The Economist: World Currency By Jan. 9, 2018


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Get Ready For A World Currency

phoenix

Get Ready for the Phoenix January 9, 1988, Vol. 306, pp 9-10

THIRTY years from now, Americans, Japanese, Europeans, and people in many other rich countries, and some relatively poor ones will probably be paying for their shopping with the same currency. Prices will be quoted not in dollars, yen or D-marks but in, let’s say, the phoenix. The phoenix will be favoured by companies and shoppers because it will be more convenient than today’s national currencies, which by then will seem a quaint cause of much disruption to economic life in the last twentieth century.

At the beginning of 1988 this appears an outlandish prediction. Proposals for eventual monetary union proliferated five and ten years ago, but they hardly envisaged the setbacks of 1987. The governments of the big economies tried to move an inch or two towards a more managed system of exchange rates – a logical preliminary, it might seem, to radical monetary reform. For lack of co-operation in their underlying economic policies they bungled it horribly, and provoked the rise in interest rates that brought on the stock market crash of October. These events have chastened exchange-rate reformers. The market crash taught them that the pretence of policy co-operation can be worse than nothing, and that until real co-operation is feasible (i.e., until governments surrender some economic sovereignty) further attempts to peg currencies will flounder.

The new world economy
The biggest change in the world economy since the early 1970’s is that flows of money have replaced trade in goods as the force that drives exchange rates. as a result of the relentless integration of the world’s financial markets, differences in national economic policies can disturb interest rates (or expectations of future interest rates) only slightly, yet still call forth huge transfers of financial assets from one country to another. These transfers swamp the flow of trade revenues in their effect on the demand and supply for different currencies, and hence in their effect on exchange rates. As telecommunications technology continues to advance, these transactions will be cheaper and faster still. With unco-ordinated economic policies, currencies can get only more volatile.
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In all these ways national economic boundaries are slowly dissolving. As the trend continues, the appeal of a currency union across at least the main industrial countries will seem irresistible to everybody except foreign-exchange traders and governments. In the phoenix zone, economic adjustment to shifts in relative prices would happen smoothly and automatically, rather as it does today between different regions within large economies (a brief on pages 74-75 explains how.) The absence of all currency risk would spur trade, investment and employment.

The phoenix zone would impose tight constraints on national governments. There would be no such thing, for instance, as a national monetary policy. The world phoenix supply would be fixed by a new central bank, descended perhaps from the IMF. The world inflation rate – and hence, within narrow margins, each national inflation rate- would be in its charge. Each country could use taxes and public spending to offset temporary falls in demand, but it would have to borrow rather than print money to finance its budget deficit. With no recourse to the inflation tax, governments and their creditors would be forced to judge their borrowing and lending plans more carefully than they do today. This means a big loss of economic sovereignty, but the trends that make the phoenix so appealing are taking that sovereignty away in any case. Even in a world of more-or-less floating exchange rates, individual governments have seen their policy independence checked by an unfriendly outside world.

As the next century approaches, the natural forces that are pushing the world towards economic integration will offer governments a broad choice. They can go with the flow, or they can build barricades. Preparing the way for the phoenix will mean fewer pretended agreements on policy and more real ones. It will mean allowing and then actively promoting the private-sector use of an international money alongside existing national monies. That would let people vote with their wallets for the eventual move to full currency union. The phoenix would probably start as a cocktail of national currencies, just as the Special Drawing Right is today. In time, though, its value against national currencies would cease to matter, because people would choose it for its convenience and the stability of its purchasing power.
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The alternative – to preserve policymaking autonomy- would involve a new proliferation of truly draconian controls on trade and capital flows. This course offers governments a splendid time. They could manage exchange-rate movements, deploy monetary and fiscal policy without inhibition, and tackle the resulting bursts of inflation with prices and incomes polices. It is a growth-crippling prospect. Pencil in the phoenix for around 2018, and welcome it when it comes.

Just to be clear: This is NOT fāke™ news. It is an article from The Economist published 29 years and six months ago, today.

We are counting down the minutes.

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IMF Teaches Governments How to Wage War on Cash


Creepy IMF Paper Teaches Governments How to Wage War on Cash

by Peter Schiff

There’s been another shot fired in the “war on cash.” Recently, the International Monetary Fund (IMF) published a working paper offering governments suggestions on how to move toward a cashless society even in the face of strong public opposition.

Over the last several years, we’ve seen a steady push to eliminate, or at least limit, the use of cash around the world. In May of 2016, the European Central bank announced it will stop producing and issuing 500-euro notes by the end of 2018. Not long before the EU announcement, a former Obama economic adviser/ex-Treasury secretary floated the idea of eliminating the $100 bill in the US.

Banks have also gotten in on the act. Last year, Chase capped ATM withdrawals for non-Chase customers at $1,000 per day. Recently, ATMs in Mexico stopped issuing 500-peso notes, leaving the 200-peso note as the highest denomination available. CitiBank Australia stopped handling cash transactions altogether late last year.

Indians also felt the squeeze last fall. On Nov. 8, the Indian government declared that 1,000 and 500 rupee notes would no longer be valid. They gave the public just four hours notice. Why? To force so-called “black money” into the light.

About 90% of all transactions in India are in cash. It is an overwhelmingly cash economy and virtually every Indian has currency stashed away in their home. The government can’t tax transactions using black money. By making the 1,000 and 500 rupee notes valueless, government officials hope to force the black money into the economy so they can get their cut.

Officials always justify their war on cash with talk about “customer preference,” and fighting terrorism and drugs, but the drive toward a cashless society is really about control.

By controlling access to your own money, banks and governments increase their control over you. They can collect maximum taxes and fees, they can track purchases, and they can even manipulate your spending habits by imposing negative interest rates that effectively charge you for saving.

Needless to say, many everyday people like cash and the relative freedom it provides. In a worst-case scenario, they can at least shield their wealth by shoving cash under their mattresses. You can’t do that if there isn’t any cash.

Well, the IMF wants to help governments crack down on cash in a kinder and gentler way. In “The Macroeconomics of De-Cashing,” IMF analyst Alexei Kireyev explains how governments can overcome the objections of their citizens as they wage their war on cash.

“Although some countries most likely will de-cash in a few years, going completely cashless should be phased in steps. The de-cashing process could build on the initial and largely uncontested steps, such as the phasing out of large denomination bills, the placement of ceilings on cash transactions, and the reporting of cash moves across the borders. Further steps could include creating economic incentives to reduce the use of cash in transactions, simplifying the opening and use of transferrable deposits, and further computerizing the financial system.”

Kireyev suggests governments will encounter less resistance if private institutions lead de-cashing efforts. After all, governments don’t want to give the impression they are trying to control their populace.

“In any case, the tempting attempts to impose de-cashing by a decree should be avoided, given the popular personal attachment to cash. A targeted outreach program is needed to alleviate suspicions related to de-cashing; in particular, that by de-cashing the authorities are trying to control all aspects of peoples’ lives, including their use of money, or push personal savings into banks. The de-cashing process would acquire more traction if it were based on individual consumer choice and cost-benefits considerations.”

Note: the paper does include a disclaimer. “The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF.”

Nevertheless, the suggestions in the working paper are creepy, to say the least. They certainly confirm the powers-that-be are very interested in limiting your access to cash and exercising maximum control over you.

One way to protect yourself from becoming a victim in the war on cash is to just buy gold and silver. The intrinsic value of precious metals can never truly be condemned by any government.

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https://tabublog.com/2017/04/14/imf-plans-for-cashless-society-disclosed/

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LOL! German Central Bank Warns Not To Use Bitcoin As It Is Not Backed By A Central Bank


🤣  This gives me more reason to jump right into Cryptocurrency ‼️


DV

May 13, 2017 by

Central banking, which is a tenet of communism and a scheme to impoverish the many to benefit a few, is one of the evilest, most pernicious and rapacious entities on Earth.

So, when a member of the German central bank, Bundesbank, warned against buying bitcoin I almost choked on my wiener schnitzel.

Having a central bank warn against buying bitcoin is like a rapist warning you that sex with your spouse isn’t as exciting as when he rapes you.

Yes, we know… and that’s why most people prefer not getting raped… and why we prefer bitcoin over any central banking scrip.

Here is what Carl-Ludwig Thiele, a Bundesbank board member said:

“Bitcoin is a means of exchange which is not issued by a central bank, but by unidentified actors. I do not see it as a currency. If you think Bitcoin would be as safe as the euro or the dollar, you have to take responsibility for it. We can only warn people not to use the bitcoin to preserve purchasing power.”

It comes as the height of arrogance to warn now, with bitcoin at all-time highs near $1,800, that bitcoin is a bad currency to “preserve purchasing power.”

If you had bought $1000 USD worth of bitcoin back in 2011 at $3, it would now be worth roughly $566,000.

If you had $1,000 USD in 2011, it would still be “worth” $1,000, but that $1,000 would only buy about $913 worth of goods. And that is when calculating the depreciation with the government’s own CPI index of 1.34% per year which has no bearing on reality. It is much higher than that.

If you had bought $1000 USD worth of euros in 2011, you’d now have $859 worth of euros considering the January 2011 USD exchange rate of .748 Euro per dollar.

So, with dollars, you would have lost roughly 1.34% per year due to inflation and with euros, you lost a whopping 5% due to the drop in the value of the euro and even more if inflation is considered. And, with bitcoin, your purchasing power increased by 56,500%.

So, clearly, you can see why the German central bank is warning against holding bitcoin. Because if everyone held bitcoin we’d all be rich and there would be no German central bank for Carl-Ludwig, that Keynesian communist, to “work” at.

Let’s compare bitcoin to central bank issued fiat currency to show further how ludicrous Thiel’s statement is:

Across Europe and the US, the economies are falling apart as the middle class is wiped out and tens of millions are pushed into poverty by the direct actions of the central banks.

Minimum wage protests continue because people are finding that the central bank’s inflation has made it so they can barely afford to eat anymore.

Meanwhile, the value of bitcoin continues to increase. Had everyone had bitcoin for the last few years there’d be no poverty and no strife.

The euro has fallen 99.75% versus bitcoin since 2011. This is what the German central bank is warning you about.

We suggest you ignore anything that the government, central banks and mainstream media tell you. All three of them are centralized and archaic and are in the midst of being washed away by a new paradigm of non-violent, decentralized systems of which bitcoin is one.

Most of the world hasn’t realized this evolution is in process, though, so you can still get in and well-positioned before the crowd and potentially realize a fortune for doing so.

You can get access to our book, Bitcoin Basics, and our newsletter that covers this ongoing paradigm shift here.

I’ll wager with Carl-Ludwig Thiele that bitcoin outlasts both the US dollar and the euro. In fact, I’ve predicated my life’s work around it here at The Dollar Vigilante.

Central banking is so 20th century. It’s time people like Carl-Ludwig Thiele disappear. In fact, why is the Bundesbank even still around? It essentially does nothing now that the counterfeiting power and interest rate market manipulation are committed by the European Central Bank.

Poor Carl-Ludwig, he doesn’t even know he is already obsolete.

#IMF pushing for a revolution?


ArmstrongEconomics

The International Monetary Fund (IMF) is always the cheerleader to raise taxes to support government they are instructing Germany to raise taxes and also talking about just imposing a 10% tax on all money on deposit in banks throughout Europe. Yes – you read that one correctly.

The IMF has told Germany it should raise its property tax, cut social welfare contributions and invest more to reduce income inequality. The demands are contentious in an election year. Once again the IMF has demanded higher taxes on savings deposits in Germany. Germany must do more for to raise taxes to impose more socialistic ideals to somehow tax the rich to create a broader participation of all citizens in the fruits of economic growth, if somehow raising taxes actually ever creates economic growth. The IMF warns that there is a relatively high tax burden on lower incomes with a comparatively low burden on assets.

The IMF argues for higher taxes on property are in fact necessary and that the government should demand higher wages to also give impetus to the growth in Germany, yet this is magically creating no inflationary impact. Years ago, Italy simply imposed a tax on money in one’s account. This was called a “capital levy”. This was a one-time charge as an exceptional measure to restore the sustainability of the debt. The IMF is also suggesting that measure be invoked to help the coming Sovereign Debt Crisis. The attractiveness of such a measure is that such a one-time tax can be levied before a tax evasion can even occur, especially if cash is eliminated and money can only exist in bank accounts. This requires the belief that this measure is unique and never repeated.

