Jim Rickards
The Day China Got a Seat at the Monetary Table
Posted on 2021-03-14 20:30:00 [ Show older headlines ]
In July 2016, the IMF issued a paper calling for the creation of a private SDR bond market. These bonds are called “M-SDRs” (for market SDRs), in contrast to “O-SDRs” (for official SDRs).

In August 2016, the World Bank announced that it would issue SDR-denominated bonds to private purchasers. Industrial and Commercial Bank of China (ICBC), the largest bank in China, will be the lead underwriter on the deal.

In September 2016, the IMF included the Chinese yuan in the SDR basket, giving China a seat at the monetary table.

So, the framework has been created to expand the SDR’s scope.

The SDR can be issued in abundance to IMF members and 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 world’s largest corporations, such as Exxon Mobil, Toyota and Royal Dutch Shell.

Now, the IMF is planning to issue $500 billion of new SDRs, although some Democrat senators are lobbying for an issue of $2 trillion SDRs or more.

This would be almost ten times the amount of SDRs issued in 2009 and would go a long way to increasing SDR liquidity and advancing the globalist agenda of eventually having the SDR replace the U.S. dollar as the leading reserve asset.

This proposal closely follows the global elite game plan predicted in chapter 2 of my 2016 book, The Road to Ruin.

Over the next several years, we will see the issuance of SDRs to transnational organizations, such as the U.N. and World Bank, to be spent on climate change infrastructure and other elite pet projects outside the supervision of any democratically elected bodies. I call this the New Blueprint for Worldwide Inflation.

More Than Just SDRs

But there’s more to the Great Reset than the issuance of new SDRs. Here’s another breaking news story that validates the longstanding prediction of a coming reset in the global financial system.

In 1999, the euro replaced the individual currencies of Germany, France, Netherlands, Italy and other major economies in Europe. Today, the number of countries that have joined the euro is up to 19, and more countries are awaiting admission.

The euro is the second largest reserve currency asset after the U.S. dollar. The creation of the euro can be thought of as a stepping stone from national currencies to a single world currency.

Now, the euro (along with the Chinese yuan) is moving quickly to become a Central Bank Digital Currency (CBDC). A CBDC combines a traditional currency with the blockchain technology of a cryptocurrency.

It’s an important move in the direction of eliminating cash and forcing users into a 100% digital system using credit cards, debit cards, and smartphone apps.

Why are China and Europe so focused on eliminating cash?

- Source, James Rickards