Special Drawing Rights

I define SDR's as, The measure of a society's conditioning to blindly endorse the private credit of the local central bank. During the Days of Awe (Jewish) China hopped on board. When China was pledged to BRICS I offered them my $20M lien for only $50M.

Footnote 2 seems more interesting than Footnote 1 this morning. But that is because I awaken in a forgiving mood, typically. I notice on that IMF link above:

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The IMF also adopted a new formula for determining currency weights in the SDR basket to address long-recognized issues with the formula that had been in place since 1978...

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Stuck in traditional cause and effect by the ego always gives me the feeling that this is yet another absurd gyration I have concocted in reaction to the initial absurdity of the Bretton Woods Amendments, allowing for human flesh and bone to be traded upon as chattel. Back to my definition at the top...

The adopted formula for the IMF offers equal shares to all five currency issuers. That means for these contributions each issuer now "owns" 20%:

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The weights of the five currencies in the new SDR basket based on the new formula are listed below:

U.S. dollar 41.73 percent (compared with 41.9 percent at the 2010 Review)
Euro 30.93 percent (compared with 37.4 percent at the 2010 Review)
Chinese renminbi 10.92 percent
Japanese yen 8.33 percent (compared with 9.4 percent at the 2010 Review)
Pound sterling 8.09 percent (compared with 11.3 percent at the 2010 Review)

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This goes back to why I have issued China the initial NOTICE about the collapsed judicial bonding here in America:

Rectification of Judiciary:
Return of Service.

My gut tells me that Securitization is coming to a close and the absurdity that debt has value and substance is coming to an end. Meanwhile a very socialist system of dividing the "wealth" is riding on an unbound collections procedure of over 41% interested party - America.

To me, this indicates that China is in agreement that a riotous judiciary is better collections protocol than a constitutionally bound judiciary. This invites riot.

I guess that my best strategy is to promote you start now:

Give it a listen, crack national code.

The International Use of Currencies: The U.S. Dollar and the Euro by George S. Tavlas June 1998, Volume 35, Number 2

There is, however, one fundamental difference between the use of money in a single economy and the use of an international currency in a multieconomy setting.

In the former context, governments typically declare (by fiat) the currency that is used as legal tender within their jurisdictions. For example, when receiving tax receipts, the Swiss government demands to be paid in Swiss francs and not in, say, Mexican pesos. money's functions as a medium of exchange and a unit of account, investors will typically choose to hold a wide range of international currencies as assets, use of currencies depended exclusively on asset motives, Yet the dollar"? (statutory definition of a "dollar"? ) is the dominant international currency, among the Group of Seven industrial countries, inflation (as measured by consumer prices > aka "goods and services term) has been higher on average in the United States than in Germany or Japan, but lower than in Canada, France, Italy, or the United Kingdom Moreover &c............ Source http://www.imf.org/external/pubs/ft/.../06/tavlas.htm

Money not federal reserve notes functions as a medium of exchange and a unit of account.

In the IMF’s own words What is money?

But precious metals seemed to serve all three needs: a stable unit of account, a durable store of value, and a convenient medium of exchange.

They are hard to obtain.

There is a finite supply of them in the world.

They stand up to time well.

They are easily divisible into standardized coins and do not lose value when made into smaller units.

In short, their durability, limited supply, high replacement cost, and portability made precious metals more attractive as money than other goods. Source: http://www.imf.org/external/pubs/ft/.../09/basics.htm

But when gold "goes back into the System" at $42.22/fine troy ounce, that is going to feel like the economy crashed.

US Debt Soars To $19.7 Trillion up over $170 billion in just eight business days, because the media is too busy pretending to be shocked that Donald Trump is a womanizer.

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Originally Posted by Chex

US Debt Soars To $19.7 Trillion up over $170 billion in just eight business days, because the media is too busy pretending to be shocked that Donald Trump is a womanizer.

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And I am just saying...

DRYEP - Dollar, Renmimbi, Yen, Euro, Pound. - My acronym, pronounced Dry up.

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It is indeed likely that the depreciation of the dollar that accompanied U.S. asset purchases and forward guidance reduced foreign net exports and thus weighed on foreign GDP through the exchange rate channel.

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I was just reading the latest speech about GDP effecting global economy. It would seem that Vice Chairman FISCHER dances about the term SDR lately.

Aug 23, 2016. Song Xin: Increase Gold Reserves And Join SDR. | Zero Hedge

Further increase gold reserves to adapt to economic strength China’s existing gold reserves are only about 1/5 of America’s. With the acceleration of renminbi internationalization, the renminbi should further increase its gold reserves in order to reach a level matching the national economic aggregate [GDP], especially if the renminbi wants to become a global currency.

In the mainstream media we often read China wants the SDR to replace the US dollar as the world reserve currency, based on statements from PBOC Governor Zhou Xiaochuan - among others: but what’s China’s exact strategy? In other words, if the US, Europe, Russia and China all have a roughly equal ratio of official gold reserves to their GDP, the international monetary system could make a transition towards gold.

Nov 11, 2016 Over $1 Trillion In Bond Losses In Days: Second Worst Week Ever | Zero Hedge

I have posted there...

Notice that the Complaint itself involves Refusal for Cause on the new SDR basket (beginning on Page 40 of 62). I still enjoy my definition for SDR in the Opening Post above. Everybody should grab The Complaint on disk because the Tenth Circuit Executive and USDC in Denver have both avoided publishing it on PACER.


P.S. Forgive me. I mixed goldhedge and zerohedge.