The World Is Screaming For A New Financial System

Tyler Durden's picture




 

Submitted by Simon Black of Sovereign Man blog,

One of the key lessons we can take away from history is that the global financial system changes… frequently.

[12]

 

In ancient times, Roman coins were used across the region by Romans and non-Romans alike who engaged in trade and commerce.

Given how destructively successive Roman governments debased their coins, however, the reserve burden eventually fell to the Byzantine Empire, whose gold solidus coin became the dominant currency in world trade.

Over the centuries, this standard changed several more times. The Venetians, Florentines, Spanish, French, British, etc. each issued the world’s dominant currency at one point or another.

But the fundamentals of those currencies changed. Governments engaged in wanton debasement, mismanaged their economies, and accumulated massive debt levels. And eventually the world shifted to new currencies.

Since the end of World War II, the US dollar has been the dominant currency in the world.

And even though Richard Nixon ended the dollar’s convertability to gold and unilaterally abandoned the US government’s obligations under the Bretton Woods system back in 1971, the world has still clung to the dollar for the past 43-years.

But this is changing rapidly.

The Chinese, which have their own economic issues to deal with, are starting to dump Treasuries in record numbers.

Central banks are buying up more gold. Foreign countries are entering into bilateral currency swap arrangements with one another. And world governments are starting to (rather embarrassingly) demand that the US get its budget and fiscal house in order.

Most tellingly, though, member nations of the International Monetary Fund are starting to revolt.

As one of the major organizations spawned from the post-war financial structure, the IMF’s original goal was to ensure the smooth development of a new global financial system.

Over 180 countries have since become members of the IMF. But the organization runs on a quota system, with each member nation having a certain percentage of the IMF’s overall votes.

The US, for example, has the most power by far with a 16.75% share of the vote. Japan is a distant second with a 6.23% share.

This puts the US in the driver’s seat. And it’s been that way for decades.

But most of the other 180+ nations have had enough. And they’re pushing the United States to massively overhaul the current quota system.

Even typical allies are breaking ranks. Australian Treasurer Joe Hockey recently told reporters at a financial conference that they will “actively lobby” the US to reform the IMF quota issues, and that “Congress must understand that it is in the interest of the US to reform the IMF. . .”

India. China. Just about everyone imaginable is pushing for major IMF reform. Everyone except the Land of the Free. The US government seems to like things the way they are. And Congress has been very intransigent in adopting any planned reforms.

These people have their heads buried in the sand so deep that they can’t even hear the rest of the world SCREAMING for a new financial system.

This is going to happen, whether the US wants it to or not.

And while no foreign government wants a collapse of the dollar, they do very much want an orderly rebalancing of the financial system. This is already under way.

The US government may pretend that everything is fine and dandy. But given the overwhelming objective evidence out there, folks who aren’t on board with this major trend are ignoring it at their own peril.

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Fri, 03/14/2014 - 18:29 | 4550052 DoChenRollingBearing
DoChenRollingBearing's picture

Geez, no one in my family is screaming jack-squat.

Must me be.

Fri, 03/14/2014 - 18:34 | 4550066 kliguy38
kliguy38's picture

You're right ...no one over here know's chit........they're sheep.....but other countries are sick of us and our sanctimonious hegemony......unfortunately the PTB will pull the plug on the USSA and we will be thrown on the scrap heap of empires........You ain't gonna like how it ends.......it will not be fun

Fri, 03/14/2014 - 18:35 | 4550069 fonestar
fonestar's picture

And Satoshi said unto the people, "let there be Bitcoin".

Fri, 03/14/2014 - 18:42 | 4550088 nmewn
nmewn's picture

And unicorns.

Fri, 03/14/2014 - 18:48 | 4550110 wee-weed up
wee-weed up's picture

Skittle-shitting unicorns!

Fri, 03/14/2014 - 18:51 | 4550118 The Gooch
Fri, 03/14/2014 - 19:57 | 4550336 SoberOne
SoberOne's picture

Gold, bitchez?

Fri, 03/14/2014 - 20:59 | 4550538 Mister Kitty
Mister Kitty's picture

What we need is socialism. Bitches.

Sat, 03/15/2014 - 00:12 | 4551135 MeelionDollerBogus
MeelionDollerBogus's picture

Where and to what scale?

  • I can see some bad failures if
  • it is involuntary
  • it is state-based
  • it is too big (larger than a city)
  • it is too small (which is hard to define) in people vs resources produced

So... other than that, OK, I say let people be unrestricted in joining some collective means of production from what they collectively own. And by unrestricted I mean that any person can leave, can join, can belong to multiple collectives, that none of this socialism will or should do harm to any other person, group, capitalists, the land, etc, or be harmed by others just for being socialist.

Also that angrysinner blog really does suck Fukushima-irradiated donkey-dick. Can't you do something to make it less retarded, more interesting, anything at all?

