The Daily Reckoning Presents… March 28, 2015 Archives | Unsubscribe China Applies to the SDR Club China sends in it's application to join the SDR... This week's five recommended reads from Bill Bonner… Jim Rickards… Byron King… and Jody Chudley... Then, Dr. Ron Paul surveys the fighting taking place in Yemen and leans forward to hint at the bigger war that could unfold as a result... Do You Own Any of These 19 Investments? A former Wall Street "insider" says we are mere weeks away from a critical market event... One that could hurt baby boomers and retirees right where they thought their money was safest. Click here to discover the 19 specific types of investments he thinks could tank in April 2015. Baltimore, Maryland March 28, 2015 Dear Reader, "Think of this new China-IMF agreement as part of China's membership application to join the SDR club later this year." For background, the SDR stands for Special Drawing Right. Jim Rickards' describes it as a kind of "world money" controlled by the International Monetary Fund (IMF). China has been jockeying to have the Yuan counted among the basket of currencies of the world that comprise it. The agreement Rickards was referring to above, was summarized in a press release on the IMF's website yesterday: A new initiative launched this week marks an important milestone in the area of technical cooperation and training between the International Monetary Fund (IMF) and the Chinese Ministry of Finance in support of a comprehensive package of reforms. These reforms, outlined by the Chinese authorities in 2013, aim at fundamentally modernizing Chinese fiscal institutions. During her recent visit to China, Ms. Christine Lagarde, IMF Managing Director, and China's Finance Minister Lou Jiwei signed a Memorandum of Understanding on March 23 to intensify the ongoing IMF support for China's fiscal reforms. The three-year agreement plans to increase cooperation to help strengthen China's fiscal institutions and capacity in a number of areas, including in developing a medium-term expenditure framework, modernizing government accounting, strengthening local government finance, designing tax policy reforms, and identifying options for pension and health care reforms. "SDR induction" adds MarketWatch, "might well boost demand for the Chinese unit. Some economists see it as likely to lift the yuan's value further against the dollar…" Or, as a senior Chinese finance official said earlier this month, "Including the yuan in the SDR system would allow the IMF to recognize the ascent of the world's second-biggest economy while aiding China's attempts to diminish the dollar's dominance in global trade and finance." We'll keep you updated on the developments as the clock ticks down… Enjoy your weekend, Peter Coyne for The Daily Reckoning P.S. You'll find this week's recommended reads, including Dr. Ron Paul's opinion on happenings in Yemen, below. Please read on... Six Investment Opportunities Obama and the IRS Can't Touch The only sure things in life are death and taxes. But taxes don't apply to these six investment opportunities. Which makes them so famous among the elite. But you don't have to be rich to become rich. Learn more about the things Obama and the IRS can't touch by clicking here. This Week's Must-Reads Featured on Dailyreckoning.com… 1) Bill Bonner writes with his mouth wide open… staggered by the shabby immensity of it… a tear forming in the corner of his eye. Yes, he examined how the US economy, money and government have changed since President Nixon ended the gold-backed monetary system in 1971. Click here to read "Platitudes, Hypocrisies and 'Pimpocracy.'" 2) On Tuesday, we republished Jim Rickards "6 Major Flaws in the Fed's Economic Models." 3) Last week, the Senate Energy and Natural Resources Committee debated repealing the 40-year-old ban on the U.S. exporting crude oil. Byron King explains why, contrary to popular opinion, such a move would benefit you at the pump. Click here to read on. 4) Then, after you finish Byron's essay, his colleague, Jody Chudley, covers the opposite opinion -- that the U.S. should import oil -- and highlights three refiners for your consideration, right here. 5) Dr. Ron Paul, writing at the Ron Paul Institute for Peace and Prosperity (highly recommended), surveys the fighting taking place in Yemen. We've republished his essay in full for your consideration, below... Prediction: Largest Economic Opportunity of the 21st Century It's only about the size of a small coffee pot.. But one expert calls it the "largest economic opportunity of the 21st century." It's already being used to partially power Google, Wal-Mart, FedEx and Bank of America. And guess what? The company that makes it could become one of the most valuable in the world. And hardly anybody knows about it. But here's the best part -- you can own a piece right now for only about 21 cents. CLICK HERE NOW for all the details. Yemen Exploding: Is the Stage Set for the Big War? by Ron Paul Rapid changes are occurring in Yemen. Ever since United States had to leave its military base there, other powers have been lining up to benefit from the chaos. It has been revealed that Saudi Arabia has commenced bombing targets in Yemen. Egypt has announced its support for the Saudi effort. I am quite confident that this support is in compliance with our instructions to our puppet