An interesting, but extremely important piece of news fell through the cracks earlier this week, that has the potential to be one of the most powerful attacks on the dollar’s reserve currency status since 1973. And it appears to be happening using the West’s own mechanism against them.
On Aug. 1, China announced that around the 1st of October they will be internationalizing the IMF’s Special Drawing Right’s (SDR) currency for global use in trade, thus placing the currency basket in play for nations to use instead of the dollar.
What is most extraordinary about this is that control over the M SDR will come from Chinese authority, and with the blessings of Japan, Europe, and members of the G20. And this move will also provide China the initial boost it needs to act as a second caretaker of the global reserve currency system, and bring them one step closer to implementing their end game goal of a gold backed trade program.
In addition to this move, China will announce the results of a new audit for their gold reserves, which is a key part in the IMF allowing China to become the gatekeeper for SDR internationalization. And dependent upon how much they declare their reserves to be, it could be a shock to the system for U.S. hegemony over the gold price, and open the door for Shanghai to wrest full control over the pricing of precious metals.
How this will affect the upcoming U.S. elections is unclear, but it is no coincidence that these two events will be occurring in October, and at the time where a change in power for the U.S. empire is taking place. Yet either way, the days of a singular polar reserve currency may soon be at an end, and how quickly its use expands beyond just the G20 will only be a matter of time.