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ECON Rude Awakening for the US in January? No, Just More Alarmist BS From Rickards
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  1. #1
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    Rude Awakening for the US in January? No, Just More Alarmist BS From Rickards

    Rude Awakening for the US in January? No, Just More Alarmist BS From Rickards

    https://mishtalk.com/2017/09/11/rude...from-rickards/



    Posted by Mish | September 11, 2017 12:37:52 | Economics

    ≈ 80 Comments

    Best-selling author James Rickards writes Dear President Trump: America is in for a Rude Awakening in January.

    Really? Let’s investigate.

    Dear President Trump,

    Over the last couple of years I’ve been all over TV… from Fox News to CNBC, CNN and Bloomberg. I’ve been telling our fellow Americans that the financial global elite was planning to issue their own globalist currency called special drawing rights, or SDRs.

    And that those elites would use this new currency to replace the U.S. dollar as the global reserve currency.

    Let’s stop right there for a second to take a peek at the IMF SDR Fact Sheet.

    The SDR is an international reserve asset, created by the IMF in 1969 to supplement its member countries’ official reserves. As of March 2016, 204.1 billion SDRs (equivalent to about $285 billion) had been created and allocated to members. SDRs can be exchanged for freely usable currencies. The value of the SDR is based on a basket of five major currencies—the US dollar, the euro, the Chinese renminbi (RMB), the Japanese yen, and the British pound sterling.

    In his letter to President Trump, Rickards warns everyone that the “financial global elite plan to issue their own globalist currency called special drawing rights, or SDRs”, an event that actually happened about 48 years ago.

    Total US Dollar Debt Owed vs SDRs

    The total amount of SDR’s is a pissy $285 billion as of April 21, 2017.

    Total Credit Market Debt Owed was 65.5 trillion in March of 2016. The Fed has since stopped publishing the number.

    That is what Rickards proposes will cause a crash. The actual number is even smaller if one factors in Euro-denominated debt, Yuan-denominated debt, and Japanese-denominated debt.

    The idea behind SDRs is to reduce currency fluctuations. IMF borrowers (countries like Greece) convert SDRs into their currency of choice (in the case of Greece, that would be Euros).

    Investopedia notes: “SDRs are used by the IMF to make emergency loans and are used by developing nations to shore up their currency reserves without the need to borrow at high interest rates or run current account surpluses.”

    The respective weights of the US dollar, euro, Chinese renminbi, Japanese yen, and British pound sterling are 41.73 percent, 30.93 percent, 10.92 percent, 8.33 percent, and 8.09 percent. These weights were used to determine the amounts of each of the five currencies included in the new SDR valuation basket that took effect on October 1, 2016.

    Trade does not really take place in SDRs. In fact, Investopedia stated the IMF discourages countries from pegging their currencies to SDRs, the opposite of what Rickards suggests.

    With that background out of the way, let’s return to to the alarmist nonsense from Rickards.

    Alarmist Nonsense

    Make no mistake, if the IMF is planning to use Distributed Ledgers to replace the U.S. dollar with SDRs. And just to be clear, when SDRs take over, the American people will be left with devalued dollars.

    Once other nations start accumulating the globalist currency through Distributed Ledgers, they will no longer need to hold dollars. Once Distributed Ledgers go live, other nations will no longer need to buy Treasury bonds.

    And that means our government — your government — will no longer be able to finance its normal operations, including welfare programs like Social Security. For those who have their retirement account parked in stocks, they could watch it evaporate in a matter of days. The weakest companies in the stock market could collapse once this plan goes live.

    Function of Math

    No one forces China, Japan, or anyone else to hold dollars. That other countries accumulate US dollars is a function of math.

    The US runs a trade deficit, other nations must accumulate US assets (typically treasuries because they pay interest).

    Piling Nonsense Upon Nonsense

    The transition from a U.S. dollar system to a new system dominated by SDRs will be messy. Stocks will collapse… and will stay down. There will be no recovery this time, because the U.S. government won’t be able to come to the rescue like they did in 2008.

    In a special report dated June 2017, the IMF had this to say about Distributed Ledgers: The IMF favors control by a “pre-selected group of participants” or “one organization,” rather than allowing “anyone” to participate.

    This paper should be viewed as the first step in the IMF’s plan to migrate its existing form of world money, the SDR, onto a DLT platform controlled by the IMF.

