This is an article that does have some relevance to what we follow here which is the potential for major monetary system change. This Wall Street Journal article says that China will at least consider issuing some of its bonds in SDR's. We have noted here that this is a key step to the SDR gaining broader adoption as a true global currency. Below is the key quote from this article. Here is the official statement on the PBOC web site (use Google translate to read in english). The statement confirms what we have published here about the potential for the SDR in the future, but also confirms that the process make happen very slowly.
-------------------------------------------------------------------------------------------------"Mr. Zhou (PBOC) said China will use both the U.S. dollar and the special drawing rights when reporting the country’s reserves of foreign currencies in the near future, according to transcripts of his remarks posted on the central bank’s website Friday.
The government will also consider issuing bonds denominated in SDR in China, he said at a briefing after meeting with officials of the Group of 20 major economies in Paris on Thursday.
The central bank chief said last month that as the host of this year’s G-20, China will push for a gradual increase in world-wide use of the IMF’s SDR as a way to improve management of financial risks."
Added comments: In line with what we have said here, please note that China will consider issuing SDR bonds (which means they have not decided to do so yet) and that China will "push for a gradual increase in world-wide use of the IMF's SDR."
China tends to move very slowly so a gradual increase implies a lengthy period of time. Again, we have more evidence that there is not a grand plan to suddenly convert the world to a new global reserve currency unless a new major crisis were to unfold forcing action more quickly. Keep in mind that the IMF will not even actually add the Yuan to the SDR basket until this October.
In other news, here are article links readers may find of interest:
Recent interview with Jim Rickards and Paul Buitink
Recent interview with Jim Rickards and Dan Popescu
In the second interview linked above, Jim says the same thing I have concluded here on this blog. He says that any plan to try and change the global monetary system is likely to unfold gradually over time without a major crisis to motivate change more quickly. He then adds that he is watching to see if the change will come at that pace or if the current system will collapse before major change can take place. This is exactly what I concluded here after two years of in depth study on this topic. It's the reason why I say that really the only thing left to watch for here is whether we do get another major crisis any time soon or not. Otherwise, I do not expect to see any major monetary system change happen quickly.
Added note: Whenever the subject of a crisis comes up, you always have some who wonder if the crisis is real or contrived in order to get the public to accept conditions they would not normally agree to. This article on Zero hedge claims that Wikileaks released a transcript of a discussion by IMF employees to essentially create a crisis in Europe this summer. I don't know if there is validity to this report or not (Christine Lagarde denies it here), but it does illustrate what we have said here many times. It usually takes a crisis for any kind of significant change to take place. Without one, things tend to stay in mostly status quo.
Additional added note: A thank you to a reader for forwarding these two article links:
Plan B for the Global Economy
http://www.brettonwoods.org/sites/default/files/publications/Paul%20Volcker%20final%20Remarks%20June%2017.pdf
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