhere near enough to finance world trade and commerce. JMO OC
Wow , Thats is the worst hatchet job ever! PROMOTES? not from what I've watched listened to and read. Jim Rickards is trying to crystal ball what the world financial community might try to do and the reasons for it . The rest of the article is just mud flinging. B.
SDRs are a package of component currencies where 1 SDR is made up of USD 0.66, EUR 0.423, GBP 0.111 and JPY 12.1. Using a basket is helpful in comparing the relative strength or weakness of a particular currency since you're comparing the national currency against the basket average. Like with gold, it doesn't really matter what the nominal value is because the important thing is the price relative to whatever you're trying to buy it with. For example, the US could debase their currency to the point where a bottle of milk costs USD$1000, but for the purposes of international trade that's fine if the same bottle of milk costs EUR 735. Relative to one another, the USD/EUR exchange rate would be exactly the same as it is today. Buying a collateralized currency package means you get a benchmark to measure other assets against. If the US dollars in the currency package get devalued, it isn't such a big deal because they're being devalued against the other currencies in the basket, so what you loose in USD value, you'll make up for in EUR/JPY/GBP value.
Just don't mention 9/11 or who stood to benefit. Forget about the CIA and FBI. And while you're at it, DO NOT criticize the real powers that be: the Rothschild/Rockefeller criminal cabal. As Voltaire said: 'To learn who rules over you, simply find out who you are not allowed to criticize.' Rickards is and always has been establishment. He just so happens to be an eloquent shill, as opposed to someone like Karen Hudes.
