Best of the Week
Most Popular
1. US Housing Market House Prices Bull Market Trend Current State - Nadeem_Walayat
2.Gold and Silver End of Week Technical, CoT and Fundamental Status - Gary_Tanashian
3.Stock Market Dow Trend Forecast - April Update - Nadeem_Walayat
4.When Will the Stock Market’s Rally Stop? - Troy_Bombardia
5.Russia and China Intend to Drain the West of Its Gold - MoneyMetals
6.BAIDU (BIDU) - Top 10 Artificial Intelligence Stocks Investing To Profit from AI Mega-trend - Nadeem_Walayat
7.Stop Feeding the Chinese Empire - ‘Belt and Road’ Trojan Horse - Richard_Mills
8.Stock Market US China Trade War Panic! Trend Forecast May 2019 Update - Nadeem_Walayat
9.US China Trade Impasse Threatens US Lithium, Rare Earth Imports - Richard_Mills
10.How to Invest in AI Stocks to Profit from the Machine Intelligence Mega-trend - Nadeem_Walayat
Last 7 days
Silver Long-Term Trend Analysis - 18th June 19
IBM - Watson Deep Learning - AI Stocks Investing - Video - 18th June 19
Investors are Confident, Bullish and Buying Stocks, but… - 18th June 19
Gold and Silver Reversals – Impossible Not to Notice - 18th June 19
S&P 500 Stuck at 2,900, Still No Clear Direction - 17th June 19
Is Boris set to be the next Conservation leader? - 17th June 19
Clock’s Ticking on Your Chance to Profit from the Yield Curve Inversion - 17th June 19
Stock Market Rally Faltering? - 17th June 19
Johnson Vs Gove Tory Leadership Contest Grudge Match Betfair Betting - 17th June 19
Nasdaq Stock Index Prediction System Is Telling Us A Very Different Story - 17th June 19
King Dollar Rides Higher Creating Pressures On Foreign Economies - 17th June 19
Land Rover Discovery Sport Tailgate Not Working Problems Fix (70) - 17th June 19
Stock Market Outlook: is the S&P today just like 2007 or 2016? - 17th June 19
US China War - Thucydides Trap and gold - 16th June 19
Gold Stocks Bull Upleg Mounting - 16th June 19
Gold Price Seasonal Trend Analysis - Video - 16th June 19
Fethiye Market Fruit, Veg, Spices and Turkish Delight Tourist Shopping - 16th June 19
US Dollar Gold Trend Analysis - 15th June 19
Gold Stocks “Launch” is in Line With Fundamentals - 15th June 19
The Rise of Silver and Major Economic Decline - 15th June 19
Fire Insurance Claims: What Are the Things a Fire Claim Adjuster Does? - 15th June 19
How To Find A Trustworthy Casino? - 15th June 19
Boris Johnson Vs Michael Gove Tory Leadership Grudge Match - Video - 14th June 19
Gold and Silver, Precious Metals: T-Minus 3 Seconds To Liftoff! - 14th June 19
Silver Investing Trend Analysis - Video - 14th June 19
The American Dream Is Alive and Well - in China - 14th June 19
Keeping the Online Gaming Industry in Line - 14th June 19
How Acquisitions Affect Global Stocks - 14th June 19
Please Don’t Buy the Dip in Nvidia or Other Chip Stocks - 14th June 19
A Big Thing in Investor Education is Explainer Videos - 14th June 19
IRAN - The Next American War - 13th June 19
Boris Johnson Vs Michael Gove Tory Leadership Grudge Match Contest - 13th June 19
Top Best VPN Services You Can Choose For Your iPhone - 13th June 19
Tory Leadership Contest Betting Markets Forecast - Betfair - 13th June 19
US Stock Market Setting Up A Pennant Formation - 13th June 19
Which Stocks Will Lead The Cannabis Rebound? - 13th June 19
The Privatization of US Indo-Pacific Vision - Project 2049, Armitage, Budget Ploys and Taiwan Nexus - 12th June 19
Gold Price Breaks to the Upside - 12th June 19
Top Publicly Traded Casino Company Stocks for 2019 - 12th June 19
Silver Investing Trend Analysis - 12th June 19
Why Blue-Chip Dividend Stocks Aren’t as Safe as You Think - 12th June 19
Technical Analysis Shows Aug/Sept Stock Market Top Pattern Should Form - 12th June 19
FTSE 100: A Top European Index - 12th June 19
Gold Surprise! - 11th June 19
How Forex Indicators are Getting Even More Attention in the Market? - 11th June 19
Stock Market Storm Clouds on the Horizon - 11th June 19
Is Your Financial Security Based On A Double Aberration? - 11th June 19
What If Stocks Are Wrong About Interest Rate Cuts? - 11th June 19
US House Prices Yield Curve, Debt, QE4EVER! - 11th June 19
Natural Gas Moves Into Basing Zone - 11th June 19
U.S. Dollar Stall is Good for Commodities - 11th June 19
Fed Running Out of Time and Conventional Weapons - 11th June 19
Trade Wars Propelling Stock Markets to New Highs - 11th June 19
Best Travel Bags for Summer Holidays 2019, Back Sling packs, water proof, money belt, tactical - 11th June 19
Betting on Next British Prime Minister Tory Leadership Betfair Markets Forecast - 10th June 19
How Can Stock Market Go Up When We’re Headed Towards a Recession? - 10th June 19
If You Invest in Dividend Stocks, Do This to Double Your Returns - 10th June 19
Reasons for the Success of the Dating Market - 10th June 19
Gold Price Trend Analysis - Video - 10th June 19
US Stock Markets Rally Hard – Could Another Big Upside Leg Begin? - 10th June 19
Stock Market Huge Cosmic Cluster Ahead: Buckle Up! - 10th June 19
Stock Market Higher To Go? - 10th June 19
The Gold Price Golden Neckline… - 10th June 19
Gold Price Seasonal Trend Analysis - 9th June 19
The Fed Stops Pretending - 9th June 19
Fed Rate Cuts Soon; Bitcoin Enthusiasts Join Wall Street in Bashing Gold - 9th June 19
1990s vs. 2010s - Which Expansion Will be Better for Gold? - 9th June 19
Gold Price Trend Analysis, MACD, Trend Channels, Support / Resistance - 8th June 19
Gold Surges Near Breakout - 8th June 19
Could Gold Rally Above $3750 Before December 2019? - 8th June 19
5 Big Lies About Precious Metals Investing Exposed - 8th June 19

