New World Money Is HERE: IMF Loan to Ukraine in SDR, not US Dollars

This is the first that we know of a loan by the IMF, headquartered in Washington, DC, as specifying a loan in SDR (Special Drawing Rights) rather than in the customary US Dollar.  As with most policy changes from Washington, they ease changes into existence, this seems to be the start in the use of SDR’s.

If this is the start in the use of SDR’s, then in return it’s also the start in not using the US Dollar for IMF loans, which are essentially US Govt loans.

The IMF Ukrainian loan press release is viewable here: www.imf.org/external/np/sec/pr/2014/pr14189.htm

Dan Popescu of Goldbroker.comWe should not take this change lightly as this is a strong indicator and precedent of future IMF loans, and perhaps how the US Govt will begin conducting business - being once again that IMF loans are indistinguishable from US Govt loans. In a deeper view, several points should be clear:

Ukrainian debtors, such as Gazprom and by defacto, Russia are willing to accept SDR’s 

IMF is willing to write the loan in SDR’s

US Govt is complying with its usage in place of the US Dollar

This being true, we have to consider the fact that the dollar is no longer sought after and considered as valuable worldwide, and perhaps won’t be of the same value during the course of the loan as it is today.Furthermore, the world would be hording US Dollars and demanding loans in US currency if they thought its value would be increasing.  However, the opposite is occurring. If these countries are avoiding the US Dollar, then what are they doing with their stockpiles of US currency – buying hard assets.  From the Forbes article below China has been purchasing gold.What can you learn from this transitional monetary situation  - China views gold as more valuable than US Dollars, Russia views SDR’s as less risk than US Dollars.  Russia sees more value in converting its oil revenue into gold, which is a dynamic financial twist in that the US Dollar has been used for all oil trades as the petro-dollar.  Consider that the IMF, China, and Russia are avoiding the US Dollar, and that these countries are converting revenue typically in US Dollars into gold.  For yourselves – consider the same conversion into gold, silver, and bitcoin and any other hard asset you are comfortable holding as a safe haven.