Deluded Currency Cultists Believe The Dollar Is Invincible

At the onset of the derivatives collapse in 2007/2008 it would have been easy to assume that most of America was receiving a valuable education in normalcy bias.

In 2006, the amount of ego on display surrounding mortgage investment was so disturbingly grotesque anyone with any true understanding of the situation felt like projectile vomiting. To watch the smug righteousness of MSNBC and FOX economic pundits as they predicted the infinite rise of American property markets despite all evidence to the contrary was truly mind blowing. When the whole system imploded, it was difficult to know whether one should laugh, or cry.

The saddest aspect of the credit crisis of 2008 was not the massive chain reaction of bankruptcies or the threat of institutional insolvency. Rather, it was the delusional assumptions of the public that the grand mortgage casino was going to go on forever. There is nothing worse than witnessing the victim of a Ponzi scheme defend the lie which has ultimately destroyed him. As much as I am for people waking up to the nature of the crisis, there comes a point when those who are going to figure it out will figure it out, and the rest are essentially hopeless.

The cultism surrounding the U.S. economy and the U.S. dollar is truly mind boggling, and by “cultism” I mean a blind faith in the fiat currency mechanism that goes beyond all logic, reason and evidence.

In recent weeks it has become more visible as global financiers play both sides of the Ukrainian conflict, luring Americans into a frenzy of false patriotism and an anti-Russo-sports-team-mentality. My personal distaste for Vladimir Putin revolves around my understanding that he is just as much a puppet of the International Monetary Fund and international banks as Barack Obama, but many Americans hate him simply because the mainstream media has designated him the next villain in the fantasy tale of U.S. foreign policy.

Open threats from Russia that they will dump U.S. treasury bond holdings and the dollar’s world reserve status if NATO interferes in the Ukraine have been met with wildly naive chest beating from dollar cultists.  I am beginning to see the talking points everywhere.

“Let them dump the dollar, Russia’s holdings are minimal!” Or, “Let them throw out Treasuries, they’ll just be shooting themselves in the foot!” are the battle cries heard across the web. I wish I could convey how insane this viewpoint is, especially in light of the fact that many alternative economic analysts, including myself, have been predicting just such a scenario for years.

Despite the childish boastings of the dollar devout, there is an extraordinarily good possibility that the life of the greenback will be snuffed out in the near term. Here are the facts…

1) Russia will not be alone in its decouple from the dollar system. China, our largest foreign creditor, and India (a supposed ally) have clearly sided with Russia on the Ukranian issue. China has stated that it will back Russia’s play in the event that sanctions are brought to bear by NATO, or if a shooting conflict erupts.

2) China has already been slowly dumping the dollar as a world reserve currency using bilateral trade agreements with numerous countries, including Russia, India, Australia, Brazil, Germany, Japan, etc. These agreements allow FOREX currency swaps and export/import purchases to be made with China without the use of the dollar. China has been preparing itself for a divorce from U.S. economic dependence for at least a decade. The idea that they would actually follow through over political tensions should NOT surprise anyone if they have been paying attention.

3) A total drop of the dollar or U.S. treasury bonds by Russia and China would send shock waves through global markets. Russia is a major energy supplier for most of Europe. China is the largest export/import nation in the world. If they refuse to accept dollars as a trade mechanism, numerous countries will fall in line to abandon the greenback as well. The fact that so many Americans refuse to acknowledge this reality is a recipe for disaster.

The only advantage the U.S. has traditionally offered in terms of international trade has been the American consumer, whose unchecked debt spending partly fueled the rise of the industrialized East, not to mention the biggest credit bubble in history. The role of America as a consumer market is collapsing today, however. The mainstream media and the Federal Reserve can blame the steady decline in retail sales on the “weather” all they want, but negative indicators in global manufacturing often take many months to register in the statistics, meaning, this destabilization began long before the days turned cold.

4) China has been shifting away from export dependency since at least 2008, calling for a larger consumer based market at home. This process of enriching the Chinese consumer has almost been completed. The lie that China “needs the U.S.” in order to survive economically needs to be thrown out like the utter propaganda it is.

5) China (and most of the world) has ended new dollar purchases for their FOREX reserves, and has no plans to make new purchases in the future.

