[mattduke]

"dollars" was the headline, but it is SDR's they are discussing. Posting here because site bugs prevent me from posting in other forums.

The International Monetary Fund is poised to embark on what analysts have described as "global quantitative easing" by printing billions of dollars worth of a global "super-currency" in an unprecedented new effort to address the economic crisis.

telegraph

Some background from Wikipedia:

SDRs basically were created to replace gold in large international transactions. Being that under a strict (international) gold standard, the quantity of gold worldwide is relatively fixed, and the economies of all participating IMF members as an aggregate are growing, a perceived need arose to increase the supply of the basic unit or standard proportionately. Thus SDRs, or "paper gold", are credits that nations with balance of trade surpluses can 'draw' upon nations with balance of trade deficits.

So-called "paper gold" is little more than an accounting transaction within a ledger of accounts, which eliminates the logistical and security problems of shipping gold back and forth across borders to settle national accounts.

Joseph Stiglitz has argued that usage by central banks of SDRs as foreign exchange reserve could be viewed as the prelude to the creation of a single world currency.[2] It has also been suggested that having holders of US dollars convert those dollars into SDRs would allow diversification away from the dollar without accelerating the decline of the value of the dollar.[3][4]

[ReverseEngineer]

Well, as we all know here, the IMF is run by the same bunch of Banksters that own the Fed. So this Bozo Idea comes as no surprise.

However, how do they propose to distribute out this money? Helicopter Ben goes Global? Sprinkling down IMF "Dollars" on all the bankrupt states around the world?

I'm curious if the Paper version of an IMF dollar would look the same as a Fed dollar? On the digital level, are IMF dollars interconvertable at 1:1 with Fed Dollars?

Doesn't it bother anybody that we have an agency that can just go ahead and print out money to sprinkle down all over the world? How about sprinkling some of it down on all the unemployed people we have right here?

I've been of the opinion we would see a complete deflationary collapse before inflation could take hold. If the IMF pulls this stunt, I might have to review that opinion. Come ON! We have ANOTHER bunch of Banksters printing Dollars next door to the Fed? Who can print faster? Is it a race? What?

Reverse Engineer

[mattduke]

I'm curious if the Paper version of an IMF dollar would look the same as a Fed dollar? On the digital level, are IMF dollars interconvertable at 1:1 with Fed Dollars?

Currently 100 SDR's may be redeemed for 44 US Dollars, 34 Euros, 11 Yen, and 11 Pounds. Originally the SDR was redeemable in gold, but in the usual manner, the initial gold backing was later removed.

[ReverseEngineer]

I'm curious if the Paper version of an IMF dollar would look the same as a Fed dollar? On the digital level, are IMF dollars interconvertable at 1:1 with Fed Dollars?

Currently 100 SDR's may be redeemed for 44 US Dollars, 34 Euros, 11 Yen, and 11 Pounds. Originally the SDR was redeemable in gold, but in the usual manner, the initial gold backing was later removed.

Well perhaps I am looking at this too simplistically, but it would seem to me that if the IMF goes and prints up a bunch more of this stuff, if its not backed by anything then its value would drop and you couldn't buy any Euros or Yen or Dollars with it? Who would take this "money" and why?

Reverse Engineer

[mattduke]

Well perhaps I am looking at this too simplistically, but it would seem to me that if the IMF goes and prints up a bunch more of this stuff, if its not backed by anything then its value would drop and you couldn't buy any Euros or Yen or Dollars with it? Who would take this "money" and why?

If you are sitting on a pile of moldy dollars, you might be inclined to sell them for SDR's and a seat at the table of the "New System".

[auscanman]

I'm curious if the Paper version of an IMF dollar would look the same as a Fed dollar? On the digital level, are IMF dollars interconvertable at 1:1 with Fed Dollars?

Currently 100 SDR's may be redeemed for 44 US Dollars, 34 Euros, 11 Yen, and 11 Pounds. Originally the SDR was redeemable in gold, but in the usual manner, the initial gold backing was later removed.

