Steps to the Mark: (4) Step 2. Preparations for the New System.

[Marilyn C]

STEP 2. Preparations for the New System.

Preparations for a change in the financial and economic system go back to the early Bretton Woods conference. This was after WW2 when the major countries made the U.S. dollar the `lender of last resort.` However they knew that eventually the world needed a system which was based on the backing of all the major countries.

Creation of the IMF.

Thus the IMF, (International Monetary Fund) was created. At first the IMF was to promote international monetary cooperation and provide policy advice and development support via short and medium loans. It`s staff were primarily economists with wide experience in macroeconomic and financial policies.





Creation of the SDR.

In 1969 the major countries of the world then created a monetary unit for the IMF to use. This is called `the Special Drawing Rights,` or SDR`s. It is not a currency but they represent potential claims on the currencies of the IMF members.




This is an example of an SDR monetary note. It has been issued to the United Nations enabling them to draw on a national currency held by the International Monetary Fund. Note it says - `In HOPE we trust.`

 

[Marilyn C]

The IMF Basket of Major Currencies.

The Special Drawing Rights are allocated to member states as a low alternative to debt financing for building reserves. Today there are five major countries in the IMF basket of currencies. The Chinese Yuan is the last one to be added to the Basket.

English pound, American dollar, European Euro, Japanese Yen, and Chinese Yuan. (5)





The New SDR- System.

Over the past few years there have been many voices calling for a New SDR-System to be the basis of the World`s financial & economic system. To name a few ....

In 2010 there was published an article be the former Finance minister of Colombia. It was titled `Building an SDR-Based Reserve System.`

In 2016 in China`s most prominent international monetary magazine, there was an article titled `Revive the IMF`s SDR Substitution Fund.` It explained in detail how a transition from a dollar-centred system towards an IMF-SDR system was planned as early as the 1970`s.

Many believe that now 50 years later after its introduction, an SDR Substitution Fund, could well be the best approach to kick-start the SDR as a truly World Reserve Currency.

This substitution Fund would enable central banks to exchange their U.S. dollars for SDR`s. Thus they would diversify away from the dollar and be dropping the U.S. dollar as the anchor for the world`s monetary system.

Also, the IMF has increased its commodity content, (gold) and included major emerging markets. Note there are currently 190 countries members of the IMF.

Commercial `parties` will also be given new SDR-money (M-SDR`s) to be used as SDR-denominated financial market instruments.

Thus, a New SDR-System is emerging to replace the U.S. dollar as the World`s reserve currency.

 

[BibleStudent100]

Thus, a New SDR-System is emerging to replace the U.S. dollar as the World`s reserve currency.

You may be right, but if the US does not address its national debt, then the dollar is put at more risk of not becoming the world's reserve. DOGE is sweeping out a lot of good, along with some badly funded programs. Still, if we can't afford it, we can't afford it! The US government has to decrease its spending even if they are good programs. I work for the government and I sense that there is a lot LESS fraud than many people think. What there is though, are controversial programs that some consider worthwhile and others would consider wasteful, But that is the way it is with our own family budgets: some people spend money in what we deem as wasteful ways, while others think that is wise spending.