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Ah duh #2 - not one global currency, rather global currency control

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  • Ah duh #2 - not one global currency, rather global currency control

    Yesterday, in the post Ah duh - the Federal Reserve will cut off the U.S. debt funding, I predicted two things:
    • The Federal Reserve would (perhaps covertly) pull the plug on U.S. debt, selling the U.S. "down the river" into debt slavery and austerity.
    • We would then see a one world currency, replacing the U.S. Dollar at one-to-one, but issued by some international organization rather than the Fed.


    The first prediction did not prompt much discussion; the second one prompted considerable disagreement.

    Yes, the second one was wrong.

    The Financial Powers That Be (TFPTB) do not seek one world currency. They seek capital, currency and exchange controls.

    As I recall stating here many months ago, they seek a two tier currency system. The top level meta-currency would be issued by some institution such as the BIS or IMF, and it would be used for exchanges between national central banks. The second level currencies would consist of the existing currencies of each nation or (perhaps in the case of Europe) region.

    Substantially stronger regulatory control over all major financial players (banks, nations, hedge funds, ...) would be sought, in the name of "protecting us from the failures of the past monetary systems."

    TFPTB, not some open market, would control the regulations and their enforcement, and would set the foreign exchange rates.

    They want control, but not simple blunt control (as in a single global currency) which is easy to hate and inflexible to adapt to changing times or strange circumstances. Rather they want the indirect and more subtle control of the back room.

    The Fed still blows up the U.S. balance sheet sometime, in my dark view. But if they do so for any fancier reason than to steal anything that is not nailed down, mortgage what is, and tax the rent payments on the use thereof, then I don't presently know what that would be. (P.S. -- well, see below. One more reason could be to force the U.S. to agree that major international trade agreements, such as for oil, were henceforth priced in this global meta-currency instead of U.S. Dollars.)

    Setting global forex rates will be easy in one example. China and the US have had their foreign currency exchange rates locked closely for a few years now.

    The meta-currency would be fiat, though gold might be used in some magical way in calculating it. The meta-currency may well have a physical representation in paper bills and metal coin. It's exchange rate relative to each national currency would be set by "Swiss gnomes" (backroom accountants on the payroll of some TFPTB controlled institution.) Central banks would be required to have and hold certain quantities of it (or perhaps see their currency's forex rate suffer.) Central banks would have ways to acquire this meta-currency, and requirements to remit some back to the central authority (a tax on nations, essentially.)

    The meta-currency might also be suitable for pricing international trade, such as oil. The U.S., as a nation, would lose the imperial privilege it might have had to affect the price of oil or forex rates, or to force such contracts to be priced in Dollars.

    Life would be good, and the military and monetary violence of the 20th century would be a thing of the past .

    P.S. -- The combination of other national banks switching from U.S. Dollars to this meta-currency for their reserves, and oil being priced in this meta-currency, not Dollars, would crash the U.S. Treasury market, even if the Fed kindly avoided doing so sooner. A key observation here is that we now have increasing Trillions of Dollars worth of U.S. debt paper in the hands of an agency that frankly doesn't give a damn if that paper is worth anything. The Fed answers to other powers, to other purposes.
    Last edited by ThePythonicCow; 10-12-10, 12:36 AM.
    Most folks are good; a few aren't.
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