Quote from: EggShells on November 30, 2015, 10:03:08 PM

Quote from: jaysabi on November 30, 2015, 04:14:32 PM

It's a little baffling to me how a centrally manipulated currency that pegs its value to other global reserve currencies could itself become a global reserve currency, but there you have it!

Both the IMF and central bank "swap lines" allow each country to be bailed out by other countries when its currency gets into too much trouble, provided that it belongs to the club of friendlies.

The elites figured out long ago that collusion among themselves is much better than competition, for the purpose of extracting wealth from everyone else. If this prolongs the bubble and makes the eventual crash worse, that's a problem for future generations.

Nice post.

And as the SDR is 'trumps', when the next crisis hits, all governments have a ready made diversion / excuse, as the IMF controls its flow. All are happy, especially China, who reduce their exposure to USD (their trillions in foreign reserves swapped out)

The collusion is something Rickards writes about at length in Death of Money; the big boys try to get their gold reserves up to equal / equivalent ratios to GDP before the crisis hits, so its a level playing field when the reset happens.