The SDR is an international reserve asset, created by the IMF in 1969 to supplement its member countries official reserves. Its value is based on a basket of four key international currencies, and SDRs can be exchanged for freely usable currencies. With a general SDR allocation taking effect on August 28 and a special allocation on September 9, 2009, the amount of SDRs will increase from SDR 21.4 billion to SDR 204.1 billion (currently equivalent to about $317 billion).

http://www.imf.org/external/np/exr/facts/sdr.htm

 

In heavy use for over a year now.. the BRIC's have poured money into the idea.. and for all of the American Money leaving Swiss accounts.. 3rd world / BRIC monies have poured in to average out the losses..

The Euro is up and going to climb some more..

I think everyone should get out of the Dollar and shift into the Euro.. that way I can buy dollars low and everyone can buy Euros high.. Gold is a Great play as well.. inflate it!!!

I Love it..

Be well all, JW

The Executive Board approved sales strictly limited to the gold the IMF has acquired after the Second Amendment of the Articles of Agreement in April 1978. This amounts to 12,965,649 fine troy ounces or 403.3 metric tons, which represents one-eighth of the Fund's total holdings.

The volume of gold sales approved by the Executive Board is unchanged from the proposed sales in the new income model endorsed by the Executive Board in April 2008, which was also the same volume as recommended by the Crockett Committee in its January 2007 report on the sustainable long-term financing of the IMF.

http://www.imf.org/external/np/exr/faq/goldfaqs.htm

 

Does 400 metric tons stablize pricing?

Who voted this into action?

Who does it hurt verse help?

Yeah.. we are all dumb Americans..

Once again 3rd world and BRIC's plus Oil (Mid East not Russia) do not equal lazy America.. combined..

But it is funny to watch..

JW

There are risks in everything we do. I for one, embrace the concept of allocating a portion of your assets to mantain and hold gold reserves.

But one should always consider the risks involved.

Dear Mr Workman, Welcome to Septembers issue of The Euromoney Books Outlook and Eid Mubarak! We have been busy with fulfilling an increasing demand for our project finance, derivatives and leasing titles, particularly http://ems.euromoney.com/ems/r.asp?cIndex=313376&mIndex=740344447&hurl=http%3A//www.euromoneybooks.com/product.asp%3FPositionID%3D8875%26ProductID%3D9132%26LS%3D1699 href="http://ems.euromoney.com/ems/r.asp?cIndex=323098&mIndex=757750057&hurl=http://www.euromoneybooks.com/product.asp?PositionID%3D8875%26ProductID%3D9132%26LS%3D1973" target=_blank>Infrastructure Finance: Trends and Techniques, http://ems.euromoney.com/ems/r.asp?cIndex=313376&mIndex=740344447&hurl=http%3A//www.euromoneybooks.com/product.asp%3FPositionID%3D1075411%26ProductID%3D303%26PageID%3D16025%3FLS%3D1699 href="http://ems.euromoney.com/ems/r.asp?cIndex=323098&mIndex=757750057&hurl=http://www.euromoneybooks.com/product.asp?PositionID%3D1075411%26ProductID%3D303%26PageID%3D16025%26LS%3D1973" target=_blank>Project Financing 7th edition, Derivatives: A Practitioners Guide, andhttp://ems.euromoney.com/ems/r.asp?cIndex=313376&mIndex=740344447&hurl=http%3A//www.euromoneybooks.com/product.asp%3FPositionID%3D1075396%26ProductID%3D5653%26PageID%3D16022%3FLS%3D1699 href="http://ems.euromoney.com/ems/r.asp?cIndex=323098&mIndex=757750057&hurl=http://www.euromoneybooks.com/product.asp?PositionID%3D1075396%26ProductID%3D5653%26PageID%3D16022%26LS%3D1973" target=_blank>Shipping Finance 3rd edition. We have also seen popular demand for our best-selling Evaluating & Implementing Hedge Fund Strategies, 3rd edition. Just to remind you, http://ems.euromoney.com/ems/r.asp?cIndex=313376&mIndex=740344447&hurl=http%3A//www.euromoneybooks.com/product.asp%3FPositionID%3D1075386%26ProductID%3D11091%26PageID%3D16020%3FLS%3D1699 href="http://ems.euromoney.com/ems/r.asp?cIndex=323098&mIndex=757750057&hurl=http://www.euromoneybooks.com/product.asp?PositionID%3D1075386%26ProductID%3D11091%26PageID%3D16020%26LS%3D1973" target=_blank>Encyclopedia of Islamic Finance - the definitive guide to Islamic finance was launched last month, as was Fruits of the Orchard: Endowments for Mosques and Modern Islamic Schools in the Western World our first Euromoney Books Intelligence report. To find out more about these titles and about Euromoney Books Intelligence reports, please visit our website. Our friends at Euromoney Yearbooks have just released The Airfinance Annual 2009/10 offering articles on the latest trends, developments and effects of the financial crisis on this industry, plus a unique directory of over 10000 banks, finance houses, leasing companies, consultants, brokers, legal consultants, accountants and insurance companies active in the airfinance market. Global Investor Magazine and International Securities Finance have combined to produce a new product covering everything youll need to stay on top of the business of asset management and asset servicing. Take out a https://www.globalinvestormagazine.com/FreeTrial.html?Config%3DFreeTrial%26LS%3D1973" target=_blank>FREE two week trial and get a taste of what you would receive from a full subscription. To find our more about full subscription features https://www.globalinvestormagazine.com/Subscribe.html?Config%3DSubscribe%26LS%3D1973" target=_blank>click here. Also, coming soon, our Twitter page with updates on our latest books and products. And check out my reviews on some of our best-selling titles at http://ems.euromoney.com/ems/r.asp?cIndex=313376&mIndex=740344447&hurl=http%3A//www.euromoneybooks.com/%3FLS%3D1699 href="http://ems.euromoney.com/ems/r.asp?cIndex=323098&mIndex=757750057&hurl=http://www.euromoneybooks.com/?LS%3D1973" target=_blank>euromoneybooks.com. Dont forget to check out our Online Library (OL). Use this service to do your research and compile your own reports. If you would like a quick guide on how to use this service, give Naz Siddiqui  a callon +44 (0)20 7779 7993 and hewill be happy to take you through it. Whatever you do, keep an eye on our ever-growing extensive portfolio at http://ems.euromoney.com/ems/r.asp?cIndex=313376&mIndex=740344447&hurl=http%3A//www.euromoneybooks.com/%3FLS%3D1699 href="http://ems.euromoney.com/ems/r.asp?cIndex=323098&mIndex=757750057&hurl=http://www.euromoneybooks.com/?LS%3D1973" target=_blank>euromoneybooks.com. Order online and get FREE DELIVERY or call hotline on +44 (0)20 7779 8999 to discuss how we can fulfil your knowledge requirements. Remember if you purchase 3 print titles you are eligible for a 25% discount. Before I go, here is how you can also get involved send me (sperera@euromoneybooks.com) a review of a book you have bought from us, or tell me what you think we should add to our publishing list. There are many exciting developments in the pipeline at Euromoney Books so join us again for our October update. Until then, goodbye for now.  Sanjeevi Perera Managing Editor

