IMF Silently Creates New Money Layer, Why You Need to Leave the Banks: Willem Middelkoop

[Music] hi this is daniela cambone and welcome to this very special edition of stansberryinvestor.com we have a fantastic guest for you today uh we are talking about the imf's special drawing rights the international reserve asset created in 1969 to prepare for a new dollar crisis well my guest today says it is undergoing a renaissance with important uh worldwide repercussions please welcome back to the show uh willam middle cope he is the author of the big reset um and he's also the founder of the dutch based commodity discovery fund and um he is who max kaiser calls the oracle of amsterdam our last uh interview was a tremendous hit i'm glad everyone enjoyed it so welcome back willem well great to be back i received wonderful feedback i think we had 300 000 views within two weeks and uh yeah it was a great experience yeah so glad to be back well i had to bring you back because i read with great interest uh your recent article uh which is focused around the sdr and we're going to break it down for the folks at home because i understand it is a technical subject but it's an important one to understand because it's not a topic that that's covered generally in the mainstream media so let's talk about uh the special drawing rights and why it may be having a great revival here and yeah the dsdr is a bit a technical subject but it is important because um as many people who follow uh macro a little bit more know the sdr has developed was developed in the late 1960s by the imf and it was developed because the imf was afraid a dollar crisis might occur in the early 1970s and the imf was afraid for this dollar crisis because the us promised in 1944 at the bretton woods conference that the dollar would be as good as gold and more and more countries were well exchanging their surplus dollars for gold in the late 1960s and this made um the the us default on their promise uh and in august um august 15 1971 president nixon uh told um well do you ask the u.s public in a live broadcast that he would stop um the possibility to convert us dollars into physical gold and that that created a dollar crisis imf uh was afraid about of this you know this happening and they always thought that there should be a successor for the dollar there should be an international currency not connected to one country which could be developed into a world reserve currency and that that's that's the history of the ser and right now we have seen the largest ever um allocation in in sdr which you say will greatly uh improve the liquidity of many developing nations but it also signals alignment between the us and china in a key area of global monetary power so i want to understand this why you know what was the the the impetus what was the reason for the the increase was was the pandemic the justification yeah yeah um there are so many countries calling on the imf now for financial support and the imf only has um well um max 1 trillion of assets available and that's not enough to support all countries and all all countries in need so a new trick need was needed to um for the imf to be able to well to create new reserves and the imf states in one of the press releases that this new allocation of sdr is a substantial and direct liquidity boost to all member countries without adding depth burdens so it envisioned this as a new layer which has been built on top of the fiat money system so the imf can create their own assets now reserves in sdr out of thin air and can distribute this among member countries and they can add it to their balance sheet so it's a new layer of fiat money wow so it's and it's more than triple right it's like at least 500 billion yeah that's correct because um i told you that the ser was created that in the late 1960s um but ever since only two a good 200 billion sdr were created in the last 50 60 years and after the lehman crisis um it was china's wish and also the united nations wish that the imf would use its virgin balance sheet the balance sheet of the imf is very very small compared to the balance sheet of all central banks and it was china's wish and the united nations was that the imf would use its balance sheet by creating large amounts of sdr to be able to to provide liquidity for the world's financial system and um in the last 60 years only 200 billion of sdr were created and now they can create another 500 to 600 billion so the the size of all sdrs ever created is is being tripled and and it was highly political because the last administration the trump administration was very opposed to this idea and as soon as janet yellen was um installed as the secretary uh uh treasury secretary yeah and she she wrote a letter to the g20 and calling for this sdr um well solution and that's why the g20 immediately approved this and now the imf can create this amount of sdr okay so i want to i want to drill down on that point about janet yellen and why the trump administration didn't want it so this is basically from my understanding throwing a major life raft to member countries right so who so they're obviously benefiting but who loses in this who's paying the price here willem nobody and that's the great thing about this trick we build a new layer of fiat money okay which nobody loses but we create more fiat money out of thin air okay it increases the debasement of of world currency because if you look at the content of the sdr the sdr is a currency basket and in within this basket there are dollars and euro and yen and renminbi and bridge pounds so when we create more sdr we also create more of these five major currencies so it's it's another round of the basement of currencies but it it's it's in an indirect way so it's hidden why didn't the trump administration want this um i think that this has to be viewed from the um the direct conflict between the us and china and so china has been a supporter and has been very vocal in the last 12 years to use the sdr to upgrade the sdr so we can use the sdr as a successor for the