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Jim Rickards On The Reserve Currency Transition From Dollars To SDRs, Gold, And Much More
Jim Rickards, who recently seems to have a quota of one media appearance minimum per day, is back on King World News today, discussing his sense of a shift in sentiment within the G-20 that the dollar may be approaching its "exhaustion" limit, and that as concerns that Russia, China and Germany may be moving to a commodity backed currency (oil and gold), the G-20 will need to preempt a paradigm shift away from worthless Fed-printed paper, to another vehicle, which however, is still under the control of the "developed world." The idea would be to use the IMF's SDR as a shadow replacement to a greenback which is at current recent record high levels not due to endogenous strength, but because all its peers are far, far weaker. And in an environment in which daily FX vol is hitting daily records, and thus increasingly reducing the credibility of capital markets, a gradual transition to a currency which represents nothing but yet another "liquidity pump" as Rickards calls it, just as the dollar was in the years from just before WW1 (thank you Fed creation in 1913) all the way through the 21st century, may be the only answer in which the existing oligarchy does not lose that all important controlling factor - the currency.
Some of the key observations from Rickards:
“The alternative is to find another engine, another liquidity pump if you will, and that’s clearly what the G-20 leadership would like to do, and their chosen candidate are the SDR’s, and their chosen vehicle is the IMF. So basically the IMF putting out SDR’s, will over time displace the Fed printing dollars as the engine of world trade, world liquidity and world growth.”
“So, that can’t happen overnight, that is a momentous shift. It’s going to require a lot of consensus building among the G-20 members. So what they do is they put these papers out, get the dialogue going and get it on the agenda, talk about it, get people kind of used to it. The average citizen has no idea, it’s not that they're dumb it’s just that they’re not necessarily informed or trained in this fairly technical area, and so it’s the kind of thing the elites can pull off without a lot of accountability and they are definitely headed in that direction.”
Here is the link to the full most recent Rickards interview on KWN, which everyone who is concerned about the monetary future should listen to. Another critical and extremely simple observation from Rickards, which somehow is never appreciated enough by the population is the "money is debt" - the debt of the Fed, a Fed whose balance sheet is becoming increasingly impaired. Should the IMF proceed to have its SDR become the reserve currency, we will likely end up with another even more impaired balance sheet backing the new reserve fiat - we first covered the appearance of standby and impromptu multi-billion IMF rescue facilities that form the backbone of the current sovereign stability. It is these worthless loans, that purchase toxic assets all over Europe and the rest of the world, that will be "asset" to the IMF's debt -i.e., the SDR. In other words, there is no way out, absent another hyperinflationary episode. But it will take time for the G-20 to realize just how dangerous of a corner it is in. By then the China-Germany-Russia axis will likely be complete.
Incidentally, one can see why the Fed and fiat paper was created when it was: in the post 19th century world, when entering a war meant certain bankruptcy if the war drew on long enough, having the ability to outlast the opponent's financial resources was more important than having a stronger army (see Cold War). Yet since the end of the Cold War, due to globalization and the virtual elimination of wars, the excess "fiat", which otherwise would have gone to fund the military complex, instead ended up padding the pockets of uberrich kleptocrats. In other words, the only way to justify a central banking system is to have a massive war: as Darwinian as it sounds, this may be the only way to promptly remove any of the systemic imbalances and flaws, brought upon the developed world by runaway printers that have been in overdrive for 60 years now.
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Its coming ... you better believe it... And non other than Samuel Brittan himself has just said, "Why not give SDR's more of the characteristics of genuine money"... These guys will NOT quit ... they are going to get their One World Currency... come hell or high water... I don't know how they are going to jam it down everyone else's throat ... but war is always a good option...
Replacing the dollar with some other means of international financail exchange is the only way to reimpose discipline on the American political class, and the American people, for that matter.
I would recommend pitchforks for the achievement of what you present as a goal... Do not forget about the perpetuation of what is essentially a system of debt slavery, insidious in its subtlety; I agree that it has greatly benefited the US. Though it disadvantages the vast majority of all people in ways they will never understand, even within the US. The real issue is this process of replacement of the global currency regime. Total ttransparency or total slavery, the future is about to hinge off in one direction or another.
