Council on Foreign Relations on U.S. Dollar: “An Absurdity… Supported Only by Faith”
May 9th, 2007The End of National Currency is the most astonishing thing that I have read since Zbigniew Brzezinski’s appearance before the Senate Foreign Relations Committee earlier this year.
Foreign Affairs is the most important and influential journal of International Relations in the world. It is the mechanism by which the Council on Foreign Relations disseminates the game plan to people in polite circles. CFR’s positions on core issues represent the raw building blocks for most of the gibberish spewed by the corporate media and the maniac fascist policies of the “developed world.” Publications like the New York Times and the Wall Street Journal are dumbed down versions of Foreign Affairs that are published daily. Television news is the same thing, but dumbed down again. Foreign Affairs is also where politicians from several countries look to determine what’s safe to say, which policies are doable and what needs to be done. A degree in International Relations is largely a certification of a student’s ability to internalize CFR jargon and concepts.
Got the picture?
Now, what did the most important and influential journal of International Relations in the world just say about the U.S. Dollar and the global economy?
In summary: The U.S. dollar is an “absurdity” and the only way to stave off a global disaster is for most countries to join one of three global currencies, based loosely on: the dollar, the euro and a pan Asian currency.
I encourage everyone to read The End of National Currency in its entirety, but I’ll quote some of the more remarkable parts below:
The dollar’s privileged status as today’s global money is not heaven-bestowed. The dollar is ultimately just another money supported only by faith that others will willingly accept it in the future in return for the same sort of valuable things it bought in the past. This puts a great burden on the institutions of the U.S. government to validate that faith. And those institutions, unfortunately, are failing to shoulder that burden. Reckless U.S. fiscal policy is undermining the dollar’s position even as the currency’s role as a global money is expanding.
Four decades ago, the renowned French economist Jacques Rueff, writing just a few years before the collapse of the Bretton Woods dollar-based gold-exchange standard, argued that the system “attains such a degree of absurdity that no human brain having the power to reason can defend it.” The precariousness of the dollar’s position today is similar. The United States can run a chronic balance-of-payments deficit and never feel the effects. Dollars sent abroad immediately come home in the form of loans, as dollars are of no use abroad. “If I had an agreement with my tailor that whatever money I pay him he returns to me the very same day as a loan,” Rueff explained by way of analogy, “I would have no objection at all to ordering more suits from him.”
With the U.S. current account deficit running at an enormous 6.6 percent of GDP (about $2 billion a day must be imported to sustain it), the United States is in the fortunate position of the suit buyer with a Chinese tailor who instantaneously returns his payments in the form of loans — generally, in the U.S. case, as purchases of U.S. Treasury bonds. The current account deficit is partially fueled by the budget deficit (a dollar more of the latter yields about 20-50 cents more of the former), which will soar in the next decade in the absence of reforms to curtail federal “entitlement” spending on medical care and retirement benefits for a longer-living population. The United States — and, indeed, its Chinese tailor — must therefore be concerned with the sustainability of what Rueff called an “absurdity.” In the absence of long-term fiscal prudence, the United States risks undermining the faith foreigners have placed in its management of the dollar — that is, their belief that the U.S. government can continue to sustain low inflation without having to resort to growth-crushing interest-rate hikes as a means of ensuring continued high capital inflows
…
At the turn of the twentieth century — the height of the gold standard — Simmel commented, “Although money with no intrinsic value would be the best means of exchange in an ideal social order, until that point is reached the most satisfactory form of money may be that which is bound to a material substance.” Today, with money no longer bound to any material substance, it is worth asking whether the world even approximates the “ideal social order” that could sustain a fiat dollar as the foundation of the global financial system. There is no way effectively to insure against the unwinding of global imbalances should China, with over a trillion dollars of reserves, and other countries with dollar-rich central banks come to fear the unbearable lightness of their holdings.
Ordo ab chao.
The CFR created this mess to begin with. Its fingerprints are on every policy, politician and corporation involved with the funneling of wealth up to the top of the pyramid.
