IMF Says New Reserve Currency to Replace Dollar Is Possible

IMF Says New Reserve Currency to Replace Dollar Is Possible

www.bloomberg.com

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.
As much as 70 percent of the world’s currency reserves are held in dollars, according to the IMF, leading to calls for nations to diversify their cashpiles to avoid excess

(visit the link for the full news article)


Related News Links:
www.dailytimes.com.pk
www.bloomberg.com
www.bloomberg.com

Related AboveTopSecret.com Discussion Threads:
The Weimar Hyperinflation: Time to get out the wheelbarrows?

June is the deadline! Are you ready to swap all your currency to SDR’s. Forgive me if I am wrong but this sounds like a cashless society with the use of credits.

We’re going paperless, that’s for sure! O.K, We have heard about The Chinese yuan many times, for use as the New Global Currency. I don’t think that will happen.

It appears the IMF is now calling the new Global currency “special drawing rights” It is clear that there is no practical solution to this global OTC derivative meltdown.

SDRs exposed the fact that our financial leaders are Failing. They would be well advised to create anything new rather than seek to recreate our future’s failure.

If used for quantitative easing this would indicate the introduction of Zimbabwean and Weimar Germany HYPERINFLATION!

Should this happen and we run out and spend money it will be extremely inflationary!

edit wrong link

[edit on 7-6-2009 by wonderworld]

IMF plan for new SDR allocation set for late June

WASHINGTON: The International Monetary Fund on Thursday said it expects to move quickly to agree on a G20 plan to issue $250 billion in new Special Drawing Rights to member countries to boost liquidity in the wake of a global economic downturn and financial crisis.

According to the IMF’s work plan for the next several months, a proposal on the allocation of drawing rights — or SDRs — will be presented to the IMF board by the end of June.

www.dailytimes.com.pk...

Kudrin Says Yuan May Be Reserve Currency in Decade

June 6 (Bloomberg) -- Russian Finance Minister Alexei Kudrin said the Chinese yuan may become a reserve currency in a decade if the country “liberalizes” its economy as it pursues a response to the global financial crisis.
“The shortest route would be if China liberalized its economy and showed willingness to allow the convertibility of the yuan, and that might take 10 years, but there will be a lot of demand for the currency,” Kudrin said today at the St. Petersburg International Economic Forum.

Russia Urges World to End Grain ‘Imbalance’ as Hunger Spreads

June 6 (Bloomberg) -- Russian Finance Minister Alexei Kudrin said the Chinese yuan may become a reserve currency in a decade if the country “liberalizes” its economy as it pursues a response to the global financial crisis.

News link2
www.bloomberg.com...



Canada Dollar Tumbles Amid Job Losses, Warning by Central Bank

June 6 (Bloomberg) -- Canada’s dollar plunged from the strongest since October as employers cut more jobs than forecast, the central bank warned the rally might hurt the economy and traders speculated gains were too big to sustain.

The currency, known as the loonie, tumbled 2.5 percent in the past five days, depreciating the most since the week ended Jan. 16 and posting the first weekly drop since May 15.

www.bloomberg.com...

wonderworld you seem to always be on top of your game with up to the minute accurate quotes. i think we all knew or have the feeling that this was coming. all i can say is the next 3 years are going to be some of the most interesting times ever to be alive.

Got some extra info for you:

At the G-20 summit on April 2, President Obama helped China gain power at the IMF which could assist them with their plan to get their reserves out of dollars before the coming dollar collapse.

China may want to follow up on the statement made on March 23 by Zhou Xiaochuan, head of the People's Bank of China. Zhou's idea was to turn the International Monetary Fund's (IMF's) SDRs (Special Drawing Rights) into an international reserve currency that would be guaranteed by the IMF to have a value based upon the average value of a basket of currencies. It was clear that Zhou was anticipating the coming dollar collapse when he said:

And when a country's currency is no longer used as the yardstick for global trade and as the benchmark for other currencies, the exchange rate policy of the country would be far more effective in adjusting economic imbalances. This will significantly reduce the risks of a future crisis and enhance crisis management capability.