6) China executed the second largest dump of U.S. Treasury bonds in history in the past month.

7) Russia, China, and numerous other countries, including U.S. “allies”, have been calling for the end of the dollar’s world reserve status and the institution of a new global basket currency using the IMF’s Special Drawing Rights (SDR). Even Putin has suggested that the IMF take over administration of the global economy and issue the SDR as a world currency system. This flies in the face of those who argue that the IMF is somehow “American run”. The truth is, the IMF is run by global banks and no more answers to the U.S. government than the Federal Reserve answers to the U.S. government.

8) The Federal Reserve has been creating trillions of dollars in fiat just to prop up U.S. markets since 2008, and we are still seeing a considerable decline in global manufacturing, retail, personal home sales, and a general malaise in consumer demand. Without a full audit, there is no way to know exactly how much currency has been generated or how much is floating around in foreign markets. Any loss of world reserve status would send that flood of dollars back into the U.S., most likely ending in a hyperinflationary environment.

9) Another rather dubious argument I see often is the claim that the Federal Reserve and the U.S. Treasury could simply “negate” a Treasury dump by refusing to acknowledge creditor liabilities. Or, that they could simply print what they need to snap up the bonds, much like the German government tried to do during the Weimar collapse. Unfortunately, this plan did not work out so well for the Germans, nor has it worked for any other nation in history, so I’m not sure why people think the U.S. could pull it off. However, this is the kind of cultism we are surrounded by. These folks think the U.S. economy and the dollar are untouchable.

Yes, the Fed and the Treasury could hypothetically erase existing liabilities, but what dollar cultists do not seem to grasp is that the dollar’s value is not built on Treasury purchases. The dollar’s value is built on faith and reputation. If a nation refuses to pay out on its debts, this is called default. A default by the U.S. would immediately damage the reputation of bonds and dollars as a good investment. Global markets will refuse to purchase or hold any mechanism that they think will not earn them a profit. How many investors today are anxious to jump into Greek treasury bonds, for instance?

Finally, it is unwise to operate on the assumption that foreign creditors will accept dollars as payment on U.S. Treasury bonds if they believe the Federal Reserve is monetizing the debt. When Weimar imploded under the weight of currency devaluation, many foreign governments refused to accept the German mark as payment. Instead, they demanded payment in raw commodities, like coal, lumber and ore. Expect that China and other debt holders will demand payment in U.S. goods, infrastructure, or perhaps even land.

10) Most treasury holdings in foreign coffers are not long term bonds. Rather, they are short term bonds which mature in weeks or months, instead of years. Dollar proponents constantly cite the continued accumulation of treasury bonds by other governments as a sign that the dollar is still desirable as ever. Unfortunately, they have failed to look at the nature of these bond purchases. When China rolls over millions in short term bonds and replaces them with other short term bonds, this does not suggest they have much faith in America’s long term ability to service its debt. It would also make sense that if China had plans to remove itself from the dollar system, they would move into short term bonds which can be liquidated quickly.

11) China is on the fast track to becoming the largest holder of physical gold in the world. Russia has also greatly expanded its gold purchases. Whatever losses they might suffer from a dump of their Treasury bond investments; it will be more than made up in the incredible explosion in precious metals prices that would follow.

12) The most common argument against the dollar losing world reserve status has been that such a shift would be “impossible” because no other currency in the world has the adequate liquidity needed to replace the dollar in global trade. These people have apparently not been paying attention to the Chinese yuan. China has been quietly issuing trillions in yuan denominated bonds, securities and currency around the world. Current estimates calculate around $24 trillion created by the PBOC and the banks under its control.

Mainstream talking heads are calling this a “debt bubble.” However, this debt creation makes perfect sense if China’s plan is to create enough liquidity in its currency in order to offer a viable alternative to the U.S. dollar. Linking the yuan to the IMF’s basket currency would complete the picture, forming a perfect dollar replacement while dollar cheerleading-economists stand dumbstruck.

13) China's retreat away from dollar denominated investments has left a hole in the U.S. bond market.  Recently, that negative space was filled by an unexpected source; namely Belgium.  A country whose GDP represents less than 1% of total global GDP buying more U.S. bonds than China?  The whole concept sounds bizarre.  Where is the capital coming from?

