- The SDR will be backed by gold, IMO. The Global Financial/Currency Reset is a planned event. It is coming soon but appears to be running late. Emphasis mine:
- Monetary Policy ‘Reset’: From Rhetoric to Actuality
by Steven Guinness, https://stevenguinness2.wordpress.com/
A resurgence in nationalistic tendencies has been predominately associated with the advents of Brexit and Donald Trump’s presidency. But have these outcomes meant that we now neglect to give due consideration to the years that preceded the supposed breakdown of the ‘rules based global order‘?
In 2014, Lagarde returned to Davos to speak to delegates about something she called ‘reset‘. Keep in mind at this point that the world was still over two years away from Brexit and Trump’s ascension to power. There had yet to be any discernible rise in what is today characterised throughout the media as ‘populism‘.
Sharing a platform with Bank of England governor Mark Carney and European Central Bank President Mario Draghi, Lagarde explained what this reset would entail in regards to monetary policy.
A further two facets to the ‘reset‘ would be the reform of the financial sector and regulatory environment via Basel III (which runs through the Bank for International Settlements), and structural reforms of global economies that would encompass product markets, service markets and emerging markets.
In an interview with Bloomberg during the 2014 World Economic Forum, Lagarde expanded on her definition of a ‘reset‘. Her message was clear: without cooperation between nations, the reset would most likely be fraught with instability and market turbulence. Governments would have to implement ‘growth friendly measures‘ in order to secure ‘jobs rich growth‘.
Nearly five years after Christine Lagarde first spoke of the need for a ‘reset‘ of global monetary policy, three of the most influential central banks in the world are all engaged in the practice, albeit at varying speeds.
The ‘reset‘ of monetary policy works primarily as a vehicle for the International Monetary Fund and the Bank for International Settlements to position themselves as the beneficiaries of the inevitable economic downturn that will ensue.
As I will be exploring in an upcoming series of articles, the IMF are agitating to reform their quota subscriptions (the institution’s prime source of funding) and in turn the weighting of their Special Drawing Rights (SDR) basket of currencies.
Conditions in the global economy – namely rising trade protectionism that pits the United States and China into economic conflict – has put the world reserve status of the dollar in increased jeopardy. For the IMF to achieve their goals, the dominance of the dollar as the payment of choice throughout global trade must not only be jeopardized. It must ultimately be dismantled, so as to gradually move the world nearer to the globalist utopia of assimilating national currencies through the SDR with the aim of creating a digitised global currency.