Daily Digest 11/4 - G-20 To Ask IMF To Print Reserve Currency, Gold Vaults Filling Up Fast, How To Join The System D Economy

• G-20 Will Ask IMF To Print Reserve Currency
• China to Commit on Currency Flexibility: Brainard
• Chart of the Day: gold vaults filling up fast
• Gerald Celente talks to Alasdair Macleod
• MF Bankruptcy Causes Biggest Foreign Bank Liquidity Scramble To 'Fed Safety' Ever, Harbinger Of Major Eurobank Stress
• Out Of Work? Join The System D Economy
• Freddie Mac reports loss, seeks $6 billion from taxpayers
• 24 Hours at Fukushima

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Economy

G-20 Will Ask IMF To Print Reserve Currency (Ben Johnson)

World leaders may mandate the International Monetary Policy to print more of its special currency to help solve the euro zone crisis, according to several people familiar with the matter.

Asking the IMF to print more of its Special Drawing Rights, essentially an IOU that countries can exchange for cash, is one of the ways the Group of 20 industrialized and developing countries is considering supplementing European efforts to stem a debt crisis threatening to spark a global financial meltdown and another recession.

China to Commit on Currency Flexibility: Brainard (pinecarr)

Chinese President Hu Jintao called for reform of the international monetary system to be advanced “in a steady manner,” according to the text of remarks he made to French President Nicolas Sarkozy at the G-20 meeting.

Measures should include changes to “expand the use of” the special drawing rights of the International Monetary Fund, “reform the SDR currency basket and build an international reserve currency system with stable value, rule-based issuance and manageable supply,” Hu said, according to the text distributed to reporters in Cannes.

Chart of the Day: gold vaults filling up fast (ScubaRoo)

It’s to vaults owned by custodians such as HSBC that gold is taken when investors buy shares in physically backed ETFs (exchange traded funds). Bars are also removed when holdings are sold, but recently the traffic has been going decidedly in one direction – as has the value of the ETFs.

Gerald Celente talks to Alasdair Macleod (adam)

They talk about the role of fiat money in creating our economic problems. Gerald Celente explains that he has been looking at gold since the beginning of the bull market, he missed the low of 250$ per ounce by only 25$. They talk about 1987, the bubble of the 1990s and the money printing that caused it. They talk about the lowering of interest rates after 2001. Gerald calls it cheap money: ‘the more you print the cheaper it gets’. He says that digital dollars are not worth the paper that they are not printed on. They talk about the panic of 2008 and how every central bank started printing massively to “keep the Ponzi scheme going”.

MF Bankruptcy Causes Biggest Foreign Bank Liquidity Scramble To 'Fed Safety' Ever, Harbinger Of Major Eurobank Stress (pinecarr)

In the just released H.4.1 update, foreign Reverse Repos with the Fed soared from $81.3 billion to $124.5 billion, the most ever, and a weekly surge of $43.2 billion, the second largest ever, second only to the Lehman collapse.

Out Of Work? Join The System D Economy (Coley H.)

Where are the System D’ers? Turns out they’re everywhere. Next time you’re in a cab, watch your driver. Is he on his cell phone talking in his native tongue? If so, he’s probably part of the System D economy. As I wrote about here, most cabbies (especially immigrants) aren’t simply driving passengers to and fro. They are also on the phone to their contacts in Nigeria negotiating palm oil imports. They are finalizing logistics to ship containers of used clothing from the U.S. to Ethiopia. Some are running nightclubs or restaurants on the side or even negotiating lease arrangements with prospective tenants for the apartment buildings they own (No, I’m not kidding… On my last trip to the states, I talked to a cabbie from Ethiopia who owned 32 apartment units).

Freddie Mac reports loss, seeks $6 billion from taxpayers (Phil F.)

Despite income of $4.6 billion, the company registered a net worth deficit of $6.0 billion, which was partly attributed to a $1.6 billion quarterly dividend payment to the Treasury.

“The weak labor market and fragile economy continue to weigh heavily on the single-family market, causing many potential buyers to sit on the sidelines or opt to rent despite high affordability and record low mortgage rates,” Chief Executive Officer Charles E. Haldeman said in a statement.

Environment

24 Hours at Fukushima (JRB)

A blow-by-blow account of the worst nuclear accident since Chernobyl.

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