We are living on our credit card, and it seems the rest of the world wants to take the card away. We may not give it up without a fight.
Fed,
Gonna have to have a leader w/cohones before that............
Currently, we are without a CIC.We have an Administrator.
Lets get Michelle Bachman! There is a leader with her own thoughts and opinions!
Palin / Bachmann / Perino, bleah. Republican insiders, corral the individual rights movement, back into the two-party paradigm. Why on earth would we want to do that?
dupe
I get the impression that Tyler feels JR is overexposed. I strongly disagree. He's very useful and offers insights from an insider. I'd like to see much more of him.
There are several Tylers at ZH (different writing, opinions, etc). And not all agree 100% on gold, for instance. Most don't count the under-the-radar King World News as "media exposure".
Yeah, fair enough. KWN isn't msm. He has been on CNBC et al with increasing frequency. I appreciate his perspective.
How many Tylers are there?
In Project Mayhem we have no names.
What's the first rule of Project ******?
The SDR has been here for some time. The Bank of International Settlements standardized on it a long time ago, and central banks do exchange in it all the time. It is, in essence, an alternative to the gold standard.
Why Rickards seems to think the IMF is "inventing" it is beyond me.
http://www.bis.org/press/p030311d.htm
BIS wants us to know that currency collapses lead to more growth; "How I learned to love hyperinflation":
http://www.bis.org/publ/qtrpdf/r_qt1006f.pdf?noframes=1
Public authorities tend to resist sharp depreciations in their economy’s exchange rate, presumably because they fear that they would be very costly in terms of foregone output.2 This article presents new evidence on the relationship between currency collapses, defined as large nominal depreciations or devaluations, and real GDP. The analysis is based on nearly 50 years of data covering 108 emerging and developing economies.3 We find that output growth slows several years before a currency collapse, resulting in sizeable permanent losses in the level of output. On average, real GDP is around 6% lower three years after the event than it would have been otherwise. However, these losses tend to materialise before the currency collapse. This means that the economic costs do not arise from the depreciation per se but rather reflect other factors. Quite on the contrary, depreciation itself actually has a positive effect on output.
Edit: sorry Cheeky, I just saw you have a post on this subject. I'm leaving this here as it is relevant to this thread as well. This BIS piece is getting wide coverage on the 'Net, that is a good thing.
Yep, that's the logical place it heads. My point in bringing it up is that most don't realize the framework for replacing the dollar doesn't need to be built, it already exists, and it does not depend on gold, although gold (and other physical assets) will remain an effective hedge while we undergo various financial crises (baking, inflation, soverign debt, and otherwise.)
People should adjust their paradigms accordingly, if they have not already done so.
SDRs from the IMF but really from the BIS. Going from the fed to the BIS is like choosing the emperor over darth vader.
LOL
I think the correct analogy is:
IMF:US Treasury; BIS: Federal Reserve.
All the same sorts of fiat evil? I really feel under-educated about the relationships between the IMF, BIS, WB, (are there more, will there be? What is China sponsoring that falls into a similar vein?), states, and laborers. Generally, they seem to me to be likely candidates for an issuer of a new monopoly money. I understand that they are otherwise complicated entities with many purposes and sources of wealth. China, Russia, and others would seem to be disadvantaged by such a maneuverto consolidate monetary power. A two sided power consolidation based on the monetary system would seem to be bad for everyone but those who are looking for one hell of a fight they think their proles can win. Either that or there may be too many proles...well I'm drowning again...someone throw me an education flotilla...wait! I mean flotation device...flotillas are dangerous.
The question is, what do they do when IMF goes insolvent?
The IMF is the next goto in the global Ponzi - electronic printing of fiat capitalizes IMF and pledging of soveriegn gold....analysis by TD is spot on...
RFID chips for sale! Count your SDRs to the 9th decimal! Get your chips while they're hot!
