Global plans to replace dollar

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http://www.projectcensored.org/top-stor ... he-dollar/

could this be the real reason for S&P's downgrade???

Jojo

wouldn't it be cool if hugs were a currency ?

Seems like a dumb idea. Haven't they looked next door at the Euro experiment?

It's not nearly as dumb an idea as continuing to give credit to the US when everyone knows it's going to be devaluated at some point.

its been in the works by global bankers for years

Its just that now they are publicly talking about it.. but only because the world's reserve currency has been using its power and lack of a gold window for the last 40 years to start endless wars.

about the downgrade.. its more like someone pissed S&P off, and for that matter, we should have been downgraded a long time ago.
http://www.zerohedge.com/news/kabooom-b ... -stable-sp
here's a list of more downgrades yesterday.

The Euro has been undermined by nothing more complex than greed. So has the dollar. So, almost inevitably, will the yuan, the ruble, the sucre or whatever currency does replace the dollar (and its replacement is inevitable).

We still have not fully grasped what sheer greed and the complex (fraudulent?) financial activities of a few thousand individuals managed to do to half the developed world's economies. We still have not fully grasped how to prevent it happening again or show much real appetite for doing so. Politicians like banks and the financial services sector. It's a sector run by men in suits, just like themselves. The sector might be a future (very generous) employer for many senior politicians when they leave office and for senior (and very well-connected) civil service staff when they retire. Best not to upset the banks or the money men too much.

I see little cause for optimism. In my country, we appear saddled with daft politicians who still prefer to apply outdated ideological solutions to all problems and carry on playing their mindless political games while the country sinks ever deeper into the dreck.

Diversifying the forex system is a laudible goal.

In pure monetary policy terms, the reserve currency system should be funded by participating currencies in relation to the size of the economies that they represent. So the US, with 20% of global productivity, should represent about 20% of global reserves (not counting those economies that use the US dollar either de jure, through currency pegs or through de facto use).

Realistically, though, there are only two ways that this could happen: either the United States has to withdraw currency by redeeming its securities or other countries have to issue sufficient currency to dilute the reserves. Neither is ever going to happen unless the United States suffers a complete currency collapse (a prospect that should strike fear into the heart of any people that do not hunt and forage for all of their food).

M/w Merkel comes under increasing pressure over the Eurozone bailouts

http://www.bbc.co.uk/news/world-europe-14473854

What wars have been started?

As I recall Europa pitched a hissy seventy years ago, which left 50,000,000 dead and the whole place in ruins, again.

There was not enough gold on earth to rebuild, so we floated the Greenback. We were trying to establish some international rate of exchange, 3,586,429 Gacks = 1 Dollar.

it got so bad we had to turn our pennies to Zinc, because one became 2 Yen. the Penny was less than one Yen, but the metal more.

Most who printed their own money then printed more and more. The Euro was trying to bring some unity, but you can not tell a Greek about unity, they invented Unity, and money, and spending, spending, and debts do not matter if they can not be collected, so what are you going to do, move to Greece? They have made their usual offer, they will pay off the debt in Retsina, @ 10,000 EU a bottle. Take it or leave it.

The Dollar is something everyone takes, it has outlasted all other paper money, try paying in Czarist Rubles. The money of Moldova is worth nothing beyond the borders, and very little within.

Making gold the world money we would all be poor, and trade impossible. Anyone who came up short would have to stop eating and such things, or devalue their paper tokens to stay in the game.

The world is still a poor place, most get by on very little, and some worldwide economic stability is needed. They get it by selling to America.

We did not force our money on the world, they worked for it. and chose to keep it over their own leaves, shells, and better rocks, used locally.

One, it is the reserves, it backs the local paper, and two, people they never met will take it in trade for oil, machines, livestock, who would not even consider doing a deal in the local. Boeing will not sell a plane for a million goats.

Gold is a dead metal, it peaks and crashes, but it does not earn anything. Even now, keep your reserves in Dollars, and before they rot, for they are paper that has been touched by people, we will trade Bonds for them that earn 2.3%. No one makes that offer on gold.

If you hold Yen, you can buy a TV, or a Car, but they do not sell oil, the Dollar spends anywhere on anything.

Something base on a basket of currencies is fine, if there is no war, depression, and there is something to stop the issuers from printing more. Letting the UN or the World Bank run money is asking for trouble.

The US is a mess, but it is a public mess, everyone hears what happens. Every morning worldwide the day starts with pegging the exchange rate, then everyone goes to work.

The Dollar is simple, trying to figure out the G20 every morning would be a mess.

Sigh, I wasn't going to post, but someone has to counter some of this stuff. Hopefully this can be civil.

>There was not enough gold on earth to rebuild, so we floated the Greenback.