China realizes that trade will have to get more balanced in order to get the world out of this great recession. America could balance its trade by adopting Warren Buffett's Import Certificates plan, but China would much prefer that U.S. trade get balanced by a dollar collapse. America continues to stand in the way of China's territorial expansion and continues to advocate the democratic philosophy that threatens China's totalitarian rulers. A dollar collapse would quickly reduce American power.

China's problem is that they have approximately $1.7 trillion worth of dollar reserves which would become nearly worthless when the dollar collapses. Thus, they need to get their reserves out of dollars before the dollar collapses. They can't sell their reserves outright without causing the dollar collapse, so they are looking for a transfer, negotiated with the IMF, of their dollar reserves into SDRs. At the G-20 summit this week, President Obama helped them gain power at the IMF so that they could proceed with this plan.

Just before the summit, Democrats on the House Ways and Means Committee urged Obama to get tough with China's currency manipulations, which violate Article IV of the International Monetary Fund Articles of Agreement. China's currency manipulations have directly caused China's trade surpluses and America's trade deficits, resulting in millions of good-paying American jobs moving to China.

But Obama gave China more say at the International Monetary Fund without even requiring that they comply with IMF rules, as described by Joe McDonald in his Associated Press story:

President Barack Obama and his Chinese counterpart, Hu Jintao, stuck to areas where they agree in their high-profile first meeting in London, trying to avoid fueling global economic fears by airing disputes over currency and stimulus plans....

Obama handed Hu a diplomatic victory when, according to a senior American official, , he agreed on the need to change the International Monetary Fund to give China and other developing countries "an appropriate role." Beijing wants a bigger voice in managing the world's finances and has suggested its contribution to a global bailout fund might be contingent on receiving it.

President Obama was very pleased in how well the summit went. He called it a "turning point" for the world economy. Indeed the summit was a turning point, a turning point toward a dollar collapse.

seekingalpha.com...

[edit on 7-6-2009 by Mdv2]

reply to post by tatersalad


Thank you tatersalad,

I try to keep up on things that worry me. Hoping I'm just being Loony for thinking about it. Every time I try to proove myself wrong I find more facts.

The facts about the global currency are getting more creative by the day. I never fell for the Amero thing. It will be global.

Does it seem as if the President was on the side of those seeking to marginalize the standing of the US currency?

Does it appear that the Federal apparatus is working against the the State itself?

Have we come to understand the deliberate actions taken by our representatives in our name are not for our benefit?

Have we begun to catalog and mark those 'preparations' being made by the political elite against the future economy.

Does it seem that they have 'laid the table' for a few well-positioned interests?

Since it's about Federal Reserve notes and not real American money, does it count as unpatriotic to hobble our future prosperity?

Do any of you casual readers and connected observers get it yet?

I don't know much about it, but apparently this will be economic Armageddon for America.
If nations start getting rid of their USD; it’s like some mafia criminal opening up a super dollar forging factory. China alone holds something like two trillion USD in cash.

So America could well end up having to issue a new currency (just like Germany did after World War 1.)

However America still makes up around 23% of the world's economy, and so what's bad for America is still bad for the rest of the world economy.
That's what's stopped a new world currency emerging in the past!!

But with Russian President Medvedev (and others) continuously pressing (plotting) change, one wonders what exactly these foreign buggers could-will engineer....!

After all we have allowed the destruction of Russia’s economy (at least) twice since the end of communism, maybe it’s only fair if they get to do the same just the once!!!

I think Russia is one of the most undervalued nations on earth.
(Possibly) a great investment alternative to the U.S!!! (Providing you check that what you do fits in with their foreign investment regulations.)
However as time passes, Medvedev continues to remove the few (remaining) realities in anti Russian investment propaganda.

[edit on 090705 by Liberal1984]

reply to post by Mdv2


Thank you. I am very familiar with the G20 summit in April and expect a new beginning coming from the next summit in September.

I'm guessing they plan thei summits around the fiscal quarters, the last one ended in March and the summit was in April. The next summit will be within days of the quarter ending in September.

