You are on page 1of 8

7/14/2015

One World, One Bank, One Currency ­ Daily Reckoning

One World, One Bank, One Currency

by Addison Wiggin. Posted Oct 1, 2014.

“T

he government is very good at making things overly complicated for the purpose
of obscuring what’s 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 Fed’s 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 Fed’s balance sheet.”
Simply put, next time, printing another $3 trillion-plus won’t 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/

1/8

But the objective will be the same… to print money in the interest of keeping a rotten system functioning. with hedging. 2009: In response to the Panic of 2008.7 billion SDRs during August and September. “A multiyear.S. The IMF created the SDR to smooth the rough monetary seas. and this monetary operation will effectively end the dollar’s role as the leading reserve currency. multistep plan to position the SDR as the leading global reserve asset.com/one­world­one­bank­one­currency/ 2/8 . will be the International Monetary Fund. Boiled down to its essence.” Ah… the SDR. dollar… 1969: The French and others recognized the United States was printing too many dollars.7/14/2015 One World. The IMF will rise to the occasion with a towering issuance of SDRs. says Rickards. inflation soared out of control. financing. One Bank.” Not that you’d use it to buy a gallon of gas or a loaf of bread. and there was a run on Fort Knox. the SDR is a kind of super money printed by the IMF and then circulated among central banks and governments. issuing 9.1 billion SDRs through 1981. 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. Treasury market. At the time. the IMF has issued SDRs three times since their creation more than 40 years ago. the IMF issued 182. Indeed. “SDRs will perhaps never be issued in bank note form and may never be used on an everyday basis by citizens around the world. foreigners could still exchange dollars for gold. settlement and clearance mechanisms substantially similar to those used to support trading in Treasury securities today. But http://dailyreckoning. That’s shorthand for “special drawing rights. The IMF issued 12. Oil-producing countries fretted the value of their dollar reserves was plunging. past 14%. 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. One Currency ­ Daily Reckoning Leading the way. “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. Each time was linked to a crisis of confidence in the U.3 billion SDRs through 1972.” The name is cryptic.S. The mechanism will prove far more inscrutable than the Fed’s alphabetsoup bailout programs in 2008. 1979: U.

Now when the international monetary system collapses and the world has to reconfigure the system. and those commercial banks have sold that gold to Asian buyers — including the Chinese central bank. 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. we’ve got our gold.” Rickards writes. Toyota and Royal Dutch Shell. And the gold price is being manipulated for the express purpose of making sure China gets it relatively cheaply.com/one­world­one­bank­one­currency/ 3/8 . oil pricing and the financial accounts of the world’s largest corporations. but national central banks could deny responsibility with ease and point a finger at the IMF.” The most provocative proposition in Rickards’ book. The inflation would show up eventually in dollars. such as Exxon Mobil. and the rebalancing must be completed before the collapse of the international monetary system. “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. One Bank. One Currency ­ Daily Reckoning even such limited usage does not alter the fact that the SDR is world money controlled by elites. It’s this: Before the SDR can assume its role as the new leading global asset. “until gold holdings are rebalanced among the major economic powers. we get a big seat at the table. he explained the rationale: “They want to be in a position where they just raise their hand and say to the world. however. “The gold price must be kept low. We’ve long chronicled China’s gold accumulation. isn’t hidden global inflation. ‘Hey. it enhances that role by making the SDR invisible to citizens. China must accumulate a much larger stash of gold.” http://dailyreckoning.7/14/2015 One World. “Any inflation caused by massive SDR issuance would not be immediately apparent to citizens.” In fact. including balance-of-payments settlements. Western central banks have “leased” their gold to commercial banks. Rickards last year. yen and euros at the gas pump or the grocery. now we’re a player. When we interviewed Mr.” The genius of the scheme is that the SDRs would create inflation… but ordinary people wouldn’t know SDRs were causing it.’” Enter Your E-mail Address Sign Up We will NOT share your email address In The Death of Money.

