Special Drawing Rights

[UncleJoe]

Anyone ever heard of this?


As we have shown, U.S. treasuries auctions have tanked and those long term treasuries already held by foreign nations are being slowly cast off. So far, the Federal Reserve has propped up the dollar by purchasing T-bonds in the place of foreign banks who no longer want them. By continually monetizing this debt, the Fed will inflate an incredible bubble in the treasury market. When will this bubble burst? The key lay in the rules governing Special Drawing Rights.

Special Drawing Rights (SDRs) are securities much like treasury bonds. Their value is determined by a basket of international currencies including the Dollar, the Euro, the Yen, and the Pound Sterling. The IMF claims that SDRs are not technically considered currency, but SDRs serve nearly all the functions of a currency except that they are not available to the general public (yet). It walks like a duck, and quacks like a duck, but the IMF would rather not call it a duck. In the end, the SDR is a world reserve currency, and its purpose is to topple the dollar.

Not long after the economic meltdown began, the IMF announced that they would begin the unlimited printing of SDRs. In 2009, within the span of a few months, SDR circulation went from $21 billion, to nearly $204 billion, and this is only the amount they have admitted to:

SDR Allocations and Holdings for all members as of February 28, 2010

Governments across the world have purchased SDRs, while at the same time dropping U.S. treasuries. China in particular has shown sharp interest in the SDR as a replacement for the U.S. dollar:

China buys $50 billion in first-ever IMF bonds - China Economic Review

It may be prudent to mention that China’s heightened dumping of U.S. treasuries began right around the time that the IMF began mass printing SDRs. And, even more disconcerting, the U.S. Treasury also quintupled its supply of SDRs in August of 2009:

http://www.zerohedge.com/sites/default/files/images/US%20INTL%20RESERVES.jpg

Being that the U.S. dollar is supposedly the undisputed world reserve currency, why would the U.S. Treasury have any need to buy SDRs at all? Would this not be redundant? Unless, the Treasury knows that the dollar will not remain the world reserve currency for much longer….

Here is the entire article.

Economy Kept On Life Support While Global Governance Is Organized : Neithercorp Press

[sailaway]

I think we all know it's just a matter of time until the dollar is recognized as worthless, we who live in the USA and use it already know that. Simple economics, you can't spend what you do not have. We've already spent our kids inheritance, we just haven't admitted it yet.

As for this new commercial draft, I think those who are in control will role it out when they are ready and of coarse they will already have theirs and the rest of us will be left holding the bag, and of course we will have less freedonm and be greater wage slaves to the system.

I look around my community and people are doing all they can just to feed themselves, keep a roof over their head and some cloths on their backs. Alot are already on food stamps, general relief and metro/section8 housing.

[greaseman]

When it comes to the FED, watch what they do,not what they say. They are obviously lying thieving scum bag basterds, who are determined to wreck the economy, to make financially ruined slaves out of everybody. They are succeding in a big way.
Does everyone feel we are at critical mass, when everything begins to topple? The house of cards can't last much longer. I feel everything will fall apart quite quickly, and that people will be left stunned at the speed of the collapse. In many previous times in history, collapses happen very rapidly, and the countless masses are left in the dust, crying what happened? All the government will do is blame the problem on unforseen circumstances that they could not prevent, when in fact they caused the problem, and knew exactly what they were doing.

I have been raiding my 401k, as I believe that within the next six months, the government will seek to take over this last bundle of cash that they don't control yet. I continue to hear government officials, and other union bosses talk of the need to put this private savings in a government secured annuuity, so that rertirees savings' will be "safe". it's nothing but a money grab. The government is broke, and searching for any source of money they can. To all: clear out your 401k while you can. In April, the government institutes a new law concerning withdrawels from 401k money market accounts. They have instituted a waiting period to get your funds. Pardon me, but this is my money, whay should I have to wait for my money? They obviously are expecting a run on the funds, as the situation becomes intolerable for Americans, and they seeek to close out accounts for cash. if you have 401k money, get it out now, pay the penalties, and make it dissapear. keep it out of the bank, and bury it in a hole somewhere. Buy some precios metals, and protect your assets. it will always hold value.

Good luck, watch world events, and keep on your toes.