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WW GUEST POST: (Money Power, Pt. 2): Where Do We Go From Here?

from The Wealth Watchman:

The USA played its cards and knowledge well. There was no other country with a gold and/or silver currency they could corrupt or jump to to get the cycle going again, especially since the USA managed to get oil on board. The new invention that no country can do without in modern times. For the first time, a failed reserve currency(which defaulted on gold obligations) survived the attack on its reserve currency status, by bankers, by backing it with something totally new! The U.S. dollar went from a gold backing to an oil backing. This is the first reserve currency that I know of, that lost its gold banking, yet regained it by backing it with something else entirely!

Of course, oil money/power is not stupid. They know the history of reserve, paper-money systems, and paper, fractional reserve, PM systems, before this one. Besides that, many in the Islamic world consider it their religious duty to go back to the (gold and silver) Dinar and Dirham. In the 1970’s, the leaders of OPEC openly stated that they didn’t want dollars, they wanted gold. In the 1950’s, they stated it in private and were heard and met. This is a great piece to read about that.

See how long it can take for things to get out in the open for all to see?

Before this happened, the Europeans had already decided that the USA was untrustworthy, and started a coordinated campaign to spill the beans on why reserve currencies always fail. The economist Mr. Triffin, was given the credits, and he introduced the “Triffin dilemma” in economics. Still, the European currencies were a derivative of the US treasury, so those currencies had to go. If the Dollar collapsed it would bring all other currencies down with it, and the world would go back to gold and silver money. Of course, it goes without saying, that this would’ve collapsed the global economy.

Until the introduction of the Euro, there were 2 kinds of currency systems. Gold and/or silver-backed currencies with a fixed price. As I have shown, they have proven to always fail. Then there is the new oil-backed reserve currency, that is also now failing. Both systems also create conflict on a massive scale since it puts the debtors agains the savers. The savers save the debt of others. Since savers dont spend it, it makes the debts unpayable. That is the source of the conflict.

The EU bankers learned they could not bring down the US Dollar, so they needed friends. So Europe kept supporting the US Dollar, so that it would not collapse, and all this was done at great cost to the average European people. Their earned, purchasing power was partially transferred to the USA people. Japan did the same. Just when the Euro currency was ready, the Chinese took over the batton and transferred around 3 trillion Dollars of purchasing power from their people to the USA to keep this system going. Fortunately, now they have long-since stopped supporting the expansion of the US dollar.

Completely under the radar a whole new monetary system was designed and deployed. The difference is small but the consequences are enormous. They realized a gold-backing of currency at a fixed price will fail. Just as one based on treasuries. They also wanted to end the age-old conflict inherent in money until now, between savers vs debtors. The changing of the reserve currency always has always come with great wars. Now with nuclear weapons… they tried to change it witout the war. The ambitious project to go to the financial moon had begun.

A New Trajectory
Western people think money to be 3 things, 1) medium of exchange, 2) unit of account and 3) a store of value.  The Islamic people consider going back to gold and silver money a religious task, and also learned because of their history, and Europeans learned that to a degree as well.

Considering the fact that EU-member countries and central banks have many tonnes of gold, they logically made that the base of the currency. They all transferred an amount of physical gold to the ECB, and started to issue currency from gold!  However, they didn’t do so at a fixed price, since they knew that the currency supply (aka debt) had already hyperinflated in the European countries, just as in most countries in the world.

They took a good look at how Indian people saved their money. For centuries they tried to subdue them with paper money(and the surrogates of them) but failed. In India, the biggest religