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The World Is Screaming For A New Financial System
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.
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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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HMMM. 'madtechnician'...
A FONESTAR, by any other name...
Would smell as sweet...
As a ROSE...
In a pile of SHIT.
Ah, classic Shakespeare...
Send this one along to your handlers in the basements of Haifa or Alexandria. 'madtechnician'? 'fonestar'? NSA wiretaps? 'Bragging Rights'? WE DECIDE, YOU COMPLY?
FUCK 'fonestar'.
Poor soul must have taken one too many blows to the head.......
The stick and mud hut life will do it to you every time. I personally prefer the grass hut and nerf bat lifestyle to preserve clearer thinking.
Miffed;-)
I was being told that when bitcoin was forty cents .........
Forty cents of what...fiat?
Yes Forty Cents of Fiat - about 25 pence in the UK. It was a Ponzi Scheme then and it's still a Ponzi Scheme now. Yeah I know Gold will always have value - but with capital controls coming and border stops how can you transfer any of that value in a global village with tyrants trying to control it ? bitcoin value can be transferred in an instant to anywhere on the planet down an ethernet cable or phone line . Unfortunately - the conduit you speak of is also the value. ALL matter is made of pure vacuum , this is a paradigm shift.,
I don't live in a "global village"...what are you fucking high or what?
If you want to sink all your wealth into a virtual cloud of bullshit that stops at the closest POP that every tyrant has control over knock yourself out.
My village & I don't need it and we don't accept "whats in your wallet".
I sank a small fraction of my (earned) wealth into bitcoin quite some time ago. I also sank a small fraction of my wealth into the second ISP in London when I was a kid early 90's . It was the same story then as today - "Oh yeah , the Internet , that will never catch on ".....
The fact the we are instantly blogging here proves that we are now living in a Global Village. I don't give a shit what is in your wallet , and what's in mine is also ust as irrelevant.
"The fact the we are instantly blogging here proves that we are now living in a Global Village."
No, what it proves is one villager is talking to someone else in a completely different village who wants to exchange a byte (virtual) for a bite (real).
People live in the real world, comparing communications (conduits) to money is like saying you can survive on radio waves or...I'm gonna go ahead and say it...the very same nonsensical "reality" of converting future generational debt into present money.
There is nothing in what you're promoting as "new and improved" that they are not already doing. Its based on nothing but faith in virtual intangibles.
>posts on the internet
>claims he doesn't live in a global village
Scumbag nmewn.
Naa , I think it's the sound of Sour Grapes. Noise from these fools will only get louder and more intense as the BTC price continues it's march upwards over the coming years until it completely takes over the global monetary system and they sell their gold holdings for a few fractions of 1 bitcoin.
@tmosley,
I didn't realize you were a fucking globalist, till now. May I have your opinion of the UN now as well?
Madtechnician - I see your problem now. Your measurement may be off a bit. Yes, it may be the start of a paradigmn shift, it is the beginning of a method of how we all do business. But that may take decades. What is wrong with moving forward on the field two inches for all mankind with a development and being satisfied? All contributions with right intent are ALL valuable.
As for scale of individual or collective contributions. It is at the end of the day all relative. It is about your piece of mind whether one tried to add value or not. You know my son said to me last year "Dad, at least you did something, your tried." That is enough for me to go to my grave with and be at peace. But I have a little more yet to add on the scientific frontier ;/) Operation Eternity bitchez.
Sometimes things can happen much faster then we realise. I went travelling around India for 6 months in the 90's , when I left people everywhere were dismissing the Internet as a fad which will soon dissapear , when I returned every single person I knew was using the Internet. Technology can literally have an explosive effect once it gains traction. Technology only moves in one direction , it cannot move backwards , the Crypto genie is out of the bottle and there is no force on this earth which can shove it back in.
You say that like it's a problem...
Problems only exist in your mind.
Strange, all I hear is screaming for MOAR free shit......
The Chinese, which have their own economic issues to deal with, are starting to dump Treasuries in record numbers.
