The International Monetary Fund (IMF) has established a plan for its
special drawing rights (SDR) valuation basket
to be revised at midnight on September 30. This IMF plan has laid the
foundations for a new monetary standard
based on world money.
There’s a formula for determining that, and as of today there are 4
currencies in the formula: dollars, sterling, yen, and euros.
Those are the 4 currencies that comprise in the SDR calculation. As of
the close of business on September 30th, or in effect
when we wake up October 1st, there’s going to be a fifth currency added,
which is the Chinese yuan.
The Chinese yuan does not meet the typical SDR criteria, so it would not
normally qualify. However, this is a political decision
by the IMF attempting to get China on the bus. In the 1960s we had an
expression, “you’re either on the bus or off the bus,”
and right now China’s off the bus but as of September 30th they’re going
to be “on the bus.” They’re going to be part of the SDR.
Does that mean the dollar becomes worthless overnight? Of course not.
You’re going to wake up October 1st, you’ll still have
dollars in your pocket, you’ll still get paid in dollars, those will be
worth something, but it will be a very significant turning point.
Excerpts from:
http://dailyreckoning.com/only-days-until-world-money-changes/
