FYI: IMF USD ($) SDR Valuation for 10/19/09

By Daniel at 20 October, 2009, 9:43 am

One US dollar is .44 units per each sdr package. The sdr is a currency basket. One cannot merely extract a dollar out of the total and call it a viable exchange. It would be like taking a penny and cutting almost half off and then trying to use the half-penny for trade. We understand sdrs as being constituted by nearly one-half their weight in dollars. Yet, the constitution of the currency basket varies with the play of the four currencies contained within the basket. So the sdr is a brilliant way of manipulating currency exchange while protecting against risk of loss.

Sdrs are not being used for trade at present. (or are they…one wonders) but the forex accounts of member IMF nations all have sdr allotments as reserve. The IMF recently allocated by fiat 250B sdr in member accounts. This one-time allocation was a go at what the IMF termed Global Quantitative Easing. The QE was most likely thought necessary to protect nations from entering a new liquidity crisis sparked by Basel ii banking regulations set to take effect globally on January 1, 2010. The QE most likely has also had a profound effect on the dollar value index. It is near impossible to find information relating to the use of sdr fiat QE in the press. The press also neglects to focus on the sdr-denominated bonds being sold at present by the IMF for funding purposes. The IMF is also beginning a program of sdr-denominated financial instruments through corporate bond sales.

The general public may not purchase sdrs. Sdrs at present only represent a drawing right at the IMF for other currencies represented by the basket. The sdr is weighted every five years by the IMF. New weighting is to take place this next year and most probably will spell the nexus for the dollar as currency.

This is the information in my head regarding sdrs at present. I believe that the sdr is being used as a way to control the demolition of paper currency in the move away from tangible currency. Only those with access to the IMF sdr game will survive with any value intact to their savings or assets.

http://johngaltfla.com/blog3/2009/10/19/imf-usd-sdr-valuation-for-101909/

IMF Link
http://www.imf.org/external/np/fin/data/rms_sdrv.aspx