Incrementum

Recently we have met with some very smart guys working for Incrementum, an asset manager from Liechtenstein, the fake Kingdom with the same business model as neighboring Switzerland. Of course we gave them a few copies of The Big Reset. And guess what? In their latest research report (92-pages) they published this conclusion focussing on the possible use of the IMF’s Special Drawing Rights (SDR) to replace the US dollar;

The next big crisis could lead to a realignment of the global monetary order. Most of the proposals concerning the use of special drawing rights appear not very sensible from an “Austrian” perspective, as a global institutionalized fiat money cannot avoid the system-immanent problems of the debt money system as such. Special drawing rights are derivatives of derivatives, insofar it seems doubtful whether such an instrument would generate much confidence. One should nevertheless not underestimate the political will behind such proposals. An expansion of special drawing rights and the transformation of the IMF into a global central bank would not only agree with the mentality of the central economic planners in both East and West, but would from their perspective also have the advantage that governments could continue to finance various projects via a hidden inflation tax. The tongue twister “special drawing right” moreover sounds a lot more pleasant than the term “currency reform” and yet could amount to one arriving through the back door. It would also be politically attractive because in the event of rapidly rising inflation, no one could really be made responsible, as the IMF is similarly intangible to most people as terms such as QE, LTRO or OMT.