one world, one bank, one currency

7/14/2015 OneWorld,OneBank,OneCurrencyDailyReckoning

http://dailyreckoning.com/oneworldonebankonecurrency/ 1/8

One World, One Bank, One Currency

T

Boiled down to its essence, the SDR is a kind of super money

printed by the IMF

he government is very good at making things overly complicated for the purpose

of obscuring whats really going on from the public, observed hedge fund

manager Erik Townsend during our interview in May.

He was making a point about the 2008 bailouts. The Federal Reserve played a leading role,

applying trillions in paper-clip and rubber-band solutions. The Feds balance sheet swelled from

$900 billion in September 2008 to $4.4 trillion as we go to press.

Luckily for you, our friend Jim Rickards is just as good at elucidating the muddled world of

finance as the government is at obscuring them.

Since Federal Reserve resources were barely able to prevent complete collapse in 2008, Jim

writes in his recent New York Times best-seller, The Death of Money, it should be expected that

an even larger collapse will overwhelm the Feds balance sheet.

Simply put, next time, printing another $3 trillion-plus wont be politically feasible. The specter

of the sovereign debt crisis suggests the urgency for new liquidity sources, bigger than those that

central banks can provide, the next time a liquidity crisis strikes. The logic leads quickly from one

world to one bank to one currency for the planet.

byAddisonWiggin. PostedOct1,2014.
http://dailyreckoning.com/author/awiggin/http://dailyreckoning.com/author/awiggin/http://dailyreckoning.com/author/jrickards/https://www.youtube.com/watch?v=M1MAOnOPQAk



Leading the way, says Rickards, will be the International Monetary Fund. The task of re-

liquefying the world will fall to the IMF because the IMF will have the only clean balance sheet

left among official institutions. The IMF will rise to the occasion with a towering issuance of

SDRs, and this monetary operation will effectively end the dollars role as the leading reserve

currency.

Ah the SDR. Thats shorthand for special drawing rights.

The name is cryptic. The mechanism will prove far more inscrutable than the Feds alphabet-

soup bailout programs in 2008. But the objective will be the same to print money in the interest

of keeping a rotten system functioning.

Boiled down to its essence, the SDR is a kind of super money printed by the IMF and then

circulated among central banks and governments. Indeed, the IMF has issued SDRs three times

since their creation more than 40 years ago. Each time was linked to a crisis of confidence in the

U.S. dollar

1969: The French and others recognized the United States was printing too many dollars. At the

time, foreigners could still exchange dollars for gold, and there was a run on Fort Knox. The IMF

created the SDR to smooth the rough monetary seas, issuing 9.3 billion SDRs through 1972.

1979: U.S. inflation soared out of control, past 14%. Oil-producing countries fretted the value of

their dollar reserves was plunging. The IMF issued 12.1 billion SDRs through 1981.

2009: In response to the Panic of 2008, the IMF issued 182.7 billion SDRs during August and

September.

A 42-page IMF paper published in January 2011 with the innocuous-sounding title Enhancing

International Monetary Stability A Role for the SDR? lays out what Rickards describes. A

multiyear, multistep plan to position the SDR as the leading global reserve asset. The study

recommends increasing the SDR supply to make them liquid and more attractive to potential

private-sector market participants such as Goldman Sachs and Citigroup The IMF study

recommends that the SDR bond market replicate the infrastructure of the U.S. Treasury market,

with hedging, financing, settlement and clearance mechanisms substantially similar to those

used to support trading in Treasury securities today.

Not that youd use it to buy a gallon of gas or a loaf of bread. SDRs will perhaps never be issued

in bank note form and may never be used on an everyday basis by citizens around the world. But



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even such limited usage does not alter the fact that the SDR is world money controlled by elites.

In fact, it enhances that role by making the SDR invisible to citizens. The SDR can be issued in

abundance to IMF members and can also be used in the future for a select list of the most

important transactions in the world, including balance-of-payments settlements, oil pricing and

the financial accounts of the worlds largest corporations, such as Exxon Mobil, Toyota and Royal

Dutch Shell.

The genius of the scheme is that the SDRs would create inflation but ordinary people wouldnt

know SDRs were causing it. Any inflation caused by massive SDR issuance would not be

immediately apparent to citizens. The inflation would show up eventually in dollars, yen and

euros at the gas pump or the grocery, but national central banks could deny responsibility with

ease and point a finger at the IMF.

The most provocative proposition in Rickards book, however, isnt hidden global inflation. Its

this: Before the SDR can assume its role as the new leading global asset, China must accumulate a

much larger stash of gold. And the gold price is being manipulated for the express purpose of

making sure China gets it relatively cheaply.