 

Maybe a lil reading would help all involved, JW

An inconvenient truth

The inconvenient truth, however, is that there are

likely to be extended periods when investors are not

adequately compensated for the higher risk associated

with certain asset classes, such as equities and high

yield corporate bonds. It is this fallout from the global

fi nancial crisis that poses the biggest challenge to

practitioners of modern portfolio theory. We therefore

devote the balance of this report to addressing this

subject. First we explore the continuing need for

implementing a well-defi ned investment process

which includes: a comprehensive investor risk profi le;

an appropriate strategic asset allocation benchmark

refl ective of that risk profi le; a dynamic approach

that allows for tactical biases to be incorporated into

the portfolio; an effi cient process for structuring the

portfolio holdings; and an ongoing monitoring process

which helps ensure that the portfolio remains aligned

with the original objectives.

 

Start with a disciplined

investment process

It remains our view that a structured investment

process that starts with a thorough understanding of

investors objectives and risk tolerance, and centers

on asset allocation, represents the most promising

approach. Even though the fi nancial market crisis

does highlight some steps along the way that need to

be improved, the overall approach remains sound. It

is worth noting that the dramatic impact of extreme

market events and the tendency for asset correlations

to rise during periods of stress were exacerbated

during the current crisis by increasing complacency

and declining investment discipline among investors in

the lead-up to the critical situation. For instance, it was

not unusual for investors to both reach for incremental

returns and fail to diversify beyond risky assets.

 

Periodic reassessment of risk profile

and strategic asset allocation

Academic studies have found that a vast majority of

portfolio performance is attributable to the strategic

asset allocation decision. While such studies have

occasionally been misinterpreted, Gary Brinson and

colleagues demonstrated that about 90% of the

variability of returns over time is explained by the initial

benchmark policy weightings.1, 2 It therefore appears

that for investors with longer-term horizons, the mix

of asset classes selected as the strategic allocation is

one of the most crucial elements in the investment

decision-making process. This is why so much time

is spent in the initial process of risk profiling and

choosing an appropriate strategic asset allocation

benchmark. If the initial allocation fairly refl ects the

appropriate mix of assets to meet the investors

longer-term objectives yet remains within acceptable

risk tolerance levels, much of the uncertainty from

asset/liability mismatches can be managed.

