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Guest Post: Doing The Global Currency Shuffle

Tyler Durden's picture




 

Submitted by Brandon Smith of Alt-Market

Doing The Global Currency Shuffle

In mainstream financial circles, the concept of a global currency is often spoken of only with an air of caution. It is approached always in hypothetical terms. It is whispered of as some far off dream; a socio-economic moon landing in the far reaches of fiscal space. Perhaps
in 2015, or 2020, or maybe 2050, but certainly never just over the
horizon, or right around the corner posing as an innocuous trade asset
created over 40 years ago and used only on rare occasions. Unfortunately,
the development of a centralized global security representing the
creation of a supranational economic body is much closer than many would
care to admit…

The most common argument made in the mainstream
against a global currency taking shape is the argument that no other
currency in the world today has the strength or widespread circulation
necessary to replace the dollar as a primary reserve unit. This is true, if, you only look at separate currencies, and not the big picture. The
reality is, central banks and the IMF have no intention of replacing
one national currency with yet another national currency as the world
reserve. What they DO intend to do, however, is replace the
dollar with a basket of national currencies linked together and
homogenized under a single unit. This has been openly
announced by the IMF for months, and Dominique Strauss-Kahn even
produced a press release explaining the plan (this was before he
apparently watched ‘Maid in Manhattan’ 57 times in a row then allegedly
tried to “romance” a cleaning lady, which of course landed him in
court):

http://www.imf.org/external/np/speeches/2011/021011.htm

The G20 has also raised discussion of a global currency and a greater oversight role for the IMF on a number of occasions:

http://www.themoscowtimes.com/business/article/at-g20-kremlin-to-pitch-new-currency/375364.html

http://www.asianews.it/news-en/Sarkozy-in-favour-of-an-international-currency-of-reference-21179.html

A more in-depth look at the IMF plan for the SDR
can be seen in a white paper released at the beginning of this year
entitled “Enhancing International Monetary Stability – A Role For The
SDR?”:

http://www.imf.org/external/np/pp/eng/2011/010711.pdf

A global currency, or at least the
foundation for one, already exists in the form of “Special Drawing
Rights” (SDR’s), created by the IMF in 1969 as paper collateral used to
replace gold as the primary means of international trade between
governments and central banks without the need for Forex exchanges. That is to say, the SDR was used as a tool for displacing the strength of gold. Today,
the asset has morphed into a trade mechanism representing a basket of
currencies, and, a tool to displace the U.S. dollar as the world reserve
currency.

Skeptics will argue that the SDR is a “long way”
from being ready to unseat the dollar, but, these economists and pundits
rarely consider that the financial circumstances of markets today could
quickly change tomorrow. Yes, by the standards of this
very moment, a move to elevate the SDR to reserve status is impractical,
mainly, because the dollar is still clinging to its relative value and
widespread use. This will not be the case for much longer.

Over the past month, the “big three” ratings
agencies; Moody’s, Fitch, and S&P, have suddenly decided to do the
job they should have been doing years ago, and have begun a wild roller
coaster ride of credit downgrades for countries with immense Debt-to-GDP
ratios. Greece has been junked. Ireland has been junked. Portugal has been hit. Spain has been hit, and is ready for yet another downgrade. Italy is on the chopping block. Finally,
even the U.S. is near losing its AAA status as S&P has announced it
will decide within the next month whether a downgrade of our rating
will soon be necessary.

The most important aspect of the S&P
announcement is their statement that the downgrade is NOT about the
impending debt ceiling decision, but America’s overall creditworthiness
and our lack of ability to maintain our current spending and
inflationary habits. That is to say, even if the debt
ceiling is raised, as all the Keynesians are clamoring for, we could
still lose our top credit rating:

http://market-ticker.org/akcs-www?singlepost=2623832

This storm of downgrades after years of inaction by ratings agencies, in my view, is simply not a coincidence. The
fact that Ben Bernanke has admitted that QE3 is on the table as well
after the Fed denied any need for more stimulus only two months ago is
also highly suspicious (though he tried to take back the statement later
after a thorough grilling from Ron Paul):

http://www.businessinsider.com/black-and-white-and-red-all-over-2011-7

The bottom line is that if the ceiling is raised, the Fed is ready to print the dollar into an early grave. If the ceiling is frozen in place, America defaults on its debts and its credit rating evaporates. Either way, the dollar will inevitably lose its world reserve status. Enter the SDR…

What we are witnessing is a careful and deliberate
“shuffle” of economic circumstances towards a financial and political
environment more receptive to a global currency. Or, indeed, a public so desperate for stability as to have no other choice but a global currency. Here
are some of the steps that will likely take place and in certain cases
must take place before the SDR is able to fulfill the role the IMF
intends. Many of these steps are already being implemented as this is written:

1) The IMF Must Increase Circulation Of SDR’s

The normal restrictions on SDR printing were
removed in 2008 by the IMF just as the credit crisis began to take shape
under the guise of “producing more liquidity”. SDR’s can now be created in unlimited numbers. Allocations of SDR’s by IMF member countries leaped in 2008 to 2009. America’s holdings of SDR’s grew from 21 billion to 203 billion in the span of a single year:

http://www.imf.org/external/np/fin/tad/extsdr1.aspx

Using the “SDR Department”, the IMF has also been
issuing SDR’s to emerging market countries and needy nations off the
books, at the expense of the American taxpayer! Rich
countries like the U.S. pay into the SDR Department program which is
supposedly designed to redistribute “foreign aid” to poorer countries as
low interest loans denominated in SDR’s. These loans show up nowhere on our Federal Budget:

http://www.house.gov/jec/imf/sdrdept.pdf

In 2004, the cost of paying into this program was around $5 Billion a year, but this has surely been expanded since. Finding accurate numbers on current U.S. loans through the hidden SDR Department program has proven difficult, to say the least…

The point of all this? The SDR is being widely circulated under various operations, some of them public, some of them not so public.

2) Standardized Exchange Tables For The SDR Must Be Put In Place

The IMF now releases daily conversion and exchange tables to SDR’s for almost every other currency on the planet:

http://www.imf.org/external/np/fin/data/rms_five.aspx

One important aspect of SDR conversion to take note
of is that the currencies most highly valued on global forex markets,
and the SDR table, are the Bahraini Dinar, and the Kuwaiti Dinar. The
Bahraini Dinar is pegged directly to the SDR basket, while the Kuwaiti
Dinar is pegged to “an undisclosed basket of currencies” (probably the
SDR). The dollar, on the other hand, is relatively weak in
comparison when converting to SDR’s, even though most of the IMF’s
funding, and thus ability to create SDR’s, comes from the U.S.

Doesn’t seem fair, does it…?

Another important fact to remember is that the IMF
admittedly sets the valuation of the SDR using factors outside of
natural supply and demand. Meaning, they have the ability to place any value they please on the SDR versus other currencies. It
is no surprise then that currencies which tie themselves to the IMF
basket and placate IMF desires are rated strong in SDR’s, and perform
well in forex markets, while the dollar, which remains (supposedly)
independent, is weak versus SDR’s. Today, one dollar is worth 62 cents in SDR’s.

