Globalists Push SDRs as World Reserve Currency
Friday, February 11, 2011
Once again the IMF is calling for SDRs, short for Special Drawing Rights, to replace the U.S. dollar as the world’s reserve currency.
“Over time, there may also be a role for the SDR to contribute to a more stable international monetary system,” said Dominique Strauss-Kahn, managing director of the IMF. He said there are some “technical hurdles” involved with SDRs, but he believes they could help correct global imbalances and shore up the global financial system.
In addition to creating a globalist fiat currency controlled by the financial elite and their central banks, the IMF is proposing the creation of SDR-denominated bonds, which would reduce the use of U.S. Treasuries if implemented. The IMF also suggested that assets such as oil and gold, which are currently traded in U.S. dollars, should be priced using SDRs.
The nominal value of an SDR is derived from a basket of currencies – specifically, a fixed amount of Japanese Yen, US Dollars, British Pounds and Euros. The IMF cooked up the SDR scheme in 1969. It was originally intended to be the primary asset held in foreign exchange reserves under Bretton Woods, but after the collapse of that system in the early 1970s – a victim of the bankster plan to send the U.S. deficit into the stratosphere – SDRs took on a far less important role.
Following the onset of the engineered global financial crisis in 2008, the so-called BRIC countries – Brazil, Russia, India and China – led primarily by Russia and China, have called for dumping the dollar and moving into a global currency scheme. The SDR facility stands ready.
The IMF and the globalists plan to elevate China and undermine the United States. Strauss-Kahn told reporters last June in a news briefing that he believed there would be more pressure to include yuan, also known as the renminbi, among SDR currencies.
Early in 2009, China issued an aggressive call to dump the dollar and move into SDRs. “The role of the SDR has not been put into full play due to limitations on its allocation and the scope of its uses. However, it serves as the light in the tunnel for the reform of the international monetary system,” said Zhou Xiaochuan, governor of the People’s Bank of China.
The IMF, however, has so far held off on spiking international foreign exchange reserve assets with the yuan. The problem is that China has yet to “liberalize” its currency, in other words the authoritarian state has yet to allow central banks to hold yuan-denominated deposits without restriction.
In June, the United Nations called for abandoning the U.S. dollar as the main global reserve currency, saying it has been unable to safeguard value.