In 2009, after helping rescue the US from the Global Financial Crisis, Zhou Xiaochuan, Governor of the Peoples Bank of China, said, “The world needs an international reserve currency that is disconnected from individual nations and able to remain stable in the long run, removing the inherent deficiencies caused by using credit-based national currencies.”
Zhou proposed SDRs, Special Drawing Rights, a synthetic reserve currency dynamically revaluing itself against a basket of trading currencies and commodities. Broad, deep, stable, and difficult to influence.
Nobelists Fred Bergsten, Robert Mundell, and Joseph Stiglitz agreed, “The creation of a global currency would restore a needed coherence to the international monetary system, give the IMF a function that would help it to promote stability and be a catalyst for international harmony.”
Here’s what’s happened since that fateful day:
2014: The IMF issued the first SDR loan
2016: The World Bank issued the first SDR bond
2017: Standard Chartered Bank issued the first commercial SDR notes
2019: All central banks began stating currency reserves in SDRs
Mar. 14, 2022: “In two weeks, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia and China will reveal the design of an independent international monetary and financial system. It will be based on a new international currency, calculated from an index of national currencies of the participating countries and international commodity prices.” Sputnik News.
Along with the new currency, Russia and China will also reveal their Unfriendly Nation Lists.
I predict a riot.