tag:blogger.com,1999:blog-7820485130017459619.post5471929206807406110..comments2023-10-24T01:46:47.151-07:00Comments on CynicusEconomicus: Special Drawing Rights - What are they?Unknownnoreply@blogger.comBlogger7125tag:blogger.com,1999:blog-7820485130017459619.post-66832770538294525922009-12-08T13:18:15.836-08:002009-12-08T13:18:15.836-08:00Nice post - Special Drawing Rights Currency ..Keep...Nice post - Special Drawing Rights Currency ..Keep Posting<br><br><br> Jack <br><a href="http://www.searchasklive.com/BrowsePictures.php?query=Special+Drawing+Rights+Currency" rel="nofollow">Special Drawing Rights Currency </a> <br><a href="http://www.searchasklive.com/BrowsePictures.php" rel="nofollow">Browse Images</a>hungeryjackhttps://www.blogger.com/profile/14361402800335327083noreply@blogger.comtag:blogger.com,1999:blog-7820485130017459619.post-67388350865413732992009-09-18T15:47:53.204-07:002009-09-18T15:47:53.204-07:00After struggling to grasp just what a SDR is, I...After struggling to grasp just what a SDR is, I'm inspired to describe a way to get your dollars out of the wacky system and into something a bit more sane...<br /><br />Why not deposit your hard-earned dollars in a bank that acquires quality assets around the world -- assets that you can actually use or assets that produce something that you can consume (food and wine). Golf courses, health spas, single-family homes, etc. Instead of earning interest, you have access to the assets at the lesser of cost or market. Let's face it, none of us will be able to afford to pay property taxes once all jurisdictions realize that this is the only revenue left that they can pin down.Matt Holberthttp://mindfulworldbank.orgnoreply@blogger.comtag:blogger.com,1999:blog-7820485130017459619.post-35722730145249198432009-09-17T14:33:56.078-07:002009-09-17T14:33:56.078-07:00If printing money reduces the value of money alrea...If printing money reduces the value of money already in circulation, in favour of the body printing the money; and the IMF is printing money; and governments control the IMF and only they can use SDRs; then this is shifting purchasing power from individuals and companies to those governments that control the IMF. Yes?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7820485130017459619.post-14141724552532753012009-09-17T10:45:55.601-07:002009-09-17T10:45:55.601-07:00For publication if you deem it worthy.
Hi, I real...For publication if you deem it worthy.<br /><br />Hi, I really appreciate the effort you put into this blog and the quality of the information you post for us all to read.<br /><br />Have you considered that China isn't positioning themselves in this for aultuistic reasons, not that you have suggested they are, but with the long view of what's in it for them........they've got their eyes firmly on all that lovely Gold! Not just the floating batch that's coming up for sale....again.....maybe....(305 tons is it), but the primary, mother load which member states seeded it with when it was originally formed....which they'll get one day, somehow, however long it takes them. IMO of course.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7820485130017459619.post-67205617119101320262009-09-17T05:29:02.350-07:002009-09-17T05:29:02.350-07:00The whole thing is designed to be complicated and ...The whole thing is designed to be complicated and to confuse. Smoke and mirrors are required to distract the world from the figures involved.<br /> <br />If the public ignored the deliberately technical wordplay, screened out terms like liquidity, velocity, capital funding, government bonds and quantitative easing and instead concentrated on some old-fashioned common sense we'd all be much better off.<br /> <br />You can't make something from nothing.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7820485130017459619.post-91466310964200867752009-09-17T02:27:33.413-07:002009-09-17T02:27:33.413-07:00Made a couple of errors while editing the post abo...Made a couple of errors while editing the post above. <br /><br />I meant to say the IMF acting as a central bank created a new currency, and is managing it and funding it as I stated above as a reserve with member voting on its issuance.<br /><br />On rereading my draft the 4th paragraph wasn't clear and sounded like I thought the currency was itself the central bank, which would be a novelty :)Lefty Feepnoreply@blogger.comtag:blogger.com,1999:blog-7820485130017459619.post-35764430509975986932009-09-17T02:00:28.619-07:002009-09-17T02:00:28.619-07:00A good analysis, too many people will point to one...A good analysis, too many people will point to one aspect of SDR's and say it means it is this that or the other, but when you start to look at it as a whole you start to get a clearer picture.<br /><br />I think the point is it does act as a currency in some ways, but the way it is funded and used is different to the way a normal national currency is born, supported and measured.<br /><br />It almost seems as if someone has sat down and stripped out the messy complicated factors that influence how a currency operates and looked at a basic form where a few players (governments) pay in to support a currency which can be lent out to others as needed, with a normal type of provision in central banks - the ability to print money to "provide liquidity" when it is economically needed.<br /><br />In a sense it could be seen as a type of central bank that is gets its reserves from governments, and provides the QE liquidity injection type operation without any of the other roles that a central bank does on a national basis such as interest rate setting etc. The whole system seems to require votes from contributing parties with the inference that the larger economies will have more voting rights.<br /><br />That is my opinion, and I know could be wrong, misguided or confused, so if other evidence comes to light that shows it to be something different I will not care too much if my opinion was incorrect. <br /><br />And I will not argue the morality or possible ethical consequences of this here other to point out the obvious that the bigger you are, the more you can vote in your favour and the smaller you are the less a say you have in the making of policies that could effect your whole economy. Will the bigger economy's vote not to bail out the weaker ones? <br /><br />The outcome of all of this is not certain, there are too many conflicting factors at play to say where the future is headed, so the SDR's may not end up having such a prominent role, and events could end up shaping it to other roles, so we will still have to wait and see.<br /><br />An illusion, yes, but money is just a convenient illusion to represent the value of goods and services without all the hassle of bartering and having to asses relative value thereof. This seems just the same as fiat where the value is assesed by the trust in the participants in the value of the money in their hand and trust in the issuer of the currency. <br /><br />You do not need to to tell me that it is a lot more complicated than that in the real world, but stip it down and that is the core of why it works, a neat confidence trick that keeps people using pieces of paper or bytes in a computer as if they were things they owned. <br /><br />Keeping it afloat is a whole different question and the real world intrudes there, as it does with the SDR, but they are a few steps removed from the real economy and I presume the designers are counting on that. The question of what happens if a disaster happens needs looking at, has has been seen, economists and governments have too often ignored that for short term gains.Lefty Feepnoreply@blogger.com