Yes, because in light of their recent trade data what the Chinese are looking to do is INCREASE the value of the yuan against the USD. Uh huh. Their record dump amounts to a record amount of spit from the ocean of Treasuries they hold. And there are two other reasons why Treasuries were sold... to frontrun the Fed for free profits, and to decrease holdings in case the US economy did pull up its bootstraps and yields subsequently rose.
We are a long way yet from the collapse of the US dollar. We will know we are there because other currencies will have collapsed first... And that's another point Black fails to consider in his historical overview... never before have all the currencies on the globe been fiat. And every fiatmaker is trying to devalue simultaneously against all other fiatmakers, despite the mathematical impossibility of their efforts.
Exporting inflation... it's a bitch, bitchez.
I see no problem with this existing system. I can use USD as "money' or asswipe. What could possibly be wrong?
New reserve is 22 LR, no? Meanwhile back to Netfluuux and the remastered "Star Trek".
Long home grown anything.
A major element of the status quo is this:
"The Public Be Suckered"
http://patrick.net/forum/?p=1230886
Let's cease ALL these deceptions by omission.
And yet Obama can't wait to waste another trillion on useless war. Syria, Russia, who cares.
Can I ask a dumb question of any honest economist out there?
If EVERY nation on earth had a debt-free money system (whether backed by gold or labor)... is a "World Currency" necessary?
I mean, if you can't "borrow" your money into existence, would the IMF serve any purpose?
Most individuals want to trade for goods made elsewhere. Trade of goods for goods is often quite inconvenient, even within one "nation". Therefore, a form of "money" that lets people trade any of their goods for any other goods is very desirable.
The world already HAS a form of money recognized worldwide.
And that is PHYSICAL GOLD.
EVERY fiat alternative is inherently a scam. Every. Single. One.
The reason gold is the universal "money" is... when you trade gold for goods, or goods for gold, you are actually...
TRADING REAL, PHYSICAL GOODS for REAL PHYSICAL GOODS.
Thanks, Ann. I love your honesty.
>> TRADING REAL, PHYSICAL GOODS for REAL PHYSICAL GOODS.
...with no counterparty claim.
"Gold is money. Everything else is credit."
--- J P Morgan
One thing is for sure. Everyone with any sense whatsoever will start avoiding every form of "currency" and "money" advocated by ANY government or organization like IMF or WorldBunk. Unfortunately, almost nobody has an sense any more.
Hi h –
I happened across a recent thread to which you contributed, and found your thoughts and reports relating to the creation of your current home to be very interesting. It seems that you are quite happy with your situation, but should you still have an interest in finding that elusive "collaborator", we should communicate privately.
Yes, it is a long-shot, but we have similar perspectives, and I am actively considering where to develop my next home.
If you'd prefer not to, I'll understand, and wish you the best of luck.
Well, I am always considering another place as a backup. And recently a couple other ZH folks said they were either interested or willing to be involved in collaboration.
In addition, 2 personal friend/couples are interested in collaboration. So, maybe we should find a way for everyone to exchange ideas with each other to see whether we can find two or three collaborators willing to go for one specific idea.
I will note that virtually everyone so far is mostly interested in the southern hemisphere, either south america or somewhere on an empty or sparsely-populated south-pacific island. Everyone is also "rural oriented" (some prefer "near small town" while others prefer [extreme] boonies). My current place is in the extreme boonies in the southern-hemisphere, and personally I'd only consider places in the southern hemisphere (or outer space). If you want to contact me to get something started, send email to my ZH username at ymail dot com.
PS: One couple has been trying to find someone to partner on a lot in LEC (the "La Estancia de Cafayate") community started by Doug Casey. That's a very comfortable and luxurious community for liberty-types in rural Argentina, but the monthly HOA/tax costs are too high to be comfortable for "regular folks" (not rich). However, the 1+ acre lots they like (on the golf course) are plenty big for two homes, and then each partner/couple would only face half the monthly expenses. The approximate yearly totals are HOA:$7000 and taxes:$3000), so that's under $500 per partner per month. However, they are also open to alternatives other than LEC.
great chart to show sheeple & thx Zh
so...plus /minus 25 years we should be worried?