3) The SDR Must Be Made Indispensable To Global Markets

The IMF has openly suggested that the SDR could be
used as an intermediary asset in volatile currency markets through what
is sometimes referred to as a “Substitution Account”. Meaning,
if China, for example, wished to dump their holdings of U.S. dollars
because they are devaluing rapidly, they could exchange those dollars
for SDR’s instead of directly converting them into another standard
currency, like Euros, or Yen. This, according to the IMF, would lessen the direct damage to the Dollar, because the SDR is partly denominated in dollars. Therefore,
as China throws out dollars in exchange for SDR’s, the value of the
American Greenback goes down, but conversely, the value of America’s SDR
holdings will go up.

This sounds like a brilliant strategy to offset sudden currency collapse. However,
it is actually a very subversive way to slowly elevate the SDR as a
world reserve currency itself, and to replace the dollar entirely, while
the IMF plays the hero. It also allows the IMF to slowly “harmonize” all the world’s currencies until there is no distinction in their value. The SDR becomes a de facto reserve unit without officially overthrowing the dollar.

If the U.S. is faced with the nightmare of having
its own currency dumped by international central banks, obviously, our
Treasury would jump at the chance to support conversion to the SDR to
lessen the damage, rather than face the full brunt of losing our reserve
status. In fact, the U.S. would have NO CHOICE but to
support the SDR and the IMF as the intermediary in all global financial
transactions, otherwise, we would face certain long term full spectrum
collapse. The only support holding up our financial system would then be our membership in the SDR basket. We would become completely dependent, and the IMF would have total centralized control over our economy.

What the IMF has done is create a potential
environment in which any country that does not participate in SDR
exchange will be left in the dust by every country that does. They have conjured an artificial economic matrix, where traditional laws of supply and demand no longer apply. A kind of “manipulated evolution” of finance. A chimera economy. They will have the power to determine the value of every currency on the planet arbitrarily using the SDR Substitution Account.

4) China Must Be Given Membership In The SDR

Right now, it appears, the only thing holding the
SDR back from its debut as a global currency asset is the inclusion of
emerging markets into the IMF basket. Talk of China joining the basket in 2015 has been floating around for the past couple years. However, I believe that the inclusion of the Chinese Yuan may come much faster than this.

New IMF Managing Director, Christine Lagarde, has
offered China a greater role in the IMF power structure, including a
post for Min Zhu, a Chinese national, as a deputy managing director:

http://www.reuters.com/article/2011/07/06/us-imf-lagarde-china-idUSTRE7655JM20110706

Lagarde and members of the G20 have also been
pressing hard for the addition of the Yuan and perhaps other currencies
into the SDR. A decision on Chinese inclusion may come as soon as this November:

http://www.emergingmarkets.org/Article/2818350/G20-presses-for-yuan-SDR-inclusion.html

http://english.capital.gr/News.asp?id=1163175

5) China Must Decouple Completely From The Dollar

One of the points of contention over Chinese inclusion in the SDR is its ties to the U.S. dollar and economy. That is to say, China would first have to decouple from the dollar, before coupling to the SDR. Its sounds like some weird parasitic experiment, and, it is.

China started taking steps to make decoupling from
the U.S. and the dollar a reality back in 2005 (which suggests
foreknowledge of collapse), when they began issuing Yuan denominated
bonds (to circulate Yuan around the world), and, when they began
converting away from an export based economy and towards a consumer
based economy. The problem is that because of the wider
circulation of Yuan, the increase in stimulus, and the Chinese refusal
(so far) to allow faster currency appreciation, China is now in the
midst of a double digit inflationary crisis (that's REAL inflation
folks, not fraudulent Chinese CPI numbers):

http://english.peopledaily.com.cn/90001/90776/90882/7432861.html

Because they have deliberately restructured towards
a consumer based economy, eventually, China will have to allow the Yuan
to increase substantially in value versus other currencies in order to
amplify the buying power of its citizens. Otherwise, they will be crushed under the weight of rising prices:

http://www.reuters.com/article/2011/06/26/us-britain-china-idUSTRE75P1V120110626

This cannot be done without a considerable dump of
their forex reserves and treasury holdings, most of which are composed
of U.S. dollars and securities. This means that in order to
counter inflation, and to be included in the SDR, China will have to
liquidate a large portion of its U.S. holdings. This would strike the American economy hard.

6) The Dollar Must Be Removed As The World Reserve Currency

All of the above factors are leading towards one obvious conclusion; the end of the dollar as a reserve currency. The
IMF will never achieve its goal of complete centralized administration
of the global economy without a common supranational currency unit. And, a supranational currency unit cannot exist while the dollar remains in its current position. Thus, for the IMF to succeed, the dollar must be removed.

The expansive debt of the U.S., the endless fiat
printing of the Federal Reserve, the Chinese adaptation away from the
dollar and towards the SDR, and the quiet spread of the SDR itself, are
all leading to this end. This does not mean, though, that the tangible version of the dollar will disappear. The
interesting thing about the SDR con game is that many Americans may
barely notice the transition of the global economy into IMF hands,
because physical dollars will likely remain. We might feel
the heartache of a devaluing monetary system, and an extremely weakened
economy, but the flow of power will be obscured for a time from those
who are unaware. In the end, all currencies will be tied to
and completely reliant on the SDR, but our Greenback funny money will
still be in our pockets. The issuance of an “SDR note” may come one day (if we allow this farce to continue), but it is not necessary. As long as every currency is required to be pegged to the SDR, the IMF will retain control.

A common assumption is that changes like these take
place in some distant future we will never witness, not right under our
noses while we sleep. The current evidence suggests,
though, that an engineered transference to a highly condensed global
economic system is underway right now, and that our country will suffer
greatly in the process. To understand the tactically
implemented disaster we are about to experience, it is vital to become
aware of the intended end result. Just as in understanding any criminal act, it is vital to first understand a criminal’s ultimate motive.

 

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Mon, 07/18/2011 - 23:18 | 1469014 Kali
Kali's picture

I hope I die before I see a global currency.  Global currency = Global central control.  Blah. F-ing geniuses.

Mon, 07/18/2011 - 23:49 | 1469089 Atomizer
Atomizer's picture

You won't see global currency. They can't manage singular currency under their very complex system of theft. No one will make it that easy for them to steal.

Mon, 07/18/2011 - 23:54 | 1469100 Kali
Kali's picture

I hope you are right.

Tue, 07/19/2011 - 00:24 | 1469170 Bananamerican
Bananamerican's picture

"The development of a centralized global security representing the creation of a supranational economic body is much closer than many would care to admit…"

relax Kali...NFW FTW

Tue, 07/19/2011 - 06:26 | 1469420 Pegasus Muse
Pegasus Muse's picture

Use honest money --- gold and silver --- and tell those lying, thieving, fraudster, scumbag bankster parasites to take their SDR's and bugger off.