The IMF has already calculated how much the measure would cost every Eurozone citizen:

“The amount of the tax would have to bring the European sovereign debt back to the pre-crisis level. In order to reduce the debt to the level of 2007 (for example in the euro area countries), a tax of about 10 percent is needed for households with a positive asset. “

As you can see, there is NEVER any discussion about reducing taxes or the size of government. The solution is always to raise taxes and to not even look at the old Italian trick of a 10% seizure of all cash in your account. We highly recommend to diversify to assets that are MOVABLE and not subject to taxation merely to possess.

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The Hunt for Taxes is Global


ArmstrongEconomics

Taxes are the root of all evil for this is the confrontation against the people that historically leads to civil unrest and then revolution. The American and French Revolutions were over taxes. Historically, even the Roman Empire was forced from time to time to grant tax amnesty as was the case in 119AD. You even have Roman Emperors such as Trajan (98-117AD) engaging in social legislation known as the Alimenta, which was a welfare program that helped orphans and poor children throughout Italy. The Alimenta provided general funds, food and subsidized education for children. The funding came from the Dacian War booty initially. When that ran out, it was funded by a combination of estate taxes and philanthropy.The state provided loans like Fannie Mae providing mortgages on Italian farms (fundi). The registered landowners in Italy received a lump sum from the imperial treasury. In return, the borrower was expected to pay yearly a given proportion of the loan to the maintenance of an Alimentary Fund – a kickback so to speak. Taxes and social programs have been around a very long time.

Today, debts are never reduced. Consequently, governments only raise taxes continually. We see this in some of the richest countries in the world. Now Singapore is passing three amendments expanding the power of the Ministry of Finance (MOF) under the Property Tax Act. This new legislation is one that will hand the Inland Revenue Authority of Singapore (IRAS) more enforcement and investigative powers. Singapore government is using the law to force people to pay more in taxes. There will be no privacy. Under this legislation, the tax authorities will be able to summon people to appear personally before them and to provide all information. They will be interrogated orally for investigation be it their own taxes, or another person’s property/properties.

Governments are moving ever more closer to totalitarian states eliminating privacy and human rights. This is a global trend that will come to a head because governments will never reduce their costs and will always demand more and more taxes from the people until the bubble bursts.

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Russia Launches “First Strike” Against US Dollar


WhatDoesItMean

UN And Western Spy Chiefs In Panic After Russia Launches “First Strike” Against US Dollar

By: Sorcha Faal, and as reported to her Western Subscribers

In what is looking more by the hour to be a Russian “first strike” against the United States during this current “cold phase” of World War III, the Security Council (SC) is reporting today that President Putin has ordered the immediate implementation of the “Golden Tsar” attack plan against the US dollar—and that has so terrified the West, its top spy masters (the “Five Eyes Alliance”), have rushed to New Zealand for a secret meet and the UN Security Council is now rushing to the White House—but whose efforts to counter the Federation will fail; and as stated by top Kremlin advisor Sergey Glazyev who warned these Western elites: “The more aggressive the Americans are the sooner they will see the final collapse of the dollar as the only way for the victims of American aggression to stop this aggression is to get rid of the dollar…[and] as soon as we and China are through with the dollar, it will be the end of the United States military might”. [Note: Some words and/or phrases appearing in quotes in this report are English language approximations of Russian words/phrases having no exact counterpart.]

According to this report, after the collapse of the Bretton Woods gold standard in the early 1970s, the US struck a deal with Saudi Arabia to standardize oil prices in dollar terms—and through this deal, the “petrodollar system” was born, along with a paradigm shift away from pegged exchanged rates and gold-backed currencies to non-backed, floating rate regimes.

To the catastrophic effect on the entire world of the United States creating its petrodollar system, this report explains, is shown by President John F. Kennedy, in the early 1960’s, attempting to break his nations military-industrial-complex’s “state of perpetual war”—and that allowed him to drastically reduce his nations national debt rise to only $23 billion bringing its total to $312 billion—but that he wasn’t able to continue due his public assassination in 1963.

Under Kennedy’s predecessor, President Lyndon Johnson, this report continues, the illegal Vietnam War was ramped up costing the American people, by 1969, $42 billion and bringing its national debt total to $354 billion.

