From: To: [email protected] Subject: Re: SDR Date: Thu, 24 Feb 2011 20:49:45 +0000 I can't tell if you are asking a question (your note below) because you want to read some / want me to send or if you are making more a declaration. The question mark at the end threw me off. My concern with reading the IMF documentation is that they are the only game in town (monopoly) so the literature will stop short of the information actually needed. Gates Special Drawing Rights (GSDR) is a very interesting concept. The proposed GSDR would support a fixed exchange rate system, based on either (1) a basket of participating country currency reserve benchmarks (2) the value of the foundation endowment or (3) something else? The foundation endowment is only about $30B which is a tiny fraction of aid, and could not be used to purchase currency in foreign exchange markets (as required to maintain its exchange rate) without risking the programmatic investments and outcomes of the foundation. There are 2 other problems with an endowment focused SDR — first, the funds are not freely usable since many are tied up in equities or otherwise committed and second, this close link would allow potential claims against the foundation. Seems like for prudent risk sharing and a shot at sustainability you'd need at a minimum, three key reserve assets (early attempts at SDR using only gold and the USD didn't support expansion of world trade and financial development/globalization) with a direct link to entities that had a long term commitment to the issue. The USD will implode soon with the deficit (Triffin dilemma) and any invitation to the yuan might/will upset world order, xie xie. So, avoid those. Rather than create a whole new "currency" and commit to a long-term tool/instrument that will likely be outdated and outmaneuvered within a few years why not switch to something related but different? I see two paths — the first being something like a Short-Term SDR (STSDR) tha