Think about it this way - Belgium is the political center of the European Union and a haven for international financiers.  There are more corporate cronies, lobbyists, bureaucrats, and foreign dignitaries in Belgium than in all of Washington D.C.  But more importantly, Belgium struck a deal with the IMF in 2012 to begin pumping SDR denominated funds into "low income economies".  I would suggest that this funding flows both ways, and that now, the IMF is feeding capital into Belgium in order to buy U.S. Treasury Bonds.  That is to say, the IMF is going to start using smaller member countries with limited savings as proxies to purchase U.S. debt using IMF money.

The ultimate danger of the IMF (run by internationalists, not the U.S. government) pre-positioning itself as the primary buyer of U.S. debt is that when the U.S. finally defaults (and it will), the IMF is likely to become the "guardian angel" of the U.S. economy, offering aid in exchange for total administrative control of our financial system, and the institution of the SDR as a world reserve replacement for the dollar.

14) The serious prospect of regional conflict or world war over tensions between the Ukraine and Russia, Japan and China, the U.S. and Syria, the U.S. and Iran, the U.S. and North Korea, etc., could make the effort of exposing the plan to shift economic power into a one world system centralized under the IMF almost meaningless.  How many people will truly care about the financial power grab by banking elites if it drifts under the surface of catastrophic engineered wars?  They'll be too busy hating and fighting artificially created boogeymen to pay attention to the real globalist culprits.

I have been pointing out for quite a long time that globalists need a “cover event”; a disaster, an economic war or a shooting war, in order to provide a smokescreen for the collapse of the dollar. Alternative analysts have been consistently correct in predicting the trend towards the dump of the dollar. Years ago, we were laughed at for suggesting China would shift towards a consumer based economy and away from U.S. dependence. Today, it is mainstream news. We were laughed at for suggesting that nations like Russia and China would drop the dollar as a reserve currency. Today, they are already in the process of doing it. And, we were laughed at for suggesting that Russia or China would use their debt holdings as leverage against the U.S. in the event of a geopolitical conflict. Today, they are openly making threats.

I have to say, I’ve grown tired of the dollar cultists. How many times can a group of people be wrong and still argue with those who have been consistently right? The answer is that zealots never actually escape their own delusions, even when their delusions lead them and those around them to ruin. I suspect that in the face of complete dollar collapse, they will still be rationalizing the chaos and pontificating on our "lack of understanding" while the theater burns down around them.

 

 

 

 

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Comments (28)add comment
Sergio
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written by Sergio , March 12, 2014

It is difficult to get a man to understand something when his salary depends upon his not understanding it.

- Upton Sinclair

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already on the list
written by Henry Bowman , March 12, 2014

Bankers, politicians, crooked cops, lawyers, and general dirt bag liberal progressives . Yup, when the shooting starts (soon) then it's open season ( no limit). I just watched John Carpenters : They Live , with Roddy Piper. The parrellels of this movie to today are scary. Consume, obey, don't question authority, keep the masses ignorant like cattle while the powerfull reek havoc to there benifit. Besides it has Roddys great line ( I'm here to kick ass and chew bubble gum, and I'm all out of bubble gum )
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Even I Could See It.
written by Rodster , March 12, 2014

I'm not an economist nor financial person but even I sensed something was wrong in 2005. My friend had bought a small 3 bd 2 bh home for his family in 2003 for $137k. By early 2005 that same modest home with a family pool in SW Florida was now worth $347k. In 2 short years it jumped close to 200k in price. I told my friend with no knowledge of what was about to come just 3 years later to consider selling ASAP because something did not feel right.

We all know what happened in 2008. Even i could see the writing and warning on the wall.

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Re: Shooting War
written by Rodster , March 12, 2014

My only concern for a so called shooting war is this, NUKES!

When an Empire who influences the world realizes it's over for them, then it could get ugly for the rest of the world as Dr. Paul Craig Roberts has been saying for quite sometime. He said that there were Neocons who wanted to start a war with Russia back in the 80's because they felt they could defeat the Soviets militarily.

Or as one of my favorite lines from none other than Senor Gerald Celente: "When people lose evrything and have nothing else to lose, THEY LOSE IT".

