One World, One Bank, One Currency

7/14/2015
OneWorld,OneBank,OneCurrencyDailyReckoning
One World, One Bank, One Currency
byAddisonWiggin. PostedOct1,2014.
he government is very good at making things overly complicated for the purpose
of obscuring whats really going on from the public, observed hedge fund
manager Erik Townsend during our interview in May.
He was making a point about the 2008 bailouts. The Federal Reserve played a leading role,
applying trillions in paper-clip and rubber-band solutions. The Feds balance sheet swelled from
$900 billion in September 2008 to $4.4 trillion as we go to press.
Luckily for you, our friend Jim Rickards is just as good at elucidating the muddled world of
finance as the government is at obscuring them.
Boiled down to its essence, the SDR is a kind of super money

printed by the IMF
Since Federal Reserve resources were barely able to prevent complete collapse in 2008, Jim
writes in his recent New York Times best-seller, The Death of Money, it should be expected that
an even larger collapse will overwhelm the Feds balance sheet.
Simply put, next time, printing another $3 trillion-plus wont be politically feasible. The specter
of the sovereign debt crisis suggests the urgency for new liquidity sources, bigger than those that
central banks can provide, the next time a liquidity crisis strikes. The logic leads quickly from one
world to one bank to one currency for the planet.
http://dailyreckoning.com/oneworldonebankonecurrency/
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7/14/2015
Leading the way, says Rickards, will be the International Monetary Fund. The task of reliquefying the world will fall to the IMF because the IMF will have the only clean balance sheet
left among official institutions. The IMF will rise to the occasion with a towering issuance of
SDRs, and this monetary operation will effectively end the dollars role as the leading reserve
currency.
Ah the SDR. Thats shorthand for special drawing rights.
The name is cryptic. The mechanism will prove far more inscrutable than the Feds alphabetsoup bailout programs in 2008. But the objective will be the same to print money in the interest
of keeping a rotten system functioning.
Boiled down to its essence, the SDR is a kind of super money printed by the IMF and then
circulated among central banks and governments. Indeed, the IMF has issued SDRs three times
since their creation more than 40 years ago. Each time was linked to a crisis of confidence in the
U.S. dollar
1969: The French and others recognized the United States was printing too many dollars. At the
time, foreigners could still exchange dollars for gold, and there was a run on Fort Knox. The IMF
created the SDR to smooth the rough monetary seas, issuing 9.3 billion SDRs through 1972.
1979: U.S. inflation soared out of control, past 14%. Oil-producing countries fretted the value of
their dollar reserves was plunging. The IMF issued 12.1 billion SDRs through 1981.
2009: In response to the Panic of 2008, the IMF issued 182.7 billion SDRs during August and
September.
A 42-page IMF paper published in January 2011 with the innocuous-sounding title Enhancing
International Monetary Stability A Role for the SDR? lays out what Rickards describes. A
multiyear, multistep plan to position the SDR as the leading global reserve asset. The study
recommends increasing the SDR supply to make them liquid and more attractive to potential
private-sector market participants such as Goldman Sachs and Citigroup The IMF study
recommends that the SDR bond market replicate the infrastructure of the U.S. Treasury market,
with hedging, financing, settlement and clearance mechanisms substantially similar to those
used to support trading in Treasury securities today.
Not that youd use it to buy a gallon of gas or a loaf of bread. SDRs will perhaps never be issued
in bank note form and may never be used on an everyday basis by citizens around the world. But
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7/14/2015
even such limited usage does not alter the fact that the SDR is world money controlled by elites.
In fact, it enhances that role by making the SDR invisible to citizens. The SDR can be issued in
abundance to IMF members and can also be used in the future for a select list of the most
important transactions in the world, including balance-of-payments settlements, oil pricing and
the financial accounts of the worlds largest corporations, such as Exxon Mobil, Toyota and Royal
Dutch Shell.
The genius of the scheme is that the SDRs would create inflation but ordinary people wouldnt
know SDRs were causing it. Any inflation caused by massive SDR issuance would not be
immediately apparent to citizens. The inflation would show up eventually in dollars, yen and
euros at the gas pump or the grocery, but national central banks could deny responsibility with
ease and point a finger at the IMF.
The most provocative proposition in Rickards book, however, isnt hidden global inflation. Its
this: Before the SDR can assume its role as the new leading global asset, China must accumulate a
much larger stash of gold. And the gold price is being manipulated for the express purpose of
making sure China gets it relatively cheaply.
Weve long chronicled Chinas gold accumulation. When we interviewed Mr. Rickards last year,
he explained the rationale: They want to be in a position where they just raise their hand and say
to the world, Hey, weve got our gold, now were a player. Now when the international monetary
system collapses and the world has to reconfigure the system, we get a big seat at the table.
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In The Death of Money, Rickards goes a step further: He says Western powers are making room at
the table for China using the precise mechanism we described in our Zero Hour scenario.
Western central banks have leased their gold to commercial banks, and those commercial
banks have sold that gold to Asian buyers including the Chinese central bank.
The gold price must be kept low, Rickards writes, until gold holdings are rebalanced among
the major economic powers, and the rebalancing must be completed before the collapse of the
international monetary system.
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7/14/2015
The metric the power brokers are using to judge when China is ready to take its seat at the table?
Gold reserves as a percentage of GDP. Recall the Chinese central bank last disclosed its gold
holdings in April 2009 1,054 tonnes. Conservative estimates put that figure today at 2,710
tonnes. And as you see from the before-and-after tables nearby, it wont take much more before
Chinas gold-GDP ratio equals Americas.
The United States and China have a shared interest in keeping the gold price low, Rickards
writes, until China acquires its gold Once the rebalancing is complete, probably in 2015, there
will be less reason to suppress golds price, because China will not be disadvantaged in the event
of a price spike.
His research and documentation is peerless. Get the annual report from the Bank for
International Settlements, he told us during our dinner talk. Read the footnotes. I understand
its geeky, but its there. They actually get audited unlike the Fed and unlike Fort Knox.
Yet, we still wondered, who or what is the IMFs biggest enemy in carrying out its plan?
Time, replied Mr. Rickards. A financial panic in the next several years, caused by derivatives
exposure and bank interconnectedness, may trigger a global liquidity crisis worse than the 1998
and 2008 crises, he writes in his book. The IMF will step in but the emerging circumstances will
mean the process will be carried out on a crash basis, without reference to carefully constructed
infrastructure now contemplated.
And as he suggested in Currency Wars, the IMF might even swallow its pride and resort to some
form of gold standard if thats what it takes to restore confidence in the system.
But if thats what it takes, expect some ugly times ahead, like Ferguson, Missouri, but worse.
Riots, strikes, sabotage and other dysfunctions, complete with a neofascist response from
well-armed authorities.
What can you do? What should you do?
First, prepare yourself by reading The Death of Money and understanding the seven signs
Rickards says will point to a looming crisis. Then get cracking on the five investments he says can
help you weather the storm.
If you havent gotten a copy yet, wed advise holding off just for a while longer. Were working
closely with Mr. Rickards on a brand-new project that will not only put his advice in your hands,
4/8
7/14/2015
Any citizen can go on a personal gold standard by buying gold

