This Is Why I Believe Rickards Is Wrong About The IMF SDR

James Rickards has been quite vocal in his view that the price of gold is headed much higher.  Yet, in the same breath he aggressively promotes the  idea of using the IMF SDR to replace the dollar as the world’s reserve currency.

There’s two reasons for this.  First, if you study Rickard’s background going all the way back to his role in the Iran hostage crisis, you’ll see that he’s been lifetime “front man” for the most powerful interest groups that control this country behind the scenes.  First and foremost he’s a front-man for the Pentagon.

I’ve been told separately, independently from two different sources that the elite insiders in the Department of Defense know that the demise of the dollar is inevitable.   That there’s nothing that can be done to prevent it.

Which brings us to the second reason that Rickards is trying to pimp the IMF SDR like a magic elixir snake-oil salesman.  The U.S. dollar currently represents 61.2% of the IMF SDR:   SDR Currency Basket.

If the U.S. Government can persuade the world to accept the IMF SDR as a replacement for  the dollar, the U.S. Government will still have de facto control over the world’s reserve currency and therefore can continue to defer the systemic collapse of the U.S. into the future.   Please note the absence of Chinese yuan or Russian rubles from the IMF SDR basket.

I have always believed that China and Russia would never accept an IMF SDR as the global reserve currency, even if the U.S. and EU were willing to put those two respective currencies in the basket.  The biggest clue for me has been the rate at which both China and Russia are accumulating gold in their currency reserve accounts and working to eliminate the use of the dollar in their trade agreements.

But this article, reinforces my view – BRICS To Form Their Own “IMF:”

The BRICS nations — Brazil, Russia, India, China and South Africa — are reportedly close to finalizing their long-awaited development bank and currency reserve, each valued at $100 billion, in what has been billed as a historic challenge by the world’s emerging economies to a global financial architecture that has been dominated by the U.S. and Western Europe since its post–World War II inception.

The BRICS nations first announced their plans for the bank in March 2013 but struggled to reach an agreement over China’s desire to hold a greater stake in the institution. But a Brazilian government official told Reuters last week that the five members were ready to split funding and control equally, clearing the last major hurdle for a launch in 2016.

To economists in the developing world, who have long criticized the World Bank and IMF as anathema to the countries they purport to help, the New Development Bank holds tremendous promise. Critics say the West has taken advantage of its monopoly in international lending to wield outsize influence in the economic and political affairs of developing countries, dictating development models that further entrench these countries’ subservience to the West.

But unlike the U.S. and Europe, who are in lockstep on most things, the BRICS countries have little in common but a shared ambition to rebalance the global economic order.

I would suggest that anyone who wants to see the issues clearly should place a little less “faith” in the information being disseminated by people like Jim Rickards.  I would also suggest that the  unwillingness of Russia/China to cooperate with the U.S. on the matter of the U.S. dollar is the reason recent military aggression by the U.S. toward Russia and China…

57 thoughts on “This Is Why I Believe Rickards Is Wrong About The IMF SDR

  1. I agree Dave. Why would China want to be a part of the US controlled IMF? That makes no sense. The don’t trust us anyways.

      1. i agree…it would be interesting to see if he bothered responding…
        the fact that he was at Long Term Capital Management during its demise and bailout, and the fact that he has conducted economic war games on behalf of the “Pentagram” tells you that he is minimally an elitists or sympathizer though has stated otherwise…
        i had hoped he would be different…

      2. Given your comments – it’s obvious you actually know next to NOTHING about Richards’ stand on the IMF wanting to replace the USD with it’s “basket of currencies” (SDRs) !!!

        First – Rickards has been warning – repeat – WARNING – not “PROMOTING” as you erroneously state – about the STATED plans by the IMF (announcing their “long game” to gradually replace the USD as the primary reserve currency of the world!!! (see CNN Money, Feb 10, 2011 [among many other such reports] – Quoting: “NEW YORK (CNNMoney) — The International Monetary Fund issued a report Thursday [that was January 07] on a possible replacement for the dollar as the world’s reserve currency.”) At the time, Managing Director of the IMF Dominique Strauss-Kahn stated: “”Over time [read: our long game], there may also be a role for the SDR to contribute to a more stable international monetary system [comment in brackets added].”