That's the biggest wildcard, will the US lose it and start lobbing nukes because it has nothing else to lose?

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"reserve"status
written by CIGA Freddie , March 12, 2014

People need to remember that there doesn't have to be any formal agreement by the G20 or the IMF or any other entity to have the US dollar reserve status disappear. Simply, countries just have to make other arrangements with their trading partner(s), just like China has been doing since 2009. It's no different than a homeowner changing his plumber because the other one got too expensive. Just use somebody else, period. As these foreign "side deals", bartering, and trading in local currencies become more prevalent, those unneeded US reserves that would normally be stashed in the treasuries of the various countries will end up back here in the US. Yet another reason that the QE will have to be UNTAPERED. Looks like the dollar game is over from my perspective, and the US consumers are going to get decimated by inflation.
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china
written by red dragon , March 12, 2014

"China, our largest foreign creditor, and India (a supposed ally) have clearly sided with Russia on the Ukranian issue."

india yes, but china has NOT CLEARLY sided with russia. china sides with itself. aside from the u.s., china has way too much at stake in europe to take sides. look for china to step aside (as they always do) and wait for the dust to settle. its not their fight.

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Brandon Smith
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written by Brandon Smith , March 12, 2014

@Red Dragon

No. China has been making open threats and has been wargaming a dump of the dollar for years. They've been preparing to use the dollar's reserve status specifically as a weapon. ALL available evidence suggests China will dump the dollar even if U.S./Russian tensions ease. Let's not forget about the Japanese situation. Frankly, China has very little to lose and much to gain by decoupling, as the article illustrates.

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Profit Prophet
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written by Profit Prophet , March 12, 2014

Go placidly amid the noise and haste, and remember what peace there may be in silence. As far as possible without surrender be on good terms with all persons. Speak your truth quietly and clearly; and listen to others, even the dull and the ignorant; they too have their story. Avoid loud and aggressive persons, they are vexations to the spirit. If you compare yourself with others, you may become vain and bitter; for always there will be greater and lesser persons than yourself. Enjoy your achievements as well as your plans. Keep interested in your own career, however humble; it is a real possession in the changing fortunes of time. Exercise caution in your business affairs; for the world is full of trickery. But let this not blind you to what virtue there is; many persons strive for high ideals; and everywhere life is full of heroism. Be yourself. Especially, do not feign affection. Neither be cynical about love; for in the face of all aridity and disenchantment it is as perennial as the grass. Take kindly the counsel of the years, gracefully surrendering the things of youth. Nurture strength of spirit to shield you in sudden misfortune. But do not distress yourself with dark imaginings. Many fears are born of fatigue and loneliness. Beyond a wholesome discipline, be gentle with yourself. You are a child of the universe, no less than the trees and the stars; you have a right to be here. And whether or not it is clear to you, no doubt the universe is unfolding as it should. Therefore be at peace with God, whatever you conceive Him to be, and whatever your labors and aspirations, in the noisy confusion of life keep peace with your soul. With all its sham, drudgery, and broken dreams, it is still a beautiful world. Be cheerful. Strive to be happy.

Max Ehrmann, "Desiderata"

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the con
written by Mr Doze , March 12, 2014

it is easier to fool a man than to convince him that he has been fooled.

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I've expect great stuff from you
written by The Parashootman , March 12, 2014

Been following your work from back in the neithercorp days and have come to expect great analysis from you. I look forward to each new piece you publish and this piece does not disappoint. As usual, I can definitely see the logic in all the points you make and support. The timing of how fast these things develop always seems to take longer than we anticipate though. That's where, for me anyway, the biggest uncertainty lays. For example:

- As soon as China is ready to become #1 consumer market, US relevance will be diminished, but there is still #2, #3, etc. UK used to be #1 and although they aren't any longer, they still matter in world affairs, don't they?

- While China can move their currency, if they allow it to move too much immediately, wouldn't it hurt their exports?

I agree with the dynamics of your article and think all of your points are valid. I guess I'm just struggling to quantify the timing of it all (when & how much).

Thanks again for your passion to share your insight and inherent pledge to make a difference.

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Brandon Smith
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written by Brandon Smith , March 12, 2014

@Profit

The great events of world history are, at bottom, profoundly unimportant. In the last analysis, the essential thing is the life of the individual.