Now what?
What do we do now, as we find ourselves gazing into oblivion, into the chaos that They created?
Seek order with fewer national currencies, my son. Trust us. We’ve gotten you this far. We have almost reached the promised land of a global federal government, with a single currency, with no dissent, no war, no crime, no hunger and no disease and…
But before we can move to the single currency, we need to move to three:
A future pan-Asian currency, managed according to the same principle of targeting low and stable inflation, would represent the most promising way for China to fully liberalize its financial and capital markets without fear of damaging renminbi speculation (the Chinese economy is only the size of California’s and Florida’s combined). Most of the world’s smaller and poorer countries would clearly be best off unilaterally adopting the dollar or the euro, which would enable their safe and rapid integration into global financial markets. Latin American countries should dollarize; eastern European countries and Turkey, euroize. Broadly speaking, this prescription follows from relative trade flows, but there are exceptions; Argentina, for example, does more eurozone than U.S. trade, but Argentines think and save in dollars.
But wait, there’s one more thing:
Gold.
This following paragraph is so weird, I had to read it several times. I still don’t know what to make of it:
So what about gold? A revived gold standard is out of the question. In the nineteenth century, governments spent less than ten percent of national income in a given year. Today, they routinely spend half or more, and so they would never subordinate spending to the stringent requirements of sustaining a commodity-based monetary system. But private gold banks already exist, allowing account holders to make international payments in the form of shares in actual gold bars. Although clearly a niche business at present, gold banking has grown dramatically in recent years, in tandem with the dollar’s decline. A new gold-based international monetary system surely sounds far-fetched. But so, in 1900, did a monetary system without gold. Modern technology makes a revival of gold money, through private gold banks, possible even without government support.
Woh. Hold on a second.
On the one hand, “A revived gold standard is out of the question,” but on the other hand, “private gold banks already exist, allowing account holders to make international payments in the form of shares in actual gold bars. Although clearly a niche business at present, gold banking has grown dramatically in recent years, in tandem with the dollar’s decline. A new gold-based international monetary system surely sounds far-fetched. But so, in 1900, did a monetary system without gold. Modern technology makes a revival of gold money, through private gold banks, possible even without government support.”
So, we’re going to have a few “absurd” fiat currencies and private gold banks that will be used to make international payments in the form of shares of actual gold bars? Did the CFR just transmit a veiled and obscure tipoff to the wealthy people who read their rag?
Or is it something else…
I don’t know what to make of it. That paragraph is such a non sequitur in the article that it practically slaps you right out of your chair as you read the thing. Steil points out that rape and plunder (Globalization) can’t happen with currencies that are tied to things. So… Why mention private gold banks that can facilitate international payments?
It gets weirder. This article was published within days of the U.S. Government’s shut down of eGold, the oldest private electronic gold bank. On the same day that the indictments came out against eGold, Brinks, a U.S. firm that provides bullion vaulting services, dropped BullionVault as a client. BullionVault allows individuals to easily and efficiently move their fiat currencies into physical gold, but it does not allow payments to other parties. [I am a satisfied client of BullionVault, by the way.]
Are factions of the Elite in open conflict? Do some of them want access to these gold services, while others, mainly U.S. dollar interested parties inside the U.S., view those same services as a threat? Is Steil warning governments to shut down these services, lest individuals abandon their “absurd” fiat currencies?
I don’t know what’s going on here, but I’d really like to find out.
Research Credit: Jackanapes
A related observation;
First off, I am not a believer of religion, and do believe they are used to manipulate. But I believe I may have broken a code in the bible.
The passage in Revelations relating to the “Mark of the Beast”; Goes thus, (depending on your version): “And here is wisdom, let he who has knowldedge know that the Mark of the Beast is the mark of a man, and that mark is a number, six hundred six score and six, and that no man may buy, or sell, without that number in his hand, or on his head….”
