IMF replacing the Dollar ??

On February 10th 2011, The International Monetary Fund issued a report on a possible replacement for the dollar as the world's reserve currency. CNN reported the story.

The IMF, which is headquartered in Washington, DC, is the intergovernmental organization that oversees the global financial system. They are THE most influential financial organization in the world economy.

The IMF has proposed replacing the U.S. dollar with something called "Special Drawing Rights," or SDRs. SDRs represent potential claims on the currencies of IMF members. SDRs were created by the IMF in 1969 and can be converted into any currency, based on a weighted basket of international currencies. When the IMF lends money, it typically does so via SDRs.

The IMF also proposed creating SDR-denominated bonds, which could reduce central banks' dependence on U.S. Treasuries. The Fund also suggested that certain assets, such as oil and gold, which are traded in U.S. dollars, could be priced using SDRs.

This is a HUGE and important step to replace the U.S. dollar as the world's reserve currency.

It's just another sign of the growing trend...

Any government or investor with any sense is looking to get out of the U.S. dollar as quickly and safely as possible..."

Are we seeing a trend yet ?? Once the dollar is no longer the world reserve currency it is curtains, lights out for the American economy ...