churchill Posted December 29, 2012 Share Posted December 29, 2012 Food ? 'In the U.S., food has already become a currency unto itself as 47 million Americans now reside on the Labor Department's SNAP roles, and require government benefits just to purchase basic meals on a daily basis. With the advent of the Electronic Benefit Transfer (EBT) system, the melding of a digital currency backed by food has already been introduced, and is being utilized by nearly one-sixth of the population. The historic cycle of a purely fiat currency is normally no longer than 40 years, and the dollar in it's current form, which is backed by the Saudi oil agreement, will enter that final year in 2013. Thus the need for a transformation of currency is not only desirable as devaluation and massive debt erodes the world's confidence in the dollar, but absolutely necessary as China, Russia, and a new Asian Partnership seek to bypass the dollar permanently for alternate currencies. While the concept of a new currency backed by food seems far-fetched, the fact that reliance upon oil in the world is waning at the same time the need for food and new food sources is increasing. Humanity can find alternative sources of energy as they have for thousands of years, but the body cannot sustain itself without food for a very long period of time. Thus controlling food and the means to buy and sell it through a digital currency, is not only a potential for the future, it is already being done on a smaller scale for a large portion of Americans.' continued ... http://www.examiner.com/article/austin-fitts-push-for-digital-currency-or-a-new-dollar-backed-by-food-not-oil Link to comment Share on other sites More sharing options...
churchill Posted December 29, 2012 Author Share Posted December 29, 2012 or of course Gold ... 'One validation of this new partnership bypassing the United States and the dollar was in the creation of a developmental bank to challenge the IMF, using currencies other than the U.S. dollar. This new bank, comprised of $240 billion from primarily BRIC nations in the partnership, will open access to sovereign loans for countries, and may soon be backed by a gold based currency China is working on.' http://www.examiner.com/article/asian-summit-nations-reject-president-obama-and-create-new-economic-partnership Link to comment Share on other sites More sharing options...
PattayaPhom Posted December 29, 2012 Share Posted December 29, 2012 With the free movement of people, better diets, medicenes, and longievity, the world needs a natural or man made disaster to bring us back into balance. If you take the time to research, information is readily available, its quite frightning what is happening at such a fast pace. Money of a kind will always be the given currency. Happy 2013 Link to comment Share on other sites More sharing options...
djayz Posted December 29, 2012 Share Posted December 29, 2012 With the free movement of people, better diets, medicenes, and longievity, the world needs a natural or man made disaster to bring us back into balance. If you take the time to research, information is readily available, its quite frightning what is happening at such a fast pace. Money of a kind will always be the given currency. Happy 2013 Another big war is what's needed to wipe out a couple of million people. Link to comment Share on other sites More sharing options...
yoshiwara Posted December 29, 2012 Share Posted December 29, 2012 Escape to the Outer Worlds. Link to comment Share on other sites More sharing options...
Naam Posted December 29, 2012 Share Posted December 29, 2012 or of course Gold ... 'One validation of this new partnership bypassing the United States and the dollar was in the creation of a developmental bank to challenge the IMF, using currencies other than the U.S. dollar. This new bank, comprised of $240 billion from primarily BRIC nations in the partnership, will open access to sovereign loans for countries, and may soon be backed by a gold based currency China is working on.' http://www.examiner....mic-partnership Ken Schortgen Jr is another dreamer who thinks that the US Dollar is doomed and that a currency can be based on a commodity who's price fluctuates. at least he was fair enough to use the expression "may soon be". unfortunately he also adds nonsensical claims such as China, as a wholesaler, sells crude to "nations in currencies other than the dollar". In September alone, China, through a partnership agreement with Russia to purchase all the oil they desire, became a global wholesaler of the world's primary energy source, and now allows nations to purchase the commodity in currencies other than the dollar. And along with new trade agreements in Iraq and Afghanistan for their resources, the Asian superpower is going all in to offer a full replacement to the United States, and its stranglehold over the primary currency and petro-currency that the world has relied upon for over 40 years. Link to comment Share on other sites More sharing options...
