(TRUNEWS) James Rickards says a secret deal has been struck to kill the US dollar, and replace it with a world currency called special drawing rights (SDR).
Rickards made this statement in an exclusive interview Thursday with Rick Wiles of TRUNEWS while explaining that during a secret meeting in Feb. — being dubbed the “Shanghai accord” — the world’s central bankers decided the IMF’s SDR will replace the USD as the world’s reserve currency.
James Rickards is an internationally renowned global macroeconomist, the author of the bestseller “Currency Wars: The Making of the Next Global Crisis”, and currently serves as the capital markets advisor to the Director of National Intelligence and the Office of the Secretary of Defense.
In the interview Rickards said:
- A secret meeting occurred in Shanghai on Feb. 26th between Janet Yellen (US Fed), Christine Lagarde (IMF head), Mario Draghi (ECB head), Jack Lew (U.S. Secretary of the Treasury), and all their central bank and finance ministry counterparts from Japan, China, Brazil, Russia, India, and South Africa.
- During this meeting, a deal was struck — which he has named the Shanghai Accord — because of its similarities to the famous Plaza Accord of 1985, which was the last major central banker backed operation to detonate the US dollar.
- Keep eyes on upcoming central bankers meeting in Washington D.C. on April 13.
- Use of causal inference and Bayes theorem provides compelling evidence that the central bank announcements from the ECB on March 10 , the BOJ on March 14, and the US Fed on March 15, were coordinated — and part of initial execution phases of steps decided at the Shanghai Accord — to artificially depreciate the Chinese Yuan without harming the US stock market.
- China’s economy is falling apart due to an overvalued Yuan, and is etching for the opportunity to devalue their currency.
- Last time the Chinese attempted to artificially depreciate their own currency, by 3% on Aug 31, 2015 — and without sister central bank coordination — the US stock market tanked.
- China recently successfully enacted a backdoor currency devaluation in conjunction with other global central banks, by having the US Fed ‘ease’ monetary policy while Europe and Japan ‘tightened’. This explains why in March the BOJ and ECB increases QE levels, while the Fed declined to increase rates while offering counterintuitive reasoning. Rickards compared this to a “three cushioned bank shot” in pool.
- “This is so convoluted, who do these Ph.D.’s think they are, manipulating all these markets, and how long will it be until the whole thing just falls apart.”
- Because of its established peg, any weakening of the US dollar also devalues the yuan, which predominately helps the Chinese economy.
- A minimum of 10% assets in physical gold ownership is a great hedge against these emerging currency wars.
- A low US dollar, like its relationship with oil, generally translates to high gold prices and vice versa. This cyclic correlation was shown by what occurred in Aug. 2011, when the US dollar hit an all time low, sending Gold to its all time high of $1900 an ounce.
- “Imagine you have 5 soldiers, they’re fighting, its 110 degrees, a hot day, they’re all thirsty, they’re all tired, and they’ve got one canteen, what do you do? Well everyone wants to drink the whole canteen but you don’t, you take a sip and pass it to the next guy, he takes a sip and passes it to the next guy and so fourth, thats what the currency wars are all about, not every currency can devalue all at the same time, its a mathematical impossibility, you have to take turns with the cheap currency. But now it looks like the US is saying its our turn for a cheap currency but what happened the last time the dollar got weak? Gold sky rocketed, gold went to $1900 an ounce.
- Major US dollar devaluation will cause significant inflation for average Americans because of their dependency on imported goods.
- The US will not default on sovereign debt.
- The US Fed wants currency deflation because a weakened US dollar eases the servicing of sovereign debt denominated in US dollars.
- IMF’s admittance of China to SDR’s currency basket heavily associated with US dollar devaluation.
- No assets back the IMF’s SDR.
- The current value of an individual SDR is $1.45, and ranges between $1.35 and $1.55. This is derived from a combined valuation of the four world reserve currencies (US dollar, British pound sterling, Japanese yen, European euro, and in Sep. 2016, the Chinese yuan).
- IMF prints SDR’s, and treats it as “world money”.
- The IMF has begun enacting a 10 year plan, starting in 2010, for SDR’s to replace the US dollar as the main world reserve currency. A crisis could greatly accelerate this plan, which is published publicly — but hidden in economic jargon — on the IMF’s official website.
- SDR’s will be used to bail out national central banks in the next liquidity crisis, much like how the US Fed printed 4 trillion dollars to advert the last economic meltdown. This will cause major US dollar inflation, essentially collapsing the currency — in favor of SDR’s — for good.
- In Dec. 2015 Republican House Speaker Paul Ryan secretly red stamped a provision in the omnibus budget deal which gave China more voting power in the IMF.
- The IMF votes were given in exchange for China’s support in allowing the SDR to be used as a global bail out fund in the next financial crisis.
- More negative interest rates to come across the globe.
- The War on Cash: “If you’re going to slaughter a bunch of pigs and cows, you’ve got to herd them up and get them in a pen, you don’t go run around chasing the cows on the open range, you herd them into a pen, and then you slaughter them. So thats whats going on with money, people are being herded into a digital pen, the big banks. All the money is being forced into digital form in the big banks, and then they’re going to slaughter you with these negative interest rates.”
- “The war on cash is over, the government won.”
- State sponsored and anonymously organized cyber attacks will be used to erase digital money and terrorize the general public.
- Central banks will eventually succeed in eliminating cash.
- When economic collapse comes, there will be “money riots”, people will burn down banks, governments will respond with a neo-fascist police state and martial law.
To hear James Rickards’ full interview with Rick Wiles on the March 31st edition of TRUNEWS, click here.
James Rickards’ work can be found at The JAMES RICKARDS project and Agora Financial.
The post James Rickards: Secret ‘Shanghai Accord’ kills USD and crowns SDR appeared first on TRUNEWS with Rick Wiles.
from TRUNEWS with Rick Wiles http://ift.tt/1RQQAVd
via IFTTT
No comments:
Post a Comment