Tue, 07/19/2011 - 07:35 | 1469480 SilverDOG
SilverDOG's picture

Atomizer,

  The assumption of currency management ineptitude is foolhardy. History readily shows management of currency has not changed, and those who do "manage" currency remain.

With a multi generational strategy, management succeeds every single time. Your comment is proof thereof. Unless laden with sarcasm [sarc].

Tue, 07/19/2011 - 04:14 | 1469378 zuuuueri
zuuuueri's picture

this is just one more desperate move at the end of empire. 'they' might be able to buy a very short amount of time with such a thing, but probably not, because by the time they manage to roll it out, it will already be too late to do them any good. But such a globally centralized fiat currency would indeed be one more extreme mechanism for concentrating and transferring wealth and control... problem is, there is less and less out there left to take- this is already eroding the whole system, and anything that allows the system to eat its own foundations faster... will not prolong its life. 

so, let them try, let them do it, it won't last long. Try to keep yourself and yours out of the way of the worst of it. 

So much wealth will be destroyed in these and coming years, that if you come out of it with your health, your family, and your humanity, you can count yourself rich.

Tue, 07/19/2011 - 07:56 | 1469512 Poor Grogman
Poor Grogman's picture

+1 Totally agree

Greed always destroys itself.

Mon, 07/18/2011 - 23:22 | 1469023 Big Ben
Big Ben's picture

The perfect global currency is a four letter word to economists and central bankers: GOLD.

Mon, 07/18/2011 - 23:23 | 1469027 TheBadgersSett
TheBadgersSett's picture

Thats 'Quim' to DSK.

Mon, 07/18/2011 - 23:50 | 1469092 drbower
drbower's picture

don't you think the bankstas have an answer to this?

So, thus it comes, the mark of the Beast, as prophesied in
the Bible, the book of Revelation.  No
one will be able to buy or sell without the mark, which, incidentally includes
gold and silver, to control them as well. 
Complete control. 

  MARANATHA
(translation:  even so, come quickly,
Lord Jesus).

Tue, 07/19/2011 - 00:13 | 1469146 mayhem_korner
mayhem_korner's picture

I understand and appreciate the potential correlation of the mark and a universal currency, but where does the link come from that it includes gold and silver? 

Not trying to debunk, just curious.  I study the Scriptures quite a bit.

Tue, 07/19/2011 - 01:36 | 1469281 drbower
drbower's picture

its not specifically in the bible, just an interpretation.  The verse says, no one will be able to buy our sell without the mark, and to me this means a global policing of a digital currency, with much resistance(the resistance verses are there, let me know if u need them), therefore the forcing of buying and selling only with the mark.  If interested in Revelation, an interesting book is Walid Shoebat's book GODS WAR ON TERROR

Tue, 07/19/2011 - 01:37 | 1469288 drbower
drbower's picture

OOPS HIT THE BUTTON TOO MANY TIMES

Tue, 07/19/2011 - 01:36 | 1469282 drbower
drbower's picture

its not specifically in the bible, just an interpretation.  The verse says, no one will be able to buy our sell without the mark, and to me this means a global policing of a digital currency, with much resistance(the resistance verses are there, let me know if u need them), therefore the forcing of buying and selling only with the mark.  If interested in Revelation, an interesting book is Walid Shoebat's book GODS WAR ON TERROR

Tue, 07/19/2011 - 01:36 | 1469283 drbower
drbower's picture

its not specifically in the bible, just an interpretation.  The verse says, no one will be able to buy our sell without the mark, and to me this means a global policing of a digital currency, with much resistance(the resistance verses are there, let me know if u need them), therefore the forcing of buying and selling only with the mark.  If interested in Revelation, an interesting book is Walid Shoebat's book GODS WAR ON TERROR

Tue, 07/19/2011 - 01:36 | 1469284 drbower
drbower's picture

its not specifically in the bible, just an interpretation.  The verse says, no one will be able to buy our sell without the mark, and to me this means a global policing of a digital currency, with much resistance(the resistance verses are there, let me know if u need them), therefore the forcing of buying and selling only with the mark.  If interested in Revelation, an interesting book is Walid Shoebat's book GODS WAR ON TERROR

Tue, 07/19/2011 - 01:36 | 1469285 drbower
drbower's picture

its not specifically in the bible, just an interpretation.  The verse says, no one will be able to buy our sell without the mark, and to me this means a global policing of a digital currency, with much resistance(the resistance verses are there, let me know if u need them), therefore the forcing of buying and selling only with the mark.  If interested in Revelation, an interesting book is Walid Shoebat's book GODS WAR ON TERROR

Tue, 07/19/2011 - 01:36 | 1469286 drbower
drbower's picture

its not specifically in the bible, just an interpretation.  The verse says, no one will be able to buy our sell without the mark, and to me this means a global policing of a digital currency, with much resistance(the resistance verses are there, let me know if u need them), therefore the forcing of buying and selling only with the mark.  If interested in Revelation, an interesting book is Walid Shoebat's book GODS WAR ON TERROR

Tue, 07/19/2011 - 01:36 | 1469287 drbower
drbower's picture

its not specifically in the bible, just an interpretation.  The verse says, no one will be able to buy our sell without the mark, and to me this means a global policing of a digital currency, with much resistance(the resistance verses are there, let me know if u need them), therefore the forcing of buying and selling only with the mark.  If interested in Revelation, an interesting book is Walid Shoebat's book GODS WAR ON TERROR

Tue, 07/19/2011 - 05:43 | 1469410 moonstears
moonstears's picture

Maybe Ezekiel 7:19?: loosely: "they throw gold and silver in the streets, it will not save them"

Tue, 07/19/2011 - 01:51 | 1469295 New World Chaos
New World Chaos's picture

Certainly looks like the Beast's currency is already here.  And not using it will be hard.  How will you pay your property taxes? Good luck finding some place that offers allodial title; it pretty much doesn't exist anymore because all governments want us to be serfs.  What about drivers license fees?  Are you prepared to live as motor gypsies, shooting any cop who tries to bust you for not having a drivers' license?  It's either that or regularly lose your "home".  Any way you look at it, your paths quickly lead to all out war with the Beast or a life in jail, and neither of these are good for bringing up the next generation of honest people.  This is as the Beast wants it. 

When they come to make you take the mark you can only kill the cop who is trying to force it on you.  But what to do when they do the SDR sleight of hand in the next few years?  Is it sufficient to say that you will never take the SDR or any currency backed by it in exchange for honest work?  That your religion will be to live off the Beast's dole and make an army of dole babies who you will raise honestly... or is it pretty much impossible to remain clean in this case?

What's your list of resistance verses, BTW?  Christ, I never thought I would see this in my lifetime...

Tue, 07/19/2011 - 05:07 | 1469389 zhandax
zhandax's picture

Are you prepared to live as motor gypsies, shooting any cop who tries to bust you for not having a drivers' license?

Worked for the Colombians who moved to Miami the same time I did.  They soon learned that paying them off was much simpler than shooting them and there were ancillary benefits.......

Regardless whether you have the balls to carry it out, you have to think like a predator to understand the game.