I read that and said Hmmmm, let me interpert this; “And here is wisdom” is fairly obvious, it means “pay attention, this is important”. Then, “let he who has knowledge” what does this mean? At first impression, it may also look like “Listen up”, but that would be way too redundant. Instead, it is written with “here is wisdom” to eliminate that explanation. In fact, that wording is what peaked my interest.
The next logical explanation is that “he who has knowledge” means “he who has the key”, or “code”. So let us work with that theory.
Well how in the world would you code 666? Any way you arrange it, still the same, unless you turn it upside down! Now every numerologist is attempting to find the antichrist by decoding 666. But now we see it may well be 999!
And the “Mark of the Beast being the Mark of a Man” may not be a PARTICULAR man, Bush, Reagan, Kissenger, or any other but the mark of ANY man. (the microchip in the hand.)
Still with me? So if we say the 666 is 999, (as Jimi Hendrix sang “if 6 turns out to be 9”, then where have we seen 999? In fact 999 shaped like inverse 666? Well, the answer is here, on my keyboard, (carryover from typewriters). And on your precious metals.
So this hints to me that the game is financial dominance. That is the Beast we have breathing down our backs.
And no, I do not believe it was written thousands of years ago, but was written thus to add weight and acceptance.
@ Bob: Revelation is very difficult to unlock if taken without reference to all the Bible preceeding it, so you need to start with Gen 1:1 if you want to understand it. You’re treading on thin ice if you think 9 is a symbol of another symbol, 6.
I take it that 666 symbolises the encapsulation or quintessence of human rebellion against God, since everywhere in scripture the number 6 signifies sinful man. The archetype rebel is the beast, which I deduce to be a politico-ecclesiastical office rather than a superlative, end of the age individual. This office claims both spiritual and political supremacy (and thereby economic control) over the entire earth and will use whatever force or deception it can to bring this to fruition.
The upshot is an evil, megalomaniacal, globalist political-economic-religious office, hiding behind ostensible charity and holiness, has been scheming for centuries to subvert the nations for its own ends. The nations, however, look upon it as benevolent, meek and wise, and none are inclined to lift a hand against it.
As for every individual, this evil office will impose a “mark” upon which basic, daily commerce is dependent. But this mark will also possess religious signifigance, i.e., allegiance to the beast, or at least, pragmatism-inspired careless consent to his claims. Those who refuse the mark will do so out of a moral conviction, for which they will be made outcasts and even murdered. Some will abhor him for his political claims and realise his religion must be evil also, while others will see the evil of his religion and view his politics as confirmation of it.
My view therefore is that we should be positioning ourselves now so as to extricate ourselves from the global money system and achieve as high a degree of self-sufficiency, personal privacy and meaningful assets as possible, while time permits.
Simaux.. You are well informed but there is lots more to the story,
There is an internal struggle. Between the current establishment running the show since WW2 = the people controlling the banks and the issues of paper money versus the ancient controllers of the Gold. They are not always the same. The Gold people backed JFK in his attempts to issue US money through the treasury (At the expense of the FED & it’s owners who up till then were Clients of the Gold Owners) and it was only a matter of days after signing the agreement (Green Hilton Memorial) giving JFK access to millions of metric tonnes of Gold as backing that he was killed. After that followed a breakdown of the working relationship between Gold and the Western Banking world. For the last 40 years Gold has been quietly waiting, mostly on the side lines, while the banking world has gone on a spree to lend-to control-NWO schemes. Organizations such as UN/World Bank/IMF etc that were originally put in place to bring about an ultimate goal of “as good as possible for as many as possible..” were hijacked for the empowerment and control of a few.
You could say there are at least two versions of a NWO plan.
NWO 1. the current one, represented by todays men behind the scenes controlling the world through it’s purse string. That will lead to some sort of socialist dictatorship of ultimate control while probably promoting “the true Doctrine of Lucifer”
These will be hard and painful times for humanity but in effect it will be the result of our communal choices or lack thereof. And it won’t last..
NWO 2.The usher in of a humanity that has grown up, living out of it’s Higher consciousnesses (Christ’s if you will) led by God.
