IMF calls for dollar alternative

IMF calls for dollar alternative

money.cnn.com

NEW YORK (CNNMoney) -- The International Monetary Fund issued a report Thursday on a possible replacement for the dollar as the world's reserve currency.

The IMF said Special Drawing Rights, or SDRs, could help stabilize the global financial system.

(visit the link for the full news article)

If this story has already been posted please delete. I saw this on CNN and came here to see what everyone said about it. I don't know much about the money situation but I have read that if something like this happens it would hurt the US economy.

What do you think will happen?

Could 'they' be trying to bury this under all the stuff going on in Egypt?

money.cnn.com
(visit the link for the full news article)

reply to post by stellawayten
S&F one of the things i have been looking for to see if there are plans for a one world currency and this just might be it ,if it passes that is. SDR like the sound of it don' you?

Originally posted by stellawaytenI don't know much about the money situation but I have read that if something like this happens it would hurt the US economy.

Same here; I have to admit I wish I had not coasted through that one Economics class I had to take for the History Degree. I understand personal finance but it seems that the same principles don't apply in the large scheme of things - I certainly can't grant myself more credit to help get myself out of debt and fail to understand how spending more money will make me more stable.

Anyway, I'm sure there are some economic types who can help us out. I for one don't understand what SDR (Special Drawing Rights) are. After reading the article the way I understand it is just taking a loan in the currency you need for your purposes. I don't get how that matters to the dollar - it doesn't mean that it won't effect it - just that I don't personally understand how. Unless that means the dollar won't be the standard by which other currencies are valued.

1 Currencey = easier to crash _ leads to need for new system _ enter rfid microchip _ be implanted with mark of the beast or likely starve to death .
Wake up Now before it gets that far .

Peace

Wow, this is significant. Being the reserve currency of the world is just about the last thing thats holding the dollar together. You remove that title and you'll see a flock away from the dollar, which would then lead to the halt trading oil in dollars if it's no longer profitable for OPEC etc, and that would be the nail in the coffin for the dollar.

Interesting to see where the string-pullers yank us next....

reply to post by Golf66
the last line in your post/reply says it all, and that is just what it is meant to do replace the USD as the stranded currency, for world trade / market. but were is the backing , that is to say were is the gold or silver fund's? that is what the USD is to be backed by not just some pice of paper.

This has nothing to do with one world currency.
Russia , China,India ,Germany and others simply dont want anymore to trade in dollars printed by Federal Reserve.If dollar loses the role world reserve currency that will lead to devaluation on dollar , which will bring Big Crisis in U.S , and i mean BIG.

The Yuan seems like a reasonable alternative.

Personally the sooner we do away with national curriencies the better - the recent financial crash has shown the absurdity - indeed the obsenity - of people being able to make fortunes doing nothing but moving money around without actually creating value.

reply to post by stellawayten


im pretty sure that it would crush the us economy. the us have lost most of their production and valuable crafts other than making more dollars. i hope im wrong but i think that the citizens of the us will suffer when the dollar is abandoned.

reply to post by Doomzilla

I agree and it sounds like credits more than money. Your paycheck will be converted to credits which may be adjusted for inflation based on your country's GDP and debt ratio compared to that of other countries. They have been leading us down this primrose path for a while. Many companies you do business with today will not accept cash. It is debit or credit only. We now have machines that you wave your card over as you walk out the door. Just a matter of time before they scan the RFID implanted in your forehead as you leave Kroger with your roll of TP and 10lb sack of flour to feed your on family til the next rounds of credits are dumped into your account.

Seriously though, it does sound like things are coming down around us. Maybe that is why there is no longer any fiscal discipline in the world governments. Food and other necessities, convenience items, and let's not forget to mention fuel will be in short supply as these items are rationed on a global scale and their costs skyrocket. Sounds fun don't it. Glad I no longer have to weather those New England winters!

Originally posted by bekod
reply to post by Golf66

 

the last line in your post/reply says it all, and that is just what it is meant to do replace the USD as the stranded currency, for world trade / market. but were is the backing , that is to say were is the gold or silver fund's? that is what the USD is to be backed by not just some pice of paper.

The dollar is backed by nothing but an agreement after world war two to trade for oil in dollars. No more gold standard and the American people couldn't back dollars if they were taxed 100% for a century.

When they sell oil in another currency the dollar will fail.

Originally posted by badgerprints
When they sell oil in another currency the dollar will fail.

A few years ago there was a lot of speculation that the "real" reason for GW II was that Iraq started selling oil for Euro's, and Iran did - it might have been covered on here - before my time if it was - see en.wikipedia.org...

Looking at the wiki page on the Triffin Dilemma, it appears that the chinese have been leading the charge for a change to a new reserve currency - perhaps my somewhat flippant remark previously was not far off the mark!

Originally posted by Golf66
Anyway, I'm sure there are some economic types who can help us out. I for one don't understand what SDR (Special Drawing Rights) are. After reading the article the way I understand it is just taking a loan in the currency you need for your purposes. I don't get how that matters to the dollar - it doesn't mean that it won't effect it - just that I don't personally understand how. Unless that means the dollar won't be the standard by which other currencies are valued.

SDR's are just a basket of currencies and commodities. It's a means to keep globalization afloat through the transitional process of the dollar collapsing.

It also leads way to many other things, but I'm not sure of the exact process in which things will unfold. Basically, this signals the collapse of our superpower status as we know it. It's a major tipping point. There's only one thing which has truly kept our nation solvent over the last few decades. That's our status as the reserve currency (and the petrodolar). Because of this status, the demand for new dollars is high, which means we can essentially export our debt to other countries. Because this process is inherently inflationary, it means in the process of staying solvent (by way of military might), we cause a decline in the standards of living in other nations.

So what this does, us losing our reserve currency status, is bring the U.S. to it's knees, but also it frees the rest of the world to sort out their own problems and build up their industries as they may without our moentary/political influences.

This is the jist that I've gathered over the years.

Someone please feel free to correct any remark that may be incorrect.

Thanks!

Could this be the reason for the meeting of all the ambassadors?

reply to post by stellawayten


Yes, but I think there could be other possibilities as well.

Perhaps it's best not to act on such speculations just yet.

Right now with things the way they are
i just can't see anything good coming out of this IMO.... I really hope im wrong

reply to post by Doomzilla


OH the RFID implants are on the way. April 2008 Thus far, about 900 hospitals on the East Coast have agreed to participate in the VeriChip system. These hospitals have received RFID interrogators that can be used to read a patient's embedded VeriChip RFID transponder to automatically access that person's medical records.

You can also find the story on the IMF abandoning the US dollar here:
articlesofinterest-kelley.blogspot.com...
More on the overall situation here:
China Plays Europe Card, Ramifications of Chinese Dollar Swap Facility
Which Currency Will Crash First?

reply to post by stellawayten


That's a fantastic question.

If we lose the status of being the world reserve currency (as I understand it) we could be in big huge enormous trouble economically speaking.