Earlier this year, China announced that they will have their new SWIFT system fully functional by either September or October and can then fully float the Yuan currency worldwide. Many are believing that once SWIFT is up for the world’s largest economy then it will be the end of the dollar as the global reserve currency.
However, a new report out from Stansberry Research is alleging that the IMF is not planning on sitting idly by while the East wrests control from them over the global monetary system, and could be finalizing plans of their own to replace the dollar before China does, and if so it would probably be in the form of the Special Drawing Rights (SDR) currency.
And on Oct 20th of this year, the IMF is expected to announce a reserve currency alternative to the U.S. dollar, which will send hundreds of billions of dollars moving around the world, literally overnight.
According to Juan Zarate, who helped implement financial sanctions while serving in George W. Bush’s Treasury department, “Once the [other currency] becomes an alternative to the dollar, rules of the game begin to change.”
And Leong Sing Chiong, Assistant Managing Director at a major central bank, said this dollar alternative “is likely to transform the financial landscape in the next 5-10 years.” – Thecrux.com
Perhaps to add more credence to this report is the fact that China has petitioned to have the Yuan be a part of the IMF’s current SDR program, with the thought being that they will either eliminate it through voting power, or usurp it under their control since at this time the Far Eastern economy provides most of the funding for the IMF in recent years, even surpassing contributions from the U.S. and Europe.
It is an interesting battle that is being waged for control over the next global financial system, and as of this moment, China holds two aces over the U.S. in both dominating the IMF’s bid for the new reserve currency, and a creation of their own to supplant dollar hegemony. But either way, the U.S. appears to be not going down without a fight, and their method of choice is not financial, but military.
Kenneth Schortgen Jr is a writer for Secretsofthefed.com, Examiner.com, Roguemoney.net, and To the Death Media, and hosts the popular web blog, The Daily Economist. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.