Central Banks Game Plan: One World Currency
those in total denial would claim that the world economies could grow their way out of the debt bubble. Mathematically, the
rules of compound interest always destroy the purchasing value of fiat currencies. The era of zero interest rates will end.
When the cost to finance debts reverts to normal levels, the bleeding will become a gusher. The world reserve currency status
of Federal Reserve Notes will come under enormous pressure. As the central banks consolidate their control over international
commerce and the economies of individual countries, the coin of the new realm will shift to a replacement for the U.S. Dollar.
There is no current replacement for the Dollar among existing world currencies. In order
to substitute the role that the Dollar plays in trade a new measure of transactions would need to become acceptable to settle
trade transactions. A mere substitution with some form of a basket of currencies or the inclusion of gold, does not resolve
the enormous overhang of debt obligations needed to redeem all the Dollars that float around the world. The de facto use of
Dollars within foreign borders to conduct business supersedes the local legal tender laws that many countries model after
those imposed domestically on American citizens.All this would change when
the reserve status of the Dollar evaporates. The IMF created back in 1969 the SDR.
SDR is neither a currency, nor a claim on the IMF. Rather, it is a potential claim on the freely usable currencies of IMF
members. Holders of SDRs can obtain these currencies in exchange for their SDRs in two ways: first, through the arrangement
of voluntary exchanges between members; and second, by the IMF designating members with strong external positions to purchase
SDRs from members with weak external positions. In addition to its role as a supplementary reserve asset, the SDR serves as
the unit of account of the IMF and some other international organizations."
fiscal and political observers understand, the International Monetary Fund is a tool of central bankers, used to cast their
will over sovereign nations. Monetary bondage is the core business of finance. In order to delay the ultimate day of reckoning,
a shift in appearance will be offered as an alternative to the loss in Dollar confidence. In
an IMF paper, Enhancing International
Monetary Stability—A Role for the SDR? - The concept of a modified idea of a previous proposal resurrects.
Alternatives: To mitigate exchange rate risks, the
account could be structured to exchange SDR-denominated claims for foreign currencies with the same composition and proportions
as the SDR basket, and retain a similarly-structured portfolio. However, this would essentially eliminate the currency diversification
benefits to members, while not necessarily providing obvious benefits in terms of global diversification of reserve assets
(unless the account were to invest in official SDRs—or SDR-denominated securities issued by others than the traditional
reserve issuers; this however would expose the account to credit and liquidity risk that would need to be covered by members).
Another alternative would involve having a willing subset of the Fund’s membership pool (part of) their official reserves
into a Trust managed independently (within or outside the Fund), and agreeing among themselves on risk-sharing rules. This
could achieve both reserve diversification and supply of a new kind of SDR-denominated security (issued by the Trust), and
would therefore seem the most promising route if members with large enough reserves were interested in pursuing it.
IV. MITIGATING EXCHANGE RATE VOLATILITY
How? Use of the SDR as a unit of account could mitigate the impact of exchange
rate volatility through: i) use of SDR to price international trade, report data on international transactions, and as an
exchange rate peg; and ii) denomination of assets in SDR. The latter would require the development of a private market for
SDR-denominated assets with impetus from the official sector and support to build the market infrastructure. The rest of this
section discusses these issues. SDR valuation is clearly key to determine the optimality for any country or economic agent
of the SDR basket as a hedge against exchange rate volatility. It is discussed in the next section. In all cases, an important
distinction is between the denomination of certain transactions or securities and their settlement. Use of the SDR for denomination
(what is at issue here) leaves full discretion to the parties to choose any currency for the actual settlement of their trade.
The stage-managed inventiveness of
central banksters exceeded only by their lust to disseminate global indebtedness knows no bounds. Floating currency exchange
rates, imposed on the world, causes the chaos and insider opportunities for reprehensible rigged gains. The
article, Pipe Dream of Economic
Globalism, makes the following point.
"Establishing a single world currency doesn’t protect
anyone; except, those who control the process of selective distribution. Equality in economic opportunity can never be achieved
through the favoritism of Free Trade. The only thing FREE in the consolidating global economic system is the ride that the
barons of manipulation enjoy. While they preach the virtues of wealth creation, they advance their own dominance over any
remaining or persistent competitors."
may resist the substitution of their own coinage for a new currency, but most governments are so indebted to the financial
cabal, that the appearance or color of the paper that circulates as tender is not the real issue. The debt created monetary
banking system has established their worldwide reach across the globe. The notion of China being outside the club of financier
globalists and might challenge the push for a single money system, disregards reality. The
Single Global Currency
Association has several reports that examine this issue in more depth. When the great
world financial collapse intentionally triggered happens, the central bankers will unveil their end game currency swap. Understand
they will never forgive existing obligations or absolve the debt burden that they decadently extracted from humanity. The
enemy of mankind is not Adam Smith capitalism, but the Rothschild banking system.
James Hall – October 24, 2012
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