        That was then – fast forward to today:

        “Epoch Times” (published in 21 languages in 35 countries across five continents) ran with the headline on August 04, 2016: “IMF and China Accelerate Creation of New Global Currency” (and guess what that “new global currency is??? Right – “SDRs with the inclusion of the Chinese Yuan in the “basket of currencies” set to go active in October 2016, leading the way!)

        After all China as the LA Times reported on October 14, 2013, “China calls for dollar to be replaced as global reserve currency”.

        So the stage is now set with the following sequence. (1) July 2016, the IMF calls for a private bond market (“M-SDRs”) (2) In August 2016, World Bank announces it will issue SDR-denominated bonds (China’s largest bank – The Industrial and Commercial Bank of China will underwrite the bonds) (3) September 2016, G20 meet in Hangzhou, China – under the leadership of G20 President Xi Jinping (also the General Secretary of the Communist Party of China). (4) September 30, 2016, Chinese Yuan is officially “active” in the IMF’s “basket of currencies”. (5) October 07, 2016, the IMF holds its annual meeting in D.C. – agenda – to consider additional measures/steps to expand the role of SDRs in global finance, settlements, etc., = all contributing to the “long game” of replacing the USD as the primary global reserve currency – because – all the above means participants will NO LONGER need to use USD in favor of the expanded role of the IMF’s SDRs!

        The dethroning of the USD as the primary reserve currency isn’t going to happen all at once much less at the conclusion of the above listed events – but the inexorable progression to realize that goal is well underway and already bearing fruit. Case-In-Point, at this time, TWENTY-THREE NATIONS, REPRESENTING 60% OF THE WORLD’S GDP, NO LONGER ACCEPT USD and SWIFT for settlement and trade!!!

        So to keep this from becoming of mind-numbing length, suffice it say “Investment Research Dynamics” – your article is not only factually wrong (James M. Rickards does NOT “promote” the IMF’s SDRs as stated in this article) – but your premise for disagreeing with Mr. Rickards’ repeated warning regarding the undermining of the USD by the IMF in favor of its SDRs is a warning of the dire financial and related consequences to especially the US and its citizens that will occur when the USD is no longer the world’s primary reserve currency!

        Secondly – Richards’ warnings have been in relation to the IMF’s recruitment to include Russia’s and China’s currencies in that “basket of currencies” – PLUS – warning about the sequence of events AFTER the inclusion of China’s Yuan into the ‘basket of currencies’ (sequence:

        1. (sorry about the out-of-sequence appearance of the last paragraph – it was meant to be appear higher in the post relative to the first paragraph [appropriately entitled “First”])

    1. Rickards is not promoting SDRs. Anyone who has read his books or listened to his interviews would know this. In fact, he has explicitly said SDRs will get pushed not because he thinks it is a good vehicle, but because it is what be believes the “global elites” want. Anyone who is familiar with the international monetary system would not balk at this BECAUSE SDRS WERE USED IN THE LATE 70s TO DO EXACTLY THAT. Also, he has further said that ultimately the SDR is just a way station – eventually it will only represent a patch fix for the global monetary system if it gets used at all. After that, the reintroduction of gold in some capacities is one possible outcome, among other possibilities. Again, to position Rickards as “promoting” SDRs, given the balance of his commentary on the gold space, is just hilariously misinformed.

    2. Rickards on videos I have seen has stated the SDR
      will not work But, these videos now delete him
      saying it Some editor has removed it from these
      videos. Have no idea why.
      Half cash money, half gold in safe best bet.
      Ellen Brown videos are best, she is the expert
      whom everyone one else emulates and copies
      including Mike Maloney, i believe and many
      others. See Web of Debt

      1. Ellen Brown is ok. She’s a lawyer by training. He understanding of accounting and markets is a bit light. I think it’s a gross generalization to say that everyone emulates here. I’ve been reading her work for well over 10 years. I think she misses the “bigger picture” that’s out there.

