SDR: The New Global Currency

Capitalist Exploits's picture

By Chris at www.CapitalistExploits.at

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.

End of the US Dollar Rally says HSBC’s Bloom, Cuts Forecasts for USD

Bearish bets on dollar rise ahead of Fed meeting

Here's the dollar index going back to December 2016.

Which itself has brought a not unsurprising but potentially valuable (depending on how you position) setup.

Here's COT positioning.

Speculators haven't been this short since 2014— back when... oh, never mind. This time is different, right?

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.

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.

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%.

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. 

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.

LONDON (Reuters) - Global usage of the International Monetary Fund’s in-house currency, the special drawing right (SDR), could get a boost from the growth of digital currencies, the Fund’s managing director, Christine Lagarde said on Friday.

Like I said. Bollocks!

Let Me Explain

What do all of these have in common?

  • Bretton Woods
  • USD reserve status
  • The formation of the United Nations
  • The IMF and,
  • The IMDB and,
  • The World Bank
  • The Gold standard, and lastly....
  • Quantitative easing

The answer to this question explains why we're extremely unlikely to see any SDR implemented — at least not yet... and not particularly soon.

All of these organisations, except for QE which isn't an organisation at all (and I'll get to it in a minute), were formed at the end of World War 2.

How do you get 44 nations, whose people speak different languages, pray to different gods, eat different foods, and have completely different domestic laws, to agree on one set of rules?

Rules such as a dollar standard backed by gold. Organisations such as the UN, IMF, the World Bank, and others.

You have a great big shocking brutal war. So devastating, so exhausting, and so physically and mentally sickening that in desperation society strives to create something that will create stability, peace, and an end to the mayhem. There is a cohesiveness in shared tragedy and by 1945 there was a helluva lot of tragedy going around with entire cities left in smouldering ruins, nations bankrupted, leaving society poor, desperate, and exhausted.

Nearing the end of WW 2 we all looked at one another and basically said, holy cow, let's not do THAT again. In fact, let's make damned sure it never happens again, heh folks.

The European Union itself was setup with the purpose of ending the frequent and bloody conflicts of European neighbours which culminated in World War 2. Many of the institutions and social structures of any scale were birthed in crisis.

The USSR

Never worked. That it all ended up with people eating grass never stopped society from giving it a jolly good whirl — 1922 to 1991 is still 69 very long years. Imagine those were YOUR 69 years. Then they'd certainly have mattered.

That it failed as miserably as the euro will surely fail is missing the point. The collective decision to give communism a go was a by-product of World War 1, beginning with the Bolshevik seizure of power in Petrograd in October 1917.

Good ideas, bad ideas.

Any ideas implemented at scale across political divides are more often than not achieved during and often after a crisis.

The bigger the crisis the greater the probability of something being implemented. A domestic crisis can birth a large domestic response but typically it takes an international crisis together with a shared political view to birth something like the various organisations that came out of Bretton Woods.

QE

Was a coordinated effort in a time of crisis where participants from the world's global central banks all chose to act together with self preservation being the obvious goal. That took political cohesion together with a shared crisis.

Now, this is where it's important because a crisis where there is no global political cohesion does NOT result in coordination. All we need do is look at individual crisis which regularly take place and where global powers pay little to no attention to them, certainly not at a global coordinated level. Venezuela today, Argentina in 2003, even the Asian crisis never amounted to a true global coordinated effort to do something.

This comes back to an article I penned almost exactly a year ago on the incoming "strong men" and their impact on the global economy where I stated the 3 important things to watch for.

  1. Political cohesion and stability can no longer be relied upon as politics becomes inward looking with everything from trade deals to central bank swap lines being renegotiated or cancelled altogether.
  2. Global coordinated central bank action. The era of global coordinated monetary policy which we’ve been experiencing since the GFC, especially with the three largest players (ECB, FED and BOJ), will be looked back upon with nostalgia by the current clutch of central bankers who muddy the halls of power. Policy will increasingly be driven with greater sensitivity to nationalist rather than international concerns, which brings me to…
  3. Liquidity in the financial system which has stemmed from easing monetary policy is already contracting. In a world where derivatives traverse borders, connecting financial systems like never before, a liquidity crisis presents enormous tail risk in a leveraged world.