Here's the IMF paper JR references:
http://www.imf.org/external/np/pp/eng/2010/041310a.pdf
It's not clear which one is worse for the average citizen.
Dollars with the the hyperinflationary potential or,
SDR's with USA loosing control.
Not being sure at this time, loading with gold on a monthly basis seems to be the prudent think to do.
Negotiating for agri-land in S.A ongoing
All pundits should take note. Honor goes to people who tell the truth. And honor survives hyperinflation!
Honor? Really?
I don't believe this is King Arthur's court or the Revolutionary war where everyone marched lockstep into a line of bullets.
This is guerrilla warfare; it's a pit bull fight.
Forget honor from now on....you'd better be thinking about how you can rip out...'the other guy's,' throat. The truth is discovered and written by the last ones standing. Better to get on board the crazy train, put away Excalibur, and leave romantic philosophy in the textbooks. Hyperinflation, if it comes, will be ugly and completely without honor.
Out of hyperinflation will come honesty, honor and integrity because those without it will find survival only among thieves.
""exhaustion" limit"
Unfortunately or fortunately, gold hit it's limit long ago. Trying to find another scheme is not going to work until this one is liquidated folks. There is no alternate system nor will there be... this one will collapse and liquidate. EverHyone is running from the Truth and the evitable, sorry there is no where to run.
Heck you can use dirt, I don't care, eventually you guys will be trying to get yield from your dirt, start the same system right back up thinking you are going to get a different result.
It's an epic fail every time.
You spam this on every thread. If you believe what you say, why bother reading these articles?
If you believe what you write why do you bother to read my posts?
I like to point out lies, you like to promote them.
You are running from the Truth, which is why you don't like my post, if I were to tell you how rich you are going to be with your strategy to avoid the inevitable, you would eat that lie up and you would be requesting the lie from me over and over... you would never get tired of that lie.
I bet if I told you that you look better than George Clooney you would eat that shit up. Humans love being lied to it, oh you claim you hate it but you don't, you love the lie.
Yeah, we'll just switch the system over like a backup generator, hahaha, that is epic fail. The system would look like the sky on 4th of July, fireworks baby, then on to liquidation. Keep looking for that exit little rat, you won't find one, humans have been looking to conquer the equation for thousands of years... they always fail. THERE IS NO OUT.
Believe the lie or not, your choice.
You do your standard cut and paste on every article, regardless of topic. It's spam, dude. Like Grandiose Supercycle.
All you are doing is trolling... see I can just make shit up like you.
I mean you are so stupid, you ask me why I even bother reading an article, yet you can't explain why you don't skip my posts. I know why you don't, you rather say something to help support your delusions. I read the articles because I don't know what's in it until I read it... duh, once I see the lie, I post the obvious conclusion.
I mean what kind of idiot believes you just switch over to a backup system, I know a real big idiot. Oh I heard all this stupid shit before, a thousand times over... Japan is going to buy everything up, the Euro is going to be the reserve currency of the world, China is going to buy everything up, gold is going to the moon, etc. All freaking lies to support your delusions.
There is no backup system, there will be no freaking backup system, there is no plan or backup plan... the plan is the same as it always have been expand, implode, collapse, then liquidate.
See the capital "T" is "Truth" above? Guess which "Truth" mako is here selling?
I don't even read his crap...it's BS. Just flag as Junk and move on.
You post vague, pretentious bullshit, disparaging other viewpoints.
I agree that what you are saying is correct, but nobody is acknowledging that there are some practical points being made by Mako about the cyclically in money and society. Couruption of the currency is not a new occurrence, and we can learn of the future from the past, right? He also talks about gold peaking a long time ago, which I'm going to take to mean that though gold may go up in value from here until some point in the future, this is not salvation, humanity still faces many practical problems, like the hole we drilled into that pocket of anoxic event leftovers. That's right, I'm going to copy and paste one of my favorites, here it is: (http://en.wikipedia.org/wiki/Anoxic_event). Someone said "that if you're not getting junked, you're not living", though I am too new here to really know my place in this argument between what I assume are old hands.
