Last week as part of an article we discussed Jim Rickards theory as to how the changes to the global monetary system may play out.
This week Stacy Herbert and Max Keiser discussed the recent issuance of IMF Special Drawing Right (SDR) bonds for the first time in 35 years sold to Chinese Investors.
They do a good job of explaining the theory that the SDR is to become a global currency and how it will be used to bail out central banks in the next great crisis.
As we said last week this theory makes good sense but we prefer not to take it as a given. And it’s certainly not our preferred outcome. But certainly watch the first part of the video for a good explanation of one possible outcome in what is a virtually guaranteed change to the existing monetary system.
Then in the second half Max Keiser interviews Dan Collins of ChinaMoneyReport.com. They discuss the ongoing internationalisation of the Chinese currency (RMB).
They also discuss the possible global backstop with the IMF potentially bank rolling a massive global bailout.
Finally they cover the launch of a new Chinese Quantum satellite and other Chinese technology advancements. Plus Chinese military moves into what has been traditionally US sphere’s of influence.