This alone makes history, here alone do the great transformations first take place, and the whole future, the whole history of the world, ultimately spring as a gigantic summation from these hidden sources in individuals.

In our most private and most subjective lives we are not only the passive witnesses of our age, and its sufferers, but also its makers. We make our own epoch

– C.G. Jung, 1934


Find out just what the people will submit to and you have found out the exact amount of injustice and wrong which will be imposed upon them; and these will continue until they are resisted with either words or blows, or with both. The limits of tyrants are prescribed by the endurance of those whom they oppress.
— Frederick Douglass


"They are on our left; they are on our right. They are in front of us and behind us. The bastards won't get away this time!"

General Lewis "Chesty" Puller, 1950

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Ben Franklin
Go placidly
written by Ben Franklin , March 12, 2014

Dear Profit Prophet:

In my youth at Berkeley University, I to was quite moved by "Desiderata" by Max Ehrmann. It was required reading by young, impressionable, liiberals and "Progressives" in training (aka; "Lits" & "Pits") in 1970. I kept a copy of the poem for nearly two decades. Ironically, I was summarily kicked out of the demonratic party in 1979 for daring to question the economic policies of Jimmy "The Peanut" Carter at the exact same time that I discovered that in addiition to Max Ehrmann being a poet and lawyer, he was also a Harvard educated communist. Having witnessed first hand the evil of communism and communists, I burnt my entire collection of Max Ehrmann poems. Poor Ehrmann, his mind ans sensitivities were intentionally corrupted by marxism and communism. I have forever wandered if his attractions for communism were from delusions or CHOICE. (Note: I intentionally do not capitalized marxism and communism. Such evil does not desire such honors.)

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Brandon Smith
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written by Brandon Smith , March 12, 2014

@Parashootman

First, yes, some nations have retained influence in the global economy after losing top status, but one needs to look at specific history. How many nations that monetized their debt, defaulted on their obligations, and hyperinflated their currency, did so without catastrophe or the development of tyranny?

Your second question is already mostly answered in the article. China has formed bilateral trade agreements with at least half of the world's major economies. They are already in the process of removing the dollar as world reserve. China has shifted its economy towards greater consumption, and has alternative export markets larger than the U.S. in the combined nations of the ASEAN trading block.

China is likely to suffer like many nations will suffer during a dollar collapse, but they have positioned themselves to suffer FAR LESS than the U.S. will.

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ZH Article
written by Bruno , March 12, 2014

Dear Brandon;

Always enjoy your macro insights. Thank you for sharing your quality work.

I wrote an article this past Sunday in the same vain and actually quoted you. Thought you might enjoy it.

http://www.zerohedge.com/contributed/2014-03-09/globalists-gas-game-theory-0




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Brandon Smith
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written by Brandon Smith , March 12, 2014

@Bruno

Excellent article! Love the folks over at Zero Hedge. They are never afraid to publish articles that go against the majority view, even if that majority view happens to be within the Liberty Movement.

Group think can be dangerous, especially for revolutionaries. As long as we continue to think outside the box, while keeping one foot on the ground, I think we'll be okay.

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The BIS is where it’s at
written by Tezcatlipoca , March 13, 2014

Brandon,

I agree with all the points of your excellent analysis. Dollar cultist propaganda is for the sheeple and shouldn’t be given much consideration by those of us in the know. And I especially agree 100% “…that there comes a point when those who are going to figure it out will figure it out, and the rest are essentially hopeless.”

That being said I do feel you focus a bit too much on the IMF and not enough on the BIS as the forum for planning the “cover event” for any dump of the dollar. That’s where the real power of Global Governance lies, IMHO, where the real policy is made and where the real agreements on any eventual replacement of the dollar as the world’s reserve currency will be hammered out.

See this article, http://theeconomiccollapseblog...etly-does, for a really succinct summary of the background on this and a pretty telling description of the BIS’ bi-monthly Central Banker shindig where such doings routinely take place.

“Every two months, the central bankers of the world gather in Basel for another ‘Global Economy Meeting’. During those meetings, decisions are made which affect every man, woman and child on the planet…The central bankers that gather for these meetings are not there just to socialize. No staff members are allowed into these meetings, and they are conducted in an atmosphere of absolute secrecy...”