Edit: post referenced changed.
You really are a little Nietzsche aren't you?
Ah yes. The Capital-Tee Truth. It is rather axiomatic that when one claims to have The Truth, they are actually selling a lie.
There is always an out. Whether it is preferrable, is another can of worms.
Guys, what would you wish you'd done before you died?
I think yield from dirt is called agriculture.
yes, then someone will start compounding the crop.
Futures = derivatives, the crop is already compounded. Sort of. It's paper soybeans, they taste like....paper.
we've always had a one world currency.. gold/silver
do you mean one world fiat?
"Be your own central bank."
The conclusions of the post seem to imply that Zimbabwe would have a sound currency if the country would only attack South Africa. That is novel thinking. JMHO, as I'm not an economist and may not fully understand the nuanced benefits of military destruction.
Aug,
Zimbabwe does have a (semi-sound currency), since they started using dollars as their reserve currency..things have much improved.
I do not think the IMF, and Co., has thought this thru, HOW do you flip a switch, and 2/3rds of the planet stop using USD notes?.Like , right now.
It's not a light switch, the only way(and it's coming) is for the US to self destruct the $.
Then, yep, I can see it............
Diversification seems to be appropriate to me. First, I am a long term gold bull. I do believe that it is the only time tested currency on the planet. However, I also don't put all my assets in gold. Unless total collapse comes, there are other asset classes one must consider besides GOD, GUNS and GOLD.
For example, and please feel free to correct any ASSumptions I might have made incorrectly:
1. a home: you can live in it, enjoy it while it lasts.... and the loan on it means if the dollar becomes worthless, I can repay it that much cheaper.
2. Stocks: I allocate 10% in this asset class like sheeple allocate 10% in precious metals... I know its gambling, but heh... its fun, atleast when you're winning.
3. Farm Land: Income producing and keeps up with inflation... and will still be worth something in case of a total collapse.
4. Cash: yes, in dollars. Hopefully the last currency to fail, but in the mean time... it provides me reserves to invest when opportunities arise and CURRENTLY allows me to fund daily needs.
If you diversify into 5 areas do you expect to win on all of them? Probably not. Now wonder if all paper is a short on gold. If yes, then all your paper bets will lose. You can't live in a house and on the farm, so you will have to choose there. So maybe one of your 5 bets will be viable in this scenario.
I don't like these odds.
Neither do I, but drastic times and all... I would rather have something left of my hard work than nothing at all. However, I think some of these things are synergistic and some is hedging... farm/gold - 50% of my holdings. Cash-20%. Home: 20%. Stocks 10%.
Well then a mega crash signalling financial collapse followed by Great Depression 2.0 is EXACTLY what the TPTB need to mobilize the kiddies to go sacrifice their lives in defense of iFreedom for their progeny. Or maybe they won't even have to travel to exotic places to meet new people and kill them. The new people (namely 24 million surplus chinese men under the age of 30) will likely be more than happy to come on over to rape and pillage. But then with all them Americans bearing arms and itching to use them, my bet is more than a few will be eager to take 'em on! What's ailing the modern world is a severe blood deficit. We've become immune to Hollywood torture porn and will soon demand the real thing: Blood we can taste! What a great way to unite milita and street gangs with a common purpose: taking out invading hordes of foreigners. Gaming doesn't get more 3D than that let me tell ya!
And then when the bloodbath draws on interminably and a few billion are dead the humans will tire and recoil in horror that life can be considered so cheap and they will call a truce and redraw the World according to where the lines will have fallen and regardless of who gets to write the Victor's history they will vow: Never again!
Not this time -- you are still thinking in WWII paradigm. With nukes, missiles and UVs, this time around it will be different. No men with bayonets running around in Mainland...
Given the MAD standoff, we may get a series of skirmishes in third world countries backed by the BIG players.
We volunteer the CAD (The Canuckistani Peso, that is) - a properly managed economy, a nice mix of social democracy and bull-goose free-marketeerism, good scenery - what more could you need in a reserve currency?
