World Bank Sees Dollar Reserve Status Ending Over Next Decade

Tyler Durden's picture

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FOC 1183's picture

To be replaced by SDRs.  Which are now honored by Sofitel Hotels worldwide

Turd Ferguson's picture

Will be replaced by several, regional reserve currencies. And it won't take 10 years for it to happen. Try sometime in the next 12-24 months.

I'm very close to issuing "Turd's Bottom #2". Watch 1505 and 35.50 today.

http://tfmetalsreport.blogspot.com/2011/05/searching-for-conformation.html

Haole's picture

Do it Turd, the bottom is in.

tmosley's picture

If the HK futures exchange can pick up significant volume, that might be the case. Until it does, the COMEX and pals are likely to continue to attempt to drive down the open interest by suppressing prices.

That's what this whole exercise comes down to. They must either decrease the open interest, or abandon their policy goals and allow the metal price to rise so they can get the silver they need to satisfy delivery. I just don't see that happening. The desire for the illusion of a strong dollar is too great.

bruinjoe93's picture

Haole, I believe you are right.

Mr. Turd, good job.

I purchased some physical silver around 1 PM Pacific yesterday from Northwest Territorial Mint.  I paid $35.32/oz with no shipping cost.  You must use the phone order and purchase at least 50 oz to get free shipping.  I've purchased from them before.  The only draw back is the wait.  The wait now has increased from 8-10 weeks.  The wait time used to be 6-8 weeks.  I asked, "Why the long wait? Are a lot of people buying."  The sales person answered with a yes.  If this is not a sign of physical short fall then I don't know what is.

Pegasus Muse's picture

Bought mucho Ag from them.  Good people to deal with.

If you have get your metal faster (or want to use a credit card) you can go through their retail outlet.  The premium is steeper, the customer pays for shipping and insurance, and there's the 3% tacked on to cover the Merchant Fee.  The one time I bought this way (to max out my brand new JPMorgan/Chase 0% interest for 18 months credit card to buy physical silver) it took 7 - 10 days to get my shipment.

Have not used NWTM for gold or other PMs.  Their premiums for gold seem to be higher than Tulving and APMEX.  

HonestJohn's picture

I love the smell of Turd in the morning...we have bottomed!

The_Euro_Sucks's picture

Turds bottom is a good entry point ;)

StychoKiller's picture

Off-topic:  Please implement some independent method of logging into your new website, like ZeroHedge does, as well as the Farcebook, Gooble, etc, methods.

YHC-FTSE's picture

:). Article forgets to mention that SDR is virtually no change from the status quo - USD dominates it along with JPY, GBP, and EUR. Re-evaluation to include other currencies has been put on hold indefinitely barring a meeting of the IMF directors at Riker's Island.

 

Edit: The SDR already has an ISO 4217 currency code - The snappily trendy, XDR. 

CrazyCooter's picture

Did anyone else notice the text in the slides looks layered? Try to swipe the text in the first slide and you will see what I mean. Some text will highlight, but some text won't. It looks as though text was layered over an image where the text looks almost like, but not exactly, the image text.

For example, the heading "MultiXolaritX: A New Global EconomX" the X's represent background image text which isn't swipable (its an image) where as the rest is swipable (and copyable).

You can sort of see the font differnce in this context and spot other discrepancies throughout the document. It is easier to see in full screen mode as well.

Still nursing my coffee ... I am off to be paranoid at work shortly ...

Regards,

Cooter

kentfinance's picture

Next up: "World Bank Head arrested and charged with aggravated sexual assault of hotel maid....."

Urban Redneck's picture

Probably not.  Bankers can make($), many (€), many(CNY) more billions in profit/theft from an economic system with multiple reserve currencies than they can with a single reserve currency ($).  The SDR, however, takes away from the bankers' meat & potatoes as well as the gravy train.

LawsofPhysics's picture

Hmmm,  trading one fiat in for another?  Lose-lose.  Got physical?

None of this considers the real world problems of resource limitation and supply line disruptions.  World economists using old models to predict future markets - FAIL.

TheTmfreak's picture

No kidding. Not to mention these never ending huge growth assumptions for China are laughable.