Market Oracle FREE Newsletter

Gold Price Trend Forecast Summer 2019

G20 Meeting and Special Drawing Rights Potential Developments

Politics / Global Financial System Mar 26, 2009 - 07:35 PM GMT

By: Robert_Bradshaw

Politics Best Financial Markets Analysis ArticleThere have been several news reports this past week on the upcoming G20 meeting in London on April 2nd. Perhaps the Chinese and Russians have been the most noteworthy in their plans for a new world reserve currency to replace the dollar. The Russians have had a focus on a basket of currencies or regional currencies which would open the door for the Russian ruble to gain a par status with the dollar and other key currencies.


For a while, it looked like the Chinese would back the Russian approach. However, as late as March 24, 2009, a report from London's Financial Times offered more details on something the Chinese broached lightly a few days ago on a push for a resurrection and new role of power for the Special Drawing Rights.

This Financial Times article, by Jamil Anderlini, was on “China calls for new reserve currency.” The article quoted Zhou Xiaochuan, China's central bank's governor. He wants the new reserve currency to be controlled by the International Monetary Fund. While much of the former talk has been on regional currencies and/or basket of currencies, the Chinese proposal is for a powerful new role for the Special Drawing Rights (SDR). These SDRs are now based on four currencies-the US dollar, the Japanese yen, the euro and the British pound. They are used largely as a unit of account by the IMF and other international organizations.

China wants to expand the basket of currencies forming the basis of the SDR valuation. China wants the valuation to include all major currencies (presumably to include the Chinese yuan and the Russian ruble). China also wants a settlement system between the SDRs and other currencies so that they can be freely used in international trade and financial transactions. The SDRs would be managed by the IMF and would gradually replace existing reserve currencies.

The Times quoted Mr. Zhou as saying that the proposal would require “extraordinary political vision and courage.” He also acknowledged a debt to John Maynard Keynes, who made a similar suggestion in the 1940s. As is known by many people, Keynes was the father of deficit spending and the demise of gold.

Backdrop on the SDRs

These SDRs came into usage in 1969. It was envisioned then that they would become the paper international currency used in international trade and especially in the settlement of accounts. But since the scheme involved a give away of these SDRs to key central banks (which are owned by the huge international banks), the plan never really was acceptable around the world. By the 1970s, dissatisfaction over the SDRs set in to limit their use and acceptance globally.