        I know from a very good source – someone who has been plugged in since the late 1970’s – that Rickards is a fronting people deep inside the Pentagon who know the dollar is toast.

  2. Jim Rickards does not understand what “rebalance the global economic order” means.

    Here is a video from the Former President Of The World Bank, James Wolfensohn who explains the big shift :

    https://www.youtube.com/watch?v=mOwZwkhFemQ

    full video : https://www.youtube.com/watch?v=6a0zhc1y_Ns

    As Jim Rogers said, 19th century was the century of UK, 20th the Usa and now 21th is China.
    United States will not have 1 billion people middle class.

    Peaceful transition ?

  3. Dave, great stuff as always. Rickards seems to be allowed to tell the truth about gold while preparing us for the sdr nonsense that comes with the collapse of the dollar. Do you think it’s at all possible that China and russia would want their currencies along with gold included in the sdr basket to the extent that they could dictate loan terms to us when we need a bailout? They would need somehiw need to control the imf but not sure that is possible right now. Anyway, I always wonder why guys like you and jim willie don’t post on xhina or kwn? Keep up the great work.

    1. Eric King apparently “extorts” payments from most of the parties he publishes. I’ve heard that from more than source.

  4. Rickards is no more “promoting” the IMF SDR solution than the article you link to is “promoting” the BRICS IMF. Rickards believes that, because the IMF has little leverage, the globalist banksters will shift their QE to infinity schemes to that balance sheet, because the next crisis will be too big for the Fed to handle. You can’t cite one instance where Rickards said that he supports the coming SDR ploy.

    1. Interesting you have that view – I got an email from a former high level Govt official who said my analysis was right on the money

      1. You distrust Rickards because he’s former gov, but trust someone else because they are?

        “Interesting you have that view – I got an email from a former high level Govt official who said my analysis was right on the money”

        1. If you knew who emailed me, you’d understand. There’s many many reasons I don’t trust Rickards, not the least of which is because he’s a trained lawyer.

    2. I agree with you! He is only using the SDR as an example because for what currently exists, it is the only central bank that doesn’t have its balance sheet leveraged to the hilt. Myself personally, I think China is going to take the upper hand in controlling the next reserve currency. I think the world is going to be shocked when it is finally revealed the extent of China’s gold reserves and the world will rush to a currency backed by a tangible asset…just my opinion!

      1. I agree that Rickards is not “promoting” or “pimping” the SDR. He is saying that the financial elites will want that, but they may not be able to achieve it, as it is just another currency backed by nothing. Also, it appears that China is rapidly accumulating gold to give it a good seat at the table when the financial system is re-worked – they probably won’t “control” the new system, but they will have a lot of influence. Finally, I take issue with the analysis that since the dollar makes up a large portion of SDR reserves, that this is some backdoor way for the US to retain dollar hegemony. A dollar collapse would precede any move to the SDR – so what does that do to confidence in the SDR? All fiat currencies are ultimately underpinned by confidence – so this is just another reason why a straight SDR probably won’t work (as Rickards alludes to), and that a system backed by something tangible (gold) is rather more likely. Thus his recommendation to have 10-20% of investable assets in gold, with some cash to give you flexibility and optionality, since nobody has a crystal ball.

        1. If the U.S. doesn’t have any gold, why would China need gold “to have a seat?” Friggin Rickards admitted in an interview once that he didnt’ know that the Fed’s gold had not been formally audited since Eisenhower was President. I don’t believe he didn’t know that, but that’s what he claimed.

          Look, if you want to exist in denial that the U.S. dollar will collapse and the U.S. system along with it, that’s fine. Write a blog post and let us all see your thinking.