dollar we can use it to price oil and gold and commodities we can use it as a unit of account and u.s of course is afraid to lose its role as as leader of the financial system so that that was behind this and um the chinese are very very happy to see that the biden administration is much softer on this and of course and this gives much more power to the imf as well because imf can can grow their balance sheet and the imf can grow towards a world central banker and this is something which is very interesting for the future because in the big reset i wrote that's a core thesis that you you'll need a central world bank uh to supply to to create enough liquidity um to to solve the problems we're all facing now this is making sense to me now is was the 500 billion just unleashed or is it unleashed in phases where are we at in the okay this just in one day it's created and it's added to the accounts of all member countries so when are these repercussions felt okay because if there's a debasement of currencies when do we see this translated onto you know competing currencies um like gold silver the crypto currencies would they would this not bode well for other assets well we talk about this now but there are many very smart insiders in this financial system who understand this and are acting uh on on these developments so if you are if you will ask me why are stock markets going up every day why is bitcoin going up every day i'll point out that the debasement of currencies is ongoing and more and more more and more of the smart money uh we see that here in our office and in the netherlands as well the inflows into our fund have increased by 5x 10x because people understand you need to move money now away from um from bank accounts and and you you need to get out of the system if that's well yeah you you need to leave the paper assets and go to the hard assets and coin is a digital hard asset so that explains the um the run to bitcoin as well so with this information you have william and as an investor yourself are you totally out of cash uh yeah as a fund we have always very limited cash i personally i was always advising people to keep 25 of their assets uh very liquid in cash uh but i've been advising people to to at least use uh 30 to 50 percent of these um cash holdings um to put them into uh bitcoin or or or buy more of uh gold and silver physical holdings and and like we were talking offline and william will come back for an in-depth gold and silver talk but you know i can't help but go there right now um because you know as i've brought up in the past gold has been in a corrective phase since since august here willem so uh do you think as we're about to well we've just started spring but you know summertime tends to be a good time for gold do you think we could see it re-test um highs again this summer and on the news of this sdr you know when will that kind of show up in the price of gold yeah i always show our investors a presentation or a piece of research of bank of america from last year and bank of america was they expected a gold to reach 3 000 within 18 months this was published in the summer of 2020. we've had a long technical correction in in gold started in august early august gdx is down over 35 percent fortunately our fund is still up a bit uh because we are diversified we don't we're not only investing in precious metals but once this correction is over i think we're in a very very last phase it could be over next week or in the next few weeks and once we'll have a breakout in the presidential space i expect gold to return towards 2000 quite fast like we've seen with bitcoin after bitcoin broke the downtrend and we had a huge run um you could expect something similar in gold especially in silver because of the ongoing silver short squeeze there's a very very delicate situation in silver markets now and i would be surprised when gold goes over 2000 later this year or next year we could have this run towards 25 2 500 or even 3 000 like the banks of america expects uh well let's just give the folks a sneak peek because we will be talking about the silver squeeze and what that will do the price and you know there's this debate now you know silver can't be squeezed silver can be squeezed um i'm pretty sure i know which camp you fall fall on but if you could just tease a bit of what we'll be talking about here well i always um listen very well to uh my mentor and that's eric sprout and eric sprout um the canadian investor well-known canadian billionaire and he retired now but he's still quite active and he always said once the paper silver system breaks down um you will see a run towards 100 silver within a very short time it's very explosive situation has been there for years you it will always take a little longer but once it fails it will it will run a little faster well i can't wait for that episode so um we'll get you booked up to tape that next uh but thank you so much for joining me today i definitely learned a lot thank you for breaking down the sdr for us and it's it's significant and why it's really having a renaissance moment here uh william middlecop always a pleasure speaking with you thank you thank you thank you and thank you for watching this edition of stansberryinvestor.com we'll have much more for you so in the meantime share us where you watch it that's it for me i'm dingalicombone you

Channel: Stansberry Research

Views: 754,498

Rating: 4.8959737 out of 5

Keywords: Stansberry Research, Stansberry, Best Stocks to Buy, Best Investing Strategy, How to Beat the Market, Best Investing Tips, Invest, Investing, Investor, Individual Investor, Best Stock Market Secrets, Investment Research, Wall Street, Stocks, Best Stocks 2021, Best Gold Stocks, How to Buy Gold, How to Invest in Bitcoin, Best Cryptocurrencies, Best Strategies to Beat the Market, Daniela Cambone, Willem Middelkoop

Id: CKvdPoRb_8k

Length: 14min 47sec (887 seconds)

Published: Fri Mar 26 2021

Reddit Comments

[u/Mike-Mentzer-NL]

Willem Middelkoop is boss.

[u/Mr_Argentum]

Good clip, Thank you.