Impact of IMF SDRs for Commercial TradeJames Hall Platitudes about promoting job growth or Third World development are the realm of public relations for the central banks. The impact of the IMF on virtually all countries, vividly seen in every crisis whether real or contrived, always has a political objective that underpins the economic functions. As confidence in national currencies falter, the big sugar daddy loves to intervene, provided they pull the strings. The use of SDRs is one tool used to paper over insolvency. Investopedia explains Special Drawing Rights SDR in the following manner. From the International Monetary Fund press release: The IMF is Using SDRs to Bailout the Ukraine. The Bank for International Settlements on Big Banks describes an even more insidious method to use SDRs as deposits of the central banks become claims on those currencies, thus diminishing even further stated goals and purposes for the IMF. Complicating matters further, in a staff working paper ERSD-2012-10 from the WTO, cites the issue that SDRs can only be used by governments and not by private entities in regular transactions. Elena Flor in an essay, The Debate about the SDR as a Global Reserve Currency and SDR Denominated Securities, proposes a further ploy to obscure an already convoluted currency arrangement. Just think about all the inventive security-based swaps, if SDRs became an added vehicle for payment settlement to the derivative circus. So, what do any of these exotic financial gyrations contribute to the actual business of commercial trading? The constructive profitability or gain of consumers and the trading principals see little advantage. Only the Central Banks Game Plan: One World Currency benefits from their fees, costs and controls over these commercial transactions. Since, SDRs are potential claims on the freely usable currencies, citizens of countries bear the burden of a further debasement in their national coinage. What better excuse for rationalization of additional regulations and hoops to jump through so that the banking system can charge extra handling expenses and the taxman can obtain transactional verification? Henri Erti in the article, Instabilities in the IMS: Prospect of SDR as Stabilizing Tool, argues that adopting the SDR for commercial trading payment settlement, means more financial consolidation is required. Well, there you have it. As long as the currency market allows for floating exchange rates, the pricing of trade is ripe for manipulation. Substituting an SDR standard as opposed to a fixed exchange rate pegged to physical gold is nothing more than an attempt to demand a one world monetary model. Allowing the IMF to manage the economic outcomes of all trading nations commerce is like putting the fox in charge of the chicken coop. The success or shortcomings of individual nations trade transactions need to rest upon the economic fundamentals of the deal, not compliance with IMF rules and regulations. The impact of using SDRs translates into the loss of sovereignty. Original article archived here James Hall is a reformed, former political operative. This pundits formal instruction in History, Philosophy and Political Science served as training for activism, on the staff of several politicians and in many campaigns. A believer in authentic Public Service, independent business interests were pursued in the private sector. Speculation in markets, and international business investments, allowed for extensive travel and a world view for commerce. Hall is the publisher of BREAKING ALL THE RULES. Contact batr@batr.org 