EDITOR NOTE: If you’re not already familiar with the dangers posed by the global spread of the IMF’s Special Drawing Rights (SDRs), then this is the video to watch. It breaks it down for you, discussing its history, risks, and motivations behind its future implementation. The authors call it a new “secret money layer.” For many of our readers, SDRs are neither new nor secret--'dormant' being the best term to describe the IMF’s alternative reserve currency. If we were to summarize the risks in a nutshell, we’d describe them in this comparative scenario. What do you think might happen if the Federal Reserve continually prints money to paper over its debts? Of course, you’d get higher inflation, possibly hyperinflation if the surge in prices spins out of control. What do you think might happen if the issuers of a global currency continue to print money? Same result. But what might it mean for countries across the globe to rely on one institution and one currency to implement global economic governance? I think you get the picture.
Originally posted on Mark Moss