The last part can be described as NWO version 2 which is the ultimate plan of the Gold people and always have been since beginning of time.
I know most people would like to keep religion out of it all but at the core of it all, it is all about WHO we truly are as Humanans.
Sheep like Animals just above the Beasts of the fields best used and abused as The Elite sees fit (NWO Version 1) OR Human beings with Divine Creative Potential ready to GROW up and Embrace our destiny as Co creators in full alignment with the Source/Flow/Creator of everything around us. (NWO Version 2)
The Choice is YOURS..
Now, Very simply put..
Trust in Cash $$ You are betting on the wrong guys and you will end up a sheep led to the slaughter.
Trust in Gold. You will at least be more free to make better choices but still choices have to me made.
Are you a Sheep ruled by Fear Or someone who Aligns yourself and your Actions/choices with the ultimate force of the Universe? A Force called LOVE.
Somewhere down the line that is the choice you will find yourself facing, especially thanks to the people pushing for the version 1 of the NWO agenda.
Good luck and enjoy the ride.
I think I understand what this article is saying. The writer who represents the ‘elite’ advocates the use of fiat currency, and even a single one-world global fiat currency, as ‘their’ concept of “the best means of exchange in an ideal social order” – what ‘they’ see as the best means of exchange for the ‘commoners’ that is, because that system would ultimately benefit the ‘elite’ vampires and solidify their power hierarchy! In other words, the ‘common’ people would have no real wealth or property ownership whatsoever, but would only be allowed to trade with worthless so-called ‘currency’ and thus would remain enslaved, with all the real wealth and property ownership permanently consolidated into the hands of the ‘elite’ parasites.
No doubt the CFR et al precisely engineered a system to intentionally fail by design – and to ensure it would fail, via destructive federal government fiscal policy, they aggressively sabotaged their own flawed creation that they now *surprisingly* discredit as the “absurd” catastrophe of the “failing dollar”, as well as discrediting other declining fiat currencies they designed to fail. Why? For the sole purpose of stampeding the world into a one-world fiat worthless currency – for the use of the ‘commoners’, that is. Indeed, they criticize the fact that the fulfillment of their evil plan is still incomplete: “it is worth asking whether the world even approximates the ‘ideal social order’ that could sustain a fiat dollar as the foundation of the global financial system.”
Their obvious goal being to finalize their parasitic-fear-driven-property-ownership-based power structure over the rest of mankind and to forever prohibit the ‘common man’ from ever being able to break out of the fiat enslavement system because the common man would at that point have no options for trade other than the one world worthless fiat currency – and with no real assets or property ownership, the ‘common man’ would have no bargaining or leverage power to break out of the enslavement system of trading his/her labor to the ‘elites’ for mere sustenance of survival – controlled by fear and surveillance, whilst continually existing in a state of debt to the ‘elite’. This is serfdom, eternal peonage, the ultimate goal of the parasites for complete control over all of mankind.
The writer discredits a “gold” standard when it comes to government currency, ie currency for use by the ‘common man’, using the excuse that “governments spend half the national income,” so therefore “they [governments] would never subordinate spending to the stringent requirements of sustaining a commodity-based monetary system.” This seems to be a logical deduction – I mean, how could we EVER do without the Federal Reserve with their precious fractional reserve currency depreciation system and actually keep government spending within the boundaries of the income of the national treasury and, could it even be possible, live within our means? How dare we even suggest that the federal government abide by the dreaded “dual entry accounting system” that must be adhered to by every other business! Entering a debit on one side of the books means you must equally credit the other side? And if there’s not enough credits then we must limit our debits to keep the numbers from going into the negative? Unspeakable! Why even consider such a thing when we have “Helicopter Bernanke” and the rest of the Federal Reserve bandits to print all the money the CFR-controlled-government could ever want to spend? Inflation? Currency devaluation? Bah! Humbug!