Naam Posted December 29, 2012 Share Posted December 29, 2012 With the free movement of people, better diets, medicenes, and longievity, the world needs a natural or man made disaster to bring us back into balance. If you take the time to research, information is readily available, its quite frightning what is happening at such a fast pace. Money of a kind will always be the given currency. Happy 2013 Another big war is what's needed to wipe out a couple of million people. it takes less than two months to replace a "couple of million" of the world's population. perhaps you meant "billions"? 1 Link to comment Share on other sites More sharing options...
churchill Posted December 29, 2012 Author Share Posted December 29, 2012 from 2009 .. George Soros: China will be the NEW world reserve currency Link to comment Share on other sites More sharing options...
churchill Posted December 29, 2012 Author Share Posted December 29, 2012 Japan pushes world closer to currency wars http://www.independent.co.uk/news/business/news/japan-pushes-world-closer-to-currency-wars-8432807.html Brazil central bank injects more liquidity by lowering reserve requirements http://en.mercopress.com/2012/12/29/brazil-central-bank-injects-more-liquidity-by-lowering-reserve-requirements Link to comment Share on other sites More sharing options...
Naam Posted December 29, 2012 Share Posted December 29, 2012 from 2009 .. George Soros: China will be the NEW world reserve currency the title of this ancient clip is "China will be the NEW world revered currency" Link to comment Share on other sites More sharing options...
churchill Posted December 29, 2012 Author Share Posted December 29, 2012 (edited) from 2009 .. George Soros: China will be the NEW world reserve currency the title of this ancient clip is "China will be the NEW world revered currency" and what is a revered currency ? from FT so what do you think they meant ...trusted ? Edited December 29, 2012 by churchill Link to comment Share on other sites More sharing options...
Popular Post Rancid Posted December 29, 2012 Popular Post Share Posted December 29, 2012 Many currencies are being devalued by the money printers to support unsustainable government debt and bankster bailouts. It is true no fiat currency ever lasts, this is in part why gold is popular as a hedge. Thing is though when the time eventually comes all the insiders will exit and the suckers, namely the bulk of the population, will get 10c on the dollar, they will provide a stooge politician to take the fall with his replaceent in the wings. Maybe Obama? The Chinese are stocking up on gold, however their ecomomy has its own problems, can't see a reserve currency there. Regardless the folks that brought us the crash will be the same ones offerring to fix it, and the game will continue in a new form. Once bankers get control of currencies that is the end of rule of law as corruption is the dominant game in town, been that way in the US since the criminal Fed bribed its way into existence. Most countries in the same boat, a percentage of GDP goes into the crooked bankster pockets for providing a currency government can provide free. Con of the milenium. 3 Link to comment Share on other sites More sharing options...
Naam Posted December 29, 2012 Share Posted December 29, 2012 from 2009 .. George Soros: China will be the NEW world reserve currency the title of this ancient clip is "China will be the NEW world revered currency" and what is a revered currency ? from FT so what do you think they meant ...trusted ? why should i care what Soros or any other guru said more than three years ago? they are as often wrong as they are right. take a look what Roubini, Faber and Rogers said since Lehman 2008! Link to comment Share on other sites More sharing options...
churchill Posted December 29, 2012 Author Share Posted December 29, 2012 from 2009 .. George Soros: China will be the NEW world reserve currency the title of this ancient clip is "China will be the NEW world revered currency" and what is a revered currency ? from FT so what do you think they meant ...trusted ? why should i care what Soros or any other guru said more than three years ago? they are as often wrong as they are right. take a look what Roubini, Faber and Rogers said since Lehman 2008! If you don't care why comment .... Link to comment Share on other sites More sharing options...
Naam Posted December 29, 2012 Share Posted December 29, 2012 why should i care what Soros or any other guru said more than three years ago? they are as often wrong as they are right. take a look what Roubini, Faber and Rogers said since Lehman 2008! If you don't care why comment .... to prevent that other readers are bullsh... by your (usually) totally misleading postings. as simple as that. Link to comment Share on other sites More sharing options...
el jefe Posted December 29, 2012 Share Posted December 29, 2012 Back to the OP and the notion that a new world currency might be backed by a commodity, especialy one as preposterous as food. Water would be a better analogy, but it's never going to happen. I'm with Naam -- the USD is still the world's safe haven despite all the doomsayers. Link to comment Share on other sites More sharing options...