Michael Victory's picture

The end of fiat.

Shows up in another thread also but worth a look:

Sinclair - "What You Must Realize..."


~V

LawsofPhysics's picture

Yep, and by having "physical" you could also include having some physical skill that adds value to people's lives or ANYTHING physical that is of REAL value.  Sit back, watch the paper world burn.  When the financial fucknuts come looking for food, serve them up for dinner.  At least in my neck of the woods, the poor folks (of all colors) still see value in sharecropping.

SoNH80's picture

Something tells me that the folks in the Delta will survive this future far better than the red-suspender crowd in Manhattan and D.C.  Peanuts, okra, watermelons, peaches, I sometimes envy those living in the U.S. subtropics.

Ckashan's picture

"World economist using old models to predict future markets" - Nice : The elitist attitude towards the Euro is dashingly insulting.  These elitist institutions have the brass balls to talk about a monetary union that is  currently breaking up on the peripheral and if that occurs the core will see smaller, stronger monetary union that would be value at a much higher exchange rate.  This in itself would stunt growth as the core has been engineered towards exports.  To prevent this from occurring they want to 'bail-in' further with further debt-enslavement at the people's expense.    Insulting. 

Ruffcut's picture

Title change:

"World Bank SEES TO IT, to kill the dollar, as the reserve currency."

topcallingtroll's picture

I knew you.guys were getting too pessimistic.about your pessimism.

Gold and silver are moving.

Changed my mind about PLAYing ZSL.

Fancy Bear's picture

This is very bullish for gold.

Mountainview's picture

Gold will play an intermediate role. In 10 years: Top reserve currency Chinese Yuan together with a restructured EURO and and the New US Dollar.

Sandy15's picture

The real problem here is that the Federal Reserve and the SEC are part of the World Bank.  So does this mean the Private Federal thieves Reserves is purposely devaluing the dollar to put out these stupid SDR's?

 

Captain Planet's picture

statement about eur or some other fiat becoming the world currency was said just to calm ''investor fears'', IMHO.....

Gold/Silver are the new reserve currencies, ya just cant say that (yet) if your the World Bank

Silverhog's picture

Next decade? We'll be lucky if me make it through spring 2012. 

TheTmfreak's picture

I have yet to hear an argument from anyone to explain how we are going to "move forward" growth wise and return to when outlook was very nice and sunny.

What in the hell would it take to get back to the point where projecting a decade out wasn't a completely laughable affair?

I guess a major war with major major casualties might be able to do it. Pah..

SoNH80's picture

If the U.S. were able to unilaterally abrogate its debt to certain large Asian countries, without having oil exporters going apeshit (big if), it *might* be able to pull the rabbit out of the hat, but it would be one ugly rabbit, and it might involve the loss of Guam.

mayhem_korner's picture

it would be one ugly rabbit - LOL!!!

slow_roast's picture

Blah blah blah...you have to love that the part highlighting that the Euro is most likely to succeed the USD if they can overcome their sovereign debt crisis..by printing of course.  :)

Captain Planet's picture

you were playing ZSL at AG levels of $33??

sounds like you have too much faith/skepticism in TPTB

 

Internet Tough Guy's picture

Bob didn't say gold standard; he said reference point gold. AKA freegold.

Infinite QE's picture

And RoboTroll's out pump-n-dumping that the USD will reign forever! Ha! Fucking loser!

youngman's picture

Yes its funny how Central banks are now buyers of Gold......even Mexico....Mexico???? WTF...but hey...its all good....if I was a country that had a bunch of dollars...I would be spending them as fast as I could for real stuff...land...buildings...metals...not more paper...

Robslob's picture

So if they say 2025 it means 2015...

3+ years to accumulate at bargain prices (in terms of fiat).

Josh Randall's picture

Unelected Jack@ss's telling us what our new currency will be -- hmmmmm - sounds about right

Robslob's picture

The "elected" ones suck too...does it really matter?

THE DORK OF CORK's picture

The World Bank is a very euro- centric organisation albeit traditionally with a American head.

Anyhow Robert Zoellick did not mention anything about a Gold standard as far as I recall - he mentioned using Gold as a reference point for the global financial system.