Wouldn’t you like to be a fly on the wall for the current/next one of these meetings? Let’s review who would be in attendance at this Global Economy Meeting (GEM), according to the BIS website, http://www.bis.org/press/p130605.htm:

“The GEM comprises the Governors of 30 BIS member central banks in major advanced and emerging market economies that account for about four fifths of global GDP. The members of the GEM are the central bank Governors from Argentina, Australia, Belgium, Brazil, Canada, China, France, Germany, Hong Kong SAR, India, Indonesia, Italy, Japan, Korea, Malaysia, Mexico, the Netherlands, Poland, Russia, Saudi Arabia, Singapore, South Africa, Spain, Sweden, Switzerland, Thailand, Turkey, the United Kingdom and the United States and also the President of the European Central Bank and the President of the Federal Reserve Bank of New York. Governors from several other central banks attend the GEM as observers.”

Pretty impressive list, I’d say. So let’s review who will be sitting down “…at a round table in a dining area scented by white orchids and framed by white walls, a black ceiling and panoramic views.” None other than the Governors of the central banks of Australia, Belgium, Brazil, China, Germany, India, Japan, Russia, the UK, and the Presidents of the ECB and the New York FED - the heads of all the central banks of every country mentioned in your article and all the major players in the current manufactured Ukrainian crisis. Gee, I wonder what they’ll be talking about? Maybe newly minted Ukrainian PM Yats, and former central banker, will get a special invite?

So, in conclusion, it’s fairly obvious that the BIS is where it’s at. They are the real front for the "globalist culprits" pulling the strings, the top level management, so to speak. All the rest is smoke and mirrors.

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Brandon Smith
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written by Brandon Smith , March 13, 2014

@Tezcatlipoca

The BIS is the original Central Bankers club, but the IMF and the World Bank have essentially taken over policy actions from that organization. The BIS is NOT the institution generating the new global currency mechanism, the IMF is. Which is why I discuss the IMF often. It will be the IMF that comes to the "aid" of America after the dollar implodes, not the BIS, so it is important to warn people what face the enemy will be wearing.

Ultimately, the IMF, the BIS, the World Bank, the Federal Reserve, are all being run by the same elitist families from the Rockefellers to the Rothschilds. The BIS is just as much a front organization as any other.

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Ben Franklin
BIS Working Document on SDRs
written by Ben Franklin , March 13, 2014

@Brandon Smith

Brandon:

Have you read BIS' Article 444 on SDRs? It seem to fit into your commentaries above.

SOURCE: http://www.bis.org/publ/work444.pdf

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Outstanding
written by thomas jefferson , March 13, 2014

The data points continue to clarify where we are.
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BIS vs. IMF
written by Tezcatlipoca , March 13, 2014

Brandon,

Yes, you are technically correct that the “…BIS is NOT the institution generating the new global currency mechanism, the IMF is”, if that mechanism is the SDR. If it’s another central bank generated fiat currency, say, the Yuan, then IT IS the BIS who will generate it, albeit indirectly.

But my point about the BIS is that they are the arbiters of the power behind the throne, so to speak. Do you really see Christine Lagarde being the one formulating policy on anything, let alone a new global currency mechanism? After all, who is it that came up with the whole bail-in scheme, for example? The BIS, through the FSB, that’s who and no one even suspected such a thing until it actually happened. The IMF just comes in to pick up the pieces and play bad cop.

The sheeple have no clue about the BIS, although they are hidden in plain sight, as is so much else. On the other hand the IMF is well known and discussed regularly in the MSM. The IMF is the public "face", as you so correctly point out, and, along with the World Bank, enforcer of the "policy actions" of TPTB. (The Rockefellers, and the Rothschilds to some extent, while undoubtedly powerful, are too, like the IMF and World Bank, the public faces of TPTB, IMHO, but that’s a whole other discussion.)

So, again, my point is that the BIS, unlike the IMF, is probably actually tasked with coming up with the policy actions needed to carry out direct orders from above. While the BIS is certainly a front in its own way, it merits much closer scrutiny than it currently receives from those of us in the know.

