Thursday, February 25, 2021

Jim Rickards on The Great Reset

Jim Rickards has a new article out talking about The Great Reset. This is the type of monetary system change this blog watches for. Right now Jim is saying some of the initial steps for the SDR to eventually replace the US dollar are in progress. Below are a couple of excerpts and then an added comment.


"For years, commentators (myself included) have discussed the next global monetary realignment, which is sometimes called The Big Reset or The Great Reset.

Now, it looks like the long-expected Great Reset is finally here.

Details vary depending on the source, but the basic idea is that the current global monetary system centered around the dollar is inherently unstable and needs to be reformed."

. . . . .

"On January 7, 2011, the IMF issued a master plan for replacing the dollar with SDRs."

. . . . .

"In July 2016, the IMF issued a paper calling for the creation of a private SDR bond market. These bonds are called “M-SDRs” (for market SDRs), in contrast to “O-SDRs” (for official SDRs).

In August 2016, the World Bank announced that it would issue SDR-denominated bonds to private purchasers. Industrial and Commercial Bank of China (ICBC), the largest bank in China, will be the lead underwriter on the deal.

In September 2016, the IMF included the Chinese yuan in the SDR basket, giving China a seat at the monetary table.

So, the framework has been created to expand the SDR’s scope."

. . . . .

"Now all of the pieces of the global elite plan are converging.

The IMF SDR issuance will reliquify global central banks that cannot print dollars. Then CBDCs (Central Bank Digital Currencies) will be used to eliminate cash."

Please click here to read the full article


My added comment: Jim has talked about this for a long time and lately there has been some renewed interest in issuing a new allocation of SDR's at the IMF. The Biden Administration looks to be more inclined to support this than the previous Administrations have been in recent years. For now, this is still just in the discussion phase, but it certainly bears monitoring.

Jim does point out in this article that all this may unfold over a period of several years, so it is something to watch over time to see if it leads to the kind of major monetary system change we watch for here. Any change where the US dollar is replaced as the global reserve currency would qualify as major systemic change in our view here that would impact all of us directly in our daily lives. 

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