From the Globe and Mail:
'Northern peso' no more
It was on Jan. 12, 1995, that The Wall Street Journal famously wrote in an editorial that Canada had become "an honorary member of the Third World," heavily indebted and with a currency dubbed the '"northern peso." Then finance minister Paul Martin, of course, went on to slay the deficit, and his eventual successor, Jim Flaherty, is earning high marks in global markets for the best fiscal standing among the world's richest countries.
Of late, the Canadian dollar (CAD/USD-I0.970.0060.59%) has been strong against its global counterparts, though it dipped this morning and has had its ups and downs, bounced around by investor sentiment related to Europe's debt crisis. Markets, though, have generally been impressed by Canada's economic and fiscal performance, and have shown their faith through the value of the loonie.
Still, it seemed a stretch yesterday when BNP Paribas SA strategists suggested that the dollar has "the making of a reserve currency," citing the Harper government's performance and the "rising credibility of the central bank as it correctly anticipated the subprime cirsis and presided over a stable banking system." Not to question those observations, but the idea of reserve currency status for the loonie is something else.
Yet today, Scotia Capital currency strategist Camilla Sutton said in a research note that markets are "increasingly focused" on the loonie's potential role as a reserve currency: "Though Canada fails miserably in terms of liquidity, it is a highly rated sovereign name that does boast at least some supply in the bond market. As the appetite for [the euro] as a reserve currency fades, central banks are searching for alternatives to the [U.S. dollar]. Accordingly, though we doubt that [the Canadian dollar] will ever become a major reserve alternative, there is anecdotal evidence that there are some official flows directed towards Canada."
At least the Loonie as reserve currency would in name live up to the lunacy of fiat currency.
From the write-up:
"due to globalization and the virtual elimination of wars,"
Elimination of wars? What? Have I been reading fake news since 1991? Iraq, Afghanistan, low level wars constantly, the Serbia conflict, War on Terror, War on Terrorists, War everywhere as far as I can tell. We have been in low grade state of war since the end of the cold war. And all of them have been hot wars. Continue to be.
Would have gone to fund the Military industrial complex? Hulloooo, looked at the Pentagram budget? Last decade? YOY? Arms mfg. profitability? The MI complex has been the kleptocratic en-richer of choice.
But yes, all these hot spots will melt up into a big one..... a run away reaction. If not nuclear in function, then at least nuclear in form.
ORI
http://aadivaahan.wordpress.com
Obviously wars have not been eliminated but things are not as simple as they used to be. At the start of US involvement in WW2, the industial economy was coverted almost overnight into the world's largest producer of tanks, bombers, and the like, employing a large percentage of the civilian workforce. The shoot, duck & cover conflicts we are involved in today don't produce that kind of economic boost. Except for UAVs most of the military hardware used in Iraq and Afganistan do not represent major new investment of the kind that puts an unemployed nation back to work.
Of course there is still the MIC and it is huge and expensive. But the real money these days for the defense industry comes from open-ended development contracts for exotic technologies that are of little use to our fighting forces. Many of these systems originated from grand plans to contain the Soviet Union and protect Western Europe. Their successors survive and thrive today thanks mainly to support in Congress for employment in these industry's home states. But this expenditure is ongoing and politically driven, and has little to do with actual military conflicts.
Completely incorrect, I wonder why people take him seriously.
The Fed and Treasury create currency, the vast majority of 'money' (in the form of credit) is created by business itself.
No business, no money. Check money multipliers on Shadowstats:
http://www.shadowstats.com/alternate_data/money-supply-charts
The trade to watch is the oil/dollar trade. If Saudi Arabia didn't like dollars they woudn't accept them. Since oil is the foundation of modern economic development, what Saudia likes is all- important.
The idea the 'fiat money' is going to 'crash' is pleasant to contemplate but unlikely any time soon. Rather, the dollar scarcity is making it more valuable and desired. Don't believe me, ask the 40 million or so Americans who are now receiving food stamps.
Saudi A is and has been a client state since it found oil.
Without active American/British support, the regime would fail in a week.
