The New World Reserve Currency – Another Fairy Tale

Posted at 8:01 PM (CST) by & filed under General Editorial.

Dear CIGAs,

The SDR is presently an accounting unit made up of the US dollar, Yen, Euro and the British Pound. Now how in the hell is that gang going to save the world monetary system? It is three cripples and one anti-cripple with its own problems.

Even if the SDR was expanded to include the Russian and Chinese currencies, it still is a paper bag of paper currencies which is just the problem we all suffer from. It is not a new device to rescue the financial world. It might slow down the race to the bottom, but the race will continue.

There is no super currency that can rescue anything anywhere.

There is no super currency that can be invented at the upcoming G20.

There is an accounting unit called an SDR that can be used to spike world inflation which the G20 can lie about and spin.

There is no practical solution to the problem outlined so well by Professor Galbraith this morning.

As Volcker observed yesterday, inflation is one of the ways out of this mess and it is that way I assure you we are going.

Only gold can rescue you.