Zero Hedge, Jim Rickards: Since Federal Reserve resources were barely able to prevent complete collapse in 2008, it should be expected that an even larger collapse will overwhelm the Fed’s balance sheet.
That’s exactly the situation we’re facing right now.
The specter of a global debt crisis suggests the urgency for new liquidity sources, bigger than those that central banks can provide. The logic leads quickly to one currency for the planet. Read More ...
Opinion: My how fast things can change. The recent plunge of the global stock and bond markets has created a dollar shortage.
As the World Reserve Currency, nations have a desperate need for dollars as a safe haven, to conduct trade, and purchase commodities. And just like consumers started to hoard toilet paper due to the coronavirus, some nations began to hoard more dollars than they immediately needed, nearly creating a liquidity crisis.
A new world currency will necessarily need a new specialized group of financial people to run it and Jim Rickards already has a suggestion:
The task of re-liquefying the world will fall to the IMF because the IMF will have the only clean balance sheet left among official institutions. The IMF will rise to the occasion with a towering issuance of special drawing rights (SDRs), and this monetary operation will effectively end the dollar’s role as the leading reserve currency.
The Federal Reserve has a printing press, they can print dollars. The IMF also has a printing press and can print SDRs. It’s just world money that could be handed out.
We wrote about SDRs in the first printing of “Antichrist the Search for Amalek” (here). Issued by the IMF (Int’l Monetary Fund, a group of 196 nations), the SDR is a basket of 5 currencies made up of the dollar, euro, renminbi, sterling, and yen.
The SDR is a dollar alternative (the IMF’s global reserve asset) that may be demanded by the international community should the US dollar plunge under a mountain of debt.
The prophecies of Revelation 6:5-6; 13:16-17 are waiting to be fulfilled.