Here’s where PoM’s thesis of the SDR provides the only plan I can see that makes sense of all this. If holders of sovereign debt are offered SDRs in exchange for that debt, they “cash out” of the debt without crashing any currencies. So the IMF buys Japanese debt, buys American debt, it buys British and Euro country debts, it buys Chinese debt and issues newly created SDRs. If done rapidly, the new currency regime basically solves the global debt crisis in one fell swoop. But more than that, with massive debts basically written off of sovereign balance sheets, it enables a massive wave of new debt issuance. Say what you will about whether debt is good or bad, one thing we know, when lots of new debt is being issued, it stimulates the economy.
The ONLY way to solve a debt crisis is to wipe away debts. This is done by bankruptcy or jubilee. The SDR thesis seems to suggest that a global debt jubilee is planned and positioned. But what, WHAT will be the catalyst? Something big has to happen to create the cover story, give rise to the demand for a solution (thesis, antithesis per prior PoM writing). Anyone have the inside scoop on what’s in the plans? Was 2008 a test-run?'
Me: My assertion years ago to JC that these were mostly odious debts was not accepted, but if you read 'Confessions of an Economic Hitman' you can quite plainly see how we got here. The SDR is just the latest scam which leaves sovereign nations as helpless as endebted people. The choice is: accept our offer or lose your house'.