A Major Step Towards Monetary System Change Coming in 2015?

This blog is devoted to covering any and all events that may lead to major global monetary system change. Whether the events are sudden and unexpected (like the global financial crisis of 2008) or slow and steady (like the gradual move towards other global reserve currencies and the SDR at the IMF). This USA Today article is about one of the slow and steady changes. 

At this point there is really not much need to try and convince readers here that change is coming. It is so clear now that no one really questions it. The only question left is over what time frame and under what circumstances the changes take place. And also what the actual final changes are of course. 

Our premise here is that the "reset" to come will involve the loss of sole reserve currency for the US dollar. This USA Today article just confirms that the process is in motion and ready to take another step forward next year. Below are quotes from the article. Everything in this article is what we have  been covering here all year and is exactly what Jim Rickards has been predicting as well (which is why we follow him here). It looks like a lot of things may come to a head sometime in 2015.

--------------------------------------------------------------------------------------------------------------------

"Protests over democracy in Hong Kong may be preoccupying the Chinese leadership, but a subject of still greater international importance is being played out this week behind closed doors in Washington. China is bidding to enter the heart of global finance by establishing its currency, the renminbi, as part of an ubiquitous monetary unit used in official transactions around the world."

"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."

"The decision on a new SDR structure, to be made in the next 15 months, will influence how China and its currency can play a bigger part in driving world trade, investment and capital flows. The renminbi could eventually challenge the dollar and its pivotal position in world money — which is why the U.S. government and Federal Reserve are examining this with intense interest."

"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."

"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."

Update: Bloomberg says China is taking steps to make the Yuan more acceptable as reserve currency, probably to get ready for the IMF review noted above.