The world’s top financial watchdog has uncovered $14 trillion of global dollar debt hidden in derivatives and swap contracts, a startling sum that doubles the underlying levels of offshore dollar credit in the international system.
The scale of this lending greatly increases the risk of a future funding crisis if inflation ever forces the US Federal Reserve to tighten hard, draining worldwide liquidity and potentially triggering a dollar surge.
ITM Trading’s Lynette Zang Talks about shift away from the US dollar to the SDR as the global unit of account began back in May 2017. This shift is being ushered in and supported by China as power also shifts from the West to the East. The tool being used is the ACC (Asset Collection Chain), which digitizes tangible asset ownership into a tradable SDR. I consider this the most important event to date. Here is a link to the slides and information contained in Lynette’s presentation: http://bit.ly/2hM0Tyy