Over the last decade, we've been moving rapidly towards a world of "us vs. them". A world of insular inward looking politics, xenophobia, rising nationalism, rising religionism, and an increase in secessionist movements.

Catalonia is simply the most recent example, though preceded by Brexit.

When I look around the world today, I just don't see the political cohesion necessary to implement the SDR.

Unless someone rounded up the existing political elite from all over the world and severely and heavily medicated them, their interests are simply not aligned for this to take shape. Barring the snapping of some anchoring ligament in their current psyche, there exists no political will to act in a coordinated fashion.

The trend is, dare I say it, quite firmly in the other direction, and unless that changes, the implementation of the SDR at scale grows increasingly unlikely with each day.

Oh, and one last thing.

Let me ask you a question: If Europe has had such trouble managing a monetary policy amongst the Eurozone, which incidentally is a basket of countries with similar social, political, and economic structures, then how the heck does one manage such things on a global scale, across countries with distinctly different social, political, and economic structures?

- Chris

"We are met here in Bretton Woods in an experimental test, probably the first time in the history of the world, that forty-four nations have convened seeking to solve difficult economic problems. We fight together on sodden battlefields. We sail together on the majestic blue. We fly together in the ethereal sky." — Fred Winson, U.S. delegate at the Bretton Wood conference

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Liked this article? Then you'll probably like my other missives on

this topic as well. Go here to access them (free, of course).

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Johnny Debt's picture

Blah, Blah... and RIPPLE XRP will merge and become the new SDR - Global currency - everyone knows this

Herodotus's picture

A basket of rotten apples has no value.

LawsofPhysics's picture

LOL!!!  It really does NOT matter what you call the FIAT currency...

In the absence of a fair rule of law, fiat is fiat is fiat...

ALL fiat will fail, period.

 

"Full Faith and Credit"

Fireman's picture

"Russia has now tripled its gold reserves from around 600 tonnes to 1,800 tonnes over the past 10 years and shows no signs of slowing down" When the reality is, as Rickards and other CIA slash Fed shills know too well that both China and Russia have in excess of 20,000 tons of gold each.

They will also have you "believe" that USSA still has Fort Knox stuffed full of actual gold. "Glad gold is safe." according to little Stevie Munchkins! "Our man" Rickards is desperate to push his CIA narrative and have US all imagine that in the end the BS Basel BIS Banksters will carry on bleeding humanity as usual and China etc. will go along with it. This Rothschild shill Rickards and the rest of the SDR pushers are little more than red herrings in a Ponzi sewer with no more gold than flushed gold fish. Nixon defaulted on USSAN debt in 1971, everyone knows it and though it took 40 years or more to get the Pentacon mobsters to back off, the writing is on the wall and the "exorbitant privilege" of the USSAN protection racket is over. Syria was the end for the blood spattered fiat filth "reserve currency" protection racket and interminable USSAN debt and pretending that the Yuan in a basket of fiat filth can allow the scam to carry on as normal is a pathetic delusion even if the Chinese were dumb enough to play along with the Satanic money changers and pedophiles.

The "barbarous relic" is the only answer to the IOU Saudi Mercan (formerly) I$I$ backed fiat filth petroscrip dollah. The Russians and the Chinese will decide on the new rules going forward and not the bankrupt anglozionazis and their SDR spouting propagandists.

 

 

https://www.youtube.com/watch?v=B60EGKTPCWA

 

Posa's picture

GOLDBUGS: Putting credit creation and national economic policy in  the hands of the international gold cartel is not the answer

LawsofPhysics's picture

FAIL.  Sorry to disappoint you asshat, but my PMs are NOT in anyone else's hands!

What a maroon.

Posa's picture

Your BMs don't represent national economic policy and strategy

Maestro Maestro's picture

The Chinese are very stupid liars.

The proof is the Chinese adoption of the two worst Western ideologies, namely, capitalism and communism CONCURRENTLY.