Nobody builds a house out of gold literally, they use it to buy the good and services (capital) necessary to do so. Therefore it is nonsense to say there was not enough gold. Gold is not capital, it is an exchange medium. It matters not if there is one ounce in the entire world; if gold is the medium of exchange one would trade atoms of gold (via some proxy like we did before Nixon took the dollar off the gold standard).

To put it another way, simply replacing gold with a different commodity for money wouldn't change a thing. If it was a thousand eggs for one ounce of gold, and a hundred barrels of fish for one ounce of gold, a thousand eggs would still net a hundred barrels of fish regardless of what money was used. The absolute quantity of gold is irrelevant. Gold is practically infinitely divisible and even is most often traded without physical possession, so there is no shortage of actual money units for the purposes of trading. The money everyone uses today could be redeemable in gold by whatever ratio the market bears today, for example, just like it was prior to 1971.

When people lament the scarcity of gold what they're really complaining about is that you can't increase its supply willy nilly to manipulate the savings rate, redistribute resources, or generally muck about in other people's finances. The problem isn't gold, it is when people want easy credit and financing (especially banks and governments).

As for historical examples of supposed shortages, his often happens after money has already been manipulated via fractional reserve banking, bimetallism, or some form of counterfeiting which drives gold out of the country (Gresham's law). Then, when their phony money fails and people want real assets, they feel the gold pinch. How ironic that the policy of those against sound money create the supposed crisis which they hope to allay.

> The Dollar is something everyone takes, it has outlasted all other paper money, try paying in Czarist Rubles. The money of Moldova is worth nothing beyond the borders, and very little within.

Prior to '29 the world's currency was the British pound. The dollar supplanted it because it was still redeemable in gold at $20.67 per troy ounce (then $35 after FDR stole everyone's gold).

Now we have no reason to trust the dollar any more than rubles.

> Making gold the world money we would all be poor, and trade impossible. Anyone who came up short would have to stop eating and such things, or devalue their paper tokens to stay in the game.

Anyone who comes up short with ANY money has to trade something else for it. That's how money works, regardless of whether it is gold. Well, unless you are the Federal Reserve and can print however much you want out of thin air!

> The world is still a poor place, most get by on very little, and some worldwide economic stability is needed. They get it by selling to America.

What do they get in return? Dollars, that buy nothing, because we make nothing. No wonder the world is poor if they sell to us humbugs!

> We did not force our money on the world, they worked for it. and chose to keep it over their own leaves, shells, and better rocks, used locally.

I wish this was true, but sadly we do enforce dollars. We do it by:

a) Forcing countries to take out loans from the World Bank and Wall St. before they can have MFN trading status.

b) We force OPEC countries to sell oil in dollars. If you want to buy oil or oil-based products (are there any non-oil-based products?), you have to use dollars. The last country to try to sell oil for another currency was Iraq. Iran has recently opened a bourse for oil in Euros. What a co-incidence.

c) The world banking system are basically member banks of Wall St. commercial banks and then 'protected' by the IMF, whose contributions come from tax payers across pax americana. Basically making sure Wall St. gets bailed out when their ponzi, I mean investments, inevitably go bust.

Leaves, shells, and rocks? Most latin american countries used silver coins. There was no referendum when the government of Peru decided to recall all specie to issue their worthless coins which were dollar-backed. Many people wisely decided to melt their money instead.

> One, it is the reserves, it backs the local paper, and two, people they never met will take it in trade for oil, machines, livestock, who would not even consider doing a deal in the local. Boeing will not sell a plane for a million goats.

Wow, I wonder how companies in Switzerland buy jet aircraft?

Again, this is utter nonsense. You can buy planes with silver and companies in Mexico and Peru did just that prior to specie being outlawed. Hell, Boeing has been around longer than the dollar has been worthless pieces of paper.

> Gold is a dead metal, it peaks and crashes, but it does not earn anything. Even now, keep your reserves in Dollars, and before they rot, for they are paper that has been touched by people, we will trade Bonds for them that earn 2.3%. No one makes that offer on gold.

This one takes the cake, I'm afraid. The dollar not only fails to earn anything, it LOSES a LOT more than the paltry 2.3% interest. Bonds are the WORST buy currently. That's horrible advice. Even if the bonds were to be paid back, the rate of interest would have to duck under that rate of interest. I will bet you anything it won't. I'm serious. That's the easiest bet I'll ever make.

That doesn't even take into account the inflated bond prices which are due for a crash of epic proportions. It'll make the Nasdaq crash, the housing crash, and the student loan fiasco look like boons in comparison. The only reason it hasn't happened yet is because the FED is buying up all the bonds that everyone else is selling.

Even if that doesn't happen (it will), earning 2.3% when the real rate of inflation is several times that makes anything look good in comparison. Yes, even gold.

> The Dollar is simple, trying to figure out the G20 every morning would be a mess.

At least we can agree the G20 won't have any answers. The dollar, however, is just a piece of paper.