Multi-generational colonialists don't play with weak hands.
But the battle lines, for serf consumption become clearer by the day, 1984 cometh our way.
And fiat has had a 40 year (give or take) life-span through out history, nothing different this time. 201i marks 40 years from 1971 when Fiat became truly Fiat.
Just observing.
ORI
http://aadivaahan.wordpress.com
People on food stamps, they don't need money, they have their government card. And they can go to the doctor for free. So some people seem to have less and less need for money.
Ever notice in Sci-fi movies of the near/distant future that 'money', as in paper, etc is gone the way of the buggy whip and has in fact been replaced with 'credits'. People are seen swiping a card in a bar, 'credits are added' during exchanges or sales of things, or deducted when you buy stuff... Seems the next logical step beyond food stamps cards, 'credit' cards, etc. My only question is, 'who will monitor' the comings and goings, creation and withdrawal of credits? (you've been bad, your credits have been lowered). Like the fellow said: "Give them all Amex black cards tied to the Fed and IMF". The 'paperless/cashless' system is just ahead. And who will 'monitor' it all? Why the same people who control it all now, don't ya know?!
In these scenarios, the 'credit zone' is usually a cluster of former nations, a city-state or some such physical land mass that has been 'ordered', everyone goes about their business, dress nicely and everything runs with a Swiss 'orderliness' we associate with techno-utopias, while outside the zone of control, people are seen huddled around oil drums with fires in them, they dress MUCH worse than those 'in the zone' and generally, life is all barter, shortages, nasty, and short. These areas 'outside the zone' could be former Soviet Union, Africa, rural America, etc. Places inhabited by 'The Road' and Kevin Costneresque characters. My thought going forward is, that the 'credit zone', or 'zone of control' may in fact be mental and NOT physical at all, or perhaps MORE a mental place and a physical one. If the dreaded 'one world currency' in fact becomes merely 'credits' in computer ledgers, the control becomes mental and not so much 'where' one lives. One is either 'in the zone' or 'off the grid' as they currently say (or some combination of, or flip-flopping back and forth between). At that point, being in the HAVE category or within controlling elite will become more and more secure, given the tecno-control of computers. The so-called 'have-nots' will, in fact become easier and easier to control since their acquiescence guarantees this population access to food, order and entertainment. The fighting will continue along the 'border' between control and chaos, be it mental OR physical...
Has anyone read this?
http://www.behindthewizardscurtain.com/
Crisis by Design, by John Truman Wolfe
The author was on Coast-To-Coast AM last night, he points to the BIS-Financial Stability Board as the Big Bad Wolf behind the curtain.
Last night's interview is available for download here:
Hr 1: http://vaca.bayradio.com/ksfo_archives/20000.mp3
Hr 2: http://vaca.bayradio.com/ksfo_archives/20100.mp3
(haven't read his book)
I think he has many things right, and many things wrong. He's too Ron Paul, not enough Lyndon LaRouche. So I think he's doing a good job at pointing out much of what's wrong, he's still too limited in his thinking, probably based on the fact he never went beyond monetarism. From the point of view he espoused, there was nothing else other than monetarism *not that he said that it was the only thing*, he just failed to separate from something that is indeed something that can be separated. Too much Ron Paulesque, the gov't can't do anything, when clearly when not under monetarism, and the people not corrupt, our American government can do real good. I think he's either being fed misinformation, or is part of the problem itself. It's hard to say. It just seems like the guy is taking the back door bankers route. Pushing us in the wrong direction maybe as the bankers' backup plan. Telling us almost everything, except the real crux and fixes. Or perhaps he's just misinformed about somethings and really informed about most of the rest, and that nobody's perfect and this is where he draws the line incorrectly. Maybe he just hasn't been introduced to LaRouche. But LaRouche is reality, Ron Paul is insanity, when it comes to gov't responsibilities and opportunity it presents to do good. Ron Paul would let everything crash as being good. LaRouche knows you can use gov't to actually mitigate it and puts us on the correct path. Ron Paul = invisible hand, markets will correct themselves, nothing else can be done. LaRouche = we have brains and can use gov't to right the ship and start moving towards