mccw Posted December 30, 2012 Share Posted December 30, 2012 Backed by a basket of commodities? China has almost a decade inventory of many industrial comodities. Many comotators love to point and say "ah ha look they have a stupid amount of stocks, for sure they will loose money and prices must fall", but perhapse it is calculated ie they are trying to corner the markets buying up physical with today's glut of paper currency so when the moment is ripe they will control the lions share of global commodities stock ready to issue a new commodities backed currency trading directly in the good and paper representations for ease of business with delivery also garranteed when needed. They are also busy buying up the mines/ supply sides, even the one western short sighted share holder lead companies see as unprofitable, this means the chinese state backed companies must see them as strategically important for some reason, they aren't idiots to buy money loosing assets for the sake of it , for example they weren't too interested in eurozone sovereign debt despite the political borderline begging at various meetings. Or gold alone. But a basket would make sense. Coupled with the new exchanges and bilateral agreements developing I think the ground work is already in motion. Link to comment Share on other sites More sharing options...
Naam Posted December 30, 2012 Share Posted December 30, 2012 Backed by a basket of commodities? anything that fluctuates in price lacks the ability of backing a currency. it worked only as long as the U.S. "fix priced" Gold. but there's another catch. even if an acceptable backing could be worked out. who is checking and auditing whether the backing exists? conspiracy advocates don't trust the Greatest Nation on Earth™ that Fort Knox holds all or even part of the Gold which it is supposed to hold. assuming the wet dreams "China Currency Gold Backed" would materialise... will investors believe that x-thousand tons of Gold are stored in the basement of the Chinese Central Bank? would Beijing agree to let an independent 'foreign devil longnosed jury" count/audit the Gold. summary: beam me up Scotty! Link to comment Share on other sites More sharing options...
Naam Posted December 30, 2012 Share Posted December 30, 2012 Back to the OP and the notion that a new world currency might be backed by a commodity, especialy one as preposterous as food. Water would be a better analogy, but it's never going to happen. I'm with Naam -- the USD is still the world's safe haven despite all the doomsayers. objection Your Honour! i am not endorsing the USD as the world's safe haven. what i am saying is the USD is here to stay no matter how much it fluctuates vs. other currencies or commodities and no matter how often gloom&doomers forecast the demise of the Dollar. personally i am overweight in USD (>50% of my assets). but the real reason is that no other currency exists which provides the same possibilities of diversifiying one's investments. Link to comment Share on other sites More sharing options...
mccw Posted December 30, 2012 Share Posted December 30, 2012 "Anything that fluctuates in price" like a currency pegged to another currency backed by? All they would need is sufficient stocks to redeem any traded in notes. Potentially they could abuse this power of course , just like a fractional reserve; which is why they want to be the controller of such a power. As you say, it's all about belief. If china were to announce such a currency all they would need is the ability to redeem the paper for said commodities on a given day; with big enough stocks they could do this. Fort Knox can not redeem anything because they gave up pretending they could already. If they announced a gold or silver backed dollar in response it would be interesting to see if it could hold together or redemptions would collapse it since the faith would be lost at such a point. Link to comment Share on other sites More sharing options...
Naam Posted December 30, 2012 Share Posted December 30, 2012 As you say, it's all about belief. If china were to announce such a currency all they would need is the ability to redeem the paper for said commodities on a given day; with big enough stocks they could do this. the problem that any backing fluctuating in price would still exist. eliminating that fluctuation can only be done with a sought after commodity which is under nearly exclusive Chinese price control. presently i can even think of one, namely "rare minerals" (known among ignorants as "rare earths"). but the possibility exists that huge deposits of these "rare minerals" are discovered in <insert area> which could, or rather would, destroy the trust in the currency backing overnight. Link to comment Share on other sites More sharing options...
Gary A Posted December 30, 2012 Share Posted December 30, 2012 There will never again be a gold backed currency. If all the paper money in circulation were backed by gold, gold would likely be a million dollars an ounce. 1 Link to comment Share on other sites More sharing options...