But we must realize the CFR et al orchestrates and drives the destructive, disastrous, irrational, insane, as well as overtly collectivist federal government fiscal policy of outrageous and extravagant spending funded by the phony fractional reserve system for the obvious purpose of being able to justify that a commodity-based currency for the use of the general public would be ‘impractical’ and a fiat currency is thus the only viable solution. The collectivist philosophy furthers their evil purpose by brainwashing everyone into submission with the heinous and unconstitutional indoctrination that the role of government is to “take care of us”. Through the lie of the collectivist philosophy they ‘morally justify’ their downright robbery of every person’s inherent right of property ownership and individual sovereignty, and ultimate enslavement of all free individuals. Collectivism? Does anyone actually think they care about us? They are using that philosophy to play upon our emotions, rob us blind, and drive us into the dirt so that we would be completely dependent on them for our very existence. If they had their way we ourselves would be their very property.
Then the writer goes on to advocate private gold banks, saying they “already exist, allowing account holders to make international payments in the form of shares in actual gold bars.” In other words, there’s the tip-off to the ‘elite’. Stock up on real gold and we have the private banking system in place already for trade amongst the elite circles. Then they arrogantly declare themselves above all law and government by saying “Modern technology makes a revival of gold money, through private gold banks, possible even without government support.”
For the clincher, as far as the eGold, Brinks, and BullionVault situation goes, I do not believe this indicates any conflict or infighting amongst the elite. This is the beginning of the elite’s shutting down of the transfer of worthless fiat currency to real gold and other hard assets for the obvious purpose of permanently locking the ‘common man’ out of ownership of any real commodities whatsoever, especially gold. No doubt the elite that still have holdings in fiat currencies have their mutual private systems in place for transferring their fiat derivatives into hard assets before it’s “too late”. But for the ‘common man’, the lock-out has begun. They are attempting to permanently close and lock the door for us to be able to exchange their lie of a worthless fiat currency for hard assets and true property ownership. If they succeed in robbing us of all property ownership including and especially our right to defend ourselves, we are going to be in a lot of trouble to say the least.
We need to wake up folks. Buy gold, silver, and other hard assets while you still can. Don’t let them enslave us in a fiat system while they consolidate all wealth and power.
Support Ron Paul. He advocates a conservative and Constitutional fiscal policy. He doesn’t lick the boots of the CFR. He wants Congress to buy back the Federal Reserve away from the private bankers and bring our currency system under control of Congress and the people where it belongs. Ron Paul will NEVER submit to one world fiat currency. He advocates sound money, individual liberty and property ownership, and limited federal government. Please folks. This is our chance to stand up to the slave-masters and claim our God-given sovereignty and freedom.
We have to realize the psychological profile of the people we are up against. These machiavellians are not only “annoyed” at our resistance to their oppression, they fundamentally do not even understand why we resist. They believe they are inherently superior to everyone else, some believe they are not even the same species as the rest of us, they see us as fodder, and they even get their cowardly egos bruised and their “feelings hurt” when the rest of mankind doesn’t subordinate to their self-appointed ‘superiority.’ They will take every means they deem necessary to keep us in mental and physical slavery because they perceive any free individual to be a threat to them. They are power-control-freak-cowards and anyone and anything not under their control they perceive as a threat. They are so narcissistic they don’t realize that we are not threatening them – we’re not into these imbecilic power games, we just want to govern ourselves and live a free life, exercise our creativity and freedom of expression and not be harassed or manipulated by others. We don’t want to control other people. But we won’t tolerate these psychotic power freaks trying to control us either. When confronted eye-to-eye by sovereign, free individuals like us these ‘elitist’ cowards crumble and shrink into the corner whimpering. I’ve witnessed it first hand at numerous public hearings held by various governmental ruling bodies, and there were no threats or weapons involved – only sovereign individuals standing up, looking these cowards straight in the eye and saying “no†to the tyranny. We have something precious they never will have. We claim and own our individual liberty, sovereignty, creativity, and freedom of expression. They are insanely jealous of us because they don’t have that and never will. In ancient days of European feudalism the tyrants would not allow the serfs to read, dance, play music, or play sports games even on their ‘own’ time for this very reason. The tyrants could not free their own minds enough to allow themselves their own freedom of expression so there was no way they could allow the serfs freedom of expression because that would ultimately threaten the tyrants’ grip of power over them.
