Posted Sep 13, 2017 by Martin Armstrong
QUESTION: Dear Marty,
I sure would appreciate any thoughts you have on rumors making the rounds that the International Monetary Fund has tipped its hand, in part via its June 2017 “Fintech and Financial Services: Initial Considerations” IMF Discussion Note, and intends to replace the US Dollar as the global reserve currency as early as January 2018 (probably later) with its decades-old Special Drawing Rights by converting the “foreign-exchange reserve assets” into a global currency using Distributed Ledger (Blockchain) technology.
It is only a matter of time until US hegemony built upon its reserve currency status (as well as other factors) goes the way of T. Rex. And, I have long believed that, while DLT (Distributed Ledger technology) is not going away, that it will be the IMF/Central Banks/Sovereigns who will end up creating their own horse in this reserve currency race that will win based upon “global” legislation and regulation … but 2018 is right around the corner.
ANSWER: No. This is really rubbish. I can’t believe how many people are writing in asking about this subject matter. Nevertheless, a new one-world currency is coming. It will be different from what anyone imagines. But so many people hate the dollar because they see this as keeping gold down. You better understand what is really taking place before you start making a wish.
What makes the dollar the reserve currency is the national debt. It is the only game in town to park big money. All of these conspiracy theories that hate the dollar so much fail to understand that the USA is not trying to keep the dollar as the reserve currency. It was the Plaza Accord that encouraged Europe to join together to create the Euro to compete with the dollar. The USA has also tried to convince Japan to relax its regulation to freely allow the yen to participate in the world economy. Yes, the yen floats. However, nobody could issue a bond in yen without the approval of the government even in London between two private parties.
The SDR cannot replace the dollar by January 2018. What a joke. Yes the IMF is making a pitch to be placed in charge of a new one-world currency. I had argued originally for the SDR back in 1980s when the IMF was a legitimate agency. Time and money has corrupted the IMF and it is now just a political ploy.
Here is the letter I received from the White House back in 1985 rejecting the idea of the SDR. This, they argued, would mean the surrender of sovereign power as has been demanded in Europe. Today, I would not recommend the SDR. We see the tension created by trying to force the Euro upon all of Europe. This is NOT a one size fits all.
I am preparing a special report on this which will include the whole future of block-chain. It will be ready before the WEC in November. A new one-world currency is coming. There is no doubt about that. The market forces will make that reality. That is the dollar rally – not decline.