    They’re telling you exactly what their plan is. It would be foolish to ignore them, or assume the U.S. dollar will remain the global reserve currency much longer once this plan is implemented, as early as January 1, 2018.

    You know the global elites’ aren’t your biggest fan. You know the U.S. dollar has been under attack.

    This is the global financial elites’ plan to remove the U.S. dollar from its position of power and to attack your administration all at once.

    Who do you think American’s will blame when the stock market crashes, or Social Security runs out? We can hear the talking heads already.

    Jimm Rickards
    for The Daily Reckoning

    That alarmist conclusion was of course followed by a chance to get a “free groundbreaking publication” whose only intent is to get you to buy something.

    Rickards is pissing and moaning about a trivial amount of SDRs that the IMF loans to developing countries and global basket cases like Greece.

    Even if the IMF does something in January of 2018 with distributed ledgers, it will be as meaningless as the IMF’s original implementation of SDRs 48 years ago.

    Perhaps there is a “rude awakening” in January, but SDRs will not have anything to do with it.

    Mike “Mish” Shedlock
    A man never discloses his own character so clearly as when he describes another's.

    Have you ever listened to someone and wondered,,,,,,,,
    "Who ties your shoes for you??"

  2. #2
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    In all fairness it IS possible that some kind dire financial event might happen in January. Or some other time.

  3. #3
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    Setting a date certain for ANYTHING not astronomically predictable is pretty much a guarantee it won't happen then.

    Rickards is bright and connected but ... looks as though he would learn better. The WHAT is pretty easy to get right. The WHEN is a different matter. But better too early than too late.

    And MISH? Puhleeze. All Mish talks is his own book.
    The wonder of our time isn’t how angry we are at politics and politicians; it’s how little we’ve done about it. - Fran Porretto
    -http://bastionofliberty.blogspot.com/2016/10/a-wholly-rational-hatred.html

  4. #4
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    "DLT" distributed ledger technology = block chain. I imagine block chain +SDR would eliminate need for the SWIFT system for trade (allowing for free cross border trade) and the US economic gatekeeper stranglehold over international policy such as the imposition of sanctions . I have read that the Chinese are pushing for a gold component to the SDR. I have read that the IMF may be locating at least some of its operations to China and that it is bringing other countries (BRICS and extended BRICS) together to overcome the US hegemony in voting at the IMF. I expect that the US Treasury component of the SDR will decrease.
    "During times of universal deceit, telling the truth becomes a revolutionary act." George Orwell

  5. #5
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    There is already an alternative to SWIFT....... has been for a while now. If this is not a good enough 'source,' just search the web. It's no secret.
    ==============================

    https://www.corbettreport.com/chinas...of-the-dollar/

    China’s SWIFT Alternative and the (Engineered) Death of the Dollar
    Corbett • 03/12/2015 • 8 Comments
    by James Corbett
    TheInternationalForecaster.com
    March 11, 2015

    Forget all the nonsense and hoopla about the Apple Watch or the GM stock buy-back. Far and away the most important economic story of the week is one you won’t find on the front page of Bloomberg or MarketWatch. New reports indicate that China is ready to launch its SWIFT alternative, and for those who have their ear to the ground this is the most significant move yet in the unfolding process of de-dollarization that is seeing the BRICS-led “resistance bloc” breaking away from the financial stranglehold of the US-led “Washington Consensus.”

    For those who don’t know, SWIFT stands for the Society for Worldwide Interbank Financial Telecommunication and is shorthand for the SWIFTNet Network that is used by over 10,500 financial institutions in 215 countries and territories to transmit financial transaction data around the world. SWIFT does not do any of the clearing or processing for these transactions itself, but instead sends the payment orders that are then settled by correspondent banks of the member institutions. Still, given the system’s near universality in the financial system, it means that virtually every international transaction between banking institutions goes through the SWIFT network.
    //////////snip
    The wonder of our time isn’t how angry we are at politics and politicians; it’s how little we’ve done about it. - Fran Porretto
    -http://bastionofliberty.blogspot.com/2016/10/a-wholly-rational-hatred.html

  6. #6
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    April 2017, June 2107, September 2017. Now it's January 2018. Make up your mind Rickards!