          You need to get your facts straight first though, because U.S. does control the IMF just like it controls NATO. The BRICS are setting up their own IMF and every single BRIC country is accumulating huge quantities of gold. The IMF doesn’t have any gold other than the empty pledges of gold from member countries who “pledged” gold in exchange for their interest in SDRS

          Why do you think India bought back its 200 tonnes of gold from the IMF when the IMF announced it was selling 400 tonnes of its gold several years ago? OR didn’t you know about that? And China AND India both wrote letter to the IMF expressing interest in buying ALL of the IMF’s gold. The IMF didn’t offer any more than the 400 tonnes because it doesn’t have the gold to offer.

          1. I think we actually agree on a lot of points. First, I agree that the US has veto power within the IMF and therefore effective “control”.

            Second, I’m not sure if the US “has” its gold, or has leased it out. I would guess it has probably leased it to allow the price suppression in the paper market. Maybe THAT is why the US doesn’t want an audit. FWIW, Rickards recently stated that he believes the US has physical possession of its 8,000 tons. Frankly though, I can’t get a handle on the “who has their gold and who doesn’t” question – a lot of that is just speculation because, as you say, there is a dearth of solid information such as audits.

            Third, I fully expect a collapse of the US dollar. I just don’t see how the US would view the SDR as a way to salvage the dollar – a collapse is just that – and after that, the major economic powers would get together and rewrite the rules of the game to allow for international trade to regain solid footing. And the US won’t like it. Those with major gold holdings will get that “good seat” I’m referring to, and dollar hegemony is gone. I agree with and can see your other points such as the BRICs setting up non-dollar payment systems and accumulating gold all help bring about the demise of the dollar.

    3. I have heard him say in interviews re: SDRs what you state, but I’ve also heard him describe how Russia and China would welcome the IMF stepping in. That didn’t make sense to me unless the IMF yields majority control to those countries, which seems like a logical retreat for the Anglo American powers. That said, I don’t see them playing on as minority shareholders, which is why the BRICs development bank goes forward and the West continues to try and stir up wars, destabilize countries of strategic importance to Russia/China, etc. The writing is on the wall – a big war is coming unless something within the Western steps up to stop this mess.

  5. Hi Dave
    Being down here in Australia the land that people think they are the word,I have always gone out of my way to read or watch anything involving Jim,always finding him insightful.After reading your article & thinking about it ,I can CLEARLY see where your coming from!
    Cheer`s
    John

    1. ‘the land that people think they are the word” – what does this mean? Also, “where your coming from” should be where you are coming from, if you wish to contract the word it is ‘you’re’. Why not re-post and tell us what you mean.

      1. Well put, Roger…well put, indeed; not to mention Aussie-John’s use of the possessive “Cheer’s”. It also would appear that Australian keyboard designers have yet to master the period, semi-colon & space keys; either that, or grammar & punctuation have been eliminated from the Australian school system due to either a lack of funding or linguistic irrelevance.

  6. Don’t think it as simple as that.

    “For the United States, Eurasian geostrategy involves ….the three grand imperatives of imperial geostrategy are to prevent collusion and maintain security dependence among the vassals, to keep tributaries pliant and protected, and to keep the barbarians from coming together.”
    —Zbigniew Brzezinski, The Grand Chessboard

    Big picture the world is transitioning from oil to gas over the next ten years. Europe can be served with gas from the Russian pipelines from Qatar, Turkmenistan, Iran etc. or it can be served by new non-Russian pipelines under the Med from Syria linking into Qatar, Iraq and Iran to Italy, hence the wars. Or gas can be piped from Iran, Qatar, Kazakhstan and Turkmenistan under the Black Sea into European system through Ukraine, hence the wars. Alternatively gas can come from West Africa, (Nigeria or Mali) through the Sahara and Libya under the Med into France, hence the wars. Notice how modern wars are only fought on gas pipeline routes.

    Whenever one war instigated to free up a platform for the gas fails to destroy the country enough to provide a regime that can deliver a stable gas pipeline the West gins another location for a war until in one these locations they will win. Boko Haram with middle aged African women (supposedly young girls) holding up posters for Boko Haram in English could be straight out of wag the dog. In fact all the demos and elections in these war zones look like wag the dog to me.