Tue, 07/19/2011 - 20:24 | 1472442 drbower
drbower's picture

i think resistance lies in timing of the rapture.  If you are a pre-tribulation viewer, all this will come after the tribulation. we all need to examine ourselves, to see if Jesus is truly our master.

Mon, 07/18/2011 - 23:50 | 1469093 drbower
drbower's picture

don't you think the bankstas have an answer to this?

So, thus it comes, the mark of the Beast, as prophesied in
the Bible, the book of Revelation.  No
one will be able to buy or sell without the mark, which, incidentally includes
gold and silver, to control them as well. 
Complete control. 

  MARANATHA
(translation:  even so, come quickly,
Lord Jesus).

Mon, 07/18/2011 - 23:54 | 1469101 Silver Shield
Silver Shield's picture

Hong Kong Metals Exchange Opens Silver Contract Friday!

http://dont-tread-on.me/hong-kong-metals-exchange-opens-silver-contract-...

Mon, 07/18/2011 - 23:26 | 1469030 KeyserSoze
KeyserSoze's picture

The currency shuffle is gonna play out much like the Truffle shuffle for the US. And it ain't gonna be pretty.

P.S. Corey Feldman = China.
Fat Kid = US Govt.

http://www.youtube.com/watch?v=t5whaRkuipU

Mon, 07/18/2011 - 23:28 | 1469037 sellstop
sellstop's picture

The chinese are trying to buy up the worlds resources before they allow their own currency to appreciate. When the rnmbi is allowed to gain traction it will place a lot more buying power in the hands of the chinese workers. The price of resources will explode. It is advantageous to them to have supplies in place before that time.

The commodity supercycle has a long way to go.

gh

Mon, 07/18/2011 - 23:30 | 1469042 sellstop
sellstop's picture

as an added note: we may think a global currency is a good idea before it is all over!!

gh

Mon, 07/18/2011 - 23:46 | 1469085 mayhem_korner
mayhem_korner's picture

Lots of things can pass for global currency.  The issue is whether or not it's centrally controlled...

Tue, 07/19/2011 - 00:25 | 1469172 Kali
Kali's picture

precisely!

Tue, 07/19/2011 - 01:41 | 1469280 i-dog
i-dog's picture

"we may think a global currency is a good idea before it is all over!!"

That's certainly the core of their strategy to achieve it ... Order out of chaos.

Ordo ab chao, bitchez! The beatings will continue until morale improves!

Tue, 07/19/2011 - 07:10 | 1469459 Tabarnaque
Tabarnaque's picture

+1

Mon, 07/18/2011 - 23:42 | 1469076 Mac1492
Mac1492's picture

i dont think the chiniese know what the fuck there doing... to many layers of beaurcrats to achive anything... they will go down in flames of civil war once a billion poor farmers wake the fuck up

Tue, 07/19/2011 - 01:49 | 1469300 i-dog
i-dog's picture

I see ... so you're expecting a billion poor chinese farmers to wake up before a billion poor European/American tax slaves wake the fuck up? Good luck with that soporific!

Mon, 07/18/2011 - 23:41 | 1469044 drbower
drbower's picture

Mon, 07/18/2011 - 23:33 | 1469049 lynnybee
lynnybee's picture

I feel trapped / like i have to run for my life .   there is nowhere to hide.  

Mon, 07/18/2011 - 23:37 | 1469065 Mac1492
Mac1492's picture

its called reality

Tue, 07/19/2011 - 00:02 | 1469110 Kali
Kali's picture

Sucks don't it?  I still think this is hell.  The good moments, fleeting and few, the bad moments, unending and many.  We are in prison.

Tue, 07/19/2011 - 00:06 | 1469123 Mac1492
Mac1492's picture

yes we are bro, we truly are...

Tue, 07/19/2011 - 00:07 | 1469125 Kali
Kali's picture

Hey Mac!  That's sis.  : )

 

Tue, 07/19/2011 - 00:14 | 1469147 Mac1492
Mac1492's picture

haha my bad

Tue, 07/19/2011 - 00:44 | 1469211 JohnG
JohnG's picture

Gold, land, diamonds, art, and even wine. In that order.

That's where.

Mine's mostly in gold.

Tue, 07/19/2011 - 00:59 | 1469231 DoChenRollingBearing
DoChenRollingBearing's picture

OK, I will not argue with that.

I have gold, land, and even wine (same order).  Some CASH FRNs as well, never know...

And survival supplies (though not enough).

See you all on the other side...

Mon, 07/18/2011 - 23:40 | 1469069 Goatboy
Goatboy's picture

I dont see anything bad in this. Maybe its because I am not from US.

Thomas Paine said: "My country is the world, and my religion is to do good."

 

I fully support his idea.

Mon, 07/18/2011 - 23:49 | 1469088 Mac1492
Mac1492's picture

well it seems humanity hasn't evolved much from when those fine words were spoken /writtine... common sense in this day and age is knowing how to milk the government 

Mon, 07/18/2011 - 23:40 | 1469073 mayhem_korner
mayhem_korner's picture

'cuz regional currency (Euro) worked so well...

I say go for it.  Full monetary centralization.  Let the creditors argue for their standing based on their "holdings," let the narcissists jockey for oversight of the NWO currency.

Then watch how quickly local trade accelerates to a decentralized, barter-based system.  Which smokes out the control-hungry kleptocrats...and we have a very "uncivil" war.

Just my two cents...

Mon, 07/18/2011 - 23:45 | 1469081 Mac1492
Mac1492's picture

try to barter with joe six pack aint gonna happen global centralization is the future like it or not 

Tue, 07/19/2011 - 00:09 | 1469130 Kali
Kali's picture

The boot stomping on your face 4 evah!

Tue, 07/19/2011 - 06:32 | 1469434 æther
æther's picture

Good reference.

Tue, 07/19/2011 - 00:14 | 1469151 mayhem_korner
mayhem_korner's picture

try to barter with joe six pack aint gonna happen

Why not?  Happens all the time now, doesn't it?

Tue, 07/19/2011 - 00:20 | 1469159 Mac1492
Mac1492's picture

how so?  you giving your mechanic a loaf of bread for an engine flush?

Tue, 07/19/2011 - 00:24 | 1469169 Mac1492
Mac1492's picture

if shit really hits the fan watch how fast grown men cry

Tue, 07/19/2011 - 00:29 | 1469178 mayhem_korner
mayhem_korner's picture

The ones holding gold, silver, sugar, coffee, food, water, fuel, wood, cigarettes, booze, shells (not pasta), seeds, vitamins, antiseptics, etc. won't be crying...

...we'll be bartering.  :D

Tue, 07/19/2011 - 00:45 | 1469191 Mac1492
Mac1492's picture

hope when push comes to shove you have the balls to protect what you got... agression and independence/self sufficiencey has been bred out of a lot of us..... im only 25 but instead of a 401k ive been buying silver eagles so yeah you got a barter partner if we get to that lol

Tue, 07/19/2011 - 01:00 | 1469234 DoChenRollingBearing
DoChenRollingBearing's picture

+ $1600 re your dialog above guys!

