EDITOR NOTE: Never in the history of the International Monetary Fund has it issued anything close to $650 billion worth of Special Drawing Rights (SDRs)--the IMF’s alternative currency developed to virtually replace the US Dollar in the event of its demise. $650 billion is the figure the IMF is planning to distribute to governments in order to boost global liquidity. It’s also enough to begin loosening the US Dollar’s reserve currency status. Naturally, China is in support of the plan, as it’s poised to be a chief beneficiary of the dollar’s downfall. Strangely, the Biden administration is also in support of the plan, as if completely blind to the catastrophic risk that such a move would entail for America’s economy and global standing. The Biden administration is a key driver behind the IMF and World Economic Forum’s Great Reset agenda, completely ignorant of the likelihood the US is going to be among the most disadvantaged nations under this utopianistic/socialistic pipe dream; a “transhumanistic” movement whose real agenda is aimed at establishing global centralization and control. The bottom line is that the dollar is under threat. Unless you convert a good portion of your wealth into non-CUSIP gold and silver, there’s no certainty as to what your assets will be worth once the dollar loses its global reserve currency status.
A controversial plan to boost global liquidity means the days of the U.S. dollar being the undisputed king of the international monetary system may be coming to a close, experts told The Epoch Times.
Losing that status could contribute to a serious crisis for the United States involving a dramatic loss of economic purchasing power, a geopolitical realignment and everything associated with those shocks.
The Biden administration-backed International Monetary Fund (IMF) proposal to issue an unprecedented $650 billion U.S. dollars’ worth of new “Special Drawing Rights” (SDRs) this year alone will also help re-shape the international financial system.
That is more than twice the total amount of SDRs created by the IMF throughout its entire history.
The SDR is a sort of proto-global currency, based on a basket of leading currencies, dubbed an “international reserve asset” by the IMF. Each government receives an amount of SDRs proportional to its stake in the international organization.
The unprecedented new issuance, which has the support of both Beijing and Washington, will contribute to sidelining the U.S. dollar’s role as the global reserve currency, analysts warned. The Chinese Communist Party is expected to be a leading beneficiary.
“The United States and our G7 partners are actively considering a global effort to multiply the impact of the proposed Special Drawing Rights (SDR) allocation to the countries most in need,” the White House said in a statement.
For well over a decade, leading commentators and even political leaders around the world—including Communist Chinese central bank officials and numerous European leaders—have called for making the SDR into a true global currency.
Those calls are growing amid the push for a “Great Reset.” The “reset” plan, which would transform everything from business to governance, is being promoted by the United Nations, the World Economic Forum, the IMF, the British monarchy and other power centers as a way to improve the world.
Ostensibly aimed at making the world more “green” and “sustainable,” the shift would require a much larger role for the public sector at the national and international level while moving the world away from what remains of the free-market system. Widespread proliferation of new technologies associated with the “Fourth Industrial Revolution” are a critical component of the effort, too.
A restructuring of the international monetary system led by the IMF on the way to the globalization of currency—with the looming SDR issuance as a major step—is likely to play a key role in the global reset as well.
Just as significantly, the developments taking place at the IMF will empower global organizations to channel ever-larger sums of wealth from people in the United States and other major economies into projects selected by those organizations and their member governments.
Powerful global interests, for instance, are pushing to use the new SDR “allocation,” as the issuing of new SDRs is called, to finance everything from mass international COVID vaccinations to policy transformations around the world.
Experts and former officials also told The Epoch Times that the addition of a new layer of unbacked financial instruments on top of an already unstable global financial system would help further debase the world’s leading national currencies.
The implications are enormous—especially for the U.S. dollar and the global economy.
Yet, with a handful of exceptions, major media in the United States have been largely silent on this issue.
Officially, the justification for the largest-ever round of SDR creation is to help boost liquidity for governments in poorer nations still reeling from economic chaos caused by governments’ responses to the CCP virus.
But Holland-based Commodity Discovery Fund (CDF) founder Willem Middelkoop, author of the book “The Big Reset,” told The Epoch Times that the IMF plan has much broader significance.
“It’s clear the Biden administration is in favor of working together with the IMF and China to start using IMF’s balance sheet to create more ‘stimulus,’” said Middelkoop, a leading expert on the IMF and the SDR.