    SDR’s are issued by the IMF and require that the rest of world allow the US to retain their veto on the IMF. This was all argued about seven or eight years ago and nobody could agree to that. Not only that the IMF system retains the whole BIS payments agreements which include fantasy balance sheets, non-existent gold depositories, blah, blah. In Iran’s case the country was taken off Swift by a cabal of completely invisible bankers who were never identified and without any accountability to anybody. The US tries to claim credit for this but they did not do it.

    Likewise the propaganda that “we should not have used the Swift weapon against Iran” is just that propaganda as the US did not make that decision and the way BIS system is set up the US is probably the most vulnerable country. It is this aspect that Russia and China find unacceptable. Neither country is prepared to put its economy in the hands of an invisible cabal of bankers with their foreign reserves held by their debtors and subject to instant seizure any more.

    None of the existing structures are fit for purpose and it is this that makes the SDR’s completely inappropriate, whatever else happens the new world order will be created out of a whole cloth if Russia and China are not completely subjugated in the meantime.

    1. A recent example of the gas war is here. Also I don’t believe the argument that the gas war is really about the dollar because if NATO got an alternative source of gas from say West Africa, Qatar or Turkmenistan then the security dependence of the EU and particularly Germany would still lie with the US. The
      unified single trading block would have held together and they could do a walk round on the dollar and the euro for at least 50% of the world economy.

      As Winston Smith said ‘we have always been at war with Eurasia’. This is as true today as it was then and the only question is who is the ‘we’.

      Despite all attempts to blackmail Gazprom into submission, the European Commission can’t block the construction of the South Stream pipeline. The stakeholders of the pipeline, national governments and energy companies will do their best to thwart any attempt of stopping the project for the sake of American interests in Europe.

      The unelected members of the European Commission know that their mandates are expiring. They are trying to ensure that they will be hired by American academia or pro-American think-tanks in Europe, because such institutions offer generous remuneration and zero responsibility, making them ideal employers for the former bureaucrats. The key to a stellar career in pro-American institutions is hating Russia, and some European bureaucrats are happy to oblige defying the rules of logic, common sense and basic diplomacy

      Read more: http://voiceofrussia.com/2014_06_07/European-Commission-cant-stop-South-Stream-3715/

  7. I always had an uneasy feeling listening to Rickards. He seems to come across “on our side” but he always has a few statements that leave you wondering, and given his background I’m a bit leery of what he says. One statement that raised my suspicions that he either isn’t fully understanding how money works, or that he isn’t being totally open, was a few years ago on KWN when he said that one strategy the Fed might use to help fight deflation would be to play up the obvious inflation from money printing which would scare people into buying stuff to get rid of their dollars, which would increase money velocity and fight falling prices. Yeah I sure bet it would! Sorry, I don’t want to misquote him and I can’t exactly remember his rationale, but he was basically arguing that hyperinflation would be a tool that the Fed would use to save the system?!?

    I get this feeling with a lot of the guests on KWN, some are great and seem to be openly honest, but others seem to be pushing an agenda and aren’t willing to accept basic facts and numbers (US oil reserves running out being the main one, and that we are basically heading for a Malthusian population crash when it runs out). I have this complaint with all economists actually, be they mainstream Keynesians or the contrarian ones you get on Zerohedge and similar blogs — they are all trained in finance, not the natural sciences or engineering, and they therefore just don’t understand how the real world works underlying all their made-up economic gobbledygook.

    Again, I don’t want to attack the guy, since it’s always good to hear a range of opinions, but it’s become clear to me that you need to take what anyone says with a grain of salt. I can’t say that there is any blogger or commentator out there that I fully put my support behind. But take a bunch of them collectively, pull out the various good bits that each one says, and you can get a good picture of what’s going on and how the world works. Everyone comes from a different background and has a different perspective on how things work. Unfortunately that “world view” gets entrenched fairly early on in life / career and few people are able to change that later on to incorporate input from other wildly different fields of study. For example, virtually no economist really understands how ecology and energy interact with the economy and money, and on the flip side almost no ecologist understand how the financial system works, so you have to take what the “experts” say from all these different fields and bring them together.