Tue, 07/19/2011 - 08:35 | 1469576 cgbspender
cgbspender's picture

im only 25 but instead of a 401k ive been buying silver eagles

 

I'm in the same boat. I graduated in 2009 and have been lucky enough to retain steady employment. We are faced with a daunting reality, especially those of us who are either young or late to the preparation game. I've only been stacking silver for about a year now, but it's given me an incredible peace of mind.

Long live the true seeing.

Tue, 07/19/2011 - 00:22 | 1469166 Kali
Kali's picture

j6p with brains, maybe.  Who was that couldn't get him to buy a real gold eagle for $50?  I agree, tho, barter, local currency, local control.  Although that can get scary too.  WTF.  I don't know! Can I crawl back in my hole now?

Tue, 07/19/2011 - 00:27 | 1469175 Mac1492
Mac1492's picture

kali you ever listen catherine austin fitts?.. she lays out some pretty good ideas for localized economic transactions 

Tue, 07/19/2011 - 00:37 | 1469193 Kali
Kali's picture

I do it already, have for quite awhile.  I offered my customers to pay in gold or silver.  Not one taker.  Nada, zilch.  I offered my customers to pay with barter.  Not one taker.  Zero. Zilch.  People are so full of shit.  I have seen many barter systems come and go.  The only successful ones I have seen are in very poor countries, for example, where a fisherman trades his catch to a farmer for his produce.  Although, we may all be there soon.  Just hope it doesn't turn out like "barter town" in Mad Max or Book of Eli.   : )

Tue, 07/19/2011 - 01:05 | 1469244 DoChenRollingBearing
DoChenRollingBearing's picture

So few of my friends and family are even paying attention to the possible (probable?) downside!  Only two of my friends and family own any decent amounts of non-jewelry gold and/or silver and/or platinum.

Not my fault.  I have given up on suggesting my folks buy GOLD.  If TSHTF, I will be sad as they suffer...  Maybe I will be able to help...

Tue, 07/19/2011 - 01:11 | 1469250 Kali
Kali's picture

Hear ya, I am especially cranky today, have had a sore throat and fever for a few days.  I am just sick of all of this, wish it would just happen so we can start anew after.  We aren't supposed to be living this way. Good luck to you and yours! 

Tue, 07/19/2011 - 01:16 | 1469258 Mac1492
Mac1492's picture

agree 100%

Mon, 07/18/2011 - 23:46 | 1469084 Thomas Jefferson
Thomas Jefferson's picture

US will let its nukes fly before it gives up its reserve currency.  The military industrial complex will use em or lose em.  Book it.

Mon, 07/18/2011 - 23:51 | 1469095 KeyserSoze
KeyserSoze's picture

They said EXACTLY the same about the Soviet Union, and nothing happened.

The nukes aren't gonna launch anywhere, unless the US genuinely wants to end the world.

Mon, 07/18/2011 - 23:55 | 1469103 Caviar Emptor
Caviar Emptor's picture

Has anyone seen my nukes? I left them here for just a minute

Tue, 07/19/2011 - 10:56 | 1470159 tsx500
tsx500's picture

nukes are just a tradition

Mon, 07/18/2011 - 23:47 | 1469086 kito
kito's picture

Sooooo we take a bunch of shitty currencies with no credit worthiness and wrap and bundle them together to create a new currency which somehow miraculously becomes credit worthy. Hmmmmm...sounds awfully familiar...

Mon, 07/18/2011 - 23:51 | 1469094 drbower
drbower's picture


So, thus it comes, the mark of the Beast, as prophesied in
the Bible, the book of Revelation.  No
one will be able to buy or sell without the mark, which, incidentally includes
gold and silver, to control them as well. 
Complete control. 

  MARANATHA
(translation:  even so, come quickly,
Lord Jesus).

Mon, 07/18/2011 - 23:56 | 1469096 Thurifer
Thurifer's picture

There already is a single world currency - gold.

I have always found it ironic that the people who most fear the "One World Currency" are goldbugs.

 

As we are seeing in Europe, monetary union without fiscal union is unworkable. Does anyone seriously think that is even possible on a world scale? The men behind the curtain are strong, but that would be beyond even their means, reaching their hands out to grasp it would be the final act before their fall.

Tue, 07/19/2011 - 00:08 | 1469126 drbower
drbower's picture

you are right. this is why they do baby steps at a time, wait in the background, with the smoke and mirrors, and slowly tighten the knoose.  they will succeede, who will stop them? our politicians? they can't even agree to disagree on simpe matters.  they will eventually ban gold and silver, as soon as the usa collapses, they will be able to step up and hasten their operations. we are the only force in their way, and at this point, we are not much of one.

Tue, 07/19/2011 - 00:20 | 1469161 kito
kito's picture

not ironic at all. gold, while being a currency accepted by the world, is one that is decentralized. 

Tue, 07/19/2011 - 01:18 | 1469260 DoChenRollingBearing
DoChenRollingBearing's picture

@ Thurifer,

Yes, physical gold is the world's best preserver of wealth.

Do you all have some time to see if I am right?  Read a (long and large amount) of fofoa.blogspot.com.  

FOFOA is my BEST analyst of gold.  He predicts $55,000 (maybe more) because of the complicated series of events leading to a divergence of the "paper price" of gold vs. the actual physical price of gold (available at your local coin shop for example).

fofoa.blogspot.com

Disclosure: I contribute to his blog from time to time.  I believe that he is right, that gold will reach a VERY HIGH PRICE before too long.

Disclosure: FOFOA writes better than I do...  Check him out for yourselves!

Tue, 07/19/2011 - 02:21 | 1469311 i-dog
i-dog's picture

"monetary union without fiscal union is unworkable"

They know that, too ... which is why they attempt to work on both simultaneously, but the monetary union must come first because it is easier to slide past the voters and their elected representatives.

Monetary union is not understood by most as threatening to individual sovereignty...after all, it's only money...right?

Fiscal union, on the other hand, is a lot less palatable to either the voters ("we don't want no damn foreigners telling us what to do") or their elected national representatives ("we'll be redundant!!").

The USA is a prime example of the collectivists achieving both monetary and fiscal union of 50 sovereign states---albeit with a common culture and origin, and Texans resenting having to work harder to support Californian pot smokers---while the EU is an ongoing experiment to attempt to gain fiscal union over another 50-ish sovereign states---with widely varying cultures and origins, and Germans resenting having to work harder to support Greek ouzo drinkers! I hope it fails.

The central planners will never give up trying to consolidate, and neither should freedom loving sovereign individuals give up trying to stop them!

It's good to be Pharaoh, but only one out of 7 billion will get the job.

Mon, 07/18/2011 - 23:52 | 1469097 Caviar Emptor
Caviar Emptor's picture

There will be a slowly growing chorus in favor of a global currency, because of developed world sovereign debt crises which will cascade and reverberate for years. And because someone will call the alternative system "cheating". But never underestimate the power of vested interests that benefit from "cheating". Just as democracy seemed like the logical, rational, inevitable and obvious next step to people in the 17th century, in most cases it took 3 centuries and millions of rotting corpses in prisons, gallows and on battlefields to unwind all the vested interests and really achieve the change. 