Naam Posted December 30, 2012 Share Posted December 30, 2012 There will never again be a gold backed currency. If all the paper money in circulation were backed by gold, gold would likely be a million dollars an ounce. that's what the goldbugs are hoping for! Link to comment Share on other sites More sharing options...
hhgz Posted December 30, 2012 Share Posted December 30, 2012 Examiner.com is a wingnut media outlet for the right that focuses and fuels the boundless paranoia and crippling self-doubt of conservatives. Similar to "The Onion", Examiner.com publishes nonsense. However, unlike "The Onion" most readers of the Examiner.com don't realize that they're having their legs pulled forcefully. Not understanding the fundamental difference between a "reserve currency" and a "revered currency", will lead someone to make foolish statements. After five years of reading how terrible things are in the US, the profound disaster of the US economy, and it causing the global financial meltdown, it's still a surprise to some that the USD is a reserve currency...not especially revered. Again, years ago, a segment of TVers loved the idea - and gloated endlessly that the end was nigh - that China was going to sell all of its US debt, and use another currency for international trade. Yet another solid gold prediction that's worth a handful of brass. 2 Link to comment Share on other sites More sharing options...
Naam Posted December 30, 2012 Share Posted December 30, 2012 ...years ago, a segment of TVers loved the idea - and gloated endlessly that the end was nigh - that China was going to sell all of its US debt, and use another currency for international trade... i remember often repeated statements, not only in Thaivisa but in other financial forums too, such as one day, when the Europeans and Americans are asleep, China will sell all its US treasury bonds, Dollars and other foreign currency reserves... Link to comment Share on other sites More sharing options...
churchill Posted December 30, 2012 Author Share Posted December 30, 2012 'Not understanding the fundamental difference between a "reserve currency" and a "revered currency", will lead someone to make foolish statements.' Please can you explain what a 'revered currency " is .... Link to comment Share on other sites More sharing options...
churchill Posted December 30, 2012 Author Share Posted December 30, 2012 why not multiple reserve currencies .... Before 1914, there were three international currencies: the British pound, the French franc, and the German mark. Putin like the idea .. Putin: Reserve Currency Diversification Key to Global Financial Stability http://www.icbc.com.cn/icbc/investment/financial%20news/Putin%20Reserve%20Currency%20Diversification%20Key%20to%20Global%20Financial%20Stability.htm see also this from Managing a Multiple Reserve Currency World http://aric.adb.org/grs/report.php?p=Eichengreen Link to comment Share on other sites More sharing options...
Naam Posted December 30, 2012 Share Posted December 30, 2012 What can be done, in terms of policy, to stabilize a multiple international currency system?Sound and stable policies on the part of the reserve-issuing countries would be the most important contribution. Chronic budget deficits, lax supervision and regulation of financial markets and institutions, and bubble-denying monetary policies could set the system up for a painful fall. Barry Eichengreen is a GENIUS ! Link to comment Share on other sites More sharing options...
mccw Posted December 30, 2012 Share Posted December 30, 2012 As you say, it's all about belief. If china were to announce such a currency all they would need is the ability to redeem the paper for said commodities on a given day; with big enough stocks they could do this. the problem that any backing fluctuating in price would still exist. eliminating that fluctuation can only be done with a sought after commodity which is under nearly exclusive Chinese price control. presently i can even think of one, namely "rare minerals" (known among ignorants as "rare earths"). but the possibility exists that huge deposits of these "rare minerals" are discovered in <insert area> which could, or rather would, destroy the trust in the currency backing overnight. Yes the backing commodity can fluctuate but currencies currently fluctuate also, so I don't see the big difference between a paper or commodity backed currency. Since value can be maintained by either selling gold (or x commodities) or with holding Xyz from the market/ limiting supply. This would be why such large reserves of the physical are needed and why control of a large part of supply is also. However I think mostly the adjustments could be made by controling the amounts on the paper side with physical side only coming in to play in extreem circumstances. Gold on its own could be preferable to a basket because its limited industrial uses means it can be monetized to basicslly any level/ price without affecting the operations of industry. Link to comment Share on other sites More sharing options...
mccw Posted December 30, 2012 Share Posted December 30, 2012 Because change doesn't happen immediately all at once does not mean it will not happen at all. Link to comment Share on other sites More sharing options...
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