Weve long chronicled Chinas gold accumulation. When we interviewed Mr. Rickards last year,

he explained the rationale: They want to be in a position where they just raise their hand and say

to the world, Hey, weve got our gold, now were a player. Now when the international monetary

system collapses and the world has to reconfigure the system, we get a big seat at the table.

In The Death of Money, Rickards goes a step further: He says Western powers are making room at

the table for China using the precise mechanism we described in our Zero Hour scenario.

Western central banks have leased their gold to commercial banks, and those commercial

banks have sold that gold to Asian buyers including the Chinese central bank.

The gold price must be kept low, Rickards writes, until gold holdings are rebalanced among

the major economic powers, and the rebalancing must be completed before the collapse of the

international monetary system.

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The metric the power brokers are using to judge when China is ready to take its seat at the table?

Gold reserves as a percentage of GDP. Recall the Chinese central bank last disclosed its gold

holdings in April 2009 1,054 tonnes. Conservative estimates put that figure today at 2,710

tonnes. And as you see from the before-and-after tables nearby, it wont take much more before

Chinas gold-GDP ratio equals Americas.

The United States and China have a shared interest in keeping the gold price low, Rickards

writes, until China acquires its gold Once the rebalancing is complete, probably in 2015, there

will be less reason to suppress golds price, because China will not be disadvantaged in the event

of a price spike.

His research and documentation is peerless. Get the annual report from the Bank for

International Settlements, he told us during our dinner talk. Read the footnotes. I understand

its geeky, but its there. They actually get audited unlike the Fed and unlike Fort Knox.

Yet, we still wondered, who or what is the IMFs biggest enemy in carrying out its plan?

Time, replied Mr. Rickards. A financial panic in the next several years, caused by derivatives

exposure and bank interconnectedness, may trigger a global liquidity crisis worse than the 1998

and 2008 crises, he writes in his book. The IMF will step in but the emerging circumstances will

mean the process will be carried out on a crash basis, without reference to carefully constructed

infrastructure now contemplated.

And as he suggested in Currency Wars, the IMF might even swallow its pride and resort to some

form of gold standard if thats what it takes to restore confidence in the system.

But if thats what it takes, expect some ugly times ahead, like Ferguson, Missouri, but worse.

Riots, strikes, sabotage and other dysfunctions, complete with a neofascist response from

well-armed authorities.

What can you do? What should you do?

First, prepare yourself by reading The Death of Money and understanding the seven signs

Rickards says will point to a looming crisis. Then get cracking on the five investments he says can

help you weather the storm.

If you havent gotten a copy yet, wed advise holding off just for a while longer. Were working

closely with Mr. Rickards on a brand-new project that will not only put his advice in your hands,



Any citizen can go on a personal gold standard by buying gold

with paper dollars

but deliver constant updates and advice on how the coming monetary collapse will unfold.

In the meantime, you can probably guess what one of his recommendations is already:Go on

your own gold standard right now, the rest of the worlds governments be damned.

A fixed exchange rate is not essential to golds role in a contract money system, he said. It is

necessary only that the citizen be free to buy or sell gold at any time. Any citizen can go on a

personal gold standard by buying gold with paper dollars

He says our Zero Hour remains a distinct possibility in which the price of real gold you hold in

your hand runs away from the paper price quoted on CNBC. He thinks it could even be the

trigger for the next crisis.

As long as [gold] holders remain in paper contracts, he writes, the system is in equilibrium. If

holders in large numbers were to demand physical delivery, they could be snowflakes on an

unstable mountain of paper gold. When other holders realize that the physical gold will run out

before they can redeem their contracts for bullion, the slide can cascade into an avalanche, a de

facto bank run, except the banks in this case are the gold warehouses that support the exchanges

and ETFs.

Even Warren Buffett that tireless critic of gold and its inability to throw off cash flow has

bought something very similar to gold, says Rickards. Buffett has been known to disparage gold,

but he is the king of hard asset investing, and when it comes to the megarich, it is better to focus

on their actions than their words.

Click the play button on the video below to see Jim explain what Buffett (and the Chinese) have

been doing to pivot away from holding dollars.

Regards,

Addison Wiggin
http://dailyreckoning.com/author/awiggin/



for The Daily Reckoning

P.S.There is still time for you to prepare for Zero Hour. And while gold and hard assets are a big

part of that, they are by no means the only part.In fact, todays issue ofThe Daily Reckoning

email edition included three chances for readers to discover real, actionable profit opportunities

they couldntfind anywhere else. Its one of theFREE benefits thatcome standard inevery issue

ofthe FREEDaily Reckoning email edition. Dont miss another chance for you to discover real

profit opportunities. Sign up for the FREEDaily Reckoning email edition, right here.