“A financial panic in the next several years. caused by derivatives exposure and bank interconnectedness. but worse. 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. who or what is the IMF’s biggest enemy in carrying out its plan? Time. replied Mr. it won’t take much more before China’s gold-GDP ratio equals America’s.” he writes in his book. We’re working closely with Mr. we’d advise holding off — just for a while longer. “until China acquires its gold… Once the rebalancing is complete. Missouri. One Bank. http://dailyreckoning. Then get cracking on the five investments he says can help you weather the storm. sabotage and other dysfunctions. If you haven’t gotten a copy yet.com/one­world­one­bank­one­currency/ 4/8 . “Get the annual report from the Bank for International Settlements. “Riots. like Ferguson. Rickards on a brand-new project that will not only put his advice in your hands. But if that’s what it takes. One Currency ­ Daily Reckoning 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.” His research and documentation is peerless.” Yet. strikes.710 tonnes. we still wondered. “Read the footnotes.054 tonnes. but it’s there. They actually get audited — unlike the Fed and unlike Fort Knox.7/14/2015 One World.” Rickards writes. The IMF will step in but “the emerging circumstances will mean the process will be carried out on a crash basis.” he told us during our dinner talk.” complete with a “neofascist” response from well-armed authorities. And as you see from the before-and-after tables nearby. without reference to carefully constructed infrastructure now contemplated. the IMF might even swallow its pride and resort to some form of gold standard if that’s what it takes to restore confidence in the system.” And as he suggested in Currency Wars. “The United States and China have a shared interest in keeping the gold price low. probably in 2015. there will be less reason to suppress gold’s price. Recall the Chinese central bank last disclosed its gold holdings in April 2009 — 1. may trigger a global liquidity crisis worse than the 1998 and 2008 crises. Conservative estimates put that figure today at 2. Rickards. I understand it’s geeky. expect some ugly times ahead. because China will not be disadvantaged in the event of a price spike.

it is better to focus on their actions than their words. “the system is in equilibrium. they could be snowflakes on an unstable mountain of paper gold. and when it comes to the megarich. the slide can cascade into an avalanche. One Bank.” he writes. Regards.com/one­world­one­bank­one­currency/ 5/8 . the rest of the world’s governments be damned. a de facto bank run.” he said. except the banks in this case are the gold warehouses that support the exchanges and ETFs. Addison Wiggin http://dailyreckoning. “A fixed exchange rate is not essential to gold’s role in a contract money system. you can probably guess what one of his recommendations is already: Go on your own gold standard right now. He thinks it could even be the trigger for the next crisis. 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. says Rickards. One Currency ­ Daily Reckoning “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. When other holders realize that the physical gold will run out before they can redeem their contracts for bullion. “It is necessary only that the citizen be free to buy or sell gold at any time.” Even Warren Buffett — that tireless critic of gold and its inability to throw off cash flow — has bought something very similar to gold. but he is the king of hard asset investing.” 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.7/14/2015 One World. “As long as [gold] holders remain in paper contracts. If holders in large numbers were to demand physical delivery. “Buffett has been known to disparage gold. In the meantime.

 which was nominated for the Grand Jury Prize at the 2008 Sundance Film Festival. a fiercely independent economic forecasting and financial research firm. Forecast and editorial director of The Daily Reckoning. There is still time for you to prepare for Zero Hour. Sign up for the FREE Daily Reckoning email edition.U. One Currency ­ Daily Reckoning for The Daily Reckoning P. Worth. LLC. Wiggin is the founder of Agora Entertainment. and Why it's Even Better for Your Investments was just fully revised and updated. Addison Wiggin is the executive publisher of Agora Financial. actionable profit opportunities they couldn’t find anywhere else. One Fiat to bring them all and in the darkness bind them http://dailyreckoning.A.O. In fact. One Fiat to find them.S. VIEW ALL ARTICLES SUBSCRIBE TO RSS GET THE DAILY RECKONING 7 Comments   Recommend  1 The Daily Reckoning ⤤ Share 1   Login Sort by Best Join the discussion… gman  •  a year ago One Fiat to rule them all. He also co­ authored international bestsellers Financial Reckoning Day and Empire of Debt with Bill Bonner. The Washington Post as well as major network news programs. executive producer and co­writer of I. The Economist. right here.com/one­world­one­bank­one­currency/ 6/8 . they are by no means the only part.A.U. It’s one of the FREE benefits that come standard in every issue of the FREE Daily Reckoning email edition.O. the 2009 Critics Choice Award for Best Documentary Feature. Don’t miss another chance for you to discover real profit opportunities. The New York Times.7/14/2015 One World.S.S. And while gold and hard assets are a big part of that.and his second edition of The Demise of the Dollar. He is the author of the companion book of the film I. today’s issue of The Daily Reckoning email edition included three chances for readers to discover real.. One Bank. He's the creator and editorial director of Agora Financial's daily 5 Min. and was also shortlisted for a 2009 Academy Award. Wiggin is a three­time New York Times best­selling author whose work has been recognized by The New York Times Magazine.