Dream on Tylers... before the U.S. gives up the dollar as the world's reserve currency they will, print, rehypothocate, warmonger, lie, bail in, bail out, etc. The rest of the world can bitch/moan all it wants... if any of them cause any
problems, the U.S. military will smash them... as usual.
The US will not 'give up' its reserve currency status...it will be taken from them.
illthang, I gave u a grenie on ur comment, 'cept u confuse wtf b de "US"
'cuz b 2 possibilitiez:
1: us give up, or
2: some other biatchz take
3: us intentionally give up 2 make 2 happen.
u gotta' getz u anal-cranial inversion corrected, 'cuz 3 b da situation.
u readin' me? Duuude, u got dis?
- Ned
Kicking and screaming until the American Spring brings about PM/commodity backed Treasury notes.
Check, check, check, check, check and check. The Sheeple actually have grown weary of "war." What's next?
u smoke weed and stop checkin' on snot.
The US military will smash Russia?
The US military will smash Russia?
Nigga, you just went full retard.
.
And new government, don't forget the new government. We need that too.
If the Putin Crimean put brings about the tilting of the USD hegemony table by its unforseen consequences, then so be it....tipping times of cold war 2 leading to financial meltdown.
Nobody hates a fellow Oligarch as much as the Top Don when he hears those fatal words : I'm copping out of the global deal...Deal me out 'cos I'm my OWN Don and you don't be bossman no more...
I suggest that the american team could give up the dollar on 1 condition. Putin heading to the D.C as american team coach and Ogolfer to Moscow with an unbreakable period of 10 years.
I bet in 5 years time the dollar would come back s the dominant global currency.
I'm goning to college and by doing so I am worth only a fraction of my true debt potential.
I wonder if that chart is extremely accurate?
If so then just use a calendar to start shorting currencies....
Awww.
That's cute. fonestar brought a date to ZH.
I've said there is no inflation but at the same time ground beef was a ridiculus $9.90 a kilo. Today the new price is $11.60 a kilo. This is ordinary lean ground beef. It ain't bison. Oh well, pork is cheap and chicken is stable.
Well it's still cheaper to snort hamburger than cocaine.........
robertocarlos,
If the world's agriculture system wasn't relying on a system that will be kaput in a few decades, your precious ground beef would be so expensive, you seldom get to eat it.
Only energy itself is fit to be used as a currency.
Cut out the central banker money changers and the Government lobbyist, the US economy will restore itself handsomely . Or we just say fuck it, and jump onto the new Universal Monetary system. See below.
George Bush Sr. New World Order Live Speech Sept 11 1991
/ Stupid fucks
Friday, July 8th, 2011
"The New One World Currency, which will be presented to an incredulous community, is designed to control you. "
http://www.thewarningsecondcoming.com/eternal-father-will-prevent-new-wo...
Now, in the open, we all see why the aid to Ukraine is attached with IMF reform. Unfortunetely for the Ukranianes, the 1% would not sacrifice their control of financial system for the rest of the world, specially the ukranians. The 1% have their rights to protect. Fuck the rest of the World, Vitoria strike again.
They will be screaming louder after they get it.
Is the Russian event the staged black swan to turn the global reerve currency over to China?
It certainly looks planned that way
I like whisky its easy to make. You can wipe your ass with it. It will allways be worth something. It is worth more if you save it right. If they tried to make it worthless Id run my car and generator on it.
"But most of the other 180+ nations have had enough. And they’re pushing the United States to massively overhaul the current quota system."
Isnt it wonderful to have democracy at work?
"And while no foreign government wants a collapse of the dollar ..."
Fuck yea lots of nations wana see USD collapse, it's just uppity Americans not wanting to see it collapse, so we can continue exporting inflation, debt, and military conquest.
Fuck yea other nations wana see America come down, and yes they're working together to bring America down, and yes they'll do it by destroying USD.
Russia's cooperation is necessary. They've been waiting on Russia, wondering if Russia is ready and committed to go up against America.
