China and the International Monetary Fund (IMF) want a yuan reserve currency – and are doing everything they can to make it happen.
Their plan is already so far along that the U.S dollar could be on its way out as the world's primary reserve currency as early as September 2016.
That's when the IMF will hold a vote to determine whether to elevate the Chinese yuan to a reserve currency. The People's Bank of China, the Chinese central bank, has demanded the IMF do just that.
A yuan reserve currency will trigger a transfer of $1 trillion into Chinese assets just in the first few years.
It matters because much of the money pouring into the yuan will result in sales of U.S. Treasuries – how most governments hold dollars. When foreign governments start to dump the $6 trillion they hold, U.S. dollars will flood the market and trigger massive inflation.
In fact, the race to dump the U.S dollar has already started – even before we get a yuan reserve currency.
The CIA's Asymmetric Threat Advisor, Jim Rickards, says this is no accident. He's revealed that the IMF has a 10-year plan to replace the U.S. dollar as the world's top reserve currency.
He pointed to an IMF report called "The Dollar Reigns Supreme by Default" that specifically says, "The dollar status should be in peril."
Now, it makes sense that China would want to dethrone the U.S. dollar. Its rivalry with the United States dictates that it seek every possible advantage.
But the bigger concern is why the IMF is so focused on taking out the U.S. dollar. It has to do with something called "Special Drawing Rights," or SDRs.
Rickards says SDRs are just a softer term for "world money."
"That's why they came up with the name Special Drawing Rights – because if they called it 'world money' that would sound a little spooky and scary," Rickards said.
The IMF's plan to dethrone the U.S. dollar is in fact part of a grand scheme to put the IMF in charge of the world's monetary system. In short, the IMF wants to be "the central bank of the world."
Yet as ominous as that sounds, it's only one of five flashpoints Rickards sees that threaten the U.S. dollar. In fact, Rickards has uncovered evidence of a looming economic crisis that will eclipse even the Great Depression of the 1930s.
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About the Author
David Zeiler, Associate Editor for Money Morning at Money Map Press, has been a journalist for more than 35 years, including 18 spent at The Baltimore Sun. He has worked as a writer, editor, and page designer at different times in his career. He's interviewed a number of well-known personalities - ranging from punk rock icon Joey Ramone to Apple Inc. co-founder Steve Wozniak.
Over the course of his journalistic career, Dave has covered many diverse subjects. Since arriving at Money Morning in 2011, he has focused primarily on technology. He's an expert on both Apple and cryptocurrencies. He started writing about Apple for The Sun in the mid-1990s, and had an Apple blog on The Sun's web site from 2007-2009. Dave's been writing about Bitcoin since 2011 - long before most people had even heard of it. He even mined it for a short time.
Dave has a BA in English and Mass Communications from Loyola University Maryland.