Well perhaps I am looking at this too simplistically, but it would seem to me that if the IMF goes and prints up a bunch more of this stuff, if its not backed by anything then its value would drop and you couldn't buy any Euros or Yen or Dollars with it? Who would take this "money" and why?

Reverse Engineer

Since it's presumably backed by all the economies that provide its revenue, thanks to the banksters, it's just like any other fiat currency. So long as the countries backing the IMF continue to print at the same rate as the IMF, and so long as there's the perception by creditors that the loaned money ending up with the IMF has a likelihood of being paid back similar to that of money loaned to the US, it shouldn't differ too much from other fiats in terms of acceptability as currency.

So, anyone who accepts various 'reliable' fiat currencies would take this money, for the same misguided reasons there's faith in any other fiat currency.

[3aidlillahi]

Did anybody else scoff at "billions"? I guess I'm so used to Obamanomics that anything less than trillions just doesn't seem as scary anymore. 'Tis a shame.

[ReverseEngineer]

Since it's presumably backed by all the economies that provide its revenue, thanks to the banksters, it's just like any other fiat currency. So long as the countries backing the IMF continue to print at the same rate as the IMF, and so long as there's the perception by creditors that the loaned money ending up with the IMF has a likelihood of being paid back similar to that of money loaned to the US, it shouldn't differ too much from other fiats in terms of acceptability as currency.

So, anyone who accepts various 'reliable' fiat currencies would take this money, for the same misguided reasons there's faith in any other fiat currency.

Except the economies that provide its revenue are themselves failing economies, so how can they get revenue from them? Far as I know, they have no taxation power, so who is going to keep funding them?

Reverse Engineer

[ReverseEngineer]

Did anybody else scoff at "billions"? I guess I'm so used to Obamanomics that anything less than trillions just doesn't seem as scary anymore. 'Tis a shame.

My guess would be billions is all they figure them need to bail out some of the smaller two-bit nations on the brink of collapse. Doing this basically to try to safeguard their investments in those countries. However, they have run out of dollars to do this with, so they figure they'll just print up more of their own currency to dole out. Its not backed by anything though, not Gold and not Taxpayers either. Its completely fictitious. Even Dollars are based on the power to tax the people.

Reverse Engineer

[auscanman]

Since it's presumably backed by all the economies that provide its revenue, thanks to the banksters, it's just like any other fiat currency. So long as the countries backing the IMF continue to print at the same rate as the IMF, and so long as there's the perception by creditors that the loaned money ending up with the IMF has a likelihood of being paid back similar to that of money loaned to the US, it shouldn't differ too much from other fiats in terms of acceptability as currency.

So, anyone who accepts various 'reliable' fiat currencies would take this money, for the same misguided reasons there's faith in any other fiat currency.

Except the economies that provide its revenue are themselves failing economies, so how can they get revenue from them? Far as I know, they have no taxation power, so who is going to keep funding them?

Reverse Engineer

Very true. It's essentially money from creditor nations (China, Japan, Middle East, etc.) to debtor nations who in turn provide the IMF with funds that will be counted on to keep the IMF going. The IMF, once an imperialist tool of the west, is now also functionally a middle-man for Chinese and other funds going to poor countries.

If I were the Chinese I would be demanding that none of the money loaned to any other developed nation go to the IMF or World Bank. The Chinese have already been allocating their assets wisely in Africa and elsewhere, ensuring they get the best return possible on their investments, including political influence. Why should they have the IMF do a lousier job, and have almost all the spoils (if any) go to other western nations?

[pablonite]

I'm curious if the Paper version of an IMF dollar would look the same as a Fed dollar?

Yes, except the pyramid and the eyeball on top are slightly bigger. Of course as you plainly demonstrate more people are becoming aware of this pyramid scam so to avoid the panic induced by a bigger pyramid and eyeball it will be %100 digital and invisible.

