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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 INTL RESERVES.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
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 INTL RESERVES.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