{"id":793,"date":"2011-03-17T21:31:36","date_gmt":"2011-03-17T21:31:36","guid":{"rendered":"http:\/\/www.itmtrading.com\/blog\/?p=793"},"modified":"2011-03-17T21:31:36","modified_gmt":"2011-03-17T21:31:36","slug":"timothy-geithner-welcomes-a-new-world-reserve-currency","status":"publish","type":"post","link":"https:\/\/www.itmtrading.com\/blog\/timothy-geithner-welcomes-a-new-world-reserve-currency\/","title":{"rendered":"Timothy Geithner Welcomes a New World Reserve Currency"},"content":{"rendered":"

Two years ago this month there was a lot of talk coming from China and Russia urging for a new world reserve currency in the face of a weakening dollar.\u00c2\u00a0 In fact the Chinese were calling for the IMF to create a \u00e2\u20ac\u0153super-sovereign reserve currency\u00e2\u20ac\u009d which would turn the IMF<\/a> in to a world central bank.<\/p>\n

It just so happens that the IMF has already had a currency of its own called the SDR<\/a> since 1969.\u00c2\u00a0 However at the time that China was calling for a new reserve currency the SDR was not a convertible currency.\u00c2\u00a0 It was only used to boost the reserves of a particular country, giving that country a stronger balance sheet which allowed that country to borrow more.<\/p>\n

That all changed in September of 2009 when the IMF made the SDR fully convertible.\u00c2\u00a0 The IMF also doubled the amount of SDRs in circulation.\u00c2\u00a0 Last month the IMF announced that it had a plan to use the SDR as the world\u00e2\u20ac\u2122s reserve currency and is suggesting that they print trillions of dollars worth within the next few years.<\/p>\n

What is amazing is that back in March of 2009 when all of the talk coming from China first emerged Timothy Geithner had this to say: Washington is “quite open” to Chinese proposals for the gradual development of a global reserve currency run by the International Monetary Fund.\u00c2\u00a0 He later had to explain himself further as the dollar started to drop in value.\u00c2\u00a0 But I think that this statement highlights the fact that the plan all along has been to use the SDR as the new reserve currency, which is being emphasized by the IMF\u00e2\u20ac\u2122s recent plan.<\/p>\n

What we as Americans need to prepare for is the possibility of a new world reserve currency.\u00c2\u00a0 If we lose this status, US Dollar demand will drop dramatically and will cause a massive loss in value for the Dollar.\u00c2\u00a0 This will cut the value of anything that is Dollar denominated.\u00c2\u00a0 There are many ways to protect yourself, but at ITM Trading we believe that gold is the best way to do it as it is the only true form of real money.\u00c2\u00a0 Gold is a currency in its own right.\u00c2\u00a0 It is the perfect hedge against inflation, hyperinflation or currency collapse<\/a>.<\/p>\n

The handwriting is on the wall in regards to where the dollar is headed.\u00c2\u00a0 We can\u00e2\u20ac\u2122t keep printing money to bail ourselves out; the world just won\u00e2\u20ac\u2122t allow it for too much longer.<\/p>\n","protected":false},"excerpt":{"rendered":"

Two years ago this month there was a lot of talk coming from China and Russia urging for a new world […]<\/p>\n","protected":false},"author":6,"featured_media":794,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1207],"tags":[],"class_list":["post-793","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts\/793","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/comments?post=793"}],"version-history":[{"count":0,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts\/793\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/media\/794"}],"wp:attachment":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/media?parent=793"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/categories?post=793"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/tags?post=793"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}