Freedom of expression leads to cultivation of creative thought, the development of critical thinking patterns, the realization that inherent individual sovereignty and liberty must be validated and preserved, and ultimately the challenge against tyranny. They rule with fear yet are imprisoned by fear themselves. They are enslaved by their own desperate insecurity of losing their power hierarchy because they are so empty inside, their perception of their control over others is all they have. They cannot even control themselves or claim their own individual sovereignty so they are madly driven to control others in order to appease their egos to maintain a psychological equilibrium or else suffer a nervous breakdown.
Most people become “fat and happy†after achieving a certain level of wealth and power. But these so-called ‘elitists’ are beyond psychotic. Enough is never enough for them. Driven by a bottomless pit of insecurity, their quest for more power escalates the cycle and causes more desperation and more insecurity and spirals into an endless vortex of psychosis which eventually leads to genocidal actions. Controlling the ‘outward’ behavior and actions of others is not enough for them. Eventually they come to the realization that no matter what they do they cannot control the thought patterns of another person so they conclude that the only way to truly control another person is to destroy them, and that’s why they become genocidal murderers.
They are so unfathomably insecure that it causes them to become insatiably desperate for power because they cannot even stand to look at themselves in the mirror because when they do all they see is a black hole. We have no cause to fear them at all. Like the Wizard of Oz, once you see the little man behind the curtain you realize that he is nothing, you realize that you had all the power all along. The ruby slippers are placed upon our feet from the very beginning. All we need to do is acknowledge our inherent power and sovereignty, click our heels together and we are home.
I asked the following question to a number of people (including banker, makroeconimist).
1. New money (increase of money supply) can only come into circulation if the central bank grants a credit to a bank who in turn lends it to someone (economy, private person). 97 % of the money in circulation is credit! If the central bank expands the money supply (= grants a credit) and gives out say 100 units (euro, USD, whatever currency) it books a claim of 106 units. 100 plus 6 percent interest (for a one year loan). If it were a 30 year loan the money in circulation would be increased by 100 and the debt of the borrower would be 574. So in the very beginning stage of money “creation” the increase of debt is already (much) bigger than the money added to circulation. It is impossible to ever pay it back.
2. If I lend 100 to K the debt is 106 (one year loan). K lends it to J. Another 6 % is added to the sum of debt. J lends the same 100 bill to P. P again lends the same 100 bill to someone else. The sum of debt is increased by 24% (4 x 6%) and the money in circulation is still the same amount! As long as debt is bigger than the money in circulation (as forced by our current system), the ever increasing sum of interest can only be paid back by even more loans, accelerating in turn the debt spiral.
The conclusion: Any talk about disencumberance (federal, household, econmy) is no more than a TV show. One individual can push debt on another individual. But in our current money system the sum of debt will allways rise exponentially faster than the money in circulation.
I asked the question to a makro economist. He said he cannot answer the question because it is too simple. Others keep talking ´loud and proud´ without answering the real issue.
Why does no one speak out about this insanity? Any comments about my calculations?
