It seems this whole situation is moving much faster than anyone could have predicted. With this new SDR being planned since the 1970’s it seems they have been working on this for quiet some time. There was another important development in the 1970’s, August 1971 to be precise – President Nixon closed the gold window. Seems there was a little more to that step being taken than meets the eye.
As we reported, the day it happened, the new M-SDR is official and will be moving into the hands of the Chinese banks over the next several weeks. China has been pushing the IMF and World Bank since 2009 to consider a serious change to the current world reserve currency system. The current governor of the Peoples Bank of China (PBOC), Zhou Xiaochuan, has spearheaded this call to change and it appears China is not going to be satisfied with just the M-SDR Bond; they want the whole system to change, now.
As The Epoch Times reported:
“The Chinese … have made it very clear that the Special Drawing Rights of the IMF is the preferred future international world reserve currency,” writes Willem Middelkoop in a note to clients.
“What you are going to see is world money. You are going to see the IMF print Special Drawing Rights (SDR). It’s a geeky name but it’s a kind of world money printed by the IMF. They’ll flood the world with trillions of SDRs,” James Rickards told Epoch Times earlier this year.
Now that the first issuance is well underway, it is easy to lever up the balance sheets of international development organizations and keep issuing—or printing—SDR obligations even in the trillions until even private market actors support and accept them. Once the SDR is widely accepted as payment, the IMF could just redeem all outstanding local currencies for SDR and the world would not only have a new reserve currency, but just one global currency.
As the new M-SDR Bond, as we stated, begins to mature it will be in demand, not only from large investors – nations, large banks and hedge funds – but will become more attractive to retail investors. This is where the change will occur and the SDR will move from a bond to a currency. If you listened to the interview conducted with Larry White I describe a very specific scenario that moves the M-SDR from a bond to “acting like a currency”. As this aspect of the M-SDR bond grows it will be very easy for the citizens to accept this as a currency. The citizens already accept a “blip-on-the-screen” as currency why wouldn’t they accept a different form of illusion – what is the difference?
Please, I beg you, don’t take my word for it. Read what the people that have a great many more years of study than I have to say about this transformation.
The Epoch Times continues:
“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 in 2009. He also wanted the yuan to be included in the SDR, which is going to happen on Oct. 1. Take heed of his predictions.
“You create new liquidity. That’s the kind of reform that could change the international system immediately,” says Worth Wray.
Willem Middelkoop says this could be done through an IMF substitution fund, an idea already discussed in the 1970s. “This fund could facilitate a direct exchange of dollars for SDRs. The liquidity issue would be resolved with one stroke of the pen, as an SDR would be created for every dollar that was exchanged,” he writes in his note.
Sounds crazy? It is, but the official plan is right here, for everyone to see. [Emphasis added]
You are welcome to draw your own conclusions and I encourage you to read the entire article at The Epoch Times so that you can read for yourself – click here