perhaps simon can clear this up, but not according to the Treasury:

“…SDR certificates are not connected to gold or to the IMF. The Secretary of the Treasury is legally authorized to issue SDR certificates to the Federal Reserve banks and to redeem the certificates at times and in amounts that the Secretary of the Treasury may determine. This operation involves only the Treasury and the Federal Reserve….” http://www.ustreas.gov/education/faq/international/goldsilver.shtml

although no one seems to have told the Kremlin:

“The Kremlin published its priorities Monday for an upcoming meeting of the G20, calling for the creation of a supranational reserve currency to be issued by international institutions as part of a reform of the global financial system. The International Monetary Fund should investigate the possible creation of a new reserve currency, widening the list of reserve currencies or using its already existing Special Drawing Rights, or SDRs, as a “superreserve currency accepted by the whole of the international community,” the Kremlin said in a statement issued on its web site. The SDR is an international reserve asset, created by the IMF in 1969 to supplement the existing official reserves of member countries. The Kremlin has persistently criticized the dollar’s status as the dominant global reserve currency and has lowered its own dollar holdings in the last few years. Both President Dmitry Medvedev and Prime Minister Vladimir Putin have repeatedly called for the ruble to be used as a regional reserve currency, although the idea has received little support outside of Russia…” http://www.moscowtimes.ru/article/600/42/375364.htm

If you accept some of his admittedly assumption laden arguments, it is easy to recognise that this period of crisis is typical of a “crisis cycle”.

The integrative elements that influence individual human behaviour – eg as the desire to belong/conform to the group – have been challenged by the shock to the collective belief system. People are defensive and accusatory… but seems natural given most people’s aversion to blaming themeselves.

The reality is probably along the lines of George Soros idea of reflexivity. As participants in the system, many of us are probably at least in some part responsible for helping to reinforce the attitudes/behaviour that have lead us here.

Crowd psychology suggests that these integrative or positive-feedback tendencies are likely to continue to be perpetuated given the need for conformity/acquiesence associated with a smooth social order.

Judging by actions and results so far, doing nothing may have been better than the ad hoc positions changing every day which are being portrayed as policy.

simon,,,this quote from you says it all..bet bush facilitated…i don’t think alot of people in this country really understand the negative impact (seriously) the bush admin had on our country to the europeans. the europeans went alng with bush just like two passing people telling each other to have agreat day. the bush and folk tarnished this country something fierce.i am ashamed to say that he was our leader for eight years. these europeans look at our voting results. we pretty much are split with ideologies. but moving more center left but is it soon enough?don’t be too hard on the europeans. they are just playing the waiting game. we need them and they need us. no more want to be cowboys ok with our presidents?i cannot stress enough the pure hell the bush years brought upon us. the europeans just want to make sure the see what this country actually believes in.

Unreal.