G-20 and Global Currency
Submitted by V1-P on Thu, 03/26/2009 - 15:12
Money & Markets has been pretty accurate on many points and the global currency is coming. Here is an excerpt and here is the link:
http://www.moneyandmarkets.com/a-lot-more-than-an-update-32870
Instead, here's what's really going
to happen between the U.S. and China ...
First, the U.S. dollar is going to continue to decline. Partly because Fed Chairman Ben Bernanke knows we need a weaker dollar to help get us out of the mess we're in.
And partly because China — despite all the complaining that you're hearing from them about the sinking dollar — also wants a cheaper dollar.
"Huh?" you ask. "Has Larry lost his mind?"
No, I haven't.
The yuan and the dollar are connected at the hip. So expect both currencies to decline in the months ahead.
You see, China needs a cheaper yuan just like the U.S. needs a cheaper dollar. With a cheaper currency, China can avoid deflation ... spark inflation ... and boost its exports.
So China is actually going to put a lot of pressure on its currency in the months ahead, by selling yuan and buying natural resources.
And since China's currency is still tightly pegged to the U.S. dollar, both are going to fall in value against other currencies, namely the euro.
This way, China and the U.S. get what they want: Cheaper currencies. Meanwhile, both countries' exports to the Euro region and other areas, like Canada and South America, get a huge boost.
And eventually — I predict within two year's time — we will see the euro break up. Not because it's too weak, but because it's become too strong vis-a-vis the dollar and the yuan.
In short, the Euro region will get stuck with massive deflation as the U.S. and China try to inflate their way out of the global financial crisis, together.
Somewhere along the way, also within two to three years from now, China, the U.S. and Europe will get together under a new G-20 series of meetings, and a new, single world currency will be born.
Ron Paul has endorsed competing currencies.
,,,And if a Mr.competing currencies was running for office he would get my vote.
It seems to me this topic is not discussed very much.
Why?
From an Alan Greenspan speech in 1996.
http://www.federalreserve.gov/BOARDDOCS/SPEECHES/19960919.htm
{snips} You have heard many points of view today on electronic money and banking. New products are being designed to challenge the use of currency and checks in millions of routine consumer transactions. Other new systems may allow payments or banking instructions to be sent over networks such as the Internet, which is unprecedented in providing versatile, low-cost communication capabilities. Again, as in the 1970s, articles are being written and conferences are being held to pronounce the end of paper. They may again prove premature.
The payment systems of the United States present a paradox. Our systems and banking arrangements for handling high-value dollar payments are all electronic and have been for many years. Banking records, including those for loans and deposits, have been computerized since the 1960s. Securities markets also now rely on highly automated records and systems, born out of necessity following the paperwork crisis of the 1970s.
As financial systems become more complex, detailed rules and standards have become both burdensome and ineffective, if not counterproductive. If we wish to foster financial innovation, we must be careful not to impose rules that inhibit it. I am especially concerned that we not attempt to impede unduly our newest innovation, electronic money, or more generally, our increasingly broad electronic payments system.
E-Gold was started in 1998.
Goldmoney in Feb. 2001.
beesting
Interesting
FREEDOM
"First they ignore you, then they laugh at you, then they attack you, then you win!"
GANDHI