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RE: The IMF's SDR Role as the Preeminent Reserve Currency: De-Dollarization Policy Agreement

in #teamendthefed7 years ago

The money masters have intentionally made this difficult for non-club members to comprehend.

The SDRs are three separate concepts and roles as explained by the IMF:

  1. (O-SDR) a composite reserve asset created in 1969 "Official SDR" - With their use limited to the official sector, official SDR holdings provide an imperfect reserve asset, as they cannot be used directly for market intervention or liquidity provision. There are tight legal and political constraints to expanding the use of the official SDR, such as the need for an amendment of the Articles to change the way SDRs are allocated or the need for an 85 percent majority of voting power to agree to an allocation of any size.
    [ So what does this mean legally for the non official SDR below??? ]
    [ Even the IMF documents leave this an OPEN question whether the SDR could take on a systemic role - but they are moving forward anyway!!! ]

  2. (M-SDR) new class of reserve assets: tradable SDR denominated securities issued by the Fund or an investment vehicle backed by a subset of the Fund’s membership - think of this as a kind of SDR-bond issued by governments and G-SIFI mega-corporations.

  3. (SDR) as a unit of account, which could be used to price internationally traded assets (e.g., sovereign bonds) and goods (e.g., commodities), to peg currencies, and to report balance of payments data - okay that is loose talk where they may have some fluid ideas for this role, however it is possible that their blockchain could record a price in this SDR unit of account...

I can imagine press conferences and news reports failing to provide these specifics in their script to the public and deceiving or maintaining a level of confusion as to which form of SDR they are referring to - O-SDR, or M-SDR, or SDR as a unit of account!

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