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US Treasury Calls for IMF SDRs

jhanders's Photo
by jhanders
Thursday, Feb 25, 2021 - 23:56

US Treasury head Janet Yellen called on the G20 for new allocations of fiat IMF SDR notes in a letter today.

Likely the coming SDR notes will have a $500 billion per year allocation. And they will likely be issued for many years upcoming.

Congress has no say in the matter, given that the US portion of the loan is under the $120 billion per five-year threshold. 

This starting portion will cover the years 2017 through 2021.

This next half-trillion fiat IMF SDR loan will likely follow in 2022, which will not require congressional approval.

No word yet on how levered up these SDR loans could get.

But this is possibly the start of an IMF SDR liquidity injection into the global economy that sets off the "Great Reset" of the world monetary order and global financial structure.

US Treasury Calls for IMF SDRs

Treasury & Federal Reserve melded monetization leader, Janet Yellen, called for new IMF SDR issuance today.

The US Congress has no say in the matter. But if some did, they would ask for more IMF SDR trillions in issuance.

Tomorrow, the congressional critters will look to lock in the next $1.9 trillion Covid Relief bailout bill for the USA.

 

 

This starting IMF SDR issuance portion will cover years 2017 through 2021.

In 2022, the next half-trillion fiat IMF SDR loan to be made will again not require US Congressional approval.

The official US Treasury line is that it wants to work with international financial institutions to help “low-income countries who are struggling to respond to the pandemic.” Sounds nice until you look at the plan to use the IMF to subsidize mostly rich and middle-income countries, leaving the poor with little.

Moving on to total Global Debt update.

 

 

At the end of the year 2000, hard global debt levels had reached $87 trillion.

Today in 2021, the total world stock market value alone is nominally larger than that figure.  

Also recently updated, we have a new 2021 global debt level of $281 trillion.

That little upside-down pyramid you can see in the tweet above and the video embedded here. Former Federal Reserve Governor John Exter designed it. Perhaps the final honest central banker, the United States, had.

Paul Volker respected John Exter, and there is an interesting story about a chance meeting they had only a year after the 1980 gold price and 1980 silver price highs.

In the embedded IMF SDR video above, we go into what Mr. Exter’s take was on the IMF SDR back in 1980 when he spoke to Detroit's Economic Club.

 

 

In the following tweet, you can find price charts illustrating just how badly the arbitrary IMF SDR unit or basket of fiat currencies has lost value versus the four major precious metals since as far back as the 1960s.

John Exter's previous point about money being a store of value, and all other arbitrary human-made currency and monetary contrivance ending value destroyed. The Bank for International Settlements has a hand monetary flower chart that illustrates the same point.

On a long enough timeframe, the survival rate of every arbitrary human folly currency drops to zero. 

Every flawed human currency created proxy fades and eventually will die in value versus physical precious metals. 

This is why having a prudent bullion allocation is mathematically proven to be a sound action.

--Addendum--

In case you do not know much about the IMF SDR contrivance.

Back in 2015, right before the fiat, the Chinese yuan was allowed into the "magic circle" I made the following video so ordinary people could learn more.

IMF SDR Info vs. Gold Bullion 2015

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