Sat, 03/15/2014 - 07:37 | 4551500 Bendromeda Strain
Bendromeda Strain's picture

Can't you do something to make it less retarded, more interesting, anything at all?

 

Um, that would be a resounding NO. The little narcissist is trying to compensate for a lack of maternal attention and approval. If you saw Despicable Me, think of Gru's upbringing.

Sat, 03/15/2014 - 09:21 | 4551590 old naughty
old naughty's picture

The world can continue screaming; but the world is not going to get a new financial system...

Not until the "oligarchs play their decisive role".

Sat, 03/15/2014 - 13:45 | 4552209 holgerdanske
holgerdanske's picture

We need anarchism.

And it is coming!

Fri, 03/14/2014 - 20:12 | 4550382 Anusocracy
Anusocracy's picture

Competing currencies.

You please the market and not a government.

Sat, 03/15/2014 - 00:49 | 4551201 willwork4food
willwork4food's picture

Better idea: Get all of the Dallas Cheer leaders up for auction to the highest bidder. Beats the trillon $ coin hands down.

Fri, 03/14/2014 - 18:53 | 4550129 nmewn
nmewn's picture

Heavily encrypted skittles and the unicorns actually fit into a virtual wallet.

Its PFM ;-)

Fri, 03/14/2014 - 19:23 | 4550212 fonestar
fonestar's picture

Not entirely sure, but your CV put besides Satoshi Nakamoto's.....  hmm?

Fri, 03/14/2014 - 19:35 | 4550265 nmewn
nmewn's picture

You want me to "invest" in a debt based paper "product" to prove something digital, is not real?

How about I invite you over to my house and you can pour your BitCoins out of your virtual wallet via your i-shit onto the table in front of me and I'll pour out gold in front of you and lets see which fills up the table fastest.

Fri, 03/14/2014 - 19:40 | 4550280 fonestar
fonestar's picture

If digital things are not real how are you using the internet?  Perhaps you need to bring your definition of "real" out of the 12th century?

Fri, 03/14/2014 - 19:49 | 4550310 A Lunatic
A Lunatic's picture

Did you get your dinner from Farmville..........??

Fri, 03/14/2014 - 19:51 | 4550314 fonestar
fonestar's picture

No, it came from a supermarket that processed and paid for all of the orders over internet and telecom systems.

Fri, 03/14/2014 - 20:00 | 4550347 New_Meat
New_Meat's picture

fonestar, usually I'm amused wrt your comments.  And here is your statement of the actual and current  truth.

Some who contend with you are not contending with the current reality, but rather their expectations of the future.

You can both be right.

- Ned

{and don't forget WMT and their antennas on the roof}

 

Fri, 03/14/2014 - 20:12 | 4550380 nmewn
nmewn's picture

Somehow he's contending that in a war with bankers & tyrants, electricity & internet will flow like manna from Satoshi's anus...I think.

Its hard to keep up with the musings of the insane sometimes.

Fri, 03/14/2014 - 20:17 | 4550397 SoberOne
SoberOne's picture

Food from farmville has got to be the greatest comment on zh. Ever.

Fri, 03/14/2014 - 21:12 | 4550576 New_Meat
New_Meat's picture

child, nyet.

and I do not wish u to go back to becoming un-sober, not at all

- Ned

Fri, 03/14/2014 - 20:28 | 4550440 fonestar
fonestar's picture

What fonestar is contending is that ultimately, TPTB are powerless against the changing of the hour.  They get some brownie points for the work they've done supressing solar and alternative energies, but at the end of the day they still lose.

Fri, 03/14/2014 - 21:09 | 4550568 nmewn
nmewn's picture

I've been waiting for this little insight from you because I knew it all along.

How is it, that the most rabid BitCoiners also promote what is economically unviable without subsidation (via taxation of fiat earnings) by the very same state which you claim to hate to your core?

Now what am I missing here spud?

Sat, 03/15/2014 - 00:33 | 4551179 fonestar
fonestar's picture

Yes!  Great idea!  Let's wait until someone develops an entirely sustainable energy system before working on alternative currencies!

Wow, talk about grasping at any and all straws in order to hang on to your government money, "backed" or otherwise.

Sat, 03/15/2014 - 00:55 | 4551219 Hulk
Hulk's picture

We all already have our unlimited free  energy source humming away in our basements fonestar, The Tesla coil !!!

Lighting every light in the house and keeping all our sexual toys charged up and with no wires !!!

Tell you what I am going to do for you fonestar, I'll sell you my tesla coil for the extraordinarily low price of twenty bitcoins !!!
Deal ???

Sat, 03/15/2014 - 01:04 | 4551232 fonestar
fonestar's picture

Thank-you for proving my point.  Rather than be able to back any of your stupid assertions you will just go into an infinite digression of stupid assertions.

Point blank:  Do you believe we should wait until there is a perfect energy grid, end to poverty, 0% unemployment, WHATEVER until developing alternative currencies?

Face it... you will grasp at any stupid fucking excuse to hang-on to whatever currency the government tells you to use.

Sat, 03/15/2014 - 08:37 | 4551550 nmewn
nmewn's picture

Now there is your stupidest strawman argument yet.

There will never be 100% percent employment, never be an end to poverty or a perfect energy grid. Regarding the latter, it doesn't help the un-perfect energy grid by wasting energy pumping BitCoin which can't stand on its own without it.

That is to say (sigh, again) it is encumbered...useless in fact, without energy.

Sat, 03/15/2014 - 13:34 | 4552174 fonestar
fonestar's picture

Whose strawman?  It was you that was saying that we should wait until there is an advanced powergrid before working on electronic free currencies!

And in the meantime the "stackers" have done what exactly for local currencies?  What?

Sat, 03/15/2014 - 16:55 | 4552728 MontgomeryScott
MontgomeryScott's picture

I read, and I cannot concieve how someone can be so lost in virtual reality that they cannot grasp that physical people doing physical things and using physical materials are the basis of everything on Earth.

I see, in my mind's eye, a David Dees illustration of a 'human', in a basement, sitting in front of a keyboard. He is obese, and undressed (except for boxer shorts), and the wrappers of Mc-Donald's hanburgers and french fries adorn the floor around him, as he has one hand on the special-sauce-stained keyboard, and the other one at his mouth, shoving a Big Mac in it. On the monitor he is staring at, a picture of Orwell's 'Big Brother' is stationary, staring at him, and at the bottom of the screen, the word 'Satoshi' is highlighted. In the background, at the stairwell, an older, but no less rotund woman is stopped in motion, holding up an electric bill, and her mouth is open as if screaming. She appears to be quite angry, and her triple-chinned jowls are almost fluid with the fat stored there...

The 'human' doesn't appear to be able to hear this, however, as his ears are covered with headphones, and his eyes are glazed over in total rapture of his 'new messiah' that continues to stare at him from the two-dimensional world that he has created for himself.

Sat, 03/15/2014 - 17:20 | 4552815 nmewn
nmewn's picture

"It was you that was saying that we should wait until there is an advanced powergrid before working on electronic free currencies!"

No, you incomprehensible little lying fucktard, it was you:

"What fonestar is contending is that ultimately, TPTB are powerless against the changing of the hour.  They get some brownie points for the work they've done supressing solar and alternative energies, but at the end of the day they still lose."

I never said it. I said the tyrants & bankers would cut it off:

"Somehow he's contending that in a war with bankers & tyrants, electricity & internet will flow like manna from Satoshi's anus..."

Meaning, they will cut it off. Period. Dead. No power, no internet, no BitCoin.

And here I pointed out another scam you were or probably are involved in:

"How is it, that the most rabid BitCoiners also promote what is economically unviable without subsidation (via taxation of fiat earnings) by the very same state which you claim to hate to your core?"

Key words, "economically unviable" & "state" meaning the state has to "subsidize" it at OUR EXPENSE. Maybe you missed it over the last few years where the state gave money to its cronies FOR these unviable pursuits and stuck the taxpayers with the bill.

But I damned sure didn't.

If you're going to falsely attribute words or actions or motives to me at least make it from a different thread, where someone can't just look upwards on the thread & condense them down, like what I've done here.

Lying POS.

Fri, 03/14/2014 - 21:02 | 4550551 dark pools of soros
dark pools of soros's picture

Internet going down will take care of your bullshit posts more than bitcoins...

Fri, 03/14/2014 - 21:21 | 4550602 nmewn
nmewn's picture

I thought the internet going down was "unpossible" according to BitSters.

You won't recognize me like you're used to seeing me dps, I'm not taking political prisoners anymore...I'm killing them on the field...you cashed out of BitCoin (in fiat) as an "investment" not as a "cause" because you're a greedy bastard who could give a shit about anyone elses loss as you pumped "a cause".

Your name does you justice, in your own sick way of truth telling.

Sat, 03/15/2014 - 00:05 | 4551120 Seer
Seer's picture

And isn't it the intent of the CIA/NSA to "own the Internet?"  And if they need to be paid, well, good luck dodging them by USING THEIR Internet.

It's just way too elitist, bitcoin, given that only a fraction of humans on the planet could ever likely use it.

Fri, 03/14/2014 - 19:53 | 4550324 nmewn
nmewn's picture

BitCow is the latest thing but the enviro-hackers are a little mad about the server farms they're being raised on...lol.