Anything they say about gold is a LIE. The Chinese are enemies of gold as honest money and they will never willingly monetize gold. The Shanghai Gold Exchange is a bigger FRAUD than COMEX as it's not a physical-only exchange as claimed: https://www.sprottmoney.com/blog/the-new-shanghai-gold-exchange-does-any...

The Chinese told their own people to buy gold and then turned around and screwed their own Chinese population by colluding with JPM, Citibank, Deutsche Bank, and Goldman Sachs to crash the price of silver and gold. (The Chinese sold thousands of tons of physical silver into the markets at the behest of Western bankers.)

http://www.silver-investor.com/charlessavoie/cs_july04.htm

http://m.digitaljournal.com/article/279166

Posa's picture

Granted. But it does seem that R-C are seeking to escape dollar hegemony, which, increasingly, is being used as a tool of warfare... Obviously they don't want to crash the whole system tomorrow... but they have an emerging comprehensive agenda they are implementing with deliberate speed. Gold plays in, but the ultimate metric is the output of Chinese factories, investments and consumption.

Maestro Maestro's picture

No sir, they are not. The Russians and the Chinese are the bankers' whores like everybody else. There is no reason either country could not stop accepting dollars like yesterday. The Chinese got the manufacturing base they crave. The Russians have all the natural resources they need plus all the technology. So why are the moronic Russians practically giving away, say, their platinum for instance, by selling it for dollars which the Americans can and do print out of thin air? Why are these morons still supporting the American MIC (which has sworn to wipe them and all other rivals off the face of the earth) by propping up the petrodollar? Read and weep:

The BRICs are all IMF member countries and are thus forbidden to monetize gold, or link their currencies to gold, or use gold as a trading or exchange mechanism:

http://m.beforeitsnews.com/silver/2016/04/how-the-imf-forbids-the-use-of...

http://www.24hgold.com/english/news-gold-silver-why-does-the-imf-prohibi...

India recently collaborated with Western bankers and following the West's instructions, temporarily destroyed the purchasing power of its own Indian population by demonetizing physical cash, under the guise of eliminating tax evasion and cash-only criminal activity. This has had the effect of crashing the gold price by temporarily removing the Indians from the gold market, exactly when the Trump inauguration lit a fire under the gold price.

The Russians never abstained from using dollars even at the time of the communist USSR! If they did not demand gold for their oil during the Cold War, why would the Russians do it now when the Russian central bank is owned and controlled by the City of London banking establishment since the creation of the new Russian Constitution under Yeltsin? The Russians are forbidden to issue their own currency the Ruble without permission from Western bankers and the Russians can only buy US Treasuries with the dollars they get for their oil, not gold. There are more dollar assets than Rubles in Russia:

http://anonhq.com/checkmate-central-bank-russia/

http://www.pravdareport.com/russia/economics/30-12-2014/129431-usa_russi...

The gold price would have skyrocketed if the Russians and the Chinese were buying gold hand over fist as alleged. Why do you think that Western bankers would give gold away at or below cost to their purported enemies?

Unless they were not enemies in reality, and just partners playing good cop, bad cop for the purposes of fooling and manipulating their unsuspecting respective populations?

http://www.mygen.com/users/ufo/Mao_was_a_Yale_Man_2.html

Why do the Russians never ask the Americans to leave Syria where the Americans are illegal invaders under international law? Why did the Russians never prevent the Israelis from attacking their allies the Syrians?

The Shanghai Gold Exchange is a fraud designed to legitimize the fraudulent COMEX "discovered" gold price. Goldman Sachs and JPM never could have manipulated the gold and silver prices lower without active Chinese collaboration. That the Shanghai Gold Exchange is a physical only market is a LIE:

https://www.sprottmoney.com/blog/the-new-shanghai-gold-exchange-does-any...

The Chinese government defrauded and stole from their own Chinese citizens by encouraging them to buy gold at the top. The Chinese bankers then colluded with JPM and Goldman Sachs to crash the gold and silver prices. Large amounts of physical silver were leased out and sold into the physical markets by the Chinese authorities as well:

http://www.silver-investor.com/charlessavoie/cs_july04.htm

http://m.digitaljournal.com/article/279166

http://www.dnaindia.com/money/column-china-urges-citizens-to-buy-gold-an...