    Sorry, rambling a bit…

    1. I can’t read or listen to Rickards anymore because every time I do, I have to go out and get a strong de-greaser and take a very hot shower to get all the oil off my body.

  8. Dave,
    China’s central bankers are also doing presentations in public that China prefers the SDR first over to fully opening their currency. Jim Rickards posted a presentation from a member of the PBOC on his Twitter feed a few months ago. China does not want WRC immediately. I think China prefers the SDR as a transition. in the new, SDR, US Dollar would only carry 30% reserves compare to 60% of global reserves now.

    1. China doesn’t want convertibility into dollars because it gives the U.S. the power to attack to the yuan like the U.S. goes after every other currency out there when it wants to assert hegemony. But notice how China is working is working on full convertibility deals with Russia, other Asian countries and, believe it or not, Australia (you can google to find the news report).

      I believe China is working to make the dollar irrelevant. RE: any speeches coming from China supporting the SDR: “keep your friends close, and your enemies closer.” It’s probably just lip-service, if anything at all.

  9. I think your framing of the SDR could be a little misleading.

    Countries are controlled by their central banks because the central banks control the money supply. All of the major central banks belong to the Bank of International Settlements. They are working not against each other but in cooperation in a grand Hegelian dialectic.

    There is no reason the BRICS bank and the western-led IMF cannot run parallel for awhile until a crisis forces a consolidation up the pyramid at which point the western sovereign debt will be restructured through the IMF’s SDRM. Though perhaps this restructuring comes sooner rather than later. Each country will retain it’s own commodity-backed currency but those commodities will be priced in SDR. The recent moves by Russia and China is evidence of this scripted process moving forward.

    This is the argument being made over at philosophyofmetrics.com, and it makes a lot of sense to me though I have my doubts that they can pull it off. I think what Rickards is saying is more or less in line with this argument.

  10. Who knows who are what is being done behind the scenes. I can tell you that if China or Russia backs their currency with gold and becomes the reserve currency, it won’t last long. Those guys especially the Chinese are bigger cheaters and liars than the Federal Reserve. And that is saying something.

    As long as governments around the world continue to pursue an infinite growth economic model then there is no currency even that is backed by gold can absorb the levels of debt needed.

    One last thing about China. They have massive resource problems and pollution is a major cause. They have flooded their markets with cheap dough and have looked the other way when it comes to shadow banking. They build ghost cities and are expanding at enormous levels to keep their 1 billion citizens from rioting in the streets if their economy crashed. I would not trust any Country with a reserve currency who can’t find at low estimates 80,000 tonnes of aluminum and 20,000 tonnes of copper because it’s all been hypothicated and rehtpothicated.

    The bottom line is the entire global financial system is a giant mess and all I see is more of the same. A bad movie with different actors.

  11. I think we can all agree that the Dollar’s days as the reserve currency are probably numbered. Rickards states that western nations will promote the SDR as the new reserve currency. China, Russia, and the rest of the BRICS will probably fight the SDR and promote a more balanced sharing of power. So what currencies are in contention for reserve status? We know about the SDR and the Yuan. We might also get regional currencies like the Amero, or a BRICS version of a regional currency. The million dollar question has to be whether or not one of these currencies will be backed by hard assets such as gold, silver, oil, etc. Rickards has stated that events are unfolding much quicker then he anticipated. Translation, things are moving fast now and its hard for the TPTB to control and influence the monetary outcome. As an American, I don’t think I’ve ever felt so much uncertainty about the future. That uncertainty, which I think is shared across the population creates its own economic headwinds.

    1. It’s not clear who’s doing the rehypothecating. It could be the western banks who are providing some of the financing in those deals. I trust JPM and Goldman a LOT LESS than anyone in the world besides the U.S. Govt

  12. My concern on Mr. R. is that his history has him in position to be highly aware that the bad boys are organized into “named groups,” and he has nothing to say about this. Controlled opposition? Jeff Nielson of Bullion Bulls Canada has also expressed these concerns.