25 on its reciprical rate which is nice and round on the currency charts. But Canada chose a different path: Canada let its environmentalists ( the eco­ frauds) stop or outlaw fracking. them and the racketeers who seem to run Canada so much.... That bank is stuffed with Keynesian economists who like slow devaluations which fool everyone. Steve Jacobs. So to­day. Sorry to say this. Why is this so difficult for the Republicans ( the Repukes ) to understand? And now so long as the U.58 on television. The American dollar will go up and up in value.. is the world's leader in gas and oil production.S. Jan 22. dual citizen with Canada living in Watsonville. 2016 and the beaver buck is down to 82. One Currency ­ Daily Reckoning One Fiat to bring them all and in the darkness bind them In the Land of IMF where the Shadows lie. Notice how the Canada Dollar sinks to­day again: 89cents U. 4 △   ▽ • Reply • Share ›  stephenjacobs  •  9 months ago America is now floating on oil. We all can thank the environmentalists in Canada for this. Steve Jacobs.... 1 △   ▽ • Reply • Share ›  stephenjacobs > stephenjacobs  •  6 months ago At 11:15 AM PST to­day. One Bank.... 2015 the beaver buck 30 day trading future for currency transactions at banks is 80. I know all of the tricks of the Bank of Canada. So the beaver buck just continues to fall and under­scores what I am saying about it. President Obama has opened up America as the natural gas and petroleum leader of the world.. Eighty cents equals 1. than simply to be backed by gold.. Canada has a pretty environment in Western Canada in places like Southern Saskatchewan. its dollar will be the strongest currency in the world. California 1 △   ▽ • Reply • Share ›  stephenjacobs > stephenjacobs  •  6 months ago To­day is Jan 20.23 cents. I have to speak the truth and call the facts what they are up there. drift and go no­where in value.com/one­world­one­bank­one­currency/ 7/8 . And what is really interesting about this is that Canada could have been part of this miracle. .S. California and now without a driving license thanks to what my so­called "kids" did to me.7/14/2015 One World. for decades. ( environmental frauds) + ( racketeers ) + ( keynsian economists ) + ( goods and services taxes ) + ( income taxes ) + (provincial taxes) http://dailyreckoning. but nothing more.. It's much better for a currency to export energy and take­in revenue and assets.. Watsonville. And my forecast is for a short term bounce now at the 80cent mark because it is a round number. but even being a social democrat..

 eine Währungs! △  ▽ • Reply • Share ›  DangerFed  •  a year ago Too bad the Federal tax on gold sale gains is still 28%.7/14/2015 One World. the only elected communist in North America.com/one­world­one­bank­one­currency/ ὑ Privacy 8/8 . △  ▽ • Reply • Share ›  Wags  •  a year ago The market has to accept them first. One Bank. △  ▽ • Reply • Share ›  WHAT'S THIS? ALSO ON THE DAILY RECKONING A Sector Immune to Greece Demographic Dilemma 1 comment • 13 days ago 3 comments • 12 days ago The BIS Nightmare That Will Send the World Into Panic Greece is the Canary in the Coal Mine 2 comments • 15 days ago 2 comments • 8 days ago ✉ Subscribe d Add Disqus to your site http://dailyreckoning. eine Bank. NWO institutions are beholden to the US government. One Currency ­ Daily Reckoning + ( property taxes ) + ( two devaluations) + ( a third devaluation ahead ) = CANADA Nobody is more of a social democrat than I am. I tell it the way it just plain is! Stephen Jacobs in Watsonville. not the other way around. Downright criminal. But when it comes to telling the truth about how something really is in Canada. I was a friend of Joe Zuken in Winnipeg. I tell it the way I see it. California △  ▽ • Reply • Share ›  gman  •  9 months ago Eine Welt.