This past year or so has seen a massive creation of liquidity across the world as Central Banks ramped up their Quantitative easing programes and Governments threw money into the mix in an attempt to revive economic momentum, inflation and preserve the unstable financial system. There is of course no simple way back, and currently the main impact appears to be asset inflation across stocks and property, while the real economy languishes, even as debt climbs.
But now the IMF wants to join the FIAT party – FIAT meaning “Let it Be” or created from nothing using allocating special drawing rights (SDR) to augment instantaneously the international reserves of its members. They claim this would significantly benefit poorer countries and help build confidence at a time of global crisis, dramatically demonstrating international cooperation. But it is pure Neo-liberalism…
CONTENTS
0:00 Start
0:40 Introduction
1:16 IMF Joins the Fiat Party
2:00 Special Drawing Rights
3:12 IMF Statement $650 Billion SDR Allocation
10:20 The History of SDR’s And How They Work
21:35 PRGT Australia Contributes $500 million
22:05 SDR Accounting
24:50 Pros and Cons
27:22 My Conclusions
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