Sep 102017
BY JAMES RICKARDS POSTED  SEPTEMBER 8, 2017 Dear President Trump: America is in for a Rude Awakening in January Dear President Trump, Over the last couple of years I’ve been all over TV… from Fox News to CNBC, CNN and Bloomberg. I’ve been telling our fellow Americans that the financial global elite was planning to issue their own globalist currency called special drawing rights, or SDRs. And that those elites would use this new currency to replace the U.S. dollar as the global reserve currency. I’ve even written about this extensively in my best-selling booksThe Road to Ruin and The New Case for Gold. I’m sure some people in the mainstream media thought I was out of line — but the United Nations and the International Monetary Fund (IMF) have both confirmed this plan to replace the U.S. dollar is real. I’ve made this warning many times, but it seems to be falling on deaf ears. That’s why I’m writing directly to you. Here’s the proof that the U.S. dollar is under attack, right in front of our eyes: The UN said we need “a new global reserve system… that no longer relies on the United States dollar as the single major reserve currency.” And the IMF admitted they want to make “the special drawing right (SDR) the principal reserve asset in the [International Monetary System].” More recently, the IMF advanced their plan by helping private institutions, such as the UK’s Standard Chartered Bank, issue bonds in SDRs. Although our mainstream media ignored this major event, the UK media reported: This is all happening. And on January 1st, 2018, this trend to replace the U.S. dollar will accelerate. That’s when the global elite will implement a major change to the plumbing of our financial system. It’s a brand-new worldwide banking system called Distributed Ledger Technology. And it will have a huge impact on seniors who are now preparing for retirement. When this system goes live, many nations will be able to dump the U.S. dollar for SDRs. For now, the U.S. dollar is still the world’s reserve currency. Other nations have to hold and use the U.S. dollar for international trade, instead of their own currencies. This creates a virtually unlimited demand for U.S. dollars, which allows us to print trillions of dollars each year to pay for wars, debt and anything we want. It keeps our country operating. Now, we can see that (more…)
Apr 022011
G20 leaders have moved towards agreeing that China’s currency should have a wider role in global finance. The G20 is to study whether to include the Chinese yuan within the basket of currencies that make up the IMF’s Special Drawing Right. The Special Drawing Right, or SDR, is a quasi currency used within the IMF by its member countries. Some economists believe the SDR could one day become a global reserve currency alongside the US dollar. Evolution Speaking at the G20 summit in Nanjing, French President Nicolas Sarkozy suggested that given the importance of emerging economies such as China to global growth, their currencies should be added to the SDR basket. “Without rules and supervision, the world runs the risk of being condemned to increasingly serious and severe crises,” said President Sarkozy. “It is clear that we must evolve toward a more flexible exchange rate system that will allow us to withstand shocks,” he added. His comments were backed by US Treasury Secretary Timothy Geithner who said he supported a change to SDR composition. “Over time, we believe that currencies of large economies heavily used in international trade and financial transactions should become a part of the SDR basket,” he said. Currency control However, Mr Geithner said that for this to happen, governments would have to loosen their control of currencies. “To achieve this objective, the concerned countries should have flexible exchange rate systems, independent central banks and permit the free movement of capital flows,” he said. Mr Geithner said tight control of currency pricing by some countries was hurting the global economy. French finance minister Christine Lagarde also suggested that any move to include the yuan within the SDR basket would involve conditions being placed upon the Chinese authorities. “We discussed the conditions that apply to belonging to the SDR basket and in particular we focused on the convertability and flexibility of the currency and the relative independence of the central bank,” she said. Yuan appreciation The US and other developed nations have been critical of China’s exchange rate policy. There have been repeated calls for China to let the value of the yuan – or renminbi (RMB) – appreciate against the US dollar. It has been accused of keeping the value of the yuan artificially low in order to help its exporters. Beijing has maintained that a sudden appreciation of its currency will be detrimental not only for (more…)