  7. #7
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    OBTW - The SDR is an international reserve asset, created by the IMF in 1969 to supplement its member countries’ official reserves. As of March 2016, 204.1 billion SDRs (equivalent to about $285 billion) had been created and allocated to members. - the OP

    And a stupid question - if the IMF can CREATE 204.1 billion SDRs, what keeps them from creating a few trillion MORE? The "value" of the currencies - ALSO CREATED - that SDRs are supposedly based on?
    The wonder of our time isn’t how angry we are at politics and politicians; it’s how little we’ve done about it. - Fran Porretto
    -http://bastionofliberty.blogspot.com/2016/10/a-wholly-rational-hatred.html

  8. #8
    Quote Originally Posted by Vegas321 View Post
    April 2017, June 2107, September 2017. Now it's January 2018. Make up your mind Rickards!
    Doom: Coming Real Soon Now Since Before You Were Born.

  9. #9
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    Quote Originally Posted by Dozdoats View Post
    Setting a date certain for ANYTHING not astronomically predictable is pretty much a guarantee it won't happen then.

    Rickards is bright and connected but ... looks as though he would learn better. The WHAT is pretty easy to get right. The WHEN is a different matter. But better too early than too late.

    And MISH? Puhleeze. All Mish talks is his own book.
    here you go hurry now limited time offer; Much more at site.

    http://research.agorafinancial.com/r...act_0415&ver=3

    Description
    HI, JIM RICKARDS HERE...

    In less than 30 seconds, I am going to introduce you to IMPACT investing… and I promise your life will not be the same afterward.

    IMPACT is a new proprietary strategy I've created to give you the opportunity for extraordinary 1,000% gains (or more) from the ongoing currency wars — in a safer way than how most people invest in stocks.

    Imagine making 530% in less than eight months from a major move of the U.S. dollar…
    Or making 848% in less than seven months from the euro…
    Or making an incredible 2,196% in 10 days from the Swiss franc…

    First… it's important that you understand this really may be the ONLY time you ever get an opportunity to witness this one-of-kind proprietary trading secret…

    Why?

    Because IMPACT originated with systems and techniques that I developed for the CIA and Department of Defense to detect and predict terrorist activity.

    (In fact, when back-tested by the intelligence officials, my systems would have predicted the 9-11 attacks… days before they actually happened.)

    And frankly, if it comes down to national security, I reserve the right to pull this page down at any time. So please, if you're at all interested, don't put this aside.
    A man never discloses his own character so clearly as when he describes another's.

    Have you ever listened to someone and wondered,,,,,,,,
    "Who ties your shoes for you??"

  10. #10
    Rickards and all those of his ilk selling through the pulp and internet mills have found the secret to success. FEAR. He has been pushing the same crap for many years. They took notes from Howard Ruff and his “How to Prosper During the Coming Bad Years: A Crash Course in Personal Financial Survival. 1978” and EVERY year and decade thereafter until he died last year of Parkinson’s.

    The ONLY thing these financial wizards are concerned about is their own bottom line. And they cannot say anything in less than 30 seconds. If your spouse is convinced that these are the true saviors, watch your bank accounts closely for the withdrawals for the newest newsletter, the wonderful offer for silver, gold, freeze dried survival food and a variety of snake oil including but not limited to the 1KW solar generator that will run your house when TSHTF. Yep.

    Do yourself a favor. Trash or recycle their snail mail. Delete their email.

    Sooth
    EPHESIANS 6:12 For we wrestle not against flesh and blood, but against principalities, against powers, against the rulers of the darkness of this world, against spiritual wickedness in high places.

  11. #11
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    http://agorafinancial.com/

    agora = Greek for marketplace.

    They sell financial newsletters. A conglomeration of financial newsletters.


    During the gold rush, the people who made money sold picks and shovels, beer and whiskey etc. Very few gold miners made money, relatively speaking.
    The wonder of our time isn’t how angry we are at politics and politicians; it’s how little we’ve done about it. - Fran Porretto
    -http://bastionofliberty.blogspot.com/2016/10/a-wholly-rational-hatred.html

  12. #12
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    Quote Originally Posted by Dozdoats View Post
    agora = Greek for marketplace.
    Technically it means more than just "marketplace." I think it's more like the town square or center of culture or the local hangout for intellectuals. The 2009 movie Agora (with Rachel Weisz) was about a center of learning (in her case, the Library of Alexandria), which in ancient Greece (and Alexandria) often took place in the "town square."

    From Wikipedia: The agora was a central public space in ancient Greek city-states. The literal meaning of the word is "gathering place" or "assembly."

  13. #13
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    The economist magazine said it would happen around 2018 30 years ago.

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