 

All Credit to UBS WMR...

http://www.ubs.com/1/e/wealthmanagement/wealth_management_research.html

 

Be well all, JW

just some parts of the markets using non-$ equivalents does not make a demise, the market for securities in $ is still to dominant, the Euro to young and not yet completely settled, it will grow and take parts of what the $ has but not all, could be the $ settles for a much lower exchange rate in the longterm

Its the biggest mystery in global finance right now: Who conducted a sneak attack on the U.S. dollar this week?

It began with a thinly sourced but highly explosive report Monday in a British newspaper: Arab oil sheiks are conspiring with the Russians and Chinese to quit using the dollar to set the value of oil trades  a direct threat to the global supremacy of the greenback.

Is it true? Everyone from the head of the Saudi central bank to U.S. officials scrambled to undercut the story, but no matter.

With the U.S. economy on the ropes and America by far the worlds biggest debtor, investors arent feeling as secure about the dollar as they used to. And the notion of second-tier economies ganging up on Uncle Sam didnt sound so far-fetched.

For American officials, the possibility of the dollar losing its long-term dominance in global commerce is a nightmare scenario because it would likely mean sharply higher interest rates at home and a declining ability to finance the U.S. debt. No one believes it could really happen right now, but stories like the British report this week make it seem incrementally more likely.

So the piece by Robert Fisk of the Independent shocked currency traders around the world and almost instantly sent the value of the U.S. dollar spiraling downward and the price of gold skyrocketing to an all-time high, as a hedge against a weakened dollar.

The website drudgereport.com quickly amplified the impact of the story with a headline atop the site: ARAB STATES LAUNCH SECRET MOVES WITH CHINA, RUSSIA, FRANCE TO STOP USING DOLLAR FOR OIL TRADING ...

You read that story, and you do two things: You sell the hell out of dollars and you buy gold, said Les Alperstein, president of the financial research firm Washington Analysis. The story has a lot of credibility, with some caveats.

So who wanted dollars diving and gold rising? In other words, who is Fisks source, and why did he or she want to tank the dollar? Its the global currency version of the old Washington parlor game of speculating on the real identity of Deep Throat.

No one knows.

But one thing is for certain: With the price of gold jumping to $1,048.20 per ounce, traders who moved early enough stood to make millions.

So in government circles in Washington, speculation immediately centered on gold traders: With the skyrocketing price of gold, theyd be the biggest beneficiaries of the article. 

Fisks story itself isnt much help in solving the mystery  it is sourced vaguely to Gulf Arab and Chinese banking sources in Hong Kong, and it included one blind quote, attributed to a prominent Hong Kong broker. That doesnt narrow down the pool very much.

The story doesnt name any officials who had allegedly participated in the secret meetings involving the Arab states. It didnt say where the meetings occurred or when. Other than saying the plan is to stop using the dollar by 2018, there was precious little detail to the account.

Around the world, traders turned to Wikipedia to find out more about Fisk himself. There, they learned that Fisk is a legendary British foreign correspondent who has been based in Beirut for more than 30 years and has won a slew of journalism awards. They also learned that he is one of only a few journalists to have interviewed Osama bin Laden (three times) and that he has expressed doubts that the United States has told the full story about the Sept. 11 attacks.

An analysts report from the Royal Bank of Scotland concluded, Fisk is a veteran of the Middle East. ... he is also increasingly associated with more radical theories thus weakening the credibility of the story.

Beyond the specifics of the story, the geopolitical implications of the report sent shudders from Riyadh to London to Washington: Has the long-dominant American economy been so humbled by the economic crisis that these nations would mount a frontal attack on the dollar, the underpinning of the worlds biggest economy?

That question is on the minds of global investors, who are keeping a skittish eye on the weakening dollar. And over the past several months there has been a steady drumbeat of Chinese, Russian and other officials who have talked openly about finding a replacement for the dollar as the global economys default currency. Any effort to do that would be fraught with difficulty. But however unlikely, the possibility represents a threat to the American economy, which has come to depend on the significant advantages it reaps from minting the currency most used around the world.

In another era, the dollar could shrug off such a vaguely sourced, thinly detailed story.

But not anymore.

The dollar is weak and vulnerable to rumor-mongering because many traders believe it will only get weaker. The fundamental reason why this occurred is that after 9.8 percent unemployment on Friday, nobody can say with certainty that the recovery is sustainable, said one analyst familiar with the situation.

In years past, when the U.S. economic dominance was more pronounced and emerging markets were marginal players in the global economy, noted an analysts report from HSBC, the debate on pricing commodities in currencies other than the [U.S. dollar] typically came down to the lack of practicality. ... Today, emerging markets are clearly wielding much more influence in the global economy, and they want more, as will be borne out in this weeks IMF meetings.

And that means U.S. officials whose job it is to defend the dollar may have their work cut out for them in the months to come.

Read More Stories from POLITICO

http://news.yahoo.com/s/politico/20091008/pl_politico/28091