@ ABS/URD
I’ve written about it so many times that I just became tired of the subject. A good phrase to look up is:
fractional reserve banking
http://www.google.com/search?hl=en&safe=off&rlz=1B2GGGL_enNZ177&q=fractional+reserve+banking&btnG=Search
I like:
The Creature from Jekyll Island by G. Edward Griffin
http://www.amazon.com/exec/obidos/ASIN/0912986212/ref=nosim/cryptogoncom-20
All central banks are run this way. Fiat money systems are totally absurd. But here we are…
My friend provide me this link so I presume he wants me to comment, which I hate because my brain cells are not what it seems years back. Economy is the study of common sence that ‘s what my lecturer Miss Peggy Ng told me. I conccur. Hwat’s made it difficult is we need perhaps a determination to arrest the problem facing the world namely US. At the height of the depression in the 1930’s Keynes came up with the theory of using fiscal policy to control the economy. That’s when the idea of pegging the money to gold were introduce. But in 1973 during the oil crisis they found out economies can be manipulated and those who can hold gold can control the world and oil was black gold.That’s where the monetorist came in. The idea is to control money supply later on the idea is to merge this with the fiscal policy as a means of controlling economy. They decided to unpeg the money and use the idea of velocity or how much the monies move to reflect the worth of a nation. This idea is also flawed in the 1997 the Asean meltdown occurs because of rogue traders who buys and sells monies. For Asean it was a bitter pill to swallow but for countries like US this scenario is unlikely but can happen. For years now US has a deficit budget as it tries to remain competetive it spends more on protectism and this negative budget has ballon to uncontrolable situation. Trouble with the western countries like US and england whose ideas is oudated remain competitiveness is an enigma. EU is a good idea if not because of politics it can even be better. People has time and again forgotten about labour, in any countries a labour which has mobility and willing to accept changes is an asset to countries. Thus tiny Singapore realises to remain competitive it needs to have an open migration policy although its policy is geared to attract the high end personnels nevertheless it realise to adapt and change with time. US need to do the same, the economy needs to be open up and one upmanship is ridiculous. It is no use to control oil if the price of extracting it is expensive. US need to reinvent herself economically and the leaders must have the will to exact change how painful it is. Surplus budget or balance should be strive by the administration because if US economy collapse by her own debt it is tsunami that will effect 4/5 of the world economy for the time being the Chinese Tailor will still made her master suit but for how long?
Actually you are all wrong. The situation described,, where gold is used,, but not used,, means the following :
Domestic internal curriencies will be allowed to inflate,, thus allowing government to spend,( 0ver spend ) at will and dump the cost on to the people as inflation ( the govt spends, we blame the guy at the grocery store )
On the other hand, international transactions ( transactions between the rich ) will be in an international gold backed currancy,, that way “THEY” buy sell and trade in real money, and they exist in a financial world un-incombered by the pesky nonsence of inflation.
No. Not unencumbered by inflation but rather enhanced by inflation. When the value of fiat currency goes down, the value of their gold holdings increases. Have they created their own playground or have they just taken advantage of it? I don’t have enough information to say but I know I can take advantage of it in my own little way.
The one thing I believe coming down the pike is gold confiscation again or at least some way to prevent us dumb farm animals from using or profiting from it. Didn’t FDR institute that? If you own gold, I would not let too many people know about it. There is going to be one hell of a black market one of these days.
Will “it” be as bad as some think or will “it” transcend into another cycle. So far I have heard the same talk for the last four decades. The situation has steadily deteriorated for sure. I think it will be somewhere in between the pessimistic and optimistic but either way will be a bad shock to the wimps being raised today. I can’t do anything about other people. I can do for my family and will. I for one prefer to be prepared than suffer the surprises to come.
Okay, now the Federal Government has not actually shutdown e-gold. They certainly have unfairly attacked it, but transaction volumes have apparently been increasing of late at e-gold. However, the Fed’s crippling of the principal exchange provider for e-gold (G&SR), by stealing millions of dollars worth of gold (from Gold and Silver Reserve’s accounts and from 1MDC’s accounts too) without having obtained any conviction for any offense, has made life very difficult for G&SR.
The comment about “tipping off” rich people about the availability of gold banking is curious, as services like e-gold, GoldMoney and Pecunix make it cheaper for ordinary people to have gold accounts than it is for them to have bank accounts!
A new Malaysian-based gold currency with many of the features of e-gold, and then some, has recently been launched (by the principals of the successful CyberFrontier group) and is gaining considerable support, with the notable feature of any person being able to bail in or to redeem gold bullion at their physical stores, and with full transparency in their bullion holdings and account statistics.
For more information see:
http://127.c-gold.com/