But there will be problems associated with the move, he said.
“By allowing the IMF to create $650 billion worth of new SDRs, central bankers are able to create another layer of fiat money to an already unstable financial system,” he said.
Among other concerns, Middelkoop warned that the plan would produce problems for the currencies that underpin the IMF’s SDRs, which include the U.S. dollar, the Japanese yen, the euro, the British pound, and the CCP’s yuan or renminbi, added in 2016.
“This will lead to more debasement of the five main world currencies, which are all part of the SDR-currency basket,” he said.
Indeed, Middelkoop warned years ago in his book on this subject that he expected the IMF to pursue more rounds of SDR creation, in ever larger amounts.
At some point, once the allocation grows to a sufficient size, the U.S. Congress will have to be consulted for approval. But the $650 billion round being planned now is just below the statutory limit that would trigger congressional oversight.
A short March editorial in the Wall Street Journal blasting the IMF for seeking to bail out dictators also accused the IMF and the Biden administration of scheming to divide up a $1 trillion SDR issuance into two rounds.
The plan, according to the editorial, was to issue the SDRs in two stages—$650 billion this year and $350 billion next year—in an effort to bypass the U.S. legal requirement for congressional approval on such a large issuance.
When contacted by The Epoch Times, IMF officials denied that there was a plan to issue $350 billion in new SDRs next year, pointing to public statements by top IMF leaders.
However, if leading IMF member governments agree, there would be nothing to stop further issuance of SDRs next year or anytime after that.
IMF officials expect the $650 billion allocation to be complete by the end of the summer, they said.
U.S. Treasury Secretary Janet Yellen and G-20 governments including the CCP have all publicly indicated that they support the IMF plan.
The IMF executive board is expected to give its final approval so the issuance can be completed by the end of August, officials said.
Experts say that despite the complicated terminology, the IMF’s plans are not that difficult to understand.
Think of the SDR issuance like printing money, but at the global level.
When the IMF creates SDRs, it is creating from thin air an instrument with purchasing power that allows the holder—typically a government—to purchase real goods and services. But instead of taxing citizens to seize that purchasing power, the IMF simply creates this sort of proto-global currency. Issuing new SDRs is basically the global equivalent of “quantitative easing” by a national central bank such as the Federal Reserve.
The primary difference is that instead of simply siphoning wealth from those holding U.S. dollars, as occurs when the Fed creates new dollars and dilutes the purchasing power of each existing dollar, the IMF issuance would also confiscate savings from those holding other major currencies in the basket that makes up the SDR. Another key difference is that when the Federal Reserve, for instance, creates new U.S. dollars, it lends them out and they can be spent immediately on goods and services.
For now, at least, SDRs must first be converted to U.S. dollars, euros, yen, yuan, or pounds before being spent on goods and services by the governments that receive the SDRs. The United States is obligated to exchange SDRs for dollars on demand.
Basically, by creating new “assets,” as the IMF refers to the SDRs, the international organization and its members are surreptitiously harvesting savings from humanity and redistributing those savings to the governments receiving SDRs.
Eventually, the IMF and many key world leaders hope to turn the SDR into a true global reserve currency, sidelining the U.S. dollar that currently occupies that role.
Top world leaders including then-Russian President Dmitry Medvedev, then-French President Nicolas Sarkozy, multiple UN agencies, and many others have openly announced their support for a new global currency in the wake of the last global financial crisis.
In 2009, the head of the CCP’s central bank at the time, Zhou Xiaochuan, also publicly called for the creation of a new international currency that would be disconnected from any single nation, with the SDR serving as the key candidate.
A report published on the CCP central bank’s website entitled “Reform the International Monetary System” explained that “the desirable goal of reforming the international monetary system, therefore, is to create an international reserve currency that is disconnected from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currencies.”
When asked about the CCP’s proposal at an event hosted by the powerful Council on Foreign Relations, then-U.S. Treasury Secretary Timothy Geithner summarized it as a plan to use SDRs more widely in the international monetary system.
“We’re actually quite open to that suggestion,” Geithner said, describing it as an “evolutionary” process.
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