"WASHINGTON (Reuters) - The U.S. Treasury Department announced on Monday that Group of Seven finance ministers will meet in Washington on April 24 and follow that gathering up with a Group of 20 ministerial session.
Treasury Secretary Timothy Geithner will host both meetings, which precede semi annual gatherings of the International Monetary Fund and World Bank.
The G7 comprises the United States, Britain, Canada, France, Germany, Italy and Japan and has been the long-standing forum within which the larger economies discuss their economic concerns and try to coordinate policy."
With this G7 economic meeting coming up, discussed more in the link given above, SDR’s are coming up again in their conversations. I know in the G20 the global crime scum agreed to have more of these printed at the IMF to be distributed in the global market exchange. Does anybody have any links or might know how SDR’s and the U.S. dollar as world reserve relate to each other?
Oh boy! Finally! We’ll solve the problem of inflation and instability…with…more inflation and instability.
But oh! It’ll work this time because we’ll get the right people this time, and since it’s on a much larger scale, things are different.
In my honest opinion, this is just a prelude to establishing a world currency…first you make a centralized reserve currency that everyone focuses on, then, ovr time, you slowly push it towards people as being a totally new currency that’s “superior” to local currencies…and well, eventually the people will, unfortunately, bite, and fall for it.
"Simon Johnson, former chief economist at the IMF, said: “The principle behind it is that everyone would get bonus dollars and instead of the Federal Reserve having to print them, everyone gets them.”
Now that does show replacement of U.S. dollar as world reserve. I remember Bernanke saying a week or two ago that 50% of all U.S. dollars are overseas. Imagine that all flooding back - disastrous.
"“The IMF’s special drawing rights could at least balance the dollar,” Zhu says.
Zhu says, however, that the Chinese yuan, known domestically as the renminbi, has a role in global currency matters in the future.
“But we are seeing a new player in the international arena — that’s the renminbi. It will take a while before the renminbi will be convertible, but an interesting thing is happening.”
The Chinese currency’s circulation is growing, he points out. “More and more, it will be used in trade settlements.”
Dennis Gartman pointed out recently that Nobel laureate Robert Mundell strongly supports the idea of using the SDR as a reserve currency. Mundell believes that the renminbi should be part of the basket making up the SDR."
How does a national currency become part of “the basket making up the SDR”? It seems this SDR is dependent on national currency, but yet they print it without even deciding what currency or money will be part of the so called “basket”. very vague indeed
"Mr. Zhou’s idea is to expand the use of “special drawing rights,” or SDRs – a kind of synthetic currency created by the IMF in the 1960s. Its value is determined by a basket of major currencies. Originally, the SDR was intended to serve as a shared currency for international reserves, though that aspect never really got off the ground.
These days, the SDR is mainly used in the IMF’s accounting for its transactions with member nations. Mr. Zhou suggested countries could increase their contributions to the IMF in exchange for greater access to a pool of reserves in SDRs."
Now I see what SDR’s are and what that “basket” is. So what is being circulated as ideas by those pushing for more IMF involvement are SDR’s backed by gold (mainly Russia, maybe others), more Chinese currency (yuan) in the IMF SDR basket to add value to the SDR’s, and there is also a call for the Chinese yuan to replace the U.S. dollar as the world reserve over time. So a number of options they are publicly discussing. Yet they are going ahead and printing more SDR’s without solidifying what will add value to the SDR, in other words, what will be added to the IMF SDR basket.
No problem! I’ve been keeping track of all these articles and storing them, so as to quell the “there’s no plans or talk about a world currency”. True, but the groundwork is being set.
if I were to be a guessing Fox, I’d be willing to bet the SDR, if fully implemented would be based upon the Euro, Yen, Yuan, USD, the Pound, and maybe some other country’s currency, as well (Ruble?).
In any event, it won’t happen overnight, but I’m fairly confident to say, unfortunately, it’ll happen, eventually.
"June 6 (Bloomberg) — The International Monetary Fund said it’s possible to take the ‘revolutionary’ step of creating a new global reserve currency to replace the dollar over time.
The IMF’s so-called special drawing rights could be used as the basis for a new currency, First Deputy Managing Director John Lipsky told a panel discussing reserve currencies at the St. Petersburg International Economic Forum today.
‘There are many, many attractions in the long run to such an outcome,’ Lipsky told a panel discussing reserve currencies at the St. Petersburg International Economic Forum today. ‘But this is not a quick, short or easy decision,’ he said, adding that it would be ‘quite revolutionary.’
The SDRs would have to be delinked from other currencies and issued by an international organization with equivalent authority to a central bank in order to become liquid enough to be used as a reserve, he said."
Update on SDR’s. U.S. Postal Service is now using SDR’s. SDR’s replacing the U.S. dollar enacted by U.S. government postal service. That link I gave has an embedded link straight to the U.S. Postal Service’s own government information on this.
" 324.12
and enter it in the SDR value block. For example:
$100.00 (U.S.)
62.59 SDR "
etc., etc. It shows the conversion process the clerk is supposed to take with all the numbers and such.