The dollar regime’s backing of Chinese proposals for the gradual development of a global reserve currency based on the IMF’s Special Drawing Rights has stunned global markets. (1)

The reason why the regime is backing the proposal is that the regime fears FreeGold as the universal standard of value.

Hence, the regime is amenable to accepting SDRs, the regime is amenable to accepting PaperGold.

In that way, the regime is hoping to prevent FreeGold from arising.

Hence, the British leg of the regime is now touring world so-called leaders to convince them to reject FreeGold at their London 2 April  G20 Summit.

As this writer explained in his “FreeGold versus IMF”-paper which he submitted, but did not present, to the GCC Currency Forum 2008, held in Dubai on 15 June 2008 (2)
http://bphouse.com/honest_money/freegold-versus-imf/ :
SNIP

The goal of IMF was to supervise the Bretton Woods system which linked the US dollar to Gold and all other currencies to the said dollar.

The US dollar was linked to Gold.
The value of the US dollar could thus be derived from Gold.
The dollar was a Gold derivative.

The international supply of two key reserve assets — Gold and the US dollar — proved inadequate for supporting the expansion of world trade and financial development that was taking place. Therefore Special Drawing Rights (SDRs) were created in 1969, says the IMF. [3]

An SDR is a potential claim on the freely usable currencies of IMF members. It is neither a currency, nor a claim on the IMF. SDRs are defined in terms of a basket of major currencies used in international trade and finance. At present, the currencies in the basket are the euro, the pound sterling, the Japanese yen and the United States dollar.

SDRs are PAPER GOLD. They eliminate the logistical and security problems of shipping Gold back and forth across borders to settle national accounts.
A few countries peg their currencies against SDRs, [… but …], the euro is displacing the SDR as a basis to set values of various currencies, continues Wikipedia. [4]

On 15 August 1971, that is, two years only after the introduction of SDRs, US President Richard Nixon broke the Bretton Woods system. He closed the Gold window, making the dollar inconvertible to gold directly, except on the open market.

UNSNIP

Ivo Cerckel
ivocerckel@siquijor.ws

(1)
US backing for world currency stuns markets
US Treasury Secretary Tim Geithner shocked global markets by revealing that Washington is “quite open” to Chinese proposals for the gradual development of a global reserve currency run by the International Monetary Fund.
By Ambrose Evans-Pritchard
Last Updated: 8:18AM GMT 26 Mar 2009
http://www.telegraph.co.uk/finance/economics/5050407/US-backing-for-world-currency-stuns-markets.html

(2)
GCC is the Gulf Co-operation Council.
Yes, IMF is the International Monetary Fund,
G20 the Group of 20 Leviathans
and Tim Geithner is the secretary of the US of A treasury.

[3]
A Factsheet - April 2008
Special Drawing Rights (SDRs)
http://www.imf.org/external/np/exr/facts/sdr.htm

[4]
Special Drawing Rights
From Wikipedia, the free encyclopedia
http://en.wikipedia.org/wiki/Special_Drawing_Rights