SDR: The New Global Currency
- SDR: The New Global Currency
by Chris at www.CapitalistExploits.at, via http://www.zerohedge.com/
Bollocks!
Hi there,
I’ve been hearing a lot from private bankers lately (they’re always trying to flog you product), though the topic being discussed amongst themselves is that of the SDR going mainstream, and they’ve been asking my opinion. We don’t have to look far to understand why.
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End of the US Dollar Rally says HSBC’s Bloom, Cuts Forecasts for USD
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Global Players Circumventing the Dollar
Fuelling this narrative has been talk about those sneaky Chinese and their moves to disintermediate the dollar through the development of gold contracts and oil traded in yuan.
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All of this appears to be painting a particularly nasty picture for the greenback, and the bears, as we can see, are all in and betting on black. This is the backdrop to the discussions those private bankers are having around the SDR. After all, if one hegemonic currency is to go away, it surely can’t do so without another replacing it.
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Enter the SDR.
Let’s briefly define what an SDR exactly is so we know what we’re talking about. Think of it as an ETF of international currencies which adjusts its weighting according to the prominence of currencies in terms of international trade and FX reserves. It’s currently made up of the following five currencies: USD 41.73%, EUR 30.93%, RMB 10.92%, JPY 8.33%, and GBP 8.09%.
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It is the brainchild of the IMF, an organisation that should be taken outside and shot. No trial, no last meal, and no flowers, please. The ideas coming out of this creature pretty much guarantees they should be avoided like a bubonic rat.
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And speaking of the IMF, we have the head, one Christine “I’m a wretched old goat” Lagarde riding the coattails of the crypto currency boom.
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read more.
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