Special Scamming Rights?

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An "irate taxpayer and emerging markets hedge fund manager" points out that, as currently proposed, the Special Drawing Rights option to the U.S. Dollar as a reserve currency has all the texture and stickiness of a redistribution scam. He points out:

Basically, it is money-printing on a global scale, with the fruits being shared among all members of the IMF, including some of the world's most noxious regimes. Of course, the SDR consists only of USD, GBP, EUR, and JPY, so you can see whose citizens bear the cost and their currencies get diluted as the crap countries cash in their shiny, new SDRs. For example, international financial scofflaw Argentina gets over $2 billion worth of SDRs. The Nigerians, whose email scammers will surely now start dangling SDR-related propositions to already-fleeced Americans, will get a similar amount. Syria gets $350 million, perhaps some of that will go to protect Hezbollah from a painful devaluation that would push up the local currency price of Cemtex.

We aren't quite this caustic in our assessment of the SDR scheme (we mean this in the British sense of the word) but the points are not lost on us. Certainly, now that the United States is somewhat dazed by the present crisis, economic heel-nipping is easy. Let's just hope that some misplaced "capitalist guilt" doesn't cause this Administration, or the next, to buy into what amounts to a redistribution scheme.

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