Mon, 07/18/2011 - 23:59 | 1469105 Mac1492
Mac1492's picture

we are headed towards global intergration wether we like it or not.. we have all become inter linked.. never before in humanity have people been so connected, ideas and information flow from one continnent to another in seconds. read the unibomber manifesto as fucked up as that guy was he saw how technology would be used to enslave the world 

Tue, 07/19/2011 - 00:05 | 1469119 Caviar Emptor
Caviar Emptor's picture

You may be right, but as usual the devil is in the details. As glorious as the brave new world may sound, there will always be winners and losers, or at least people who view it that way. The question people will ask themselves increasingly is: will the change be worth it, even if I don't live to see it happen? That's a tall order, and many will be against it for all sorts of reasons. But some forces win out over time if enough people feel it's right

Tue, 07/19/2011 - 00:05 | 1469121 Kali
Kali's picture

And never have we hated each other so much.  Bullshit.  I don't want to be part of the borg or any other hive.  I have free will damn it!  : )  If nothing else?

Tue, 07/19/2011 - 00:09 | 1469132 Caviar Emptor
Caviar Emptor's picture

What if everyone had an equal vote on any issue, 24/7 via implanted microchip that perfectly read your mind? 

Tue, 07/19/2011 - 00:11 | 1469140 Kali
Kali's picture

I would shoot myself. Or anyone who tried to chip me.  Democracy doesn't work.  Remember?  Welfare recipients voting to tax the productive for more bennies.  Fuck that.

Tue, 07/19/2011 - 00:14 | 1469149 Caviar Emptor
Caviar Emptor's picture

Lol. 

Tue, 07/19/2011 - 00:15 | 1469154 Mac1492
Mac1492's picture

exactly haha

Tue, 07/19/2011 - 00:18 | 1469158 Kali
Kali's picture

Mob rule, or, who "tallies" the votes?  Diebold?

Tue, 07/19/2011 - 01:26 | 1469274 DoChenRollingBearing
DoChenRollingBearing's picture

If it gets that bad, then we are off to Peru!

Where a few $1000s count in making life easier...

Who cares who is in power in a place like Peru where you have money?  Anyone in power power gives you any shi'ite, you just pay them off to go away...

Gmail me anyone (and promise you will behave) and I will send you the link to my blog (which is in may real name, that's why I am paranoid here at ZH)...

Tue, 07/19/2011 - 02:35 | 1469330 i-dog
i-dog's picture

Don't be paranoid...except of your neighbours and 'friends'.

The oligarchs only shoot whistle blowers (to remind other insiders not to blow whistles). They'll just invite the rest of us to visit Camp FEMA---if they succeed in maintaining control---and they already have all our IPs and handles mapped.

Just visiting ZH under a pseudonym is no more or less dangerous than saying what you think under your real name (except, as I said, if a neighbour sees your real name...I don't even tell my own family or close friends what my handle is on ZH).

Tue, 07/19/2011 - 02:42 | 1469335 i-dog
i-dog's picture

"I don't want to be part of the borg or any other hive.  I have free will damn it!"

That's the spirit, Kali!! Go, girl. And that's the only spirit that will defeat the globalist parasites...so, don't ever lose it. We need you...and many more like you.

Tue, 07/19/2011 - 11:37 | 1470374 vato poco
vato poco's picture

"free will", dammit? mmmmmm....probably not as much as you'd think. you've probably seen the webgem that says 'when people are free to do as they please, they tend to do what everyone else is doing'. used to work with a couple of middle-aged whitebread guys who fancied themselves 'rebels' because they drove Harleys. (like *rebels* do.) they'd do their best to strut around and be unconventional. wore do-rags. made derogatory references to 'The Man'. all that. I ended up on their bad side (eek) when I pointed out their "rebelness" was just another form on convention, enforced by a code as strict as any gray-flannel suit guy ever had to endure. "you guys can ONLY ride harleys, right? otherwise you're not a *real* biker? and you can ONLY go to sturgis on vacation, right? not vegas or cancun or disneyworld? and you HAVE TO wear jeans and leathers? no REAL biker is allowed to live to ride/ride to live by taking his riceburner to branson while wearing a tux & spats?"

they didn't like those questions much.

there's a old, wise saying that goes, "life is just like high school, only with live ammo". think back to high school. it was pretty much an iron rule that you were in one of the (surprisingly very few) cliques ride among HS: jocks, nerds, gamers, dopers, the social butterfly set, shit-kickers (in Texas, anyway), and the anti-social trench coaters/goths/emo crowd.

all following identical paths to nonconformity. just like TV and the movies taught 'em to. which makes uncle sugar's and TPTB's job o-so-much easier: domesticated feed animals MUCH easier to herd than raptors or predators.

Wed, 07/20/2011 - 04:02 | 1473031 i-dog
i-dog's picture

"think back to high school ... you were in one of the (surprisingly very few) cliques"

Not me, buddy. I'm a misfit with all collectives and move easily between them all. I was a 'dux of school' science geek who also studied languages and played all sorts of sports...and was loudly cheered by all of your groupings (to the headmaster's obvious annoyance!) when going on stage to collect each of my prizes. I suspect Kali was also a non-conformist.

Sounds to me like you have been trying to 'fit in' all your life!

Tue, 07/19/2011 - 11:38 | 1470381 vato poco
vato poco's picture

"free will", dammit? mmmmmm....probably not as much as you'd think. you've probably seen the webgem that says 'when people are free to do as they please, they tend to do what everyone else is doing'. used to work with a couple of middle-aged whitebread guys who fancied themselves 'rebels' because they drove Harleys. (like *rebels* do.) they'd do their best to strut around and be unconventional. wore do-rags. made derogatory references to 'The Man'. all that. I ended up on their bad side (eek) when I pointed out their "rebelness" was just another form on convention, enforced by a code as strict as any gray-flannel suit guy ever had to endure. "you guys can ONLY ride harleys, right? otherwise you're not a *real* biker? and you can ONLY go to sturgis on vacation, right? not vegas or cancun or disneyworld? and you HAVE TO wear jeans and leathers? no REAL biker is allowed to live to ride/ride to live by taking his riceburner to branson while wearing a tux & spats?"

they didn't like those questions much.

there's a old, wise saying that goes, "life is just like high school, only with live ammo". think back to high school. it was pretty much an iron rule that you were in one of the (surprisingly very few) cliques ride among HS: jocks, nerds, gamers, dopers, the social butterfly set, shit-kickers (in Texas, anyway), and the anti-social trench coaters/goths/emo crowd.

all following identical paths to nonconformity. just like TV and the movies taught 'em to. which makes uncle sugar's and TPTB's job o-so-much easier: domesticated feed animals MUCH easier to herd than raptors or predators.