Putin has given the answer, yes, he's ready and committed.
So expect to see it happen before much longer.
It is not Russia go up against America. Is Victoria Nulland go up against Russia., by throwing out the elected government in Kiev.
By the way, why the rest of the world had to let US dollars to suck us? Kill us? enslaved us? And your 99 Us sheeps are better treated than us?
The IMF... the official front group and PR agency for transnational corporations.
And even though Richard Nixon ended the dollar’s convertibility 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.—Simon Black
After WWII, Americans came forth with a burst of production that continued almost uninterrupted from the late 1940s to the late 1960s.
So what happened? An increasingly expanding Fed happened. Congress and irresponsible US presidents, with all their new deals and new societies and world wars and American dream housing and QEternities became overly dependent on the most blatant scam of all history -- the Fed -- until today America is absolutely without a permanent money system, and Western civilization is tittering on the verge of collapse.
Author and devotee of historical research, Dr. Clarence B. Carson, explains why Nixon dropped the dollar's convertibility to gold:
“While this building and production was quite real and involved many accomplishments, much of it was fostered and channeled by a massisve credit expansion. The national debt was the landmark of the credit expansion, as it continued to mount year after year of government deficits and the rising cost of interest payments on the increasing amount of the principal.
"The value of the dollar continued to decline, and by the early 1970s the United States could no longer defend it with gold. The country was caught with a depreciated dollar, perilously rising prices, and what amounted to an inflationary depression.”
And for this wanton destruction of the dollar, Bernanke last week was paid at least $250,000 (as was Greenspan in 2008), for his first public speaking engagement in Abu Dhabi, for which attendees paid $2,000 each to hear the former Fed chair tell them how the Fed does it.
It’s easy, really; it only requires the destruction of sound money by the money magicians, first by inflation and then by deflation. And invoila! If in 1913 you purchased an item for $20.00, then in 2014 that same item will cost you $472.56 for a cumulative rate of inflation of 2262.8%.
And lest we forget only to be fooled again should we get another chance, the Fed, the IMF, and the World Bank, are one.
Nixon had to do that, because after France had take out their gold in USA, others countries want to have their gold back. If USA was not in Vietnam, nothing of this would happen.
Just like if USA didnt invade Iraq and Afghanistan in this century, the decline of her economy and her currency would not be so rapid and steep.
19 saudi boy who did 911 with box cutters caused 100's of trillions of damage to the USA, and that is what brought the usa down,
if 19 saudi boys can collapse the USA, why can't 19 america boys collapse tel-aviv?
because it is a myth, the reality is more complex. ask the owners of the towers.
Nixon had a Democrat-controlled Congress and failed to get a balanced budget.
It was his misfortune to preside over a currency which was completing its final slide to fiat money. During his term, says Carson, "the government ceased to defend its currency abroad with gold at a set price and allowed Americans to own gold once again. But the government plunged deeper into debt, and as the currency depreciated (with no longer even the remnants of a gold backing [as institued by Volcker]), prices rose precipitately."
It was Roosevelt who "moved to take away any control which Americans individually had over their money by demanding payment in gold," using the banking crisis in his first term to take this measure. Americans, in place of the gold that was taken from them were given instead paper money--Federal Reserve notes.
Think what this has meant to savers, both young and old, ever since Bernanke instituted ZIRP during this current "banker crisis." The private owners of the Fed have stolen at minimum $10.8 trillion from risk adverse savers using ZIRP -- forcing many oldsters to live off their princiipal at the same time inflation is running above 9%, according to Shadowstats. Common sense tells me many of America's frugal savers by now are now penniless. Of course, this is confiscation of private property by the bankers, a tragic financial crime covered up by the silence of a banker-controlled media.
.
As for the war in Vietnam under Nixon, it staggered on, but many troops were returning home.
The world is screeming for anyone who can allow them to work one half a year and live like a king/queen like they have since USD domination.
Before that everyone had to walk to the outhause to take a dump.
so, USA can get back to itself and let the rest of the world . No need to impose her dollars by wars. Just stop to make wars around the world.
dont be illude by your msm. Since 1945, how many millions dies in USA wars?