Do not forget: It's the international ruling classes against the common folk. That's the real meaning of globalism.

Posa's picture

The R-Cs are moving at a deliberate pace with their agenda coming clearly into focus. They don't want to start anything precipitous, but their seems little doubt that a MultiPolar Agenda is opening up in several fronts... but your comments are duly noted... we'll see how this plays out between now and 2020.

pparalegal's picture

Worthless greenbacks and pesos for you, SDR's for them. That is how it will work. It's a big club and you ain't in it.

webmatex's picture

SDR backed by fiat printed by FED BJP BOE EU and now China whose banks can print ceaslessly and hold rates at zero?

SDR has been around since this whole mess started, nothing new here, just the same old fiat game.

SDR will solve nothing except to further centralise global monetary policy within an unnacountable and corrupt IMF group of private bankers.

This is just a desperate gambit to buy yet more time for the bankrupt casino not a new and cunning plan.

Use of a gold backed Yuan and barter/trade swaps, national block chains and  CIPS will increase to the detriment of the other fiat currencies in the SDR basket - this is certain and happening.

The Chinese way is to cut out the middle man, in this case the bankers, and use local currency and resources for trade that do not pass into the global banking system providing savings and independence

 

weburke's picture

ww1 was between 3 cousins, american men were shipped to verdun, which was just a slaughter pit, used over and over to kill . No thought to go around it of course. americans were supposed to agree to the league of nations after, but too many americans figured it out and knew thier sons were sent to be killed in verdun and the league of nations was not passed by congress and congress passed the law that american troops were only to be generaled by americans. Of course the elites got around that by ww2.  ect ect, always betrayal. 

HANGEMHIGHER's picture

The SDR is an unbacked fiat currency to solve the unbacked fiat currency problem.

Maestro Maestro's picture

***The insidious author of this article claims that he doesn't see how the SDR can be implemented even though he mentions that 10.92% of the SDR is the CHINESE YUAN which is a higher percentage than the British pound or the Japanese yen. So bollocks to you English brat.***

The BRICs are all IMF member countries and are thus forbidden to monetize gold, or link their currencies to gold, or use gold as a trading or exchange mechanism:

http://m.beforeitsnews.com/silver/2016/04/how-the-imf-forbids-the-use-of...

http://www.24hgold.com/english/news-gold-silver-why-does-the-imf-prohibi...

India recently collaborated with Western bankers and following the West's instructions, temporarily destroyed the purchasing power of its own Indian population by demonetizing physical cash, under the guise of eliminating tax evasion and cash-only criminal activity. This has had the effect of crashing the gold price by temporarily removing the Indians from the gold market, exactly when the Trump inauguration lit a fire under the gold price.

The Russians never abstained from using dollars even at the time of the communist USSR! If they did not demand gold for their oil during the Cold War, why would the Russians do it now when the Russian central bank is owned and controlled by the City of London banking establishment since the creation of the new Russian Constitution under Yeltsin? The Russians are forbidden to issue their own currency the Ruble without permission from Western bankers and the Russians can only buy US Treasuries with the dollars they get for their oil, not gold. There are more dollar assets than Rubles in Russia:

http://anonhq.com/checkmate-central-bank-russia/

http://www.pravdareport.com/russia/economics/30-12-2014/129431-usa_russi...

The gold price would have skyrocketed if the Russians and the Chinese were buying gold hand over fist as alleged. Why do you think that Western bankers would give gold away at or below cost to their purported enemies?

Unless they were not enemies in reality, and just partners playing good cop, bad cop for the purposes of fooling and manipulating their unsuspecting respective populations?

http://www.mygen.com/users/ufo/Mao_was_a_Yale_Man_2.html

Why do the Russians never ask the Americans to leave Syria where the Americans are illegal invaders under international law? Why did the Russians never prevent the Israelis from attacking their allies the Syrians?