our future, and that the gov't works itself OUT of a problem. I just didn't get anything more out of this guy than Ron Paul's idiot approach of no real solutions, except to let it crash. That's just not good enough for me, and shows Ron Paul is an idiot. But as I said again after lambasting him, I think he's right about many things. I think he's right about where we're going, but I disagree wholeheartedly of what we do when we get there. But that's the real left/right debate, which of course is a split debate, because democrats and republicans are one. They were just split into one side only focusing on changing things, and one only on status quo. Except the key was being both....a person who knows when it is appropriate to change things, and when it was appropriate to not change. When it's time for gov't to take control, and when it's time to cede it not to privatization, but to working gov't out of a problem. Instead of having both within ourselves we are told to pick one or the other and it can only be one. That's another reason why Ron Paul is ultimately a loser. He's one of the people that feel only one generic way is right, and that gov't can't do anything except muck it up and make it worse. Ron Paul has some serious asinine limits to his ideology, and ones that in crisis would lead to a disastrous, unneeded result imo. I get that impression when I hear that guy. I just know I'm not getting the whole story, the question is, is he oblivious to it, or is he complicit in it? I think he was on for 3 hours, not 2 last night. Pretty good stuff though anyways.
Yes he was on for 3 hours, but the majority of the 3rd was caller Q&A, some of which were good, some not. But what can be expected of a late night broadcast media show.
Some of the concepts he talked about, such as Money based on Production and Output vs the fiat system (including an IMF SDR system, where he thinks we're being taken) vs a return to a psuedo gold standard I tend to agree with. IMO, gold and silver are the abitors of and the market's voice with regard to the quality and forthrightness of Money and money systems. Yes, gold and silver are money, absolutely. The basis for not having a hard Gold & Silver standards are the ease of manipulation, at least until the bogus paper gold and paper silver substitutes have been fully unwound and the fraudulent/fractional reserve sellers of paper derivative gold and silver jailed, or shutdown, can they truly have a market price free of conflicted influences?
I don't remember him talking too much about letting the system crash (maybe I need to listen again) but rather about the financial system being taken down, A Crisis by Design, correct? To push the world into a World Currency Unit and global governance.
I'd agree he's taking a follow the money approach. But in the world of confused values where so many are driven solely by monetary status or control and influence, when money buys influence, if not control, I do not have issues with that approach.
In as much as I'm a believer that debt money IS the problem, I just thought I'd point it out as there are a number of similarities/parallel to what Jim Rickard was droning on about in his interview, vis-a-vis the SDR.
As an aside, Ellen Hodgson Brown writes about the BIS and its FSB as the tool for the Banksters to enact global enslavement also. http://www.webofdebt.com/articles/big_brother_basel.php
He's speaking Against it (BIS-FSB-Global Monetary-Fiat-Bankster-Control).
Maybe you need to go back and re-listen.
(For any interested parties, 3rd hour link: http://vaca.bayradio.com/ksfo_archives/20200.mp3 )
The future is whacking humans into the unemployment line with more automation, same as it has been for the past few decades. What else is there in the physical economy?
LaRouches so-called plan, Nukes and Trains, are nothing new. Got Nuke plants, there are problems. Got trains, he wants it all trains...what do you do with workers associated with the auto sector. Support 6+ billion people and then branch out to other planets. Haha. Hey astronaut, you're going out into space but you're not coming back. Larouche thinks we can transport 4 billion or so "prisoners" to the Moon and Mars to work on mining projects. Sorry not enough jobs there either. What the fuck do you do with the excess humans when machines are replacing machines in the manufacturing sector? Well, you grow a gigantic government by putting people into jail, declaring them mental, and performing drug experiments on them. Where I live, mental "health" institutions are being built like crazy. And all those do-gooder university grads that want to do social work? That social work is dishing out the pills. Shit the doctors are just as clueless as the TV sheeple. They just follow instructions from the pharma industry like everyone else.