Bitcoin, bitchez! HAHA, j/k
Hot cocoa sampler boxes.Good as Bitcoin,bitchez
Screw bitcoin and hot cocoa samplers. The Coin of the Realm in future will be TOILET PAPER.
Stock up now before those supply chains break down.
Dont worry , the Fed has already instructed the Treasury to roll the presses at double speed.
Whether by design or merely as a byproduct of globalization we have weaved a web of financial transactions that circle the globe. Over the last several years as money was printed by the central Banks it was not contained in the countries where in was printed. This money flowed across borders influencing and distorting markets and prices across the world.
Some people have been calling for a "world currency" for years. the saying "one should never let a good crisis go to waste" means a meltdown with high levels of fear would present a perfect opportunity to advance this agenda down the field. Remember many people with agendas have a lot to gain when a major shift in the currency markets takes place. More on this subject in the article below.
http://brucewilds.blogspot.com/2014/02/contagion-may-lead-to-new-world-c...
...and because the Euro has worked so well so far.
The world will get what it is asking for - Bring the SDR for the masses!
dup.
All the IMF is good for is indebting third world countries, making dictators rich and funding the purchase of weapons and violence. I am thinking that this is something the world can do without.
What is amazing though is how they accumulated all of their gold, given that they create nothing of value.
Simon, this was an 8-10 page assignment. I wrote this paper in PolSci 3570. I'd rather read Mauldin but would settle for Eisenreich over your retread of an article.
I must have seen that chart 100 times by now.
That speaks to it's efficacy as the porniest of chartporn. It has long legs.
An "orderly rebalancing" might be in our best interest. It will still be very painful but it would be better than a biblical dollar implosion. That might be like a choice between a .22 in the head vs. a .38+P. Not MUCH of a choice.
Problem is, whatever might replace the dollar will quickly be debased and manipulated for the good of the few at the expense of the many. The cycle will start anew.
We totally deserve that our dollar lose its' position as the world's reserve currency, because we did not appreciate this trust - we are no longer responsible, indulging freely in fiscal insanity, can't even balance our own budget. We've been very selfish and inconsiderate. When our dollar crashes we will get exactly what we have coming to us.
Only one way to get it right.
Reissue all currencies with the pegs being exactly equal. Initial amount of currency in circulation tied to population, production and resources of each country. Give depeveloping countries an extra allocation to allow their modernization.
Each government is then allowed to print to run their operations. The increase allowed each period will need to be set in stone. Say 5% of GDP. any amounts over that will need to be paid through taxation (voted on by the people).
This would allow the peg for all the currencies to remain equal over time and countries to compete on a level basis.
The truth is that we need way more money created then is currently being created. A person needs to save 10% of their salary each year or so (on top of SS) in order to retire comfortably. Where is this excess money suppose to come from if every unit of new currency represents a unit of debt? Mathematically, the current system ENSURES that most fail at ever accumulating anywhere close to what they need, even after working their entire working life. Of course much of this savings would need to be snatched back by the gov. upon death or we would end up with no one needing to work after a few generations. Then again in a few generations there may be little need for most to work and in that case full inheritance would make sense.
Rats vs Gold
Ugh...Question: When everyone is starving, picking through trash and hunting rats for food, how many rats can you buy with a pound of gold? How many!!?
'cause Rats are scheduled to be the New World Currency. Capitalism = Eventually, everyone is eating rats.
But I digress...
Yes, Criminals, Swindlers, and Thugs the world over want "Reform".
Yes, there is, I'm sure, a chorus of Oligarchic Douche Nozzles who would like nothing better than to "trust" their own currency over the dollar. When there is no "trust" then no one changes their habits. The dollar is it until rats become the new currency.
I'm long on rats.
Jct: Millennium Declaration C6 to governments proposes to restructure the global financial architecture with an interest-free UNILETS (United Nations International & Local Employment-Trading System) time-based currency. Just waiting for installation. An hour of delivered labor owed is better than aBitcoin hour of computer time wasted.