The Shanghai Gold Exchange is a fraud designed to legitimize the fraudulent COMEX "discovered" gold price. Goldman Sachs and JPM never could have manipulated the gold and silver prices lower without active Chinese collaboration. That the Shanghai Gold Exchange is a physical only market is a LIE:

https://www.sprottmoney.com/blog/the-new-shanghai-gold-exchange-does-any...

The Chinese government defrauded and stole from their own Chinese citizens by encouraging them to buy gold at the top. The Chinese bankers then colluded with JPM and Goldman Sachs to crash the gold and silver prices. Large amounts of physical silver were leased out and sold into the physical markets by the Chinese authorities as well:

http://www.silver-investor.com/charlessavoie/cs_july04.htm

http://m.digitaljournal.com/article/279166

http://www.dnaindia.com/money/column-china-urges-citizens-to-buy-gold-an...

Do not forget: It's the international ruling classes against the common folk. That's the real meaning of globalism.

cat2005's picture

"When I look around the world today, I just don't see the political cohesion necessary to implement the SDR."

The word "today" is key.

Political cohesion won't be necessary tomorrow if that tomorrow includes a wave of Central Bank (currency) bankruptcy. No, printing more money to inflate the debt away will not work forever.

I agree the IMF should be take out back and shot, but as long as we humans have a "debt as money" system, then that is not happening.

The SDR, or something like it, would not work today. It might work tomorrow or might not but that uncertainty will not stop private bankers from trying it.

The alternative is for these elites to yield their financial power.

If you think they will voluntarily do so then I have some Kansas beachfront property to sell you.

The elites are working today to bring a revised SDR tomorrow. It doesn't mean they will be successful but they will absolutely try right when a major crisis hits.

MaxThrust's picture

If history has a say in this matter, governments from around the world who have control of their soverign currencies will print before they hand over the "rights" to their country to a global entity like the IMF.

cat2005's picture

Yes. That is why I implied the SDR would only "take off" after a series of Central Bank bankruptcies (read worthless national currencies).

napper's picture

SDR as new global currency?? The lame old BS from Jim Rickards.

 

The SDR is a unit of accounting at the IMF - composed mainly of USD & the Euro, plus JPY, RMB, and GBP.

 

How "new" can that be?

myorouter's picture

This has to be the most ridiculous thing I have read in weeks.  

Shepwave is taking some more aggressive trades for Monday. Just read the reports for Monday. Usually their aggressive trades in stocks are good for at least a week or so until they evaluate again.  Their gold trades are usually good for several weeks. Just what I have found from experience of following their trades for about a year now. 

ZIRPdiggler's picture

I gotta add something about the power of words:  Xenophobia is being thrown around without context by everybody these days.  Keeping illegal aliens out for the purposes of self preservation is not xenophobic.  That is the same flawed logic that would apply if someone were to say that I am 'full of blood lust' just because I killed an intruder on my property.  'Possession' may be 9/10th's of the law but INTENT belies 100% of the whole of the law as far as I'm concerned.  None of our technocratic rulers even regards the SPIRIT of law any more.....they're  all perfect little pharisees.  Hopefully their end will be similar and soon. 

ZIRPdiggler's picture

So did the NY Fed burn down?  lol

Doug Eberhardt's picture

Same conclusion I came to a year ago when Rickards was pounding the table on dollar death and SDR's taking over. But his logic was flawed. 

The Fear Mongering Crowd - Dollar Death On September 30th Edition - SDRs https://seekingalpha.com/article/4007197-fear-mongering-crowd-dollar-dea...

Why would any country that produces things want to have a country that doesn't produce with an equal "one" currency. Economies don't work that way. 

Of course with central banks doing QE infinity to create free money to buy real assets, that's the ticket! SDR talk is just the side show to what really goes on. The Fed is actually behind on this game (see the SNB and their balance sheet filled with tech stocks). 