  13. I find it useful to hear any well-informed person, and always look for agendas anyway. I don’t advise simply trusting anyone with access to large numbers of listeners. Rickards tells a lot of useful truths, and then shows his hand quite blatanly when he pimps the SDRs, against what seems like common sense. That is useful to me, because now I know what the initial plan of the elites is when it comes to replacing the dollar. You surely didn’t expect that they’d dump the idea of fiat currency entirely, did you? But they are mistaken if they think they can simply declare the SDR to be the new reserve, and have it accepted.

  14. Dave, I have followed you for quite some time and you seem to be a fresh of breath air. Very interesting to hear your inside opinion of Rickards. Aside from his opinions, his ubiquitousness is getting tiresome—the constant tweeting, blah blah….it’s like he has a need to tell the world when he has to go take a leak.

    Anyway, back to the issues surrounding gold, for the common man such as myself whom chooses to be a believer in the merits of owning gold, keep up the fight and I look forward to reading more of your opinions. It really is getting more and more difficult to stay the course and not throw in the towel after all of the hits over the past 3 years. But I try to just sit back and look at what is going on in the monetary system and it simply defies common sense that money printing and balance sheet expansion will lead to anything less than disaster. So I sit, and wait, and wait some more. Your opinions help to stay the course.

  15. I’ve heard Rickards say that the SDR will be re-defined with a basket of currency (including gold) and commodities. He also said that IF the west chooses this route it will be wildly inflationary and will not solve anything.

    In his books he states that the most probable outcome will be chaos and death of the USD.

    Rickards might be closely aligned with the establishment, but I would suggest the author of this piece has a poor grasp of Rickards’ work.

    One of the rules by which the elite aristiocrats abide is they consider it rude to not warn us before they do something bad to us. They’re like criminals with manners. In other words, it’s gauche to flush the toilet while the serfs are in the shower without a heads up.

    keep stacking…

    1. I would suggest that my sources and my instinct on who and what Rickards is all about are a lot more reliable than reading Rickards’ self-promotional books.

      1. His intentions are anybody’s guess.

        My point is, he is on the record stating how things could turn out. And it’s quite different from what you are reporting.

        Stating that he is “pimping” the SDR is in my view inexact.

        The BRICS are openly supporting the implementation of the SDR to replace the dollar, while developing what will come after the SDR’s inevitable failure. It’s quite clear that the dollar will lose a lot of weight (and the veto vote) and the Yuan will be included before they roll it out.

        The SDR will be used as a transitional tool, just as Bretton Woods was a basket of currency before the Pound and Gold got dropped.

        Either way, the US is toast for a few generations, and Rickards is clear about that too.

        BTW, I’m for a gold standard. But they run the show, not me or you…

  16. Thanks for this article, well written.
    I don’t trust Jim Rickards either. He clearly covers the crimes of 9/11 insider trading up, is heavily pro Israel and always says a cyber attack may come from Syria or Iran. He is an establishment shill through and through.

  17. The US is holding on to dollar hegemony as long as possible, which is evident in the deadlock of the change in voting shares by IMF participants. The US share is slated to decrease from 16.7% to 16.5%, but requires 85% of IMF member countries to agree. Since the US has the power to veto this change, they are currently stalemating the reform. The EU has already voted to decrease their voting share from 30.2% to 28.5%. The BRICS nations are the ones who benefit from this vote, increasing their share from 11% to 14.1%.

    http://americanprogress.org/issues/security/news/2014/04/10/87671/why-imf-reforms-matter-for-american-leadership-on-the-global-stage/

    Rickards (“Death of Money”) talks about how the role of IMF has changed since GWB. Whether you believe him to be a gov’t patsy or elitist sympathizer you can fact check him and it pans out. Not everyone who is involved in the world of finance is a crook. My view of Rickards is that he’s not a crook but a mouthpiece to forewarn of potential changes in the $IMFS. He’s been quite vocal of his disdain for Fed policy, which if he were a patsy, I would think his rhetoric would toe the line.

