The global credit crunch has some serious global effects brewing.This Op-Ed piece in the New York Times describes the financial behind the scenes dealings of the World Bank and how it works to assist developing nations with their currency and finances.
There’s something they mention called “Special Drawing Rights” which is in effect, a global shadow currency maintained by the world bank, which is pegged to a basket of other currencies (Dollar, Yen, Pound) and it is how the World Bank can actually act like the Fed does in the US and roll the presses, inflate the money supply, as a means of easing debt burdens in the 3rd world.
Ok, lot to swallow, but with any luck, those in charge of handling these issues will act appropriately.If you start to see financial chaos in the developing world . . . .at least you’ll have an idea of what the World Bank does!
