Edmund Conway at the UK's Telegraph writes:
Alistair Darling and senior figures in the US Treasury have been encouraging the [nternational Monetary] Fund to issue hundreds of billions of dollars worth of so-called Special Drawing Rights in the coming months as part of its campaign to prevent the recession from turning into a global depression...Soros was, of course, a big Obama money backer. I wonder what country he needs propped up?
The idea has been suggested by a number of key figures, including billionaire investor George Soros and US Treasury adviser Ted Truman.
ViaDavidKramer
I dont know much about Soros but he is often quoted as being a longtime invesment partner of Jim Rogers. That said he seems to take a radically different view from Rogers about this crisis if he supports Obama and the ideas you describe here about the IMF issuing truck loads of cash via SDRs.
ReplyDeleteIf the dollar loses its status as a reserve currency what will happen to it given the vast increase in the money supply, public sector debt and the likelihood that at some stage in the future the demand for money will fall back to more normal levels and the banks will start to spend the huge reserves they have? Surely it (the dollar) will just collapse as inflation goes thru the roof?
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