    The SDR could become a settlement currency between countries for trade, perhaps reweighted and to include a percentage of gold if the BRICS were to get their way. I can definitely see China and Russia supporting an SDR to prepare for a further shift away from the US dollar. No one’s going to substantially rock the boat because BRICS depend on consumption from foreign entities. China would be economically harmed if the US wasn’t purchasing vast quantities of products from them. Where else is the demand for Chinese products going to come from?

    For better or worse the US and China are married to one another, they just sleep in separate beds, and avoid being in the same room.

    1. Dave has mapped the coordinates of one of the US/IMF spheres major blunders: “unwillingness of Russia/China to cooperate with the U.S. on the matter of the U.S. dollar is the reason recent military aggression by the U.S. toward Russia and China…”
      The western bankers SDR is another red herring- resurrected to pacify the boiling ocean of bad debts, paper over illiquidity, and sanitize long-concealed dead zones of toxic junk and bad-ass-ets- this fish can’t swim or wriggle off it’s metastasized impairments. Nonperforming, mutated, inedible.
      Now the easterners are taking the high ground where livelihoods were traditionally sustained by fair trade and verifiable transactions and accounting.
      Why would they abandon their hard asset lifeboats and sailing partners now? The BRICS and it’s 80+ partners are 90% of global population with the whale’s share of global output and exchange.

  18. I asked Rickards:
    @JamesGRickards The question is why would #CHINA want to be a part of the US controlled #IMF game? #MakesNoSense
    His reply:
    @JamesGRickards: What if it was not U.S. controlled? That’s what #IMF “quota reform” is all about. It’s the new “Great Game.”

    1. WTF? The U.S. controls the IMF. Everybody and their dead mother knows that. Even Hellen Keller from her grave knows that. Just more bullshit served up by Rickards that people will eat greedily eat – people who want to believe that it’s not possible for the U.S. to become a 3rd world country.

      1. It seems Rickards does have a point though:

        http://www.imf.org/external/np/exr/facts/quotas.htm

        See the mention of China, India et al near the end. It would also be interesting if gold might be part of such a basket, as a recent KWN piece hinted at:

        http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/6/6_Former_Greek_PM_Admits_To_Talks_On_New_Reserve_Currency.html

        Either way, in my view some sort of default in the physical au market will put an abrupt end to the present charade in the PM world. The physical markets seem tight and might be best represented by palladium trading near the old highs… Time will tell, so let’s patiently see how things will pan out.

        And as always, keep up the great work Dave, it’s much appreciated.
        x

  19. There are two things that indicate to me that Richards still serves his Western masters. First off, he is the only person writing / talking about gold that claims the US to still have 8K tons of the stuff. Maintaining this illusion is critical to US national security interests…so… the fact that Richards is willing to sacrifice his credibility to such an extent reveals his true loyalties. Secondly, Richards talks of this upcoming currency crises as though it is many many years away. This, again serves his Western masters, who don’t want the public to understand how fast this crises is approaching, and how their desperate military adventures, flailing wildly at this point, might be connected to that.

  20. http://www.politico.com/news/stories/0309/20723.html

    ” “What’s scary about Rickards’ scenario is how close to reality it seems. Just last week, Zhou Xiaochuan, the governor of the People’s Bank of China, called for the introduction of a new currency to replace the U.S. dollar as the basic building block of the global economy.

    The new system, Zhou proposed, would be operated by the International Monetary Fund and would protect global investors from American economic mistakes, which he diplomatically referred to as “inherent vulnerabilities and systemic risks in the existing international monetary system.” Driving home his point, Zhou said he envisioned a system “disconnected from economic conditions and sovereign interests of any single country.””

  21. I think over expenditures (you name it healthcare system, govt pensions, etc, etc) are going to lead to a big crash in our economic system. Currently trying to find some good people to read and learn from to reduce risk of our investments.

    Jim Rickards is one voice to listen to but what other authors are out there that I should read and hear out?

    Thank you for this blog I appreciate it
    AS

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