The International Monetary Fund issued a report Thursday on a possible replacement for the dollar as the world’s reserve currency.
The IMF said Special Drawing Rights, or SDRs, could help stabilize the global financial system.
SDRs represent potential claims on the currencies of IMF members. They were created by the IMF in 1969 and can be converted into whatever currency a borrower requires at exchange rates based on a weighted basket of international currencies. The IMF typically lends countries funds denominated in SDRs
While they are not a tangible currency, some economists argue that SDRs could be used as a less volatile alternative to the U.S. dollar.
See my previous articles outlining the SDR, the UN and the IMF.
UN Report Suggests Scrapping Dollar – Lengthy Editorial by Hayden Included (I kind of got off on a rant in this article, but it’s good)
“When asked about a plan “designed to increase the use of the IMF’s special drawing rights” at a CFR conference, Geithner replied, ”we’re actually quite open to that.” The International Monetary Fund is essentially a global bank and their “global currency” is called the SDR – or special drawing rights. It’s a basket of currencies that they control the policy of. After Geithner’s comments, the US Dollar fell 1.3% within 10 minutes. That’s because investors and bankers know that when a man such as Geithner says that we’re moving towards an increased use of SDRs, the Dollar is on the way out of the door.
This was said in early 2009. Since that time, Geithner, Volckner and Paulson, along with many other Goldman Sachs cronies and Wall Street insiders charading as politicians, have done everything in their power to destroy the US Dollar while squeezing it for every last drop.“
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