By JC Collins
Well, I didn’t want to do another post directly on the heels of my PrimNomics post, but an article on the USA Today website has made me reconsider. The article talked about discussions taking place in Washington this week between the IMF and World Bank. And on the agenda are the items that we have been discussing here.
The article even mentions the term “magic circle” which we reviewed last week in the post The SDR Magic Circle. Makes me wonder who else reads this site.
Some quotes from the article:
“The issue of whether the Chinese should be part of the International Monetary Fund’s Special Drawing Right, the composite reserve currency used in official financing, is highly technocratic, but the political questions at stake go to the core of world money and power – and will be discussed, in the background, at the annual meetings of the IMF and World Bank in Washington this week.”
Of course they are going to be discussed. The official papers and briefings of the global financial institutions have been talking about this for a few years already. That is where I’ve been sourcing much of my information.
“Beijing would prefer the question of recalculating the composition of the SDR, which comes up for review in 2015, to follow market developments, reflecting a big increase in demand for renminbi financing from private banks, central banks, traders, corporations and asset managers.”
I’ve written so much about exactly this that it would be an effort to provide links to every post.
“As the world’s No. 2 economy after the U.S., China believes it is close to earning the status of a reserve money, the first time that an emerging market currency would attain this position. Chinese entry into the “magic circle” has been advanced by the British government’s September decision to issue renminbi-denominated bonds, the first big government to take such a step, and allow the proceeds to be held as reserves by the Bank of England.”
Once again, exactly what I’ve been stating. Additionally, it was reported today that China has in fact surpassed the US as the worlds largest economy. The Business Insider article can be viewed here.
“Next year’s planned review will touch, too, on the opportunity for the SDR to play a greater role on financial markets, for example in denominating bond issues. The SDR has lost ground as a financial vehicle in the past two decades, reflecting the surging importance of international private sector capital markets. But with the addition of the renminbi, it may be about to make a comeback.”
Nothing much more need be said in regards to the future plans of the BRICS and IMF, World Bank, G20, and other global institutions.
It’s very interesting that so many people want to believe in the fear and manic hysteria produced by certain sources, when the truth of what is happening is right in front of us, hidden if you will, in plan site. Like a true magician I suppose.
The truth is a lonely place.
But time will continue to prove this site correct. The full USA Today article can be read here. – JC