Tuesday, August 30, 2016

The Stunning Roadmap 
To The Coming Global SDR Currency
"Wake up, America. We have a problem that’s threatening our economy and perhaps even our continued existence as a free society, and no one is paying attention. The problem: we have too much money and too little wealth. Today our money-to-wealth ratio is probably lower than for any other developed country in history. But there’s no indication that policymakers here understand the key distinction between money and wealth or even see the dire implications… The Chinese do. They realize the vastly disproportionate amount of money compared to wealth in the West has made the world’s dollar-denominated monetary system a cancer. The Chinese are scared to death it could spread to contaminate them, and they’re determined to change the system. What’s the distinction between money and wealth? Wealth refers to real things – commodities like oil and germanium, and the products created with commodities, and even the information needed to create those products .. And gold, which is the only thing you can call both wealth and money, will be at the center of future wealth creation. .. The Chinese, in sharp contrast, are marshalling information and technology towards a particular goal, which is to create a new monetary system – one that centers on gold, information, and collections of currencies known as SDRs. Here is China’s goal. Come October, SDRs will include the renminbi, which will be part of a melded currency that also includes dollars, euros, renminbi, yen, and the British pound. Each of those currencies is assigned a relative weighting, which along with currency fluctuations determines how many SDRs a particular currency can buy. When a currency is rising relative to others, it is worth more SDRs than when it is falling – the arithmetic is as simple as that. Moreover, rarely if ever do currencies follow dramatically different paths .. The dollar will still be king of trade, and that’s true with or without the renminbi included in the SDR. This will change only if the SDR can develop a raison d’etre that trumps the dollar. Adding gold as a sixth component, an idea originated by Lord Desai, an emeritus professor at the London School of Economics, could trigger that change, completely rewriting the rules of the game. There will be a lot of steps but in the end the SDR will have only one competitor and that will be gold. Any country wanting to deposit SDRs with the IMF will need gold and with gold fixed in amount it will also fix the number of SDRs. The road to greater wealth for countries and the world as a whole will be paved by higher gold prices."
- Stephen Leeb
LINK HERE to the article

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