Tue, 07/19/2011 - 00:08 | 1469127 JohnG
JohnG's picture

"The normal restrictions on SDR printing were removed in 2008 by the IMF just as the credit crisis began to take shape under the guise of “producing more liquidity”. SDR’s can now be created in unlimited numbers."

 

Global fiat currency.  That'll work!  Job well done.

Sure.

Riiiiiiiiight.

Tue, 07/19/2011 - 00:10 | 1469138 JohnG
JohnG's picture

I mean, it's worked so well before, right?

Hardly any fiat currencies have hyperinflated, no?

OK, just checking.

/sarcasifyoucanttell

 

Tue, 07/19/2011 - 00:11 | 1469139 AchtungAffen
AchtungAffen's picture

If the SDR is the bad guy then that means the USD is the good one? That's an ugly choice I may say.

I would call this SDR thing, "investment in complexity". Although I don't know what sort of return on investment this scheme may achieve. Or for how long. It seems like this would create more funny money on top of a sea of funny money. I don't know how much managment of real labour and resources you might put together with such a framework behind.

Would the adoption of the SDR as the world currency entail a subsequent, and almost immediate, total collapse in paper?

Tue, 07/19/2011 - 05:58 | 1469401 Urban Redneck
Urban Redneck's picture

Why would an SDR replace existing paper currency?  The concern isn't about global financial meltdown due to volatility or flows in M0.  The Euro was used at the "wholesale" level for cross border trade settlement before it was ever introduced in paper or electronic form to the public. 

The question is how do the bankers make bank in an SDR environment?  Currency volatility and a wide variety a paper vehicles to leverage and capture profit from that volatility are bread and butter to banks.  The devil is in the details- either the product is banker friendly or there has to battle between the bankers and politicians before the SDR is introduced.  However, given the capitalization and liquidity positions of the banks, and their forthcoming demands for more bailouts- it wouldn't take much to bundle SDR adoption as a condition of bailout # next after they get finished ironing out the details. 

Tue, 07/19/2011 - 00:12 | 1469141 essence
essence's picture

And just as at present where U.S. citizens have no voice in being forced to fund the IMF (via taxes), in this future scenario they will have no voice in IMF decisions.

An unelected bureaucracy, a quasi-public entity just like the present day Fed.
Truth be told, it's the banksters planned successor to the Fed,the ECB, the Bank of England,Bank Of Japan.

Currently, U.S. citizens wishing to open a foreign bank account are encountering the far reaching hegemony of U.S. regulations that subject said banks to sanctions unless they comply with divulging private account information. Imagine the power the IMF will have to enforce whatever suits there agenda. No financial institution   (even in far flung backwaters) would risk being disenfranchised from the all-encompassing global monetary system by failing to report your every transaction. Consider this the financial equivalent to being invasively scanned/groped by the TSA.

It's almost laughable that so many 'preppers' are home canning,growing gardens, storing bullets and getting ready to hole up against a zombie attack. Meanwhile the powers behind the IMF are implementing Jekyll Island 2 under their noses (with their tax dollars). Once again the sheeple are asleep while the wolves plan their next move.

 

"Give me control of a nation's money and I care not who makes it's laws"

 

 

 

 

 

 

 

Tue, 07/19/2011 - 02:09 | 1469308 Kali
Kali's picture

And your solution is?  There is a great global war coming, but it will be a very lopsided one-the "banks" vs every one else.  How do you propose to fight that?  Us stupid sheeple who are prepping?  You gonna go shoot some banksters uself?  Go for it.  For every one you kill, there are thousands willing to replace the one you killed.  I feel like a human caught in battle against the machines in "Terminator".  I know of no other way than to try and disengage, the best I can, from the system.  Starve the beast.  But a hungry beast is a very dangerous one and it is way more powerful.  Prepare for assimilation, resistance is futile?  I'll take as many with me as I can before they take me.

Tue, 07/19/2011 - 00:12 | 1469142 Caviar Emptor
Caviar Emptor's picture

I love it!!

Predictably, as Gold hits new records, CNBS finds a gold bear and publishes the opinion within nanoseconds (!)...Guys, you're getting too predictable. Your sponsors at Legg and Merrill hate this, we know :-)

http://www.cnbc.com/id/15840232/play/1/video/2060934701/

Tue, 07/19/2011 - 00:18 | 1469157 Mac1492
Mac1492's picture

hopefully comcast cancels that shit of a station 

Tue, 07/19/2011 - 00:31 | 1469182 Kimo
Kimo's picture

There are no circumstances that a unified currency would find favor amongst those in power except as a distractive debate that fulfills its promise even as it fails to find favor..

Tue, 07/19/2011 - 00:38 | 1469196 reader2010
reader2010's picture

The road map to hell is displayed here:

 

http://www.youtube.com/watch?v=QCxjqPgHgpA&feature=related

Tue, 07/19/2011 - 00:52 | 1469223 gwar5
gwar5's picture

This is why all the global politicians appear to be doing irrational things and the MSM is hiding everything. It's  rational if you're a crook selling your people out.   

I've been saying all along this is a one way trip for the USD by Bernank, always was. Euthanasia of the USD. The elites at Davos already have detailed plans for a switcheroo.

The UN will grow as the enforcement arm and the facade of a global government, but the real power will be the global banking with the IMF calling the shots.

The slow motion hangup seems to be slow development of the SDR and the wary Chinese (and other BRICS) who continue to haggle how much power they will have in the new banking sytem and whether gold will be part of the SDR basket.

There's been talk that gold will be part of the IMF basket. I wager the UN and IMF will require and demand gold from participants and the USA, and the confiscations will start there. Then the gold backing wil be removed over time just like it has been done before. 

Lucifer:  I'm hoping the Chinese will hold the line. But it makes me nervous that the PBoC has already bought into the French Rothschild's bank ---  LCFR -- you just can't make it up, folks. The Chinese paid $377+ million on Sept. 19, 2008. Curiously they closed the deal into Sir Edmond's grand adventure amidst the panic of the banking crises which was also conveniently right after the happy Chinese Olympics had concluded.  

Bank of China buy stake in France's Rothschild - MarketWatch

 

From MarketWatch, here's the long version, an excerpt (bold mine) for the full satanic effect:

".....The deal will help Edmond de Rothschild expand internationally by furthering its access to investors in China. LCFR is a unit of LDF Rothschild Group, which has about 100 billion euros under management. LCFR manages about a third of that amount.

Bank of China's group executive vice president Zhu Min was cited in wire reports as saying the deal would help it channel Chinese funds into France and Europe......"


 

 

 

 

Tue, 07/19/2011 - 03:01 | 1469347 i-dog
i-dog's picture

Niiiiice touch by Eddie Redshield ... LCFR ... LuCiFeR...geddit?! LOL

PS. I totally agree with the rest of your analysis, except that gold will become irrelevant (except for us renegade free market barterers) when all transactions in the developed world will be mandated by all the Vichy governments to be by smart cards (topped up only if you behave!) rather than antique linen artifacts.

Tue, 07/19/2011 - 06:49 | 1469443 æther
æther's picture

Bingo.

