Contagion is a problem, we are all interconnected for better or worse. A bad apple can spoil the whole basket. Welcome to the world our leaders have designed or allowed to form. 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 it was printed. This money has instead flowed across borders influencing and distorting markets and prices across the world.
Now that we have wound up and distorted prices we are facing the great unwinding which may prove very painful, This event may be described in several ways, most likely as a collapse or a re-alignment but in reality, it is the recognition that our path was an unsustainable illusion. If the blame and focus are put upon currencies many people will see the logical and easiest answer is to form a new world currency. The argument and justification for doing so would be that it would allow the world to enter a modern new age and free economies of the clunky restraints placed upon us by the current system.
Do not be fooled, this is not the answer and it would not be easy to accomplish. By looking at the problems the Euro has faced we begin to see the pitfalls of such a currency. While those wanting to take us in such a direction would try to paper over the negatives with prescriptions to rectify its ills the basic flaws would still exist. Even more problematic than those ills is the concentration of power it would create. The argument that by binding ourselves closer together we would be less inclined to attack each other may prove untrue.
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 and catalyst 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. Even with some countries not participating in such a currency dislodging the American dollar as the world reserve currency represents such a shift.
Calls for a new world currency may grow over the coming years, if the world stumbles into an economic hell the noise could become deafening because people and their leaders tend to look for easy answers. To those who have painted themselves into a corner this option would represent a new lease on life and a way to avoid and lessen the consequences of their past actions. The blessing of this political smokescreen has "inflation" written all over it in the kind of ink only visible with a special light.
Footnote; Your comments are welcome and encouraged. If you have time
check out the archives for another post that may be of interest. Below are three posts on somewhat related issues,
http://brucewilds.blogspot.com/2014/04/inflation-seed-of-economic-chaos.html
http://brucewilds.blogspot.com/2013/01/currencies-games-in-danger-zone.html
http://brucewilds.blogspot.com/2012/02/we-are-all-slaves-interesting-thought.html
The world needs a Single Global Currency managed by a Global Central Bank within a Global Monetary Union. With such a currency, there will be no currency speculation, no foreign exchange transaction costs, no need for foreign exchange reserves and no currency fluctuations. See www.singleglobalcurrency.org
ReplyDeleteMorrison Bonpasse
Newcastle, Maine, USA
You forget that such a system would allow those who control it to strip mine the wealth from the whole world and rule the world for their own benefit. And if the global currency is purely electronic, it would allow highly negative interest rates to be imposed, and money points could also be given a "color" and expiration dates. A true Mark Of The Beast currency for a Utopia of Central Planning.
DeleteThank you for your comment. As I stated in my post support exist for such a currency. I will try to put together a poll to see if the support is broad-based. as you can tell I'm not excited about this prospect.,
ReplyDeleteI think this is the end game for ultimate control on a global scale so I agree with Bruce that it's coming like it or not. The world as a whole has become more intertwined and the elite such as the BIS and IMF would prefer not to allow China gain the world's reserve currency as they have shown already they are more corrupt than The Federal Reserve. While The Fed was pumping 4-5 trillion into the financial system, China was doing that by 4-5 times the amount. The also have a massive shadow banking system of their own.
ReplyDeleteI can see a scenario where the BIS, IMF and or the ECB as a collective group would rather oversee the control of any next world reserve currency and not allow any single nation that distinction.
We have entered an Orwellian State and it has become Global. I think this all ties in nicely with a global currency and eventually, global governace.
It should be noted that how much of your wealth would survive a currency conversion would depend on the rules used and how it played out. Bail ins, special taxes, forced sale of gold to governments, and other crazy things might happen.
ReplyDeleteIn my opinion tangible assets that are paid for and in your possession would be the safest things to own. It is very possible a new currency would only be issued after hyperinflation had already wrecked the value of many paper promises and agreements.
It has already arrived , it's called Bitcoin.
ReplyDeleteNot quite arrived. Until the Dark Wallet attribute of true anonymity is production stable, Bitcoin could be misused as a dreadful surveillance tool.
DeleteThe good thing is that Dark Wallet (and its competitors) will probably be stable next year.
I choice this site.
ReplyDeletecurrencies
Its called the dollar and its here to stay? Our interest rates will act as a magnet which will absorb any physical remains of mal-investments and create a formible challenge to any current pairs? Our last obstacle to hedgemony is charging a fee to be deposited! The dollar had a overnight interest rate of 15% now down to quarter of a % and HOLDING? Exporting inflation and expecting it to come back as dollars is something to get your head around and not holding a metal that CHINA will HAVE TO DUMP to stave DEFLATION in asset pricing? I.e. CHINA WILL COVET WHAT YOU WONT! First shiny and than its paper equivalent to ease their mal investment pain!
ReplyDeleteI cant understand the love of gold and the hate of corporate credit! If like me you don't believe the zeros at the eccels building has any paper backing in the real economy to physically loan against how you going to get collateral? Also at such low rates the default rates have been indirectly fetted due to the recession and should have less trouble paying out income at say 1% compared to 18% 30 years ago? There is such little physical credit you can feel the stampede a dooming!
ReplyDeleteStampede a coming! He met to say.
ReplyDeleteWar could be the great cover for The NWO and The United Nations to take over the globe and Electronic money will spy on everyone and destroy any game playing with the New money masters.
ReplyDeleteNo Mafia or organized crime.The club members will be the new dynasty of perfection of man.
I am trying to get my head around the idea of "voting" for the amount of money in the world. 5 countries get a vote on the "world" currency and other countries actually hold these notes as reserves?
ReplyDelete