Actually the alternative is USA, Russia, India, China, plus all capable nations willing to be added. (which would include Germany, and probably almost everybody else)
That's LaRouche's 4 power plan. But of course it isn't a monetary system, but a fixed exchange rate, American credit system.
So do we want to follow the monetarists (who used to be an alien force in America) to their demise? Or be part of the solution?
Wars suck up excess capital, who ever would have thought. That doesn't mean we should push for war. Plus we already had them, currently have them, and seems like we're currently looking for more. So if that ain't working....
Plus one of them 'Vietnam', was the catalyst for getting us off the fixed exchange rate, so that war, actually made things worse since it created the boundaries that became our monetary, derivative playground. We also have these pesky things called nuclear bombs, so while war was never a luxury, we simply can't afford to destroy ourselves for monetarism.
But of course the bankers want their BIS to usurp the Fed, and other central banks with the SDR, it's one world gov't as soon as they have that. Well at least monetarily, but the die will be cast.
Adding another hurdle between the people and policy is a good thing, isn't it? We'll see how people greet this new world order. Especially one that is merely made up of the fumes of the failing (already failed) current system.
Fiat = The ability to convince THE INDIVIDUAL to pay outrageous taxes. In other words, FEAR. Nukes are too statist, messy, and bad pr with all the cameras, satellites. Owning your body is the ultimate objective. Personalized medicine, imagine that. Imagine if something went horribly wrong, who would believe you? What legal action could you take, as an individual? You hand Alberts 1500 page text on Molecular biology to some real estate agent and they'll laugh at you. What does that tell you? It tells me that billions of people can't keep up with the rigors of chemical agents attacking their body. The agricomplex is bombing their bodies as we speak and THEY DON'T HAVE A CLUE!
It isn't coincidental that the IMF started selling bonds this past year. China was the first purchaser of the debt. The debt is denominated in SDRS. So as far as I can tell the IMF now has the ability to add supply to the global money supply making them the default world central bank.
A quick googling of the IMF shows that it was started after the last great depression.
Who controls it? Do they have any laws? Can they use their printed money to buy all currencies? This world has lost it.
"The IMF was important when it was first created because it helped the world stabilize the economic system"
Wow. An SDR based on oil and gold.
Imagine a war in the Persian Gulf and a closing of the Strait of Hormuz (current Gulf of Mexico oil hemorrhaging notwithstanding)...wouldn't those privately held cartelized SDRs be worth a fortune!(?)!
Our liquidity/debt sponge prayers would be answered!!
[and by Our, of course, I mean the usual suspects]
The G in G8 means Gulf!...no...Gangster!!...ermmm, Goodness?
There is a reason peasants gathered at the walls of the Lords and Kings. Protection from the dangers of life. They were willing to give a portion of their labor for the right to get behind the walls in the event of an attack- even if it meant their labor was destroyed by the actions of the lord they sought protection from.
Fast Forward. Most people live in urban centers, incapable of providing for themselves. Water and food are brought to them. They will pay any price for the idea of security. The same people that ruled then, rule now. They employ the same bread and circus programs.
The use of the BIS as a global clearinghouse for ALL transactions will be ushered in on the arguments of the elimination of black markets, the inefficiencies of competing currencies and the simplicity of credit units from work units. The world debt will be erased in return for global acceptance and the system will start from scratch.
The hold outs will be allowed to finish their lives on their farms and off the grid fortresses. The elites are dynastic and understand the transfer of power through families and marriage alliance. They will continue to play empire games, but the general population will be fed a diet of poorer quality of life and decreasing life spans managed in a state medical, drug hell.
The people can be fed with diversity from two products- corn and soybeans. They will accept the new paradigm because they have no other options.Having become estranged from liberty and are mistaking freedom for chaos- they will place their own chains upon themselves and their children. They will trade a sense of security and hope for their independence, because that is the nature of humans.
There is a reason we have dark ages and renaissance- it is the cycle of excess and correction over a time frame greater than our collective memory.
Why bother with all that hard work, when billions of two legged pork-like products are walking the earth?