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gman ayearago

OneFiattorulethemall,OneFiattofindthem,OneFiattobringthemallandinthedarknessbindthem

Recommend 1

AddisonWigginistheexecutivepublisherofAgoraFinancial,LLC,afiercelyindependenteconomicforecastingandfinancialresearchfirm.He'sthecreatorandeditorialdirectorofAgoraFinancial'sdaily5Min.ForecastandeditorialdirectorofTheDailyReckoning.WigginisthefounderofAgoraEntertainment,executiveproducerandcowriterofI.O.U.S.A.,whichwasnominatedfortheGrandJuryPrizeatthe2008SundanceFilmFestival,the2009CriticsChoiceAwardforBestDocumentaryFeature,andwasalsoshortlistedfora2009AcademyAward.HeistheauthorofthecompanionbookofthefilmI.O.U.S.A.andhissecondeditionofTheDemiseoftheDollar,andWhyit'sEvenBetterforYourInvestmentswasjustfullyrevisedandupdated.WigginisathreetimeNewYorkTimesbestsellingauthorwhoseworkhasbeenrecognizedbyTheNewYorkTimesMagazine,TheEconomist,Worth,TheNewYorkTimes,TheWashingtonPostaswellasmajornetworknewsprograms.HealsocoauthoredinternationalbestsellersFinancialReckoningDayandEmpireofDebtwithBillBonner.

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OneFiattobringthemallandinthedarknessbindthemIntheLandofIMFwheretheShadowslie.

4

Reply

stephenjacobs 9monthsago

Americaisnowfloatingonoil.PresidentObamahasopenedupAmericaasthenaturalgasandpetroleumleaderoftheworld....WhyisthissodifficultfortheRepublicans(theRepukes)tounderstand?

AndnowsolongastheU.S.istheworld'sleaderingasandoilproduction,itsdollarwillbethestrongestcurrencyintheworld.It'smuchbetterforacurrencytoexportenergyandtakeinrevenueandassets,thansimplytobebackedbygold,driftandgonowhereinvalue.TheAmericandollarwillgoupandupinvalue,fordecades.

AndwhatisreallyinterestingaboutthisisthatCanadacouldhavebeenpartofthismiracle.......ButCanadachoseadifferentpath:Canadaletitsenvironmentalists(theecofrauds)stoporoutlawfracking....Sotoday,CanadahasaprettyenvironmentinWesternCanadainplaceslikeSouthernSaskatchewan,butnothingmore.

NoticehowtheCanadaDollarsinkstodayagain:89centsU.S.

SteveJacobs,Watsonville,California

1

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stephenjacobs 6monthsago>stephenjacobs

TodayisJan20,2016andthebeaverbuckisdownto82.23cents.WeallcanthanktheenvironmentalistsinCanadaforthis,themandtheracketeerswhoseemtorunCanadasomuch.Sorrytosaythis,butevenbeingasocialdemocrat,Ihavetospeakthetruthandcallthefactswhattheyareupthere.

SteveJacobs,dualcitizenwithCanadalivinginWatsonville,Californiaandnowwithoutadrivinglicensethankstowhatmysocalled"kids"didtome.

1

stephenjacobs 6monthsago>stephenjacobs

At11:15AMPSTtoday,Jan22,2015thebeaverbuck30daytradingfutureforcurrencytransactionsatbanksis80.58ontelevision.SothebeaverbuckjustcontinuestofallandunderscoreswhatIamsayingaboutit.....Andmyforecastisforashorttermbouncenowatthe80centmarkbecauseitisaroundnumber.IknowallofthetricksoftheBankofCanada.ThatbankisstuffedwithKeynesianeconomistswholikeslowdevaluationswhichfooleveryone.Eightycentsequals1.25onitsrecipricalratewhichisniceandroundonthecurrencycharts.

(environmentalfrauds)+(racketeers)+(keynsianeconomists)+(goodsandservicestaxes)+(incometaxes)+(provincialtaxes)

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ASectorImmunetoGreece1comment13daysago

DemographicDilemma3comments12daysago

TheBISNightmareThatWillSendtheWorldIntoPanic2comments8daysago

GreeceistheCanaryintheCoalMine2comments15daysago

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+(propertytaxes)+(twodevaluations)+(athirddevaluationahead)=CANADA

NobodyismoreofasocialdemocratthanIam.IwasafriendofJoeZukeninWinnipeg,theonlyelectedcommunistinNorthAmerica.ButwhenitcomestotellingthetruthabouthowsomethingreallyisinCanada,ItellitthewayIseeit.Itellitthewayitjustplainis!

StephenJacobsinWatsonville,California

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gman 9monthsago

EineWelt,eineBank,eineWhrungs!

Reply

DangerFed ayearago

ToobadtheFederaltaxongoldsalegainsisstill28%.Downrightcriminal.

Reply

Wags ayearago

Themarkethastoacceptthemfirst.NWOinstitutionsarebeholdentotheUSgovernment,nottheotherwayaround.

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one world, one bank, one currency

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