A fixed gold standard would imply our banker friends would have to apply some discipline to their credit creation - I can't see how they could agree to such a onerous duty of care for their fellow man.

Mongo's picture

That picture of the deutsche mark makes me cry... I really miss it... but then I get reminded it's like one of those softer more fluffy versions of toilet paper and I begin to smile.

firstdivision's picture

How can 1USD = 1SDR when the USD makes up only .66 of an SDR? 

firstdivision's picture

That is correct, and how the world views it.  I was stumbling around the IMF site and they had a blurp that now 1SDR = 1USD (even though on their site they have the same info as you posted), but cannot find it again or I would link it.  I should have linked it in my original post, but was multi-tasking badly ;) 

MarketFox's picture

Well now....

 

You mean employees of a pseudo government type organization must be believed by the masses ......

 

Look.....

 

These guys just do not get it.....

 

Let´s make this very simple.....

 

Which is the bigger number.....

 

$42 Trillion in credit

$7 Trillion in savings

$7 Trillion in inorganic money.....

 

Money that is available is what matters.....thus the printing of inorganic money is miniscule when compared to credit money.....and it is the credit side that matters most......

 

Thus when the credit side is slammed down.....inorganic money takes a back seat....

 

Evidently this is not taught in the more popular economic schools.....

..........................

 

This is why there will become an increasing shortage of US dollars .....because of credit shrinking.....or not being demanded.....

 

This is a lot like the notional money in naked short selling.....or rather the funny money being created all of a sudden in derivatives.....

 

DEFLATION.....will augment the value of the dollar....

 

The dollar went down because of demographically demanded credit.....and the demogaphics will rule the day.....

 

Look....if demand in the past was made from 5 people and now there are still 5 people.....but only 3 are participating.....this is the same as 5 going to 3.....

 

DEFLATION

US $ RALLY

 

Already demographically built in.....

 

 

 

 

MarketFox's picture

Well now....

 

You mean employees of a pseudo government type organization must be believed by the masses ......

 

Look.....

 

These guys just do not get it.....

 

Let´s make this very simple.....

 

Which is the bigger number.....

 

$42 Trillion in credit

$7 Trillion in savings

$7 Trillion in inorganic money.....

 

Money that is available is what matters.....thus the printing of inorganic money is miniscule when compared to credit money.....and it is the credit side that matters most......

 

Thus when the credit side is slammed down.....inorganic money takes a back seat....

 

Evidently this is not taught in the more popular economic schools.....

..........................

 

This is why there will become an increasing shortage of US dollars .....because of credit shrinking.....or not being demanded.....

 

This is a lot like the notional money in naked short selling.....or rather the funny money being created all of a sudden in derivatives.....

 

DEFLATION.....will augment the value of the dollar....

 

The dollar went down because of demographically demanded credit.....and the demogaphics will rule the day.....

 

Look....if demand in the past was made from 5 people and now there are still 5 people.....but only 3 are participating.....this is the same as 5 going to 3.....

 

DEFLATION

US $ RALLY

 

Already demographically built in.....

 

 

 

 

cocoablini's picture

This sounds like someone I know! Including the ee Cummings punctuation. Part of a deflationary burndown is the senior currency getting stronger as credit and asset values collapse. Since there is no real money in the system, the banks base all their finances on fake asset valuation and extension of credit. This clearly outweighs the extra credit pumped into the system. A lot of this talk is fomented by the FED and the world banking system trying to fight off deflation. They love fireboming the dollar by the media. But all currencies are on the same footing- total malarky- so the dollar is no worse than the euro or the Chinese Yuan. If anyone here wants to pin their caboose to the Chinese currency while its in the process of hyperinflating- go for it! Their exports are falling, the labor pool is getting angry and thats what China is based on- slave labor. Go for it! The euro is a political currency- or more likely a banking hologram that they can control and make. They would love a global FX system. But the British said fuck off in the 80s. So why would the US go global. Its going to take decades for the dollar to lose that status. The cheaper the dollar goes, the further the carrytrade and the bigger the unwind. And the dollar has been basing higher no matter how much the FED prints. DXY was 70 in 2007. Its 75-76 now despite printing. It just confounds people!

