Posts Tagged ‘SDR’

Jim Rickards: Printing Money at the Global level through SDRs

March 1, 2011 Leave a comment

Irrespective of where we live or what currencies we earn or save in, we are experiencing rising inflation as the US Federal Reserve continues to create new USD out of thin air (See previous post The Printing Continues). This is primarily because the USD is the world’s reserve currency (at least for the time being) and that major commodities are priced in USD. On top of local inflation created by our own government’s monetary policy, we have this added burden of imported inflation.

Jim Rickards: Printing Money at the Global Level through SDR

But it gets more interesting..

While the USD is being printed into oblivion, the less known “unit of account” or emerging global currency issued by the IMF is gaining prominence and influence. It’s called the Special Drawing Right (SDR) and has it’s official ISO currency code XDR (like USD, MYR or NZD, etc).

At the World Economoc Forum meeting in Davos, it is proposed that the world needed an extra $100 trillion in credit to support the world’s economic growth. Jim Rickards explains how this will be implemented in SDR.

Where is that money going to come from?…. through global Quantitative Easing…. The issuance (printing of money) by the IMF of SDR is global QE.

Listen to the full explanation in his interview with Eric King at King World News.

Yes, you heard it right. We’re heading towards the creation of new money (in humongous amount) out of thin air at the global level so that inflation will come right at us without having to be imported through the USD.

While the common man diligently labours to erk out a living each day, unknown to him, the wages of his labour (in the form of paper currencies) is taken away from him as he works - through creation of more of the same by the banking elites without having to expend any capital or labour.

When you own gold you’re fighting every central bank in the world. - Jim Rickards



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