What would happen if we were to change to the "Amero"?

I watch what they do, not what they say. It isn't a currency in the sense of a national currency, but it is used in the same manner as a national currency in transactions between central banks regardless of what they decide to name it.

Edit: Also, they may have invalidated their website description when they issued SDRs backed by debt rather than by the currencies of IMF members. That's the point.

 

Log in or Sign up to hide this ad.

Haha, I stand by my statement and it is confirmed by their own website. The IMF does not have any money of it's own. Your opinion does not count as fact.

The actions of this senate this week, where they voted to eliminate any USA funding of the IMF bailout of Europe pretty much crushes any attempts at the IMF of doing anything there. The other countries who provide the funding will follow the USA's lead and do exactly the same thing. As I said above, they are a paper tiger who do the bidding of Washington, not the other way around as suggested with these ideas there is going to be a "world currency". Will never happen.

 

About time someone said something sensible, jeeze.

 

Ha! I would proffer to bet that the probability of having an Amero is even less than a unified currency amongst the OECD member states. And both scenarios are basically zilch at this time.

 

It isn't opinion. It's in the IMF's own data. Watch what they do, not what they say.

http://www.imf.org/external/np/tre/liquid/2010/0110.htm

 

Buy Gold.

 

You are kidding right? Nobody, unless they completely did not understand what they are looking at, (and by this point that is probably the case) would post that as an argument that the IMF has money. Son, that is a statement of their member's holdings. It even says so on the chart.

The financial resources covered in this note are a pool of currencies and other assets in the General Resources Account (GRA) that are built up from members' fully paid capital subscriptions

​

One more time. The IMF does not have it's own money. That chart proves it. Try reading the notes.

 

Thanks. Now, how much gold?

 

Getting up to date on the earlier threads - Oh Boy! This is getting over my head.

Save, save, save, --- rice and beans, and gold (lots of it). How about a 1/10 an ounce for every bean.

 

Well, they are both about the same size! LOL!!!!

Don't you hate catching up? Lots of reading!!!

 

The issuance of debt to cover SDRs is the same mechanism by which the Fed creates US dollars, except the IMF is creating SDRs. If you can't understand the numbers, maybe you can understand the words from the IMF site:

"The IMF’s lending capacity
The IMF can use its quota-funded holdings of currencies of financially strong economies to finance lending. The IMF’s Executive Board selects these currencies every three months. Most are issued by industrial countries, but the list also has included currencies of lower income countries such as Botswana, China, and India. The IMF’s holdings of these currencies, together with its own SDR holdings, make up its own usable resources. If needed, the IMF can temporarily supplement these resources by borrowing (see below).
The amount the IMF has readily available for new (non-concessional) lending is indicated by its one-year forward commitment capacity. This is determined by its usable resources (including unused amounts under loan and note purchase agreements), plus projected loan repayments over the subsequent twelve months, less the resources that have already been committed under existing lending arrangements, less a prudential balance.
Borrowing arrangements
The IMF maintains two standing multilateral borrowing arrangements—the New Arrangements to Borrow (NAB) and the General Arrangements to Borrow (GAB)—currently with a total borrowing capacity of SDR 34 billion (about $52 billion). If the IMF believes that its forward commitment capacity might fall short of its member countries’ needs—for example, in the event of a major financial crisis—it can activate these arrangements. Their renewal was approved in 2007 for another five years starting in 2008.
In April 2009, the G-20 Leaders and the International Monetary and Financial Committee agreed to increase the resources available to the IMF through immediate financing from members by $250 billion, and to subsequently expand the NAB by up to $500 billion and make it more flexible."


Or, to put it into layman's terms, if the IMF doesn't have enough currency or other assets on hand to make loans or issue SDRs, they just issue them against borrowings like any other central bank. And if you could have read the numbers, you would have seen that this is exactly what began to happen in 2009.

 

Ok. So it's not a currency, yet "SDRs are denoted with the ISO 4217 currency code XDR" - wiki. Sounds fishy to me. And yes, I know gold and silver have currency codes too.

 

Good point. SDRs are considered assets and can be counted by central banks as reserves in the same manner as dollars or euros or gold. My only point is that beginning fairly recently, some SDRs issued are backed by bonds issued by the IMF and not by currencies contributed by members. So far the experiment is only for about 100billion+, but as they indicate is authorized to expand to a half trillion. So the IMF can issue SDRs now whether the USA and others contribute their share of dollars or not. It shows up in their financials and is disclosed in their factsheet for anybody who cares to look. Nobody can say where this will lead. Maybe they are testing the waters, or maybe it is the beginning of a new global fiat currency. Time will tell because the IMF sure isn't talking.

 

Back on topic then... If the Amero was to be introduced as a fiat currency then gold and silver will most probably increase in price (as measured in Amero's) over time. Like every other fiat currency that has ever existed.

Personally, I can not see it being introduced in the near future. The Euro is a good example of why these things don't work without fiscal union. As for long term, nobody can possibly know.

 

Interesting observation. So, the IMF can also create money out of thin air and continue the mad Keynesian expansionist monetary policies so beloved of our central banks. More inflation

 

My reading of this is that the IMF has the capability and has used it on a very limited basis. But the possibility exists.

 

The possibility exists? haha. This is no argument. The possibility exists the world might end today. (and at least that is supported by some science)

You seem to have simply decided the IMF has a currency, prints it, and thus, by some line if thinking that escapes me, has the ability to force a world currency on the rest of the world. While you might think this, as I said before, doesn't mean it has any bearing in reality.

The IMF is not a government, is not sovereign, and does not have the power of taxation. Thus, it does not have any assets it can use to print money. The assets the IMF provides come from the member countries, where the USA is the biggest contributor. The day the USA decides to fold it, the IMF is done. Period. You can attempt to tap dance around these facts all you would like, but the idea the IMF is going to force a world currency on the rest of the world, is not based in any facts. The fact the USA can veto any IMF action should be telling enough.

 

Regarding the first statement, it isn't a possibility, it has already occurred. What we can't know is how far they will take it in the future.

Regarding the second, SDRs are used as a currency and reserve asset in transactions among central banks.

Regarding the third, the IMF cannot tax yet, it merely assesses. But the point you missed is that it has also issued SDRs backed by its own debt, not member contributions. So it no longer needs assets to issue them and is experimentally being used as a fiat currency among central banks.

You are correct that the USA can probably veto any IMF action, but they didn't veto the issue of fiat SDRs backed by debt.

I can't make you believe in the reality of what actually happened since it conflicts with your belief system. Right now, SDRs are not an important or large fiat currency. But there are debt based SDRs circulating out there.

I posted in this thread for others to read and make up their own mind. It isn't my job to force people to believe or disbelieve. So I'm finished here and you can have the last word.

 

The whole idea is strange to me. Issue currency based on deposits of dollar bills from a country that is 12 Trillion dollars in debt!!!!! Sounds like a second mortgage to me????:rolling:

But worse yet, issue new money based on future deposits from countries that continue to not even be able to handle their own debt?????:bigeyes:

 

Probably? Luv, the IMF has absolutely no control over the actions of the USA and it can't force the government to do anything. And it's also irrelevant to the point at hand as is the rest of your response. And that point was the IMF is going to be responsible for making the world go to a single currency. It's not, it doesn't have the power to do so, it doesn't have any money to do this and it does not have any rights over soverign governments.

If, by the action of trying to change the discussion to be about me, that you don't really have a valid argument, then fine, you have learnt something.