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Seydel

Sdr Exchange Lift-off

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No doubt Crash Gordon/Gordon Clown/Bilderberger Brown will be dipping into Britain's SDRs soon enough, but is this lark just more salami slicing along the path to a global currency, or is it another distraction and the masters of the universe are now in a hurry to obliterate the US dollar and with it the value of every currency save for, perhaps, the yuan and a handful of others?

http://ftalphaville.ft.com/blog/2009/09/02...hange-lift-off/

SDR exchange lift-off

Posted by Izabella Kaminska on Sep 02 16:00.

Last Friday, the IMF pumped $250bn into foreign-exchange reserves worldwide, as called upon to do by G20 leaders last April.

It used the mechanism of a special-drawing-right issue to achieve the task. SDRs are notes which countries can covert into hard currencies through “voluntary trading arrangements†with other members; the currency value of an SDR is determined by summing the values in dollar terms of a basket of major currencies (the U.S. dollar, Euro, Japanese yen, and pound sterling).

As the IMF explained on its website:

About $110 billion of the combined allocations will go to emerging market and developing countries, including over $20 billion to low-income countries. Many of these countries currently face difficult spending decisions as they decide how to address the fallout from the global crisis. For them, the SDR allocation means potential access to unconditional financial resources that could limit the need for adjustment through contractionary policies and allow greater scope for countercyclical policies in the face of recession and rising unemployment.

In total, $283bn of SDRs will be created. Interestingly, as stated above, only $130bn will go to emerging market, developing and low-income countries.

The remainder, some $153bn, will go (due to the proportional quota system, we imagine) to very much developed states. You can see the full allocation list here.

If voluntary trading arrangements fail to generate enough liquidity to make the notes a viable funding option for countries wanting to use them, the IMF said it would step in to activate a so-called “designation mechanismâ€, which guarantees buyers by forcing members with sufficiently strong external positions to exchange freely usable currencies in their reserves for SDRs.

Countries like, err, China, which currently holds 792m SDRs. That represents some 334 per cent of the country’s previous allocation and is worth some $1.23bn.

As the IMF put it:

This arrangement serves as a backstop to guarantee the liquidity and the reserve asset character of the SDR.

But that sort of action probably won’t be needed judging by the recent spate of SDR exchange activity going on in the international sovereign reserve arena. Activity, by the way, which has seen some very much developed countries selling-off SDR reserves in exchange for hard currencies - versus relatively stagnant SDR positions before.

A quick perusal of the IMF website, for example, shows that:

UK SDR reserves stood at $405m on July 9, representing some 13 per cent of the UK’s old allocation, compared to holdings worth some $444m back in May.

Spain’s SDR holdings stood at $68.38m in June versus a position of $219.91m in May.

Italy’s SDR holdings stood at $185.20m in June versus a position of $262.11m in May.

Germany’s SDR holdings stood at $2.068bn in June versus a position of $2.216bn in May.

The Netherlands’ SDR holdings stood at $899m in July versus a $1007m in May.

Poland’s SDR holdings stood at $53.21m in June versus $107.32 in April.

Switzerland’s SDR holdings stood at $241m in June versus $263m in March, $124m in April and $111m.

Hungary’s SDR holdings stood at $0.28m in July, versus $47.13m in April and $90.70m in October before the financial crisis took hold.

A lot of the fluctuations in countries like Hungary may well be attributable to IMF aid packages. What accounts for the sudden SDR fluctuations in countries like Spain and Switzerland, however, we cannot tell.Either way, it will be very interesting to see which countries put their fresh SDR allocations to use this month, and by how much.

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it's definetly an engineered greater depression imo.

north american union, amero being discussed more & more now.....FEMA camps, martial law readiness, bird/swine flu, forced innoculation in massachusetts has now been passed I believe (then to be replicated in every state?), one world currency, market/stats manipulation, state controlled media, CCTV controlled streets/town/city centres.

the list is endless......

it's chaos theory being rolled out, I just wonder what the event will be.... :ph34r:

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it's definetly an engineered greater depression imo.

north american union, amero being discussed more & more now.....FEMA camps, martial law readiness, bird/swine flu, forced innoculation in massachusetts has now been passed I believe (then to be replicated in every state?), one world currency, market/stats manipulation, state controlled media, CCTV controlled streets/town/city centres.

the list is endless......

it's chaos theory being rolled out, I just wonder what the event will be.... :ph34r:

you forgot folic acid...women need to take it according to the Beeb...no mention of what actual FOOD they could eat to get their folic acid....just what pills to take.

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north american union, amero being discussed more & more now.....FEMA camps, martial law readiness, bird/swine flu, forced innoculation in massachusetts has now been passed I believe (then to be replicated in every state?), one world currency, market/stats manipulation, state controlled media, CCTV controlled streets/town/city centres.

the list is endless......

+1

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This puts an end to country bankruptcy though, doesn't it? If we've been good for £175bn and there's another $400bn to go, we can make good any possible losses the banks incurr, right?

I mean, if we went from £500bn personal debt to £1.5tn debt in about 9 years (a trippling) but need that to come down to £1tn over the next 9 (reflecting a doubling in money supply and therefore house prices every 18 years, not a trippling every 9), then we need to lose about £500bn. Looks to me like that's what we can draw down from the IMF plus what we created ourselves.

They basically are going to print every single penny of the losses. Amazing.

Edited by AvidFan

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forced innoculation in massachusetts

maybe this could work?

http://buzz.yahoo.com/article/1:bostoncom7...-from-swine-flu

There is a law that says they can't do this. But, knowing the crap that is going on with this government, they'll try to find a way to get around it.

--------------

Re: Legal steps you can take against forced vaccinations

Forms and Evidence You Need to File Criminal Charges of Bioterrorism

Quote:

112 page document: CRIMINAL CHARGES regarding flu pandemic as a biological weapon to produce genocide.

You can fill out and file this document with your local court.

http://www.scribd.com/full/17044758?...k

frlip1gi3rqgo

134

page document of BIOTERRORISM EVIDENCE

http://www.scribd.com/full/17044769?..

.lm6uuy83anqjgp

To

be used when you file your criminal charges with your court.

--------------

Also read: http://projectavalon.net/forum/showthread.php?p=

152742

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phew!!!!

Germany holds twice as much as SDR as china,and 5 times as much as UK.

no prizes for guessing who will wear the trousers in the new world order.

19th century....pax britannica

20th century....pax americana

21st century....pax germanica.

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China galloping up from the outside with a $50bn (SDR32bn) purchase :

China to buy first IMF bonds for 50 billion dollars

WASHINGTON — China has agreed to buy the first International Monetary Fund bonds for about 50 billion dollars, the IMF said Wednesday.

IMF managing director Dominique Strauss-Kahn and the deputy governor of the People?s Bank of China, Yi Gang, signed the agreement Wednesday at IMF headquarters in Washington, the multilateral institution said.

(via TickerForums)

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Now all we need to do is pass law limiting banks to dealing only in SDRs and enforce a second law that prevents SDRs being exchanged for Goods, Services, used as consideration for contracts or being exchanged for sovereign currency. That should sort things.

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