Jim Rickards for The Wall Street Journal: No to SDRs
Jim Rickards, an editor for Paradigm Press, author and former general counsel for Long-Term Capital Management, was quoted in The Wall Street Journal on special drawing rights (SDRs) and their place in the future.
James Mackintosh for The Wall Street Journal remarked, “China — and other emerging markets — would like to diversify their risk away from the greenback. They also worry about the inherent problem of using national money for global reserves… When the U.S. faces a conflict between domestic and international needs, it is likely to favor its voters over the world economy.”
“A long-standing advocate of using gold to back money to limit the supply,” Rickards “thinks SDRs will be used to reflate the system in the next crisis, hurting the U.S. dollar’s reserve status…
“It’s all converging on a world where the dollar will just be a local currency like the Mexican peso,” said Rickards.
Find the full article here.
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