funny you should mention the Chinese SDR inclusion which takes place on Friday
@doodledog, was just reading this article today -
@binwood thought this might be in your league?
cheers
ps. its by James Rickards who people seem to love or hate - l'm neutral (naive) lol!
"Only Days Until World Money Changes Forever"
The International Monetary Fund (IMF) has established a plan for its special drawing rights (SDR) valuation basket to be revised at midnight on September 30. This IMF plan has laid the foundations for a new monetary standard based on world money.
While these SDR plans might seem complex, they’re actually not complicated. People will make it complicated or make it sound confusing but the Federal Reserve has a printing press, they can print dollars. The IMF also has a printing press and can print SDRs. It’s just world money that could be handed out and could be used to cause inflation.
I am often asked, “What’s an SDR? If I had 100 SDRs how many dollars would that be worth? How many euros would that be worth?”
There’s a formula for determining that, and as of today there are 4 currencies in the formula: dollars, sterling, yen, and euros. Those are the 4 currencies that comprise in the SDR calculation. As of the close of business on September 30th, or in effect when we wake up October 1st, there’s going to be a fifth currency added, which is the Chinese yuan.
The Chinese yuan does not meet the typical SDR criteria, so it would not normally qualify. However, this is a political decision by the IMF attempting to get China on the bus. In the 1960s we had an expression, “you’re either on the bus or off the bus,” and right now China’s off the bus but as of September 30th they’re going to be “on the bus.” They’re going to be part of the SDR.
Does that mean the dollar becomes worthless overnight? Of course not. You’re going to wake up October 1st, you’ll still have dollars in your pocket, you’ll still get paid in dollars, those will be worth something, but it will be a very significant turning point.
We will look back on that date a few years from now we’ll look back on September 30th, 2016 and reflect, “That was the day the dollar began its demise.” Officially that’s when the Chinese yuan was put into the SDR and the SDR gained the backing it needs from the emerging markets, from China and from the BRICS, to become the new world money.
It is definitely possible to see that coming. It will play out in stages. It doesn’t happen overnight, but it is one of those turning points. There are a lot of way to get ready for this, but don’t wait until it happens when the whole world says, “too bad about the dollar.”
