The International Monetary Fund (IMF), Special Drawing Rights (SDR), and the Debasement of Currency
The International Monetary Fund (IMF), Special Drawing Rights (SDR), and the Debasement of Currency
We need to talk about the monetary reset. Not only in terms of the inflation and global debt— but also the organisations who instil the economic policies the world follows, contributing to this mess.
The first organisation I wish to discuss is the International Monetary Fund, the IMF.
For a more in depth description, there’s loads you can google in and around what I am saying here but for the purposes of brevity and continuity:
Towards the end of the world war, during a three week debate of heated discussions in July 1944: Bretton Woods chose a system of pegged exchange rates ultimately tied to physical gold in a system managed by the World Bank and IMF. I will get to the World Bank.. as well as the WEF, Bank of International Settlements, etc.. but for now let's talk just about the IMF.
The IMF is meant to be the "discipline system.” In other words, real money doesn't gain or lose, it just gets transferred. The wealth is fixed. At least in theory.
The IMF is made up of "190 member countries, to foster global monetary cooperation, secure financial stability, facilitate international trade..” blah blah blah, according to a quick search on Wikipedia. The main source of funding for IMF are through "quotas” which is just another fancy way of saying membership fees. The quota depends on the economic and financial importance of the currency on the world stage. Wikipedia also states that the "IMF recognises eight world reserve currencies: U.S. dollar, euro, Chinese renminbi (yuan), Japanese yen, British pound, Australian dollar, Canadian dollar and Swiss franc.”
The IMF is made up of Treasury Secretaries and central banks chiefs..(y’know, all the "trusted types”) … and this elitists club, gives them total fiscal control.
In my opinion, in seems suspect that those with absolute control, who own the the majority of wealth, can create an entire organisation, with all the fancy offices globally, that [on paper] is meant to advise policy for financial macro economic stability and to reduce poverty, while in practice merely drives us further into wealth disparity, imbalance, and inequality… dependent on debt. Especially since they are also the same ones who keep the scheme going, benefit from these economic policies, and punish their people through invisible taxes called inflation.
Surely I’m not the only one who sees this, right?
Special Drawing Rights and the extra layer of made up currency
From 1945-1969 everyone's currency was pegged to gold. The USA was so confident, it assured the world that every dollar was "as good as gold."
For this reason, the dollar is often referred to simply as the world's reserve currency. The bridge for all currencies to trade against.
But then in 1969, two years before Nixon pulled the plug on the gold standard, [ I am sure there was zero coincidence there. ] the IMF member countries deposited gold in their own currencies into special units of account. These are known as the the deposit accounts called SDR, " Special drawing rights,” and were created to supplement a shortfall of preferred foreign exchange reserve assets, namely gold and U.S. dollars.
The SDR are not a 'global currency reserve’ in the traditional sense, as you will read on most websites. But really, they are another layer of currency. I have explained in previous posts that currency is “legal tender by gov decree.” We should expect nothing less for digital money.
The value and yield on these reserve assets are defined by the basket of currencies.
Genius, really, as the IMF literally collects everyone else’s currency and then charges interest on the reserve asset.
Think about it this way…
The SDR is a global government jack pot: the ability to print digital currency, with the option for lifetime taxes, (which is what they have been talking about)— all controlled through the IMF. And it is the IMF who, on behalf of the globe, is also expanding the monetary supply and their basket of currencies …Not bad for an organisation that doesn't actually produce anything.
The SDR ends up being the real "world reserve currency”, although they don’t want to call it that — I just did.
One can’t help but wonder, what happens when ALL the nations need these “special drawing rights," not just the “developing” ones? What happens in a hyper inflationary event— where there’s some kind of forced and 'unprecedented' staged theatrical performance otherwise known as “a virus?"
A “smart" virus that magically appears from a lab and then bar hops around to its favourite cities delivering nothing but genetically mutated variants?
After all, theres only 1 trillion of assets available in the reserve accounts at IMF, obviously not enough to support each country in need- so how could they possibly keep up with the demand of all the members who have suffered this last year?
Since 1969 we saw around $200 billion SDR created.
But after the Lehman crisis in 2008, the United Nations and China asked to use the balance sheet of the IMF to create large amounts of SDR to provide liquidity for the worlds financial system.
Anyone surprised? ….OF COURSE it is highly political.
The Trump Administration was adamantly opposed to this idea.
But guess what happened as soon as Janet Yellon, was installed as a prop treasury secretary? She wrote a letter to the G20 calling for the SDR solution and the G20 approved it— and now the IMF can create the additional SDR. So naturally $500 billion was printed this last year.
And of course, the “pandemic” was the perfect justification to do so.
On March 23 2021, the IMF stated “This new allocation of SDR is a substantial and direct liquidity boost to all member countries with out adding to debt burdens”…
Sure, governments get to look like the winner for having money to pay its citizens to stay at home and “stay safe" and they will tell you the economy is recovering, when really the worlds currencies just made up money and handed it out.
Currency printing out of thin air— increases the debasement not just for the dollar, but all currencies. It's not physical— it is digital; backed by nothing.
Let that sink in for a minute.
Maybe this is why they now include ALL currencies in the basket? No one is left out— since everyone has had to “lock down for safety?” What a clever new way to bring about new reserves.
If only we could all get ‘furlough' direct from the IMF. Of course I realise most press releases around the topic will tell you we are getting benefits from the SDR, through our corresponding governments. They need no invitation to package the concept that the SDR is meant to generate confidence in the global economies; no one loses, and everyone wins. However that is simply, not true. The more digital currencies we create, the further the debasement continues, and the more smart money investors will flea out from what the government can print … to that which they can’t. Unless it’s backed to gold, as what usually happens in global debt crisis, there’s no confidence.
People will flea OUT of the paper monetary system. It's happening as we speak.
And soon, everyone left on the sinking ship, will be forced to jump to life rafts that were never meant to carry the weight of the world’s economic implosion.
Secure your life vest, we are all in for one hell of a ride.
References:
https://en.wikipedia.org/wiki/Special_drawing_rights
https://en.wikipedia.org/wiki/International_Monetary_Fund
Link to the IMF Press Release: https://www.imf.org/en/News/Articles/2021/03/23/pr2177-imf-execdir-discuss-new-sdr-allocation-us-650b-boost-reserves-help-global-recovery-covid19
A bit more about the G20 support on the SDR injection: https://www.reuters.com/article/uk-africa-imf/big-economies-agree-to-boost-imf-funding-georgieva-says-idUSKCN2AV0JM