with paper dollars
but deliver constant updates and advice on how the coming monetary collapse will unfold.
In the meantime, you can probably guess what one of his recommendations is already:Go on
your own gold standard right now, the rest of the worlds governments be damned.
A fixed exchange rate is not essential to golds role in a contract money system, he said. It is
necessary only that the citizen be free to buy or sell gold at any time. Any citizen can go on a
personal gold standard by buying gold with paper dollars
He says our Zero Hour remains a distinct possibility in which the price of real gold you hold in
your hand runs away from the paper price quoted on CNBC. He thinks it could even be the
trigger for the next crisis.
As long as [gold] holders remain in paper contracts, he writes, the system is in equilibrium. If
holders in large numbers were to demand physical delivery, they could be snowflakes on an
unstable mountain of paper gold. When other holders realize that the physical gold will run out
before they can redeem their contracts for bullion, the slide can cascade into an avalanche, a de
facto bank run, except the banks in this case are the gold warehouses that support the exchanges
and ETFs.
Even Warren Buffett that tireless critic of gold and its inability to throw off cash flow has
bought something very similar to gold, says Rickards. Buffett has been known to disparage gold,
but he is the king of hard asset investing, and when it comes to the megarich, it is better to focus
on their actions than their words.
Click the play button on the video below to see Jim explain what Buffett (and the Chinese) have
been doing to pivot away from holding dollars.
Regards,
Addison Wiggin
5/8
7/14/2015
for The Daily Reckoning