 

 

globalintelhub's picture

private bankers are not talking about SDRs, only in your fantasies

raymeejrs's picture

What??? Exscuse me WHAT???? The author is telling me that every nation is "inward looking,xenophobic,Nationalistic" there fore the world cannot have the cohesion to work towards a global SDR,or some other "world currency"....Uh Chris,you are falling for the scam hook,line, and sinker..If every nation is so "inward looking" as you say.how come they ALL deal with the IMF,and especially the BIS...If  nations were to just go rouge,and look after themselves,they would pull away from the BIS and IMF as fast as they could..But they dont...Everything they do is in complete compliance of these institutions..its like when people tell me China and Russia are fighting the evil western bankers and the New World Order I just have to shakke my head..If they were,why would China fight so hard to get into the SDR in the first place?  NONE of these nations are leaving the UN or the IMF or the BIS...This tells me they are all EXTREMELY coordinated..Its all B.S. They are just moving the power from one place to another ,from west,to the east..I have no idea what will be the "one world currency"but I have no doubt its on its way...And those who will not jump on board,will be crushed...

ZIRPdiggler's picture

The implied premise of Mr SDR, Jim Rickards, and gold bugs like Peter Schiff, is that "government is going to win anyways so you may as well not get into cryptos".  I disagree wholeheartedly.  The SDR idea and cental banks in general are increasingly irrelevant.  None of these clowns from the Fed or IMF, BIS et al have a clue how to backdoor manipulate cryptos....all they can do is imitate it with something that NO ONE is going to want to get involved with. NO ONE will value an IMF blockchain or "FED coin" as long as there is a guy in Australia or China who is willing to trade value for your Bitcoin. Central planners haven't and wont figure out how to hop that hurdle. Everyone knows what they're about.  Imagine buying into "Fedcoin", knowing full well that they control all the mining, distribution, and development of it.  We have that system RIGHT NOW!  Here are it's components: a) printing press b) bond auctions and c) primary dealers.  try as they might.....Mr Gobal will fail.

libertyanyday's picture

the coin will be delared counterfeit , the blockchain will be hijacked.  crypto is just removing currency from circulation, once that is complete btc will be denied a currency status. The blockchain effectively eliminates money laundering..........btc is just bringing it all to an end faster.

hound dog vigilante's picture
"...btc will be denied a currency status..." Denied status by whom?  is status necessary to use BTC?  Nope. TPTB don't have the ability to ban/stop/regulate BTC.  They may try to co-opt BTC, but they can't stop it... not even close.
Maestro Maestro's picture

Very astute observation.

Bitcoin = CIA

Scuba Steve's picture

"If they were,why would China fight so hard to get into the SDR in the first place?"

Hedge?

companies and traders do it all the time, why not a sovereign country.

Besides, when you know you are the biggest player in world metals, population and biggest buyer of U.S. fiat why wouldnt you demand a top chair at every table that involves world trade?

Maestro Maestro's picture

The Chinese are very stupid liars.

The proof is the Chinese adoption of the two worst Western ideologies, namely, capitalism and communism CONCURRENTLY.

Anything they say about gold is a LIE. The Chinese are enemies of gold as honest money and they will never willingly monetize gold. The Shanghai Gold Exchange is a bigger FRAUD than COMEX as it's not a physical-only exchange as claimed: https://www.sprottmoney.com/blog/the-new-shanghai-gold-exchange-does-any...

The Chinese told their own people to buy gold and then turned around and screwed their own Chinese population by colluding with JPM, Citibank, Deutsche Bank, and Goldman Sachs to crash the price of silver and gold. (The Chinese sold thousands of tons of physical silver into the markets at the behest of Western bankers.)

http://www.silver-investor.com/charlessavoie/cs_july04.htm

http://m.digitaljournal.com/article/279166

ZIRPdiggler's picture

This whole SDR idea is a crock of s***.  It's irrelevant to people with Bitcoin.  I couldn't care less any more how countries settle their trade among themselves. Mr CIA,  Jim Rickards has been pimping this nonsensical idea as if a) it is a sure thing and b) as if it matters.  It will go no where if the peasants decide to reassume control and decide for themselves, what sound money looks like. Gold is going to disappoint.  It will go up relative to useless fiat but it ain't going to $10000.  5K, maybe.  First of all, there are too many undisclosed reserves of gold in the world, so there goes the scarcity argument.  If you doubt me, research, "grand canyon gold" and "Chocolate mountain gold" in californicationland. That's just in the US.  Did Rickards really think us fools would fall for the idea that all governments, mining co's, and bullion banks have honestly disclosed the existence & locations of the world's untapped reserves???  Do some research into the diamond business and Debeers family to get any idea of what I am alluding to, here. 