Wikipedia gives this backdrop on the purpose and current use of the SDRs : “SDRs are used as a unit of account by the IMF and several other international organizations. A few countries peg their currencies against SDRs, and it is also used to denominate some private international financial instruments. For example, the Warsaw convention, which regulates liability for international carriage of persons, luggage or goods by air uses SDRs to value the maximum liability of the carrier…

“SDRs were originally created to replace Gold and Silver in large international transactions. Being that under a strict (international) gold standard, the quantity of gold worldwide is relatively fixed, and the economies of all participating IMF members as an aggregate are growing, a perceived need arose to increase the supply of the basic unit or standard proportionately. Thus SDRs, or ‘paper gold', are credits that nations with balance of trade surpluses can 'draw' upon nations with balance of trade deficits.

“So-called ‘paper gold' is little more than an accounting transaction within a ledger of accounts, which eliminates the logistical and security problems of shipping gold back and forth across borders to settle national accounts.

“Joseph Stiglitz has argued that usage by central banks of SDRs as foreign exchange reserve could be viewed as the prelude to the creation of a single world currency. It must be understood that Gold and Silver have filled the role as global currencies for several thousand years of recorded history…Support for SDRs in the global finance system has historically been very weak, as other fiat currencies have largely supplanted the SDR as value storage mechanisms…

“The value of one SDR in terms of United States dollars is determined daily by the IMF, based on the exchange rates of the currencies making up the basket, as quoted at noon at the London market. (If the London market is closed, New York market rates are used; if both markets are closed, European Central Bank reference rates are used.)”

My Analysis of this latest development from China

These articles on Chinese proposals for the use of the fiat, paper SDRs as a new global reserve currency would please the plutocratic international bankers. This move would allow them a golden opportunity to print fiat paper money in huge quantities to flood the world. We can be sure that the fat cats would love to have a new paper world currency in their greedy little hands. Since they already control the IMF and most world central banks, such a new global currency would definitely fit into their plans for world rule.

For sure, this adventure would put the Western plutocrats into even more of a world ruling posture. It's hard for me to fathom that the Chinese would willingly give up any hope of having financial independence from the international bankers in the Christian West. It looks like lessons from history would sink in on the Chinese of how the fat cat money masters in Europe exercised hegemony over China for ages before the Communist came to power in the late1940s and took over control of China. The push for Western control was the story behind the British seizure of Hong Kong and the British-Chinese Opium wars in the 1830s.

As late as 1900, plutocrats from Europe were still trying to control China. This conflict set the stage for a story and even a Charlton Heston movie on “55 Days at Peking.” If China is floating a resurrection of SDRs, it certainly plays into the hands of the plutocratic masters running the financial markets. It's hard to imagine why the Chinese would even entertain this idea. The fact that she is floating it would suggest that some back room deal has been made by the plutocrats and the Chinese Communist leadership.

As a minimum, any carry forward of this scheme would mean a serious dent in the future role of gold and a boost up for world government and a new world paper currency. If this plan reaches fruition, we may see a fantastic collapse in the price of gold and other precious metals.

_________________________________________________________________

Back issues of the Goldsmiths, by the editor of the Analysis of News, can be accessed from a Google or Yahoo search engine by typing in “R. D. Bradshaw” Goldsmiths. Several hundred web sites can be found with the back issues and with translations to Spanish, Italian, German, Chinese and other foreign languages. Goldseek.com has most of the back issues of the Goldsmiths. Finally, the “Archives-Goldsmiths” of this website ( www.analysis-news.com ) has all of the Goldsmith articles issued to date.

Besides the revelations contained in the Goldsmiths' articles, the work of the plutocratic financial market manipulators to conspiratorially manipulate and control the financial markets (to make more profits and install a world government under their management) is also addressed at length in the periodic analysis of the news and in other articles produced at www.analysis-news.com . This website has an article of interest to any person interested in understanding the market Manipulators. It is the Hidden Secret of the Manipulators, why they succeed and how to follow their manipulations.

Readers of the above articles are invited to visit www.analysis-news.com and become a subscriber to regularly read some of the material from the world of information which will further reveal how extensive the manipulation, control and dishonesty realities are in the financial, currency and commodity markets, not only in the US but indeed around the world. To go to the home page of this website, please click at the link here: www.analysis-news.com .

Robert Bradshaw is a retired CPA and editor of Analysis of News at www.Analysis-News.com.

© 2009 Copyright Robert Bradshaw - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules