Replacing The U.S. Dollar With An SDR Note “Remains The Overriding Vision”

An-Election-Wont-Stop-the-Dollar-Collapse1By Rory Hall

The Epoch Times recently published their follow up to the G20 Meeting held in early September in China. It is interesting to note how their reporting dramatically differs from the typical Western media reporting. Had a person followed only Western media outlets for reporting on the G20 meeting one would have come away with the sense that the only thing accomplished was Obama and Russian President Putin facing off in a stare down that looked like two boxers about to go toe-to-toe.

In an article The Daily Coin published we clearly stated the meetings that would take place on the “sidelines” would be where the real meetings would determine the next step(s) in the, currently, unfolding monetary shift. The Federal Reserve Note, U.S. dollar, is now on the chopping block of history. While the axe has not been lowered it is certainly being sharpened. China has made it clear there is going to be a change and “the United States had to go along with the Chinese because they hold a large portion of the U.S. government debt.” I have heard it said before – the debtor is the slave to the creditor and the master determines the fate of the slave.

“Behind the scenes, the system preparations have been made to the international monetary system which will allow us to introduce the SDR as one of the world’s reserve currencies, as a world reserve currency which could become and replace the dollar.”

He [Willem Middlekoop] thinks the United States had to go along with the Chinese because they hold a large portion of the U.S. government debt. This does not mean, however, that the dollar will become meaningless in the near future, as it is still the most important currency within the SDR basket.

“Adding the Chinese yuan to the SDR is a great way for the United States to stay in control. The U.S. dollar is still more than 42 percent of the SDR, even after Oct 1. So this is a solution which is acceptable for both the Chinese and the Americans. Even Putin can agree with this. By upgrading the SDR the United States will become less important, but it will still be the leading currency. Both Russia and China understand the need for the dollar for the foreseeable future.” Source

Small changes along the way make for one big change at the end of the line. The people who believe the Federal Reserve Note, U.S. dollar, is going to crash and burn overnight are missing the point of these communiques from the IMF, BIS and World Bank. What is happening right now are the people who are making policy changes are putting into place the mechanisms required to convert a global monetary system from one system to the next. China and Russia have been doing exactly this for the past several years. The AIIB was set up for the specific purpose of shifting accounts out of the BIS, IMF or World Bank or all three, into a new global banking system. The alternative to the, current, SWIFT system that has been built by both China and Russia, independently, represent other tools necessary to make this shift. There are a great many more tools necessary to making this type of global change. China and Russia have both been, independently, developing other banking systems, and monetary tools, necessary for such a change. There is still much work to be done.

Small changes are hidden in plain sight. In its Articles of Agreement, the IMF states each member is obligated to “making the special drawing right the principal reserve asset in the international monetary system.”

Within the context of these small changes, however, the Chinese won a symbolic victory to have one of the U.S. controlled global institutions, the World Bank, issue a bond denominated in SDR in China.

“It’s more symbolic but highly significant. It shows that the U.S.-centered institutions, the IMF and the World Bank, really accepted the Chinese demand,” said Middelkoop. Source

The new M-SDR, in conjunction with the two other SDR’s O-SDR and R-SDR, are in place and ready to fill the ledger sheets around the world. This is not going to happen overnight, next week or next year – as of today this is not the plan. The plan is to continually drain the current system and propagate the new system at the same time. This has the potential to create problems as these two systems move in opposite directions. Gold could be a “counterweight” to smooth out the transition and create a more level currency as one system grows and the other recedes. I did not say gold would be part of the system nor did I say gold is going to play a role, at all, in this transition.

According to the former head of the IMF’s SDR division Dr. Warren Coats, China does plan on completely replacing the U.S. dollar in the long term and that private bond issues like the one from the World Bank are necessary to build capital markets and pricing mechanisms for the SDR.

“That goal to replace the dollar and euro and other currencies as international reserves with the SDR remains the overriding vision that China has in mind,” he said. “Any serious undertaking to promote the SDR as an attractive, viable international reserve asset requires an extensive private use of SDRs, like the World Bank bond and there needs to be lots more of that.”

He suggests for the SDR to take over from the dollar, major commodities like oil also need to be priced in SDR, and the banking system needs to create deposits and loans in SDR as well. Source

Sept 30th – Doomsday for the US Dollar? (Ad)

Furthermore, gold is not currently allowed to play any role in the SDR Basket of Currencies.

Gold could “provide a counterweight to the impact of the depreciation/appreciation of the dollar (and other currencies) since the gold price tends to be inversely related to the dollar,” she writes in a 2011 paper. 

However, although the IMF holds 2,814 metric tons of gold reserves, it won’t be part of the SDR anytime soon according to Dr. Coats: “This would not be allowed under the current articles. They prohibit gold from being part of the SDR.” Source

So, for those who believe gold is going to be part of the new system, which it very well could be, please re-read the couple of statements to understand that this is far from over. Gold could be part of the new system; however, as of today, it is not.

You can read more from Rory Hall at his site The Daily Coin, where this article first appeared.

Activist Post Daily Newsletter

Subscription is FREE and CONFIDENTIAL
Free Report: How To Survive The Job Automation Apocalypse with subscription

16 Comments on "Replacing The U.S. Dollar With An SDR Note “Remains The Overriding Vision”"

  1. As the globalists grease the skids on the new system they need to offer up holographic scapegoats to the American sheeple faced with a two-pronged inflation scenario: gradual loss of dollar reserve status and bankster helicopter money. Voila: 1) The 28 pages limited hangout to create a smoke and mirrors rift with the Saudis; 2) hyped geopolitical tensions; 3) a viral contagion; and 4.) incompetent selections for POTUS.

    Did I miss any? Probably so.

    • …..”Holographic scapegoats”…….very good Blue.

      You could possibly add the threat of “rightwing dissidence” for confiscating self defence capabilities of the population targeted for subjugation.

      • Excellent addition, Doug!

        And perfect timing given Hillary’s recent use of the “alt right” label; the UK press (Guardian) going bonkers with negative stories on American gun owners; and this morning the lame stream media putting an article front and center proclaiming half of all guns in the US are owned by 3% of the population – only the right wingers being the implication.

        All that talk of guns has me fantasizing about becoming a hit woman, La Femme Nerdita who happens to be a Bridget Jones look-a-like, no one would suspect a thing. LOL 😉

        • I think the time is fast approaching where gun ownership will not stop the American “Bolshevik Revolution”. The dumb down, belligerent security forces and UN/NATO bolstered “strong cities” network being established will effectively contain, smash, any resistance – imo.

          Well, as an aside, the only real problem with guns is that every low quality creep tries to further decimate the bird and animal populations with their mindless target shooting at live creatures.

          When I saw “hit woman” and “Bridget”, in your post, I got a little confused with one of my favourite popcorn movies in that genre – Point of No Return with Bridget Fonda.
          In your hit girl escapades you could also operate on the principle: “Don’t mind the little things” :- )

          • Point of No Return, I’ll have to check it out, I love good movies. Thanks for the tip!

            Speaking of point of no return, I completely agree with you, guns are virtually meaningless, they can pick us off one at a time and will probably do lock downs city by city, and, Boston-esque style, citizens will cheer the oppressors violating their rights.

            I read a chilling commentary a few months ago written by an Australian academic. He urged Australians to be like Singapore and embrace authoritarian technocracy in order to stay relevant, he said otherwise Australia would become a poor nation. Even entire western nations that might attempt to resist the NWO will be singled out to become impoverished pariahs. I hope Olde Soul is right and a mother ship is on its way to get us out of Dodge! 😉

  2. USA hasn’t even embraced the metric system & Americans hate change. Good luck getting them to accept this. They may however be stupid enough to accept digital money because they are too lazy to realize all the freedoms they will sacrifice for convenience.
    As an aside PLEASE when you write an article DO NOT assume that every one knows the meanings of your many acronyms. A proper writer would DEFINE them at least once at the beginning of the story. Thank you.

  3. This is about having a World Central Bank issuing a world currency. This currency will be electronic so we will be totally dependent on the bankers. We must obey them or else they will wipe out all our wealth in an instant. This has long been documented and David Icke has written extensively about it.

  4. Okay I give up!!! Is this some sort of wag the dog syndrome where they create a boogeyman (SDR) then the try to convince people that it is best for everyone? WFT IS AN SDR!!!??? Don’t you love these kind of articles that give abbreviations without explaining what they are? This is typical “progressive” rubbish! More central bank control!

    • The International Monetary Fund (IMF) controls the Special Drawing Rights (SDR) basket of currencies. On rare occasion (typically involving IMF loans), the SDR is used as an exchange medium for debts, however, this role has been almost exclusively the domain of the dollar reserve system. Analysts consider the SDR (and the global elite have said this themselves) a transitional stepping stone to a global currency. The basket is composed of the dollar, euro, yen, and pound sterling – all given different weights in the basket, the dollar being the highest. Effective October 1, 2016, the basket will be expanded to include the Chinese renminbi. Expect a boiling frogs scenario (incrementalism) where the weight of the dollar is lowered bit by bit over the next several years. Some writers predict the dollar will “crash”, others see the boiling frogs suffocation of the dollar as more likely in order to reduce the chance of an uprising by the American public.

  5. They’re simply changing the textures & colors on their new ‘velvet hand cuffs’ that enslave us all… as they slip new metaphorical ‘chinese finger cuffs’ between our ears.

  6. You will need to “verify” your identification by trusting your life to (worshiping) the official verification system. EMV, Smart chips or Veri Chip. It will be the easy way to keep your wealth (Revelation 13)

  7. ‘Special Drawing Rights’ (SDR) have been around for a long time so most writers just assume readers are familiar with it. Best to Google it, you’ll find everything you want to know and then some.

  8. I gave masmpg a shorthand explanation below if you’re interested…

  9. Defining what an SDR is would be useful.
    If you can’t explain what it is in a couple of sentences you probably don’t know.

Leave a comment

Your email address will not be published.