Jester 1/18/17

Jester’s Place 1-18-17

[JESTER] HI AND HAPPY SUNDAY EVERYONE...CHECKING IN WITH THE EARLY BIRDS...

[caro] JESTER you have gave us a lot of good info to think about, wish I could think of a question, but I can't still processing what you have told us

[JESTER] caro THAT'S OKAY... AT LEAST YOU ARE TRYING TO GET IT....THERE ARE A LOT OF PEOPLE NOT ACKNOWLEDGING THE POSSIBILITY...

[JESTER] THEY WILL BE DISAPPOINTED BECAUSE THEY DID NOT GET IT AND PREPARE FOR IT WHILE THEY HAD THE CHANCE...OR AT LEAST PREPARE FOR THE POSSIBILITY...

[JESTER] IT IS LIKE BEING PREPARED FOR THE WORST JUST IN CASE... YOU HOPE IT DOES NOT HAPPEN BUT YOU ARE READY AND HAVE A CHANCE IF IT DOES...

[caro] JESTER Do I have it right that the SDR are asset backed and used for trading outside of the US, and us in the US will not be able to own SDRs

[JESTER] caro NOT NECESSARILY... THE SDR'S ARE COUNTRY LEVEL ASSETS... NOT INDIVIDUALS...

[JESTER] YOU MIGHT BE ABLE TO BUY AN SDR BOND SOMETIME...

[JESTER] HERE IS WHERE I DIFFER FROM NEARLY EVERYONE ELSE IN THE THINKING... THERE IS NOT ANY EVIDENCE THAT I CAN FIND THAT THERE IS GOING TO BE A 'NEW' CURRENCY... UNLESS THE TREASURY MAKES ONE THEN THERE WILL NOT BE... THE FED IS NOT GOING TO GET MAGICALLY ASSET OR GOLD BACKED ANYTIME SOON OR EVER...

[caro] JESTER ok that is kinda of what we were thinking, bond idea might be a good idea, maybe a good investment later. Guess the Fed is here to stay

[JESTER] caro NOT NECESSARILY... IF SOMEONE COULD GET THE DEBT PAID OFF THEN THERE WOULD BE A CHANCE OF GETTING OUT FROM UNDER THAT...

[JESTER] THAT MIGHT BE POSSIBLE IF WE COULD GET THE SDR SUBSTITUTION FUND MOVING THAT DIRECTION... WE WILL HAVE TO SEE... THE SDRS CAN BE TRADED AND BOUGHT AND SOLD...

[JESTER] Buying and selling SDRs

[JESTER] IMF members often need to buy SDRs to discharge obligations to the IMF, or they may wish to sell SDRs in order to adjust the composition of their reserves. The IMF may act as an intermediary between members and prescribed holders to ensure that SDRs can be exchanged for freely usable currencies. For more than two decades, the SDR market has functioned through voluntary trading arrangements. Under these arrangements a number of members and one prescribed holder have volunteered to buy or sell SDRs within limits defined by their respective arrangements. Following the 2009 SDR allocations, the number and size of the voluntary arrangements has been expanded to ensure continued liquidity of the voluntary SDR market. The number of voluntary SDR trading arrangements now stands at 32, including 19 new arrangements since the 2009 SDR allocations.

[JESTER] Since September 1987, voluntary transactions have ensured the liquidity of the SDRs. However, in the event that there is insufficient capacity under the voluntary trading arrangements, the IMF can activate the designation mechanism. Under this mechanism, members with sufficiently strong external positions are designated by the IMF to buy SDRs with freely usable currencies up to certain amounts from members with weak external positions. This arrangement serves as a backstop to guarantee the liquidity and the reserve asset character of the SDR.

[JESTER] http://www.imf.org/external/np/exr/facts/sdr.htm

[JESTER] YOU SHOULD LEARN MORE ABOUT THIS STUFF... I HAVE POSTED THIS ONE SEVERAL TIMES... IT IS HOW THINGS COULD CHANGE AND ADJUST EASILY...

[JESTER] AND THEY ARE SECURED BY THE SECURITIES IN THE CENTRAL BANKS OF THE ALLOCATED COUNTRY...

[JESTER] THEY ARE NOT SECURED BY FIAT CURRENCY... THEY ARE SECURED BY SECURITIES THAT HAVE AN ACTUAL VALUE...SOMETHING REAL...

[JESTER] SO IS THAT HELPING AT ALL... YOU GUYS SEEM TO BE HAVE AN INORDINATELY DIFFICULT TIME GRASPING THIS CONCEPT...

