There has been a great deal of speculation about a new global currency.
Various theories have been advanced, and “exposés” have revealed the coming conversion of dollars to a mysterious “Red” currency emerging from Asia like some enigmatic fiscal Phoenix.
None of these hidden agendas have ever materialized. But a new global currency is coming. It is on the march as we speak, but it is not quite what you think.
This New Financial World Order is driven by the fact that, after a 70-year-run, the dollar is exiting the world stage as the lead in that often misunderstood play, The Global Reserve Currency.
There are of course people and institutions behind this, not the least of which is that icon of global financial manipulation, the International Monetary Fund (IMF). So it is no surprise that the new global currency will be the SDR.
SDR stands for Special Drawing Rights. It is the currency— created by the CIA in 1969—that is issued by the International Monetary Fund.
Trade won’t be able to grow, and the system will remain vulnerable to speculation unless there is regular growth in the international money supply.
Gold can’t provide the needed increase: industrial and speculative demand is too high. U.S. payment deficits can’t either: foreigners are unwilling to hold more dollars when we run large deficits and unable to increase net reserves by accumulating dollars when our deficits are small.
Our strategy is to supplement gold and dollars with a new international asset, Special Drawing Rights (SDR). [the emphasis mine]
What does all of this mean?
We will cover the answer and much more in our next post.
John Truman Wolfe