Assuming power from President Johnson in 1969, this report further details, President Richard Nixon added another $121 billion to his nation’s debt for the illegal Vietnam War brining his nation’s national debt total to $475 billion—an amount so staggering for its time it caused what is now called the “Nixon Shock” when, on Friday, 13 August 1971, Nixon ordered the unilateral cancellation of the direct international convertibility of the US dollar to gold.

With Nixon having un-pegged the US dollar from gold in 1971, thus creating the petrodollar system to replace it, this report explains, the United States was given a literal license to print money—but that instead of using this money to improve the lives of the peoples of their country, instead, they have spent the past 4 decades rampaging across the world with their military might to create for themselves an empire—at a staggering cost, to date, of nearly $20 Trillion in national debt, with another nearly $106 Trillion in unfunded liabilities it owes to citizens.

In order to manage its vast, and global, money printing scheme once the US dollar was no longer backed by gold, this report says, the United States and its allies in Western Europe established, in 1973, what is now called the Society for Worldwide Interbank Financial Telecommunication (SWIFT)—that is messaging system connected to every bank in the world and transfers trillions of dollars every day.

As all global currencies are part of the petrodollar system, and whose currency values, also, are pegged to the US dollar, this report states, the SWIFT messaging system has been vital to health of the entire global economy—but that in 2012, for the first time in history, was used as a “weapon of war” against the Republic of Iran when the Obama regime ordered its disconnecting and that plunged this Persian nation into economic chaos.

With it being clear in 2012 that the United States was now using the SWIFT system as a “weapon of war”, this report explains, President Putin ordered that an alternative global banking be built—that is called the Financial Information Transmission Service (SPFS)—and that on 23 March, Central Bank of Russia (CBR) Governor Elvira Nabiullina reported: “There were threats that we can be disconnected from SWIFT. We have finished working on our own payment system, and if something happens, all operations in SWIFT format will work inside the country. We have created an alternative.”

The week prior to Governor Nabiullina announcing that the SPFS system was now operating as an alternative to SWIFT, this report says it’s important to note, the Central Bank of Russia, also, opened its first in history foreign branch in China—and whose combined goal with the Chinese is to now bypass the US dollar in the global monetary system.

Nearly immediately after the Central Bank of Russia announced that the SPFS was now operating, SC intelligence analysts in this report state, explosive reports began to emerge from leaked NSA documents showing that the United States was using the SWIFT system as a spying tool on both its allies and adversaries alike—and that prompted President Putin’s order today to begin implementing the “Golden Tsar” attack plan against the Americans.

The “Golden Tsar” attack plan against the US dollar, this report explains, is why President Putin has sold off nearly all of the US Treasury Bonds held by the Federation and replaced them with one of the largest hordes of gold ever accumulated by a nation—and that with China, likewise, accumulating massive amounts of gold, now prepares both nations to reinstitute trade in gold—instead of “candy wrapper” petrodollars.

To the greatest fears of the Western elites over the Russia-China plan to reestablish a global gold standard and un-peg their currencies from the failing US petrodollar via Russia’s new SPFS banking messaging system, this report notes, is that the largest global corporations will, no doubt, switch from the SWIFT system to SPFS too—and as one economist recently noted by stating: “If the US succeeds in bending SWIFT to their will, they’ll have to deal with the sharply negative attitudes of European business community, since businessmen never like politicians barging into their affairs in so unceremonious a fashion. Every major corporation would start wondering—‘are we next? What if Washington forces me to sacrifice my interests and my reputation?’”

As to the viability of President Putin’s “Golden Tsar” attack plan with the Chinese against the US petrodollar, this report concludes, one of the top economists with the Bitcoin News Service has noted the profound effects it will have on the whole world by stating: “If both countries could bypass the US Dollar altogether, their national currencies will remain stable or gain in value. Both nations have plenty of gold reserves, whereas the United States has slowly liquidated some of its gold assets. The world of finance will never be the same if these plans come to fruition; that much is certain.”

April 24, 2017 © EU and US all rights reserved. Permission to use this report in its entirety is granted under the condition it is linked back to its original source at WhatDoesItMean.Com. Freebase content licensed under CC-BY and GFDL.

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