20
Sep

The Fear Mongering Crowd – Dollar Death On September 30th Edition – SDRs

Summary

Those who call for a SDR World Currency or SDRs Backed with Gold.

Those who call for a dollar crash.

Those who call for hyperinflation.

Separating Fact from Fiction and how you can profit without fear.

You’ve been reading about a dollar crash for years from many of the fearmonger peddler’s of gold, newsletters, or anything else they sell to those who succumb to the influence of those who latch onto certain philosophies that will cause Armageddon to occur in the markets and why you need to be in gold. What you’ll hear from me is an unbiased opinion to the contrary, and it comes from someone who sells gold for a living.

The latest fear mongering occurring comes from Jim Rickards, who has been pushing a free report “Dollar Collapse Preparation Plan and his new book The New Case for Gold with a hook up now through the Daily Reckoning fear marketing machine. What Rickards tries to do with his timetable for the dollar’s demise is make the case that come September 30, 2016, the Chinese yuan is added to the Special Drawing Right (NYSE:SDR) basket of currencies. From the IMF;

The SDR is an international reserve asset, created by the IMF in 1969 to supplement its member countries’ official reserves. As of March 2016, 204.1 billion SDRs (equivalent to about $285 billion) had been created and allocated to members. SDRs can be exchanged for freely usable currencies. The value of the SDR is currently based on a basket of four major currencies: the U.S. dollar, euro, the Japanese yen, and pound sterling. The basket will be expanded to include the Chinese renminbi (NYSEARCA:RMB) as the fifth currency, effective October 1, 2016.

The decision to include the yuan or renminbi was made December 1, 2015 and becomes effective after the close on September 30th, 2016.

Rickards believes that the U.S. dollar “will cease to function as the global reserve currency” and that assets will be traded in SDR’s, not in dollars. But there is a problem with this line of thinking.

You can continue reading this article over at Seeking Alpha; http://bit.ly/SDRDollar

 

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About Doug Eberhardt

Doug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534

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