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Missing something -
written by Agent P , March 13, 2014

One of my observations regarding the U.S.-centric view of economics - both domestic and global, specifically as they relate to $USD hegemony, is that many analysts either disregard or are completely unaware the nature of other nation's recorded history of hardship, and what that means within the context of global economic currency strain, and/or crisis vis-a-vis U.S. historical context.

In simple terms, the large nations we speak of in contrast to the U.S., have all endured both economic and social hardship that, aside from the Civil War, the U.S. has had no visibility of. This is no small consideration, as the threshold of pain for governments outside the U.S. to inflict or allow upon their people's is ~Much~ lower than that of a Justin Bieber/Miley Cyrus-addled West, whose entertainment appetite quota is on par with other equally hedonistic pleasures, competing for the need of air & water...

In closing, we (the United States as currently occupied and led), is in NO SHAPE for anything remotely resembling a currency crisis, but at the same time, its pleasure-addled, soft-belly hubris makes it impossible for the ship to even recognize the iceberg dead ahead -




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global conflict
written by marty fee , March 14, 2014

While I have no doubt the dollar is headed the way of the dodo. Global conflict is not really a possibility. Kind of hard to make money in the aftermath of global thermonuclear war. No world war would end any other way. Might not start with Minuteman III's but damn sure would end that way. Though maybe that is exactly what the world needs at this point. Too many people nowhere near enough resources
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Brandon Smith
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written by Brandon Smith , March 14, 2014

@Marty

You are assuming this is about making a profit?

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Deluded Currency Cultists ...
written by Pat Fields , March 15, 2014

While I largely agree with the bulk if Mr. Smith's article. I should point out that all banknotes are ludicrously over-valued in real terms. The 'dollar' be damned, if any banknotes are preserved as 'legal-tender' media, the intrinsic disparity between the sheer hypothecated credit they embody, contrasted against physical goods and Labor, will continue to wreck its havoc on finance and economy.

There isn't a single banknote anywhere, the real tangible expression of which, is more than one to three grams of copper per unit. Pretense of 'devaluing' any one country's brand of banknote does nothing to alleviate the ruin inherent in the banknote scheme as a whole.

Ideally, circulating money and goods at market are in balance when they're roughly equal in value. That can never be the case with the banknote scheme because its core design imperatives cause infinite currency inflation and growing debt, each by the other.

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Brandon Smith
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written by Brandon Smith , March 15, 2014

@Pat

True, all fiat is intrinsically corrupt. However, the difference between the dollar and all other fiat currencies is that the dollar is the world reserve, making it more "powerful", and yet, far more vulnerable. All fiat currencies are based on blind faith in value, but the dollar requires the faith not of a single nation, but of the entire world.

The globalists are devaluing the dollar because they intend to replace it as the world reserve with yet another even more centralized fiat scheme. A truly global currency.

While it is important to understand that the fiat methodology is dangerous in itself, most people here already know this well. You are essentially preaching to the choir. The important thing is to know HOW, exactly, the Ponzi scheme is evolving. If we can stop the development of a global currency, and end the plans of the globalists, then we can eventually do away with all fiat.

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written by goldengate7777777 , April 09, 2014

The answer to the problem of the fiat currency lies in historical achievements already implemented but denied and buried in the USA and a former Head of Finance which we hope to revive in the midst of calamity.

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confusion
written by bm , August 02, 2014

totaly confused whats wrong whats right?everywhere consipracy theory,world is freightening
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New World Currency?
written by Silverado , August 12, 2014

I've loved the discourse here, and much of what has been said I agree with, but I'm surprised no-one has seen fit to mention crypto-currencies...

The Banks are losing power to these - especially Bitcoin. Type "Value of Bitcoin" into Google - and you will get its value in your local currency.

Bankers on the inside are already loading up on these.

There's a book available here --->>>
http://www.scribd.com/doc/231404161/The-Coming-Battle-2013 that discusses these.

And there's a web-site that gives away several crypto-currencies daily --->>>
https://qoinpro.com/1cb9b86337f6a2ef22a0c9bb1db4fad8

Of course China may use its position in the NDB, and its massive Gold holdings - between 5,000-8,000 tonnes by my reckoning to position itself accordingly.

And my blog discusses much of the above here --->>>

http://moneymatterstoo.wordpress.com/

Hope you enjoy them all...

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