MarketFox's picture

Well now....

 

You mean employees of a pseudo government type organization must be believed by the masses ......

 

Look.....

 

These guys just do not get it.....

 

Let´s make this very simple.....

 

Which is the bigger number.....

 

$42 Trillion in credit

$7 Trillion in savings

$7 Trillion in inorganic money.....

 

Money that is available is what matters.....thus the printing of inorganic money is miniscule when compared to credit money.....and it is the credit side that matters most......

 

Thus when the credit side is slammed down.....inorganic money takes a back seat....

 

Evidently this is not taught in the more popular economic schools.....

..........................

 

This is why there will become an increasing shortage of US dollars .....because of credit shrinking.....or not being demanded.....

 

This is a lot like the notional money in naked short selling.....or rather the funny money being created all of a sudden in derivatives.....

 

DEFLATION.....will augment the value of the dollar....

 

The dollar went down because of demographically demanded credit.....and the demogaphics will rule the day.....

 

Look....if demand in the past was made from 5 people and now there are still 5 people.....but only 3 are participating.....this is the same as 5 going to 3.....

 

DEFLATION

US $ RALLY

 

Already demographically built in.....

 

 

 

 

tradewithdave's picture

The status of the U.S. dollar as the world's reserve currency is arguably based on the status of the U.S. military as the world's reserve military force.  Is the plan to shift from a "single polar" dominated world military landscape to a "multi-polar" multi-military power-sharing arrangement between the U.S./NATO and China?  Or is the plan to let China keep printing until the collapse into hyperinflation and then to merge the U.S. currency with the Chinese currency and then strong-arm the yen and the Euro into compliance. 

That plan would work with one small exception.  Every piece of U.S. currency has four simple words printed on it.  The cornerstone of Communism is not trust in God, but rather trust in the state.  There are plenty of other differences between the U.S. and China, but that one would seem to be the most fundamental and is represented on the face of the currency itself. 

The proposal that was circulated by Mervyn King of the Bank of England called for a new model based on a "divorced" currency - one half as a non-fractional currency with full gold backing to satisfy the double coincidence of wants while eliminating systemic risk and a second half as a fractional currency with a fractional gold backing and significant friction for liquidating (think IRA account/special purpose vehicle) thereby mitigating systemic risk significantly.  (here's a link with some background quotes: http://tradewithdave.com/?p=5310)

The thing about the "In God We Trust" issue is that once you move into an electronic model/cashless society then currency becomes "faceless" and the opportunity for a society to express trust "on the face" of the currency itself is passe' and any "trust" remaining is trust in the system itself, or in the case of this proposal, trust in the World Bank.  I guess trust in the IMF is at a low point, so it probably was a good time to float this proposal. 

In the divorced currency model as proposed by King, it does a great job of covering odors and essentially works as "two... two... two mints in one."  The convenience portion will allow for sovereigns to offer a currency with state branding, but its use will be very limited it in a cashless society and considering the intraday velocity and a continuous global rolling settlement via the CLS Bank, the books essentially never have to reconcile in a non-Dodd-Frank compliant foreign exchange model.  (see this post for the global revolver that never runs out of bullets:  http://tradewithdave.com/?p=6291)

So you essentially end up with three forms of money.

a) Novelty bills with your favorite state characters printed on them for collectors and buying hot dogs on the street or fake Chanel handbags in Chinatown.

Dave Harrison

www.tradewithdave.com

LawsofPhysics's picture

While I agree that the world fiat is coming, history shows that people will demand accountability.  Systems either become accountable and prosecute fraud or capital and talent finds a new market (be it a black market or otherwise.  PMs serve as a safe store of wealth and value during any monetary transition because no harvard-trained financial fuckwad can create the metal out of thin air.

tradewithdave's picture

oops...

b) electronic money with full gold backing that rolls continuously in the never ending intraday non-settlement settlement.

and

c) Fractional gold back SPV (special purpose vehicles for retirement/ala IRA's) that is where all the fiat goes to hide until you reach retirement age.

 

Dave Harrison

www.tradewithdave.com

citrine's picture

Tyler,

Brilliant advice!