[JESTER] AND EVERY TIME I POST ABOUT IT SOME DING DONG ON RECAPS COMES AND SAYS THE SDR IS NOT ASSET BACKED... LOL

[JESTER] The role of the SDR

[JESTER] The SDR was created by the IMF in 1969 as a supplementary international reserve asset, in the context of the Bretton Woods fixed exchange rate system. A country participating in this system needed official reserves—government or central bank holdings of gold and widely accepted foreign currencies—that could be used to purchase its domestic currency in foreign exchange markets, as required to maintain its exchange rate. But the international supply of two key reserve assets—gold and the U.S. dollar—proved inadequate for supporting the expansion of world trade and financial flows that was taking place. Therefore, the international community decided to create a new international reserve asset under the auspices of the IMF.

[JESTER] JUST READ THE ARTICLE AND YOU WILL UNDERSTAND MORE...

[JESTER] INTERNATIONAL RESERVE ASSET... FIXED EXCHANGE RATE... YADA YADA YADA...

[JESTER] YOU HAVE TO UNDERSTAND HOW THIS WORKS AND WHERE IT IS HEADED...

[JESTER] AS AN ADDITIONAL POINT ABOUT THE SDR...

[JESTER] The SDR is neither a currency, nor a claim on the IMF. Rather, it is a potential claim on the freely usable currencies of IMF members. Holders of SDRs can obtain these currencies in exchange for their SDRs in two ways: first, through the arrangement of voluntary exchanges between members; and second, by the IMF designating members with strong external positions to purchase SDRs from members with weak external positions. In addition to its role as a supplementary reserve asset, the SDR serves as the unit of account of the IMF and some other international organizations.

[JESTER] IF THAT DOES NOT MAKE SENSE TO YOU GUYS I DON'T KNOW WHAT ELSE TO TELL YOU ABOUT WHAT IS GOING ON...

[JESTER] THE SDR IS VALUED TO CURRENCY... BUT NOT MADE UP OF CURRENCY...

[JESTER] THE CURRENCY IS JUST A REFERENCE..

[hoot2602] JESTER Today I reviewed the value of the SDR for each day during the current month. It varies each day but not much.

[caro] JESTER thanks that helps understand it

[Truth] After having read the article you referred us to, I see a little more of what is going on. In the political arena there has been discussion of not being in IMF is that a possibility or just a political posturing?

[JESTER] Truth SIGH... I WENT OVER ALL THIS A FEW MONTHS AGO... BEFORE FEBRUARY THERE WERE 148 COUNTRIES IN THE IMF AND THEN 51 WERE ADDED BY APRIL TO MAKE IT 189...

[JESTER] AND THEY WERE ALL ADJUSTED IN QUOTA VALUES... SOME UP AND SOME DOWN... THE US WENT DOWN SOME...

[JESTER] BUT I SERIOUSLY DOUBT THE US WILL BOW OUT WHEN NEARLY EVERY OTHER COUNTRY ON EARTH IS A MEMBER...

[JESTER] SO THAT IS BS...

[JESTER] DOES IT SEEM WEIRD THAT EVERYONE IS NOW A MEMBER? LIKE HANDWRITING ON THE WALL OR SOMETHING? IN THE DETECTIVE BUSINESS THIS IS WHAT WE CALL A CLUE... WHY DID IT GET SO IMPORTANT FOR EVERYONE TO BECOME A MEMBER? HMMM...

[JESTER] ANYWAY... NO ONE WILL LIKE TO BELIEVE IT... EXCEPT JIM WILLIE... LOL

[Truth] Jester, thanks

[caro] JESTER hmmm Jim Wiley what is he talking about all the time about rainbow money that is supposed to be our new currency?

[JESTER] caro I AM NOT SURE HE HAS CAUGHT UP TO THE FACT THAT A DEAL HAS BEEN MADE... PEOPLE TALK ABOUT RAINBOW MONEY... THERE IS NOT ANY EVIDENCE THAT I SEE OF IT UNLESS YOU COUNT THE NEW 100 BILL... MAKES NO SENSE...

[JESTER] HE IS STARTING TO SOUND A LITTLE NESARA LIKE... LOL

[caro] JESTER I agree I am finding it hard to listen anymore lol

[JESTER] I THINK HE IS STILL IN PLAN B...

[JESTER] OH WELL... ANOTHER WEEKEND IN THE BAG... I WILL SEE YOU GUYS ON TUESDAY EVENING... TAKE IT EASY...

Hey, Jester, why don't you do the whole world a favor and go 'vacuum' a bunch of roosters....