leader now in charge in Egypt. The current president of Yemen, Hadi, a leader who took over after the Arab Spring revolution, has been removed from power. He is said to have escaped to Saudi Arabia, and those who are now in charge in Yemen will most likely kill him if he returns. Yemen has been instrumental in the US effort to fight al-Qaeda in the region. Unsuccessfully, I might add. The Houthis who have deposed Hadi are said to get their support from Iran and are now likely the strongest political force in the country. But they will not have an easy time of it. Too much is at stake for the United States and Saudi Arabia. We don't read much about the Saudi Air Force being involved in military conflict, but the seriousness of the situation has prompted them to do exactly that. There are also reports that 150,000 or more troops are massed near the borders of Yemen for a probable invasion. It is assumed that other Arab nations will be involved, along with Egypt. One report said that it appears the country is "sliding toward a civil war." There are reports that 150,000 or more troops are massed near the borders of Yemen for a probable invasion. I would suggest that it's past sliding toward the civil war, and, rather, is involved deeply in a civil war that is now spreading outside its own borders. The neoconservatives, I am sure, will blame everything on Iran. And it's likely Iran may have been involved in giving some type of support to the Shia that now are on the verge of taking over the country. But one must ask, "How does this compare to the support the United States has given to over 100 countries in recent years, with a major portion going to the Middle East?" There's a big difference between a country becoming involved in a crisis next door and a country getting involved 6000 miles away. It looks like the former president, Ali Abdullah Saleh, a military dictator who was deposed in the Arab Spring revolution, is now aligned with the Shia Houthis who are supported by Iran. This will not be tolerated by the United States, and we can expect the US to provide indirect military assistance to those who are prepared to invade Yemen and install a US friendly dictator. Foreign forces' bombs and occupation will serve to unify the citizens of Yemen despite their other differences. As a matter of fact, it's been our presence in this country for more than a decade that has been an aggravating factor. The fact that al-Qaeda type rebel forces have done well in the various countries in recent years is because they gain support from the local people with the promise that the foreign invaders will be expelled. The more we or any other nation try to subdue a foreign country, the stronger the opposition becomes. This certainly is true when it comes to the type of support that the people give, tacit or otherwise, to the very ruthless ISIS forces. It amazes me how these ragtag rebels can out-fight and outfox various countries whose forces are larger and better armed. The so-called rebels find that their promise to expel the invaders is a strong motivating factor to gain support for the military resistance. The catch-22 is that the more we or any other nation try to subdue a foreign country, the stronger the opposition becomes. This new expansion of the war in Yemen is a bad sign. The situation could easily worsen, involve many countries, and last for a long time to come. The stage for the "Big War" may well be set and we will be hearing a lot more about Yemen and the Arabian Peninsula in the coming months. If this war gets out of hand, I would expect that the benefits of $45 per barrel of oil will soon end. There is no doubt in my mind that the American people — financially and for security reasons — would be better served if we just came home and avoided these nonsensical military interventions that are carried out in behalf of various special interests that control our foreign policy. Regards, Ron Paul for The Daily Reckoning Dr. Ron Paul is a former member of Congress and the author of The Revolution: A Manifesto, End The Fed, Liberty Defined, Farewell to Congress, and The School Revolution. BE SURE TO ADD dr@dailyreckoning.com to your address book. Additional Articles & Commentary: Join the conversation! Follow us on social media: The Daily Reckoning is committed to protecting and respecting your privacy. We do not rent or share your email address. By submitting your email address, you consent to Agora Financial delivering daily email issues and advertisements. To end your Daily Reckoning e-mail subscription and associated external offers sent from Daily Reckoning, feel free to click here. Please read our Privacy Statement. For any further comments or concerns please email us at dr@dailyreckoning.com. If you are you having trouble receiving your Daily Reckoning subscription, you can ensure its arrival in your mailbox by whitelisting the Daily Reckoning. © 2015 Agora Financial, LLC. 808 Saint Paul Street, Baltimore MD 21202. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. We expressly forbid our writers from having a financial interest in any security they personally recommend to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of a printed-only publication prior to following an initial recommendation. Any investments recommended in this letter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.