Did anybody else scoff at "billions"? I guess I'm so used to Obamanomics that anything less than trillions just doesn't seem as scary anymore. 'Tis a shame.

Not me, it is critical to understanding the time frame in which the interest on the debt can no longer be paid. People have a hard time grasping orders of magnitude. This might help put it in perspective...

1 million seconds equals about 12 days
1 billion seconds equals about 31 years
1 trillion seconds equals about 31,688 years

America will be bankrupt within the year and the IMF is your new central bank.

[jbrovont]

I wouldn't accept it. I think I'm only going to accept monopoly money from now on. Come to think of it, you can actually find out exactly how much monopoly money exists in the world. Plus, if you need to burn it to heat your house, it's not illegal, and when you're done with it, you can recycle it into cardboard boxes and other useful items.

Getting paid in dollars lately is starting to look more and more like getting paid in ice cubes, sticking them in your wallet and expecting them to be there the next day.

I'm curious if the Paper version of an IMF dollar would look the same as a Fed dollar? On the digital level, are IMF dollars interconvertable at 1:1 with Fed Dollars?

Currently 100 SDR's may be redeemed for 44 US Dollars, 34 Euros, 11 Yen, and 11 Pounds. Originally the SDR was redeemable in gold, but in the usual manner, the initial gold backing was later removed.

Well perhaps I am looking at this too simplistically, but it would seem to me that if the IMF goes and prints up a bunch more of this stuff, if its not backed by anything then its value would drop and you couldn't buy any Euros or Yen or Dollars with it? Who would take this "money" and why?

Reverse Engineer

[deMolay]

http://www.telegraph.co.uk/finance/financetopics/recession/4986287/IMF-poised-to-print-billions-of-dollars-in-global-quantitative-easing.html Now the IMF is going to print more asswipe. But in who's currency?

[threadbear]

Billions? Make that trillions before this is over and interest rates have to be hiked sky high to contain inflation.

[ReverseEngineer]

This thread should be merged with the prior IMF thread.

Reverse Engineer

[lowem]

Since when did the IMF have the authority to print money? Oh wait RTFA says it's the SDR. So is this going to be the basis for the one world thingy?

[ReverseEngineer]

Since when did the IMF have the authority to print money? Oh wait RTFA says it's the SDR. So is this going to be the basis for the one world thingy?

That is the hypothesis. However, this is fiat money that has no backing at ALL, the IMF doesn't have a tax base or a country to back its currency, and they don't have enough Gold to do it either. Without either of those things, its just unlikely that the SDRs they issue will retain much value at all. They would have to get agreement from ALL the issuers of currency, from Dollars to Yen to Yuan to Euros to FIX the exchange rate, and that screws all the central banks other than the IMF, so its unlikely they could ever get that agreement. Its just more smoke and mirrors to prop the system up a while longer. It cannot work however.

Reverse Engineer

[seldom_seen]

The banking system has now broken all bonds with reality. Instead of coming back to earth, it's traveling deeper in to hallucinations.

This is desperation.

Mommas don't let your babies grow up to be economists.

[ReverseEngineer]

Mommas don't let your babies grow up to be economists.

Back in my college years, we had endless fun doing parodies of the Economics department in the basement of the Physics building at Columbia. Everybody would smoke dope and come up with the wildest proofs they could imagine up when completely toasted. Unfortunately I fear some of these "proofs" actually got over to the Economics department and were really used. There is a VERY good chance I am partially responsible for this whole mess actually. It was SUPPOSED to be a JOKE!

Reverse Engineer

[paimei01]

It's all planned. No "desperation" or "trying to fix things". You see those from people who are not "in on it".

There will be a world bank, who will lend money to all the "countries" who will be in debt forever. And they will bribe the leaders (puppets) of those countries, to keep that system going. And to pass new laws to limit oil consumption - "they" do not want chaos. "They" want this to go on forever with them at the top.