I'm still in Awe of that June deadline, for the switch over. They know somethings up!

I expect things to change rapidly, after then.

reply to post by Maxmars


No actually Obama admitted the US dollar is basically worthless. We must remember that both Bush and Obama have formed a pact and have signed in blood.

Bush even had to ask someone" what is the G20" and invited them all to the Whitehouse. This began a downward spiral, as a Super Power.

Bush blamed the global economic crash on the US and he has basically on his knees like Obama, asking for a gloabal bailout. As you can see the answer is no. We'll just switch to SDR's to help aleviate Chian's worries.

[edit on 7-6-2009 by wonderworld]

reply to post by Liberal1984


Yes, Armageddon for America Those who control the money control the land and it's people.

Maybe we should get out the wheelbarrows, in the event bread cost 100 bucks.

We all would be better off to have another Great Depression that Hyperinflation. We may find out next year we are in a Depression. I took a year to figure we were in a Recession. Many knew before it was announced.

I knew on Sept 15th when Lehman failed and the DOW dropped 777 points.

That is good. The Central banks can destroy the currencies and then the IMF can draw up a new one to replace them.

reply to post by RetinoidReceptor


Yes, that's one way to look at it.

To determine the currencies in the SDR’S and their amounts it is calculated by IMF Executive Board every five years.

The value of one SDR in terms of the United States dollars is determined daily by the IMF.

I’d like to see that calculation, considering depreciation, and the USA’s national Debt ratio.

What’s the standard? If they call this (gold paper) will we also have to give them our gold as collateral?

reply to post by RetinoidReceptor


YAAAY! ONE CURRENCY , ONE WORLD UNITED FINALLY UNDER ONE ROOF! I BET ITS GONNA BE ALL SUNSHINE AND LOLLIPOPS NOW! NOTHING BUT LOVE AND FRIENDSHIP! OBAMA THANK YOU! ! ! ! !


bwahahahahaha.............right


*edit to clarify* wasnt saying anyone said this, just a little cynical

[edit on 7-6-2009 by ManBehindTheMask]

The G20 and IMF officials said the plan had the support of political leaders and therefore would likely go through. Come on! Did we have any sayso about our hard earned money?


This will be resolved fairly quickly. There is a political push from the G20. This is something that won’t be delayed for a long time.

When the day actually comes that I must trade in my money for SDR'S. STHF in a hurry. Now I will have the IMF tell me what the value is. When I count it myself I know exactly how much I have.

They just throw the nes out there and most dont even know it's happening!

Very good thread Wonderworld! This dollar dumping as many have speculated that is around corner concerns me immensely! Here, we are raising the alarm, yet the MSM media is all happy go lucky about the economy.

Then you have the President and legislature spending money like drunken sailors and making the already serious problem epic in its proportion. It's a big crap sandwich and we all have to take a bite. You can't continue throwing money at the economy when it is poised to make a correction. I'm no economics expert like many on the thread, but to me as a layman; it seems correct. Tell me if I'm wrong?

[edit on 7-6-2009 by Jakes51]

I think paperless is the way to go. The majority of people use debit/credit anyways, plus many states already give out their food stamps and other benefits on cards....
Then it's only a few years away from a chip in your hand

reply to post by Jakes51


You are correct. I wish I could tell you you were wrong.

If History repeats, will we have worse than a Depression. If we saw an annual interest rate increase of 25% we will have Hyperinflation in 3 years.

I also wonder how this will effect Wall Street. Not well I'm sure.

We know main street will be hurting if this happens.

reply to post by AnonymousMoose


You got that right. Next will be the chip on the hand. Suppposedly to reduce Identity theft and stick us all in a Global database.

reply to post by Jakes51


You are on the money. I know that many see this as a practicality, but I suspect that a broadening of focus in order.

We have a lot to consider when writing off the American economy. It isn't simply a matter of political expedience.

This notional redistribution may have the force of mathematical reasonableness behind it; but our society is not an equation. Or perhaps that's the eventual goal.