Jimbeau's picture

Still better than the buck.

Dragon HAwk's picture

What this country needs is a Good  5 Cent Dollar.  ( err Cigar )

Silver Savior's picture

Ooooooor we could just go straight back to physical gold and silver as a means of payment and skip all the bullshit. Both are already universal money. 

To send a payment electronically simply deposit gold and use a fully backed crypto currency to transfer it. 

Slicker than snot on a doorknob!

libertyanyday's picture

gold cant be created...........bankes kryptonite.

ZIRPdiggler's picture

The value created by the integrity and immutability of the blockchain ledger and the electricty spent mining bitcoin are what gives bitcoin its intrinsic value:  It does not require the backing of another asset.  It is an asset unto itself. We will be living in a multipolar world with many types of currencies.  Choose your weapon.

Let it Go's picture

Underestimate the dollar at your own risk. It should not be a surprise in our current global economy that behind the curtain central bankers could be busy manipulating currencies so they trade in a narrow range that will not rock the boat.

Many market watchers have become dubious of recent market moves and over the top efforts of both governments and central bankers to keep this so-called recovery moving forward. More on the merit of this controversial opinion and the ramifications it holds in the article below.

 http://brucewilds.blogspot.com/2017/03/currencies-are-trading-in-false-paradigm.html

Silver Savior's picture

Yeah I think I will keep trading that shit for gold silver and crypto. The USD seems like a dead end. Accumulate a whole lot of them then when you are rich they will be worth nothing. No thanks. Fiat is garbage. Not trusting it.

Mr... Robot's picture

LONDON (Reuters) - Global usage of the International Monetary Fund’s in-house currency, the special drawing right (SDR), could get a boost from the growth of digital currencies, the Fund’s managing director, Christine Lagarde said on Friday.

"However, she added that existing digital currencies had technical problems which would need to be solved."

"Could get a boost from digital currencies"  ya right.

The IMF is setting up a currency coup with acchain. I looked at the acchain website {need to duck duck go it, don't have the link}. They say they will be able to convert all global assets to acchain. Backed by SDR's. They are using china for the trials. they did a global sale of tea in China, then a sale of homes in Texas. No US citizens were able to by the homes in TX. The infrastructure is almost ready. When the reset hits, it will be a new cashless world for all. Line up for your mark, or number. Otherwise watch your family starve.

Buckle up, we're in for some chop.

Global Douche's picture

We're potentially looking at a DIGITAL SDR, as in Blockchain and likely made with a "backdoor(s)" which Bitcoin doesn't have. Even if we don't get a fiat SDR, the digital one could scare the shit out of any party dealing with it. Transparency? Doubtful! I seriously doubt there's any P2P or public access ensuring transparency. In fact, I'd argue that such a blockchain by necessity be mutable, or easily changeable by TPTB, especially if the Deep State has anything to say on the matter.

 

libertyanyday's picture

the crypto community has sped up the cry for digital only currency............... its like increasing the production of cyanide suicide pills....and they are happy to do itl

DrData02's picture

Yeah Chris, things are so darn good everywhere that they'll probably never change. 

peddling-fiction's picture

The bubonic rat of a SDR on steroids, will foist its charred phoenix head sooner than later.

el buitre's picture

Jim Rickards is pushing the SDR as the new world reserve currency (along with a first strike on North Korea) on the alt economic circuit every day,  so it must be loaded with integrity and on the level, a boon to all humanity.  Would someone like Honest Jim proselytize for the Mark of the Beast?

anarchitect's picture

My take is that Rickards isn't pushing the SDR, but pointing out that it's what will probably be tried if the next crisis is too big for any central bank to handle on its own.  I think he'd prefer to see some form of gold standard, but the reality is that politicians and banksters are utterly lacking in discipline and will do their best to avoid one.