P.S.There is still time for you to prepare for Zero Hour. And while gold and hard assets are a big
part of that, they are by no means the only part.In fact, todays issue ofThe Daily Reckoning
email edition included three chances for readers to discover real, actionable profit opportunities
they couldntfind anywhere else. Its one of theFREE benefits thatcome standard inevery issue
ofthe FREEDaily Reckoning email edition. Dont miss another chance for you to discover real
profit opportunities. Sign up for the FREEDaily Reckoning email edition, right here.
AddisonWigginistheexecutivepublisherofAgoraFinancial,LLC,afiercelyindependenteconomic
forecastingandfinancialresearchfirm.He'sthecreatorandeditorialdirectorofAgoraFinancial'sdaily5
Min.ForecastandeditorialdirectorofTheDailyReckoning.WigginisthefounderofAgora
Entertainment,executiveproducerandcowriterofI.O.U.S.A.,whichwasnominatedfortheGrandJury
Prizeatthe2008SundanceFilmFestival,the2009CriticsChoiceAwardforBestDocumentaryFeature,
andwasalsoshortlistedfora2009AcademyAward.Heistheauthorofthecompanionbookofthefilm
I.O.U.S.A.andhissecondeditionofTheDemiseoftheDollar,andWhyit'sEvenBetterforYour
Investmentswasjustfullyrevisedandupdated.WigginisathreetimeNewYorkTimesbestselling
authorwhoseworkhasbeenrecognizedbyTheNewYorkTimesMagazine,TheEconomist,Worth,
TheNewYorkTimes,TheWashingtonPostaswellasmajornetworknewsprograms.Healsoco
authoredinternationalbestsellersFinancialReckoningDayandEmpireofDebtwithBillBonner.
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gman ayearago
OneFiattorulethemall,OneFiattofindthem,
OneFiattobringthemallandinthedarknessbindthem
6/8
7/14/2015
OneFiattobringthemallandinthedarknessbindthem
IntheLandofIMFwheretheShadowslie.
4
Reply Share
stephenjacobs 9monthsago
Americaisnowfloatingonoil.PresidentObamahasopenedupAmericaasthenaturalgas
andpetroleumleaderoftheworld....WhyisthissodifficultfortheRepublicans(the
Repukes)tounderstand?
AndnowsolongastheU.S.istheworld'sleaderingasandoilproduction,itsdollarwill
bethestrongestcurrencyintheworld.It'smuchbetterforacurrencytoexportenergyand
takeinrevenueandassets,thansimplytobebackedbygold,driftandgonowherein
value.TheAmericandollarwillgoupandupinvalue,fordecades.
AndwhatisreallyinterestingaboutthisisthatCanadacouldhavebeenpartofthis
miracle.......ButCanadachoseadifferentpath:Canadaletitsenvironmentalists(theeco
frauds)stoporoutlawfracking....Sotoday,CanadahasaprettyenvironmentinWestern
CanadainplaceslikeSouthernSaskatchewan,butnothingmore.
NoticehowtheCanadaDollarsinkstodayagain:89centsU.S.
SteveJacobs,Watsonville,California
1
Reply Share
stephenjacobs>stephenjacobs 6monthsago
TodayisJan20,2016andthebeaverbuckisdownto82.23cents.Weallcan
thanktheenvironmentalistsinCanadaforthis,themandtheracketeerswhoseem
torunCanadasomuch.Sorrytosaythis,butevenbeingasocialdemocrat,Ihave
tospeakthetruthandcallthefactswhattheyareupthere.
SteveJacobs,dualcitizenwithCanadalivinginWatsonville,Californiaandnow
withoutadrivinglicensethankstowhatmysocalled"kids"didtome.
1
Reply Share
stephenjacobs>stephenjacobs 6monthsago
At11:15AMPSTtoday,Jan22,2015thebeaverbuck30daytradingfuture
forcurrencytransactionsatbanksis80.58ontelevision.Sothebeaverbuck
justcontinuestofallandunderscoreswhatIamsayingaboutit.....Andmy
forecastisforashorttermbouncenowatthe80centmarkbecauseitisa
roundnumber.IknowallofthetricksoftheBankofCanada.Thatbankis
stuffedwithKeynesianeconomistswholikeslowdevaluationswhichfool
everyone.Eightycentsequals1.25onitsrecipricalratewhichisniceand
roundonthecurrencycharts.
(environmentalfrauds)+(racketeers)+(keynsianeconomists)+
(goodsandservicestaxes)+(incometaxes)+(provincialtaxes)
7/8
7/14/2015
+(propertytaxes)+(twodevaluations)+(athirddevaluationahead)=
CANADA
NobodyismoreofasocialdemocratthanIam.IwasafriendofJoeZuken
inWinnipeg,theonlyelectedcommunistinNorthAmerica.Butwhenit
comestotellingthetruthabouthowsomethingreallyisinCanada,Itellit
thewayIseeit.Itellitthewayitjustplainis!
StephenJacobsinWatsonville,California
Reply Share
gman 9monthsago
EineWelt,eineBank,eineWhrungs!
Reply Share
DangerFed ayearago
ToobadtheFederaltaxongoldsalegainsisstill28%.Downrightcriminal.
Reply Share
Wags ayearago
Themarkethastoacceptthemfirst.NWOinstitutionsarebeholdentotheUSgovernment,
nottheotherwayaround.
Reply Share
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7/14/2015

One World, One Bank, One Currency

Boiled down to its essence, the SDR is a kind of super money

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Any citizen can go on a personal gold standard by buying gold

for The Daily Reckoning

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