Dazedandconfused (I love that Led Zepplin classic)
'Right now the nations are in the 'negotiation stage,' with the Anglo-American banking cartel putting up a strong resistance for any changes to their 'exorbitant privilege.'
Why would western banks and trade counterparties be uncomfortable with the new additions?
Russian Rouble - devalued in 1998 by 90%
Chinese Yuan - currency backed by a military dictatorship
Gold - a "currency" with no economic base
Silver - another "currency" with no economic base
Other - what is in there? Zimbabwean Dollars?
A "reform" like this would kill the SDR stone dead.
Out of interest, I did an rough estimate how many tonnes of gold would be required to make up what I guess to be 11% of the value of each SDR under the proposed allocation.
It turned out to be about 835 tonnes.
I think that it is in the interests of anyone long gold to promote this outrageous proposal.
Do SDRs even matter any more?
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