Friday, November 11, 2011

New Global Currency?

And this from a Max Keiser commenter:

'I suggest you move your savings to cash

Jim Rickards has shown me the light. It appears yet another another financial emergency has been delayed and I stand before you with egg on my face.

I continue to underestimated the creativity of international bankers, namely, the IMF.

I think Rickards is correct, the IMF, with Federal Reserve backing, will issue Special Drawing Rights (SDRs) to Greece and Italy thereby averting the predicted freeze in the repurchase agreement market, and subsequent predicted freeze in credit markets.

Special Drawing Rights (SDRs) are defined and maintained by the International Monetary Fund (IMF) and used as a form of “international cash” to supplement a bank’s cash reserves. SDRs are not a retail currency, but represent a claim to other currencies held by IMF member countries for which they may be exchanged.

SDRs can be exchanged for US dollars, Euros, Japanese yen, or UK pounds. SDRs are thought to be the initial implementation of a world-wide currency, the Bancor.

Thus, any failed repurchase agreement AAA security can be backed with fresh SDRs which themselves were created with accounting keyboard strokes.'

This was in response to the Max Keiser interview with Jim Rickards:

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