 

It's all well and good think about being self sufficient and bartering, but really: You _can't_ manage your same standard of living.  Try making something simple: a rake, for instance.  You have to cut the tree, remove the bark, turn the handle.  You have to mine the iron, maybe smelt it and add some carbon, forge it into teeth.  You have to make a pin to affix it to the handle.  Oh, and you don't have a forge or a mine or a lathe. 

So you say: I'll weld some bar together and tie it to a rough stick.  And how will you weld? And how will you tie? 

I'm not even going to mention chemicals or electronics. I posses a lot of engineering knowledge, and it's scary thinking about replacing the stuff around you single-handedly. 

 

So you barter.  And when your silver's gone?  Okay, you last a week.  month.  year.  five years? Who really has five years of bartering silver.  Prices are steep when the buyer's desperate.  Then what? maintain? and your kids/family/parents?  When they're young/old -- how do you care for them after your supplies are gone? watch them starve? submit to the beast?  All this presumes you've been left peacably alone this whole time too...

 

If everyone understood the dangerous cliff we're looking over, there would be hope.  Then I look around and see how many people only care about their TV shows and I cringe. 

Tue, 07/19/2011 - 08:19 | 1469542 Tabarnaque
Tabarnaque's picture

Agree with you. I bet they are already working on the implanted universal SDR microchip banking device with GPS tracking functionality (something similar to the iPhone…!). 

Tue, 07/19/2011 - 01:41 | 1469294 ddtuttle
ddtuttle's picture

Pay attention folks.
We've had a global currency for 5000 years: Gold. Dig it up anywhere, make a coin out of anywhere, spend it anywhere. What's the problem?

Silver works too. As JAmes Turk pointed out: when he was kid growing up in the 1950's his dad could fill up the car with two silver 50 cent pieces: $1.00. Today, those same two 50 cent pieces (based on today's silver price) can still fill up your car: $70.00.

We don't have a world government yet, but we already have its central bank: the BIS. The bankers are ready.

They can't print existing currencies anymore because they are at the limit. So make up a new one like SDRs, and you get to print like crazy for couple of years. After that, it's somebody else's problem.

Tue, 07/19/2011 - 07:53 | 1469505 Bartanist
Bartanist's picture

Uhu. The problem is that the banking empire, that currently controls the world through its creation and distribution of "money", cannot create gold out of thin air and give it to whomever it wants.

There is no way that the banking empire will allow a return to gold without a complete destruction of the current financial system, a destruction of banks and most likely the mass execution of people who have gotten fat by creating money out of thin air and sticking it in their own pockets.

IMHO, not going to happen any time soon.

Tue, 07/19/2011 - 01:46 | 1469297 Peter K
Peter K's picture

Everybody all at one: "Seig Heil, mien fueher."

Actually, I think we are getting closer to the Hayek solution, corporate (private) currency.  

Tue, 07/19/2011 - 02:11 | 1469312 Kali
Kali's picture

You may be right, but that sucks too.

Tue, 07/19/2011 - 08:12 | 1469536 Larry Darrell
Larry Darrell's picture

Saint Peter don't call me cause I can't go

I owe my soul to the company store.

 

Tue, 07/19/2011 - 03:52 | 1469375 PaperBear
PaperBear's picture

Gold/silver are the global currency not some pieces of toilet paper.

Tue, 07/19/2011 - 06:06 | 1469426 saulysw
saulysw's picture

The bottom line is that if the ceiling is raised, the Fed is ready to print the dollar into an early grave. If the ceiling is frozen in place, America defaults on its debts and its credit rating evaporates. Either way, the dollar will inevitably lose its world reserve status. Enter the SDR…

This was a great summary for me, but notice the "dot dot dot" at the end. My mind continued the sentence. And I added "... and Gold. Considering the increasing lack of faith in paper currencies, most people will gravitate to the latter."

Tue, 07/19/2011 - 06:23 | 1469430 DavidC
DavidC's picture

This isn't going to happen without some precipitating event. The Dow and S&P are still holding up in the upper range of the move since 2008.

Bernanke cannot instigate QE3 while the markets hold up here, it wouldn't and doesn't make sense (not that anything he's done to date does either though). he will only do it if the stock market (the bellweather to the man in the street, supposedly) takes a big hit and he can come in to 'save the day'.

Replacing one fiat currency with another global one - look how well the Euro's been working...not.

DavidC

Tue, 07/19/2011 - 07:00 | 1469448 Tabarnaque
Tabarnaque's picture

The banking cartel knew exactly what was going to happen when they repeatedly asked to deregulate financial markets since the beginning of the 80’s. They also exactly knew what was going to happen when they deliberately allowed a worldwide exponential money/debt expansion under Greenspan and his follower Bernanke. These guys are in control of central banks since several generations. They knew exactly what were to be the consequences of these loose monetary policies and market deregulations. This was all orchestrated with the aim placing another milestone in the construction of what they call “The New World Order”. The move away from the US dollar as the international reserve currency to the SDR is what the Banking Cartel wishes to do. Once they get that, it will be almost impossible to free ourselves from them. The day the SDR becomes the world reserve currency will be the day Big Brother will come to reality.

 

By the way, chances are that Gold and silver will be left rotting in the dust if this would ever to happen for the banking cartel will have absolute power over money creation and exchange rates. The intrinsic defect of their “money as debt” and fractional reserve monetary system does not allow for a return to a gold standard. Plus the banking cartel cannot control all the gold that is on the earth anyway therefore they will fight against anything they cannot establish an absolute monopoly over. The banking cartel will fight until their last day against a return to a gold standard.

 

Tue, 07/19/2011 - 07:47 | 1469493 Bartanist
Bartanist's picture

Gold and silver would lose maybe 70% of their price and return to the mean. The US would become Greece with the world's largest army... but no way to pay them.

... but then again it is really the bankering empire's army and not the USA army afterall isn't it?

Tue, 07/19/2011 - 07:48 | 1469495 Tramp Stamper
Tramp Stamper's picture

So lets say the sdr or whatever becomes the new world currrency, what would stop them from setting gold to say 100 sdr per ounce just like us did years ago and outlaw it?

Tue, 07/19/2011 - 08:31 | 1469545 Orange Pekoe
Orange Pekoe's picture

We have to make the conceptual click and look at money as a technological asset, like digital movies and music: Distributed, anonymous, tax-free, and instant transmission that cuts out the middleman. Bankers, like publishers, are no longer needed. They will be losing revenue and reluctantly clawing for a competitive edge. Make them beg for gold.

Tue, 07/19/2011 - 09:01 | 1469666 RiverRoad
RiverRoad's picture

One world currency backed by gold will happen when the world is a level playing field.  We still have a hell of a way down to go......

Tue, 07/26/2011 - 00:08 | 1472859 TheJudge2012
TheJudge2012's picture

ZH this is the creepiest thing you've ever published. I wish everyone could read it.

 

Regional currencies are cropping up. What effect will they have on the sinister banking cabal plans for the SDR?

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