I recently posted about new SDR valuation within the IMF. China will increase its influence on the internal governance of the IMF, right after the new valuation of SDR (a benchmark based on currencies relative importance throughout the world and quantified in USD) awaited for next month, october 2015.
According to Doug Casey research think tank, it will be major trigger of a global financial U-Turn.
You can find the very publication of INTERNATIONAL MAN about this up-coming major U-Turn there on a post I publicized recently.
Anyone can subscribe to all newsletter from the IMF. I did so.
There you will find the email I got recently, and I regularly checked on my mailbox.
New item in your series of interest:
SDR Valuation as of Sep 14, 2015 Disclaimer: The International Monetary Fund makes no warranties, express or implied, regarding these tables or the performance of this site. The Fund shall not be liable for any losses or damages incurred in connection with this site.
http://www.imf.org/external/np/fin/data/rms_sdrv.aspx?Month=09&Day=14&Year=2015&submit=Submit
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China will normally get an increasing power. Doug Casey research think is thinking that it will be one of the most important trigger of an up-coming financial crisis in october 2015. We’ll see then.
Please find below an extract of their publication available here.
This time around, there are warning signs aplenty that, sometime around October of this year, we shall see a number of black swans on the wing, headed our way.
The greatest of these is that, once every five years, the International Monetary Fund (IMF) renews its membership structure (SDR quota, governors, and voting power.) This is significantly in question this year, as China vies for a larger chair at the table.
Although China surpassed the US in 2014 as the world’s largest manufacturing economy, it still has less than one-quarter of the voting power of the US and even has less than France or Germany. To say the IMF has been dragging its feet on a rebalancing of IMF member voting would be an understatement.
In fairness, China should expect to be allotted significantly greater voting power in October. But we are discussing the IMF, which has never been known for fairness. It has, indeed, been infamous for its duplicity and self-serving inclinations (having been created at Bretton Woods in 1944 to allow the US hegemony over the world economy, its primary purpose is to assure US dominance).
Still, it would be difficult to imagine how the IMF could avoid a shift in its voting (diminishing the US and increasing China). Anything the IMF did at this point to derail the re-balance would be highly suspect.
This is just a small extract from the whole publication available here.
A presentation of international man is available here.
[…] I spoke about SDR valuation there. […]