Fri, 03/14/2014 - 20:11 | 4550377 krispkritter
krispkritter's picture

Please stop feeding Fonestaretard.  He's a useless troll for a pitifull pump and dump of BTC. He has as many BTC as he has brain cells; less than 25. I hope he falls off his tricycle and breaks a leg, then failing to qualify for O'Care, dies of sepsis and is welcomed into a compost pile where he actually mimics the bullshit he espouses...

Fri, 03/14/2014 - 20:19 | 4550402 nmewn
nmewn's picture

Well yeah...but when you get them talking about reality vs the surreal sometimes the interested, dispassionate observer can get a clue of what it is ;-)

Fri, 03/14/2014 - 20:23 | 4550421 fonestar
fonestar's picture

Two-thousand plus years after Philo's experimentation with gasses the typical Zerohedge reader still struggles to differentiate "real" from "tangible".

Fri, 03/14/2014 - 20:48 | 4550496 New_Meat
New_Meat's picture

AnAnomin-thinge????

We're nay strugglin'

not even Joe Namath

- Ned

Fri, 03/14/2014 - 20:25 | 4550428 fonestar
fonestar's picture

No, you don't like fonestar because he exposes the hypocrisy and general stupidity of the posters here.  All of your arguments are just boring junk you got from the cartel's propagandists and replaced the gold & silver with Bitcoin.  In a word, pathetic.

Fri, 03/14/2014 - 20:39 | 4550462 TheGoldMyth
TheGoldMyth's picture

fonestar..Using gold backed currency will only strengthen the grip the central banks and their family of criminals. To me it is ultra pathetic to see a grown mammal grovel in the hope that the central banks maintain the artificial scarcity of gold so their own amazingly insignificant holdings might be worth more.
Of course, gold is no longer extracted the way it once was. It is now a toxic, dirty, repulsive extraction method which destroys the veryt earth that give4s the possibility of a trade with something else. Like clean water, or a bannana. Pathetic.

Fri, 03/14/2014 - 20:44 | 4550483 fonestar
fonestar's picture

fonestar owns some gold and has nothing against gold.  But the posters here don't even seem to understand the difference between gold as a currency and gold-backed government currency (that's why they always yammer on about "backing").  Plus they rejoice when fake gold rallies and despair when fake gold crashes.  Seemingly unaware that it's not gold (or silver) and their general stupidity, weak logic and lax language only serves to empower those they purport to despise.

Fri, 03/14/2014 - 20:57 | 4550531 TheGoldMyth
TheGoldMyth's picture

fonestar..Central banks/banks print money/debt . This is used to buy/rob/steal everything in the world from mammals like yourself.
Hit the reset button, and see what is left to trade. Most of the planet has allready been destroyed. Gold is not worth much on these planets, or even paper IOU's.

This destruction of collective wealth was done by the banker parasite. If you want wealth, that is only possible by removing the parasite/

Sat, 03/15/2014 - 00:50 | 4551207 fonestar
fonestar's picture

All good points.  TPTB care less about whether it's gold, cotton, digits, whatever... so long as they control the issuance and can use it to defraud you.

Sat, 03/15/2014 - 09:28 | 4551595 easypoint
easypoint's picture

Gold "backed" currency is how we reached the current state of financial decay. You will never hear me clamour for a gold "backed" currency. Substitute money "backed" with anything is the path to fractional reserve banking which leads to the boom and bust cycle, bank runs, savers losing their savings, etc. Eventually fractional reserve banking becomes fictional reserve banking, such as we now observe.

Gold and silver make good money (as long as the gold/silver ratio is not fixed by the state), but when used to "back" substitute money, the theft begins. Thomas Jefferson once illuminated our choices stating, "We must make our election between economy and liberty or profusion and servitude." The profusion of fractional reserve banking will always lead to servitude to the bankers. The economy of hard money, which does not require "backing," will protect liberty. If we are to possess liberty we must accept a much lower level of trade, toys, gadgets, and begin to concentrate on building a sustainable low to zero growth economy rather than an unsustainable, infinite growth based economy.

You seem to understand that money substitutes, no matter what they are "backed" with will lead us back to the predicament in which we now find ourselves, but will not accept that bitcoin cannot serve as a currency suitable for liberty when it exists on an unsustainalbe power grid that the "miners" do not control. It is simply another substitute money "backed" with the electricity supplied by TPTB.

Fri, 03/14/2014 - 19:50 | 4550312 nmewn
nmewn's picture

Because of this magical thing called electricity & broadband that appears from nowhere through a hole in my wall ,that no human hands or labor had anything to do with in generating.

It really is PFM (Pure Fucking Magic).

Radar has an assigned value too but I don't think I can surf on its waves like you and Satoshi can.

Fri, 03/14/2014 - 19:53 | 4550322 fonestar
fonestar's picture

If you don't hold those electrons you don't own them.

Fri, 03/14/2014 - 19:54 | 4550326 nmewn
nmewn's picture

Tell that to Mt.Gox.

Do NOT follow this link or you will be banned from the site!