by James Rickards
Daily Reckoning
This world money has existed for some time, but it’s about to become a lot more important.
In 1944, John Maynard Keynes proposed a form of world money, which he called the “bancor,” at the Bretton Woods international monetary conference.
In 1961, Nobel Prize winner Robert Mundell said, “the optimum currency area is the world,” laying the theoretical foundation for world money in his classic article “A Theory of Optimum Currency Areas.”
In March of 2009, U.S. Treasury Secretary Timothy Geithner supported greater issuance of Special Drawing Rights (SDR’s) at the depths of the financial crisis.
And as recently as October 2015, the former undersecretary general for economic and social affairs (ECOSOC) of the United Nations, José Antonio Ocampo, wrote an Op-Ed calling for new issues of SDRs with a disproportionate share going to emerging markets.
The list of prominent international monetary elites calling for greater use of SDRs as world money keeps growing. It’s critical you to understand this new trend.