Central Banks Game Plan: One World Currency

Only those in total denial would claim that the world economies could grow their way out of the debt bubble. Mathematically, the rules of compound interest always destroy the purchasing value of fiat currencies. The era of zero interest rates will end. When the cost to finance debts reverts to normal levels, the bleeding will become a gusher. The world reserve currency status of Federal Reserve Notes will come under enormous pressure. As the central banks consolidate their control over international commerce and the economies of individual countries, the coin of the new realm will shift to a replacement for the U.S. Dollar.

There is no current replacement for the Dollar among existing world currencies. In order to substitute the role that the Dollar plays in trade a new measure of transactions would need to become acceptable to settle trade transactions. A mere substitution with some form of a basket of currencies or the inclusion of gold, does not resolve the enormous overhang of debt obligations needed to redeem all the Dollars that float around the world.

The de facto use of Dollars within foreign borders to conduct business supersedes the local legal tender laws that many countries model after those imposed domestically on American citizens.

All this would change when the reserve status of the Dollar evaporates. The IMF created back in 1969 the SDR.

"The SDR is neither a currency, nor a claim on the IMF. Rather, it is a potential claim on the freely usable currencies of IMF members. Holders of SDRs can obtain these currencies in exchange for their SDRs in two ways: first, through the arrangement of voluntary exchanges between members; and second, by the IMF designating members with strong external positions to purchase SDRs from members with weak external positions.
In addition to its role as a supplementary reserve asset, the SDR serves as the unit of account of the IMF and some other international organizations."

As fiscal and political observers understand, the International Monetary Fund is a tool of central bankers, used to cast their will over sovereign nations. Monetary bondage is the core business of finance. In order to delay the ultimate day of reckoning, a shift in appearance will be offered as an alternative to the loss in Dollar confidence.

In an IMF paper, Enhancing International Monetary Stability—A Role for the SDR? - The concept of a modified idea of a previous proposal resurrects.

Alternatives: To mitigate exchange rate risks, the account could be structured to exchange SDR-denominated claims for foreign currencies with the same composition and proportions as the SDR basket, and retain a similarly-structured portfolio. However, this would essentially eliminate the currency diversification benefits to members, while not necessarily providing obvious benefits in terms of global diversification of reserve assets (unless the account were to invest in official SDRs—or SDR-denominated securities issued by others than the traditional reserve issuers; this however would expose the account to credit and liquidity risk that would need to be covered by members).

Another alternative would involve having a willing subset of the Fund’s membership pool (part of) their official reserves into a Trust managed independently (within or outside the Fund), and agreeing among themselves on risk-sharing rules. This could achieve both reserve diversification and supply of a new kind of SDR-denominated security (issued by the Trust), and would therefore seem the most promising route if members with large enough reserves were interested in pursuing it.

IV. MITIGATING EXCHANGE RATE VOLATILITY

How? Use of the SDR as a unit of account could mitigate the impact of exchange rate volatility through: i) use of SDR to price international trade, report data on international transactions, and as an exchange rate peg; and ii) denomination of assets in SDR. The latter would require the development of a private market for SDR-denominated assets with impetus from the official sector and support to build the market infrastructure. The rest of this section discusses these issues.

SDR valuation is clearly key to determine the optimality for any country or economic agent of the SDR basket as a hedge against exchange rate volatility. It is discussed in the next section. In all cases, an important distinction is between the denomination of certain transactions or securities and their settlement. Use of the SDR for denomination (what is at issue here) leaves full discretion to the parties to choose any currency for the actual settlement of their trade.

The stage-managed inventiveness of central banksters exceeded only by their lust to disseminate global indebtedness knows no bounds. Floating currency exchange rates, imposed on the world, causes the chaos and insider opportunities for reprehensible rigged gains.

The article, Pipe Dream of Economic Globalism, makes the following point.

"Establishing a single world currency doesn’t protect anyone; except, those who control the process of selective distribution. Equality in economic opportunity can never be achieved through the favoritism of Free Trade. The only thing FREE in the consolidating global economic system is the ride that the barons of manipulation enjoy. While they preach the virtues of wealth creation, they advance their own dominance over any remaining or persistent competitors."

Some countries may resist the substitution of their own coinage for a new currency, but most governments are so indebted to the financial cabal, that the appearance or color of the paper that circulates as tender is not the real issue. The debt created monetary banking system has established their worldwide reach across the globe. The notion of China being outside the club of financier globalists and might challenge the push for a single money system, disregards reality.

The Single Global Currency Association has several reports that examine this issue in more depth. When the great world financial collapse intentionally triggered happens, the central bankers will unveil their end game currency swap. Understand they will never forgive existing obligations or absolve the debt burden that they decadently extracted from humanity. The enemy of mankind is not Adam Smith capitalism, but the Rothschild banking system.

Source: http://www.batr.org/negotium/102412.html