It has been reported that there will be a meeting in August to announce a new gold based currency. If it is successful, it will be the final step in the attempt to eliminate the US international financial structure. Usually when empires fall there is a rival empire pounding on the gate. In our case however we only have the usual greed and stupidity of our Wall Street banking set and their lackeys to blame for the irresponsibility in our finances. Of course we citizens get the slap in the face for their errors!
From the beginning of the European feudal state, all countries had their own currency using gold and silver as their medium of exchange. There were no problems with inter-state exchange. Wars lasted only as long as the money held out which usually was a short campaign before harvest time. The only outside source of funds was the early banking groups of Warburg and Rothschild that could lend enough to finalize a peace. These banks were wise enough to lend to both sides so that a default from the loser would not ruin them. Their lending system continued thru Wall Street in WW1 when we took over. World economics were now beholden to the US taxpayer.
The beginning of the great move to political fiat currency occurred in 1913 when Woody was blackmailed into the Federal Reserve system. Soon the entire world was indebted to repayment in US dollars. Britain paid off its’ WW1 debt in 2015. I wonder who got the check?
The current situation is quite complex and even one small error on the parts of the BRICS and their eager new allies will cause the immediate destruction of their program and half the world economy. When the current ridiculous Russian war began, I predicted that a petro-rouble would emerge. Wrong again! They are attempting a grand slam! The gold currency will realign the entire financial system worldwide with the accompanying fall of many governments. Will our foreign aid to the adapters continue? It is only $100 billion but we could sure use it here, plus Joe Brib’em would lose his cut. What countries will default on our current loans using the new system as an excuse?
Our politicians are parasitic scum and have been since Andrew Jackson paid off our national debt and sent the bankers back to the City of London. This latest disaster was underlined when Joe Brib’em seized Russian assets here in the states which of course undermines the safety concept of the USD in foreign eyes. This coupled with the SWIFT exclusion opened up the board for a new program. I do not believe that there has been one correct decision since 1996 concerning government finances from New York, sorry I meant DC…… or did I?
It would appear at first glance that the new currency would be immediately dominant considering the inflationary past results of politicians’ and bankers’ greed. But a further examination reveals the huge weaknesses of the idea. First there are about 40 other countries lining up at the trough. Many will default on their current USD loans. South American countries have a long history of defaulting, Africa is not worth mentioning and most of Asia except for China and India are in the same boat. The history of defaults would fill a set of encyclopedias. Could the BRICS withstand these failures? This leaves the oil countries as a pivot. They are lining up to support these weak countries financially. Will they pump oil to defaulting countries? Doubtful at best.
The countries that will be left on the dollar trade system are Japan, Korea and the english speaking world. The Euro is totally subservient to the US dollar and they will have to toe the line spouted in DC or enjoy a currency adjustment similar to the Germans’ in the 1920s. The only real question while avoiding all the silly academic cosmic debris is this. Would you accept a Chinese gold paper yuan for your labor or goods? Are you confident that they actually have enough gold to back paper money or electrons for world trade or is this just another roll of toilet paper? Do Brazil, Russia, India or South Africa? Will you be able to trade your paper yuan for gold in Pretoria or Seattle or Constantinople?
The habit of the US dollar will be hard to break. If the Chinese do not accept dollars where will they sell 25% of their GNP? If you count the Euro purchases it would be even more. The Chinese are already on quite shaky ground and have even sent young bureaucrats to work in the fields due to lack of money and food. The world economy depends on selling goods to the US. If we stood and said that we will not purchase from anyone who does not accept or pay in dollars, the new system would close down immediately.
This is an excellent opportunity for the US to revoke our debt and go gold. It has happened twice before and we survived. If we have any gold in Fort Knox, a new US gold dollar could be issued instead of the Federal Reserve note on waste paper currently in circulation. I can hear the shrieking of the economists now. ( I have never seen an economics student transfer to the physics department!) Keynesian economics was a cover for the desperation of the London financial circle caused by the debts and destruction of WW1. They have always been corrupt or incompetent since 1913. The current system is only a cover for plundering the help. What do you expect from a group that sells newsletters for a living?
Economic disaster is the harbinger of war and dangling politicians. What fun! The party will be……. “come as you are.”