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2011-04-25 Economy

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Posted by tipper 2011-04-25 09:14|| || Front Page|| [3 views ] Top

#1 I suspect that much of this is wishful thinking on the part of the IMF, and the internationalists that back it. They crave the end of the "single superpower" age and a return to multilateralism, with them in charge of it.

But as with their dreams of a single international currency, which has been tried a few times already, it won't work and will blow up in their face, unless their compatriots can drag the US down so far that internationalism has a chance.

Yet, this fails with the US because their efforts were to drag the US down "on paper", which is a far cry from reality. That is, they think that if they can destroy the dollar, it will be the same as destroying the US.

The whole scheme has FAIL written all over it. First of all, because they are duplicitous rats, they will never trust each other, and always act in their own interest.

Second, paper is just paper, and only works when people think it has power. When they lose faith in it, it just becomes paper again, and people use something else as a token of exchange. If Obama "prints" a million billion trillion dollars, then people will use some other means and Obama will be left out in the cold.

Posted by Anonymoose 2011-04-25 09:41|| 2011-04-25 09:41|| Front Page Top

#2 BTW the paper is Fed paper and not US Treasury paper. Fed is a consortium of banks nothing more nor less.

The Treasury could print Treasury Notes again and not care what the Fed Notes were worth.

Posted by Water Modem 2011-04-25 10:37|| 2011-04-25 10:37|| Front Page Top

#3 single international currency

We pretty much had that at one time. It was known as gold. Unfortunately, there is insufficient precious metal to cover the world economy these days. It becomes a ceiling that would move most of us back into the 19th Century economically which would also entail comparable health, technology stagnation, social stratification, etc that goes along with that.

Posted by Procopius2k 2011-04-25 10:44|| 2011-04-25 10:44|| Front Page Top

#4 Gold is just as fiat as paper. It might be harder to expand the gold supply, but not as hard as you think nowadays with new technology and it's major problem is you cannot burn gold like you can fiat paper.

Posted by Bright Pebbles 2011-04-25 10:54|| 2011-04-25 10:54|| Front Page Top

#5 Some economic historians have opined that the level of counterfeiting / unbacked bank notes in the US during the 19th century provided a beneficial boost to its money supply which otherwise would have been constrained by US gold stocks.

Posted by Anguper Hupomosing9418 2011-04-25 10:56|| 2011-04-25 10:56|| Front Page Top

#6 Gold is just as fiat as paper. I disagree. Expanding the gold supply is (1) extremely difficult and likely to remain so and (2) economic activity expands and contracts due to factors other than the supply of gold -- this mismatch has always been a problem for gold-backed currencies. As far as I know, there IS NO GOLD BACKED CURRENCY in existence now, there is just gold. There are also other commodities.
Economic activity is based on trust between the two (or more) parties involved. That can't be printed, minted or mined.

Posted by Anguper Hupomosing9418 2011-04-25 11:04|| 2011-04-25 11:04|| Front Page Top

#7 Plenty of gold on the asteroid EROS. 5 times a much as exists on Earth (including unmined in the Earth's core).

Posted by Water Modem 2011-04-25 11:08|| 2011-04-25 11:08|| Front Page Top

#8 Economic activity is based on trust between the two (or more) parties involved.

And a lot of the trust built up over the last 80 years was destroyed as the social model that had reigned over those years disintegrated due to its internal inconsistencies. Over the next 15 years or so, we will cobble together a new contract that will establish a basis for trust that will support the next step forward. Until then, trust will be at a premium.

Posted by Nimble Spemble 2011-04-25 11:48|| 2011-04-25 11:48|| Front Page Top

#9 Sterling was the worlds staple monetery source for 250 years before the dollar. As far as I know the IMF want to trade in packets, just as they give out aid packets to countries in emergency. This would only really be used to trade in big bulks of oil and minerals etc. The world is run by companies otherwise where two trading companies would only have tocoer money once rather then the needless trading into dollar. Its a bright idea. Mcdonalads recently relocated a vast majority of stocks into foreign currencies. China is buying up the world in a bid to save all the dollars it accumulated. Obama isn't helping.

Posted by devilstoenail 2011-04-25 17:59|| 2011-04-25 17:59|| Front Page Top

#10 Anguper Hupomosing9418

Yes Gold expansion is difficult, but it's a lot easier than it used to be.

On point2 i agree.

On a general point all wealth is created through reciprocation (and marxism is not reciprocal).

Posted by Bright Pebbles 2011-04-25 18:28|| 2011-04-25 18:28|| Front Page Top

#11 Interesting idea, that of 'packets', devilstoenail. Also used by multinats to avoid payment of taxes, whilst at the same time claiming all the rebates.

Posted by Rhodesiafever 2011-04-25 20:58|| 2011-04-25 20:58|| Front Page Top

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