Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
UK House Prices Momentum Tory Seats Forecast General Election 2019 - 8th Dec 19
Why Labour is Set to Lose Sheffield Seats at General Election 2019 - 8th Dec 19
Gold and Silver Opportunity Here Is As Good As It Gets - 8th Dec 19
High Yield Bond and Transports Signal Gold Buy Signal - 8th Dec 19
Gold & Silver Stocks Belie CoT Caution - 8th Dec 19
Will Labour Government Spending Bankrupt Britain? UK Debt and Deficits - 7th Dec 19
Lib Dem Fake Tory Election Leaflets - Sheffield Hallam General Election 2019 - 7th Dec 19
You Should Be Buying Gold Stocks Now - 6th Dec 19
The End of Apple Has Begun - 6th Dec 19
How Much Crude Oil Do You Unknowingly Eat? - 6th Dec 19
Labour vs Tory Manifesto Voter Bribes Impact on UK General Election Forecast - 6th Dec 19
Gold Price Forecast – Has the Recovery Finished? - 6th Dec 19
Precious Metals Ratio Charts - 6th Dec 19
Climate Emergency vs Labour Tree Felling Councils Reality - Sheffield General Election 2019 - 6th Dec 19
What Fake UK Unemployment Statistics Predict for General Election Result 2019 - 6th Dec 19
What UK CPI, RPI and REAL INFLATION Predict for General Election Result 2019 - 5th Dec 19
Supply Crunch Coming as Silver Miners Scale Back - 5th Dec 19
Gold Will Not Surpass Its 1980 Peak - 5th Dec 19
UK House Prices Most Accurate Predictor of UK General Elections - 2019 - 5th Dec 19
7 Year Cycles Can Be Powerful And Gold Just Started One - 5th Dec 19
Lib Dems Winning Election Leaflets War Against Labour - Sheffield Hallam 2019 - 5th Dec 19
Do you like to venture out? Test yourself and see what we propose for you - 5th Dec 19
Great Ways To Make Money Over Time - 5th Dec 19
Calculating Your Personal Cost If Stock, Bond and House Prices Return To Average - 4th Dec 19
Will Labour Government Plant More Tree's than Council's Like Sheffield Fell? - 4th Dec 19
What the UK Economy GDP Growth Rate Predicts for General Election 2019 - 4th Dec 19
Gold, Silver and Stock Market Big Picture: Seat Belts Tightened - 4th Dec 19
Online Presence: What You Need to Know About What Others Know About You - 4th Dec 19
New Company Tip: How To Turn Prospects into Customers with CRM Tech - 4th Dec 19
About To Relive The 2007 US Housing Market Real Estate Crash Again? - 3rd Dec 19
How Far Will Gold Reach Before the Upcoming Reversal? - 3rd Dec 19
Is The Current Stock Market Rally A True Valuation Rally or Euphoria? - 3rd Dec 19
Why Shale Oil Not Viable at $45WTI Anymore, OPEC Can Dictate Price Again - 3rd Dec 19
Lib Dem Election Dodgy Leaflets - Sheffield Hallam Battle General Election 2019 - 3rd Dec 19
Land Rover Discovery Sport Brake Pads Uneven Wear Dash Warning Message at 2mm Mark - 3rd Dec 19
The Rise and Evolution of Bitcoin - 3rd Dec 19
Virtual games and sport, which has one related to the other - 3rd Dec 19
The Narrative About Gold is Changing Again - 2nd Dec 19
Stock Market Liquidity & Volume Diminish – What Next? - 2nd Dec 19
A Complete Guide To Finding The Best CFD Broker - 2nd Dec 19
See You On The Dark Side Of The Moon - 2nd Dec 19
Will Lib Dems Win Sheffield Hallam From Labour? General Election 2019 - 2nd Dec 19
Stock Market Where Are We?  - 1st Dec 19
Will Labour's Insane Manifesto Spending Plans Bankrupt Britain? - 1st Dec 19
Labour vs Tory Manifesto Debt Fuelled Voter Bribes Impact on UK General Election - 30th Nov 19
Growing Inequality Unrest Threatens Mining Industry - 30th Nov 19
Conspiracy Theories Are Killing This Nation - 30th Nov 19
How to Clip a Budgies / Parakeets Wings, Cut / Trim Bird's Flight Feathers - 30th Nov 19
Hidden Failure of SIFI Banks - 29th Nov 19
Use the “Ferrari Pattern” to Predictably Make 431% with IPOs - 29th Nov 19
Tax-Loss Selling Drives Down Gold and Silver Junior Stock Prices - 29th Nov 19
We Are on the Brink of the Second Great Depression - 29th Nov 19
How to Spot REAL Amazon Black Friday Bargains and Avoid FAKE Sales - 29th Nov 19

Market Oracle FREE Newsletter

UK House prices predicting general election result

Central Banks Game Plan: One World Currency

Politics / Fiat Currency Oct 24, 2012 - 10:39 AM GMT

By: BATR

Politics

Best Financial Markets Analysis ArticleOnly those in total denial would claim that the world economies could grow their way out of the debt bubble. Mathematically, the rules of compound interest always destroy the purchasing value of fiat currencies. The era of zero interest rates will end. When the cost to finance debts reverts to normal levels, the bleeding will become a gusher. The world reserve currency status of Federal Reserve Notes will come under enormous pressure. As the central banks consolidate their control over international commerce and the economies of individual countries, the coin of the new realm will shift to a replacement for the U.S. Dollar.


There is no current replacement for the Dollar among existing world currencies. In order to substitute the role that the Dollar plays in trade a new measure of transactions would need to become acceptable to settle trade transactions. A mere substitution with some form of a basket of currencies or the inclusion of gold, does not resolve the enormous overhang of debt obligations needed to redeem all the Dollars that float around the world. The de facto use of Dollars within foreign borders to conduct business supersedes the local legal tender laws that many countries model after those imposed domestically on American citizens.

All this would change when the reserve status of the Dollar evaporates. The IMF created back in 1969 the SDR.

"The SDR is neither a currency, nor a claim on the IMF. Rather, it is a potential claim on the freely usable currencies of IMF members. Holders of SDRs can obtain these currencies in exchange for their SDRs in two ways: first, through the arrangement of voluntary exchanges between members; and second, by the IMF designating members with strong external positions to purchase SDRs from members with weak external positions. In addition to its role as a supplementary reserve asset, the SDR serves as the unit of account of the IMF and some other international organizations."

As fiscal and political observers understand, the International Monetary Fund is a tool of central bankers, used to cast their will over sovereign nations. Monetary bondage is the core business of finance. In order to delay the ultimate day of reckoning, a shift in appearance will be offered as an alternative to the loss in Dollar confidence.

In an IMF paper, Enhancing International Monetary Stability—A Role for the SDR? - The concept of a modified idea of a previous proposal resurrects.

Alternatives: To mitigate exchange rate risks, the account could be structured to exchange SDR-denominated claims for foreign currencies with the same composition and proportions as the SDR basket, and retain a similarly-structured portfolio. However, this would essentially eliminate the currency diversification benefits to members, while not necessarily providing obvious benefits in terms of global diversification of reserve assets (unless the account were to invest in official SDRs—or SDR-denominated securities issued by others than the traditional reserve issuers; this however would expose the account to credit and liquidity risk that would need to be covered by members). Another alternative would involve having a willing subset of the Fund’s membership pool (part of) their official reserves into a Trust managed independently (within or outside the Fund), and agreeing among themselves on risk-sharing rules. This could achieve both reserve diversification and supply of a new kind of SDR-denominated security (issued by the Trust), and would therefore seem the most promising route if members with large enough reserves were interested in pursuing it.

IV. MITIGATING EXCHANGE RATE VOLATILITY

How? Use of the SDR as a unit of account could mitigate the impact of exchange rate volatility through: i) use of SDR to price international trade, report data on international transactions, and as an exchange rate peg; and ii) denomination of assets in SDR. The latter would require the development of a private market for SDR-denominated assets with impetus from the official sector and support to build the market infrastructure. The rest of this section discusses these issues. SDR valuation is clearly key to determine the optimality for any country or economic agent of the SDR basket as a hedge against exchange rate volatility. It is discussed in the next section. In all cases, an important distinction is between the denomination of certain transactions or securities and their settlement. Use of the SDR for denomination (what is at issue here) leaves full discretion to the parties to choose any currency for the actual settlement of their trade.

The stage-managed inventiveness of central banksters exceeded only by their lust to disseminate global indebtedness knows no bounds. Floating currency exchange rates, imposed on the world, causes the chaos and insider opportunities for reprehensible rigged gains.

The article, Pipe Dream of Economic Globalism, makes the following point.

"Establishing a single world currency doesn’t protect anyone; except, those who control the process of selective distribution. Equality in economic opportunity can never be achieved through the favoritism of Free Trade. The only thing FREE in the consolidating global economic system is the ride that the barons of manipulation enjoy. While they preach the virtues of wealth creation, they advance their own dominance over any remaining or persistent competitors."

Some countries may resist the substitution of their own coinage for a new currency, but most governments are so indebted to the financial cabal, that the appearance or color of the paper that circulates as tender is not the real issue. The debt created monetary banking system has established their worldwide reach across the globe. The notion of China being outside the club of financier globalists and might challenge the push for a single money system, disregards reality.

The Single Global Currency Association has several reports that examine this issue in more depth. When the great world financial collapse intentionally triggered happens, the central bankers will unveil their end game currency swap. Understand they will never forgive existing obligations or absolve the debt burden that they decadently extracted from humanity. The enemy of mankind is not Adam Smith capitalism, but the Rothschild banking system.

James Hall – October 24, 2012

Source : http://www.batr.org/negotium/102412.html

Discuss or comment about this essay on the BATR Forum

http://www.batr.org

"Many seek to become a Syndicated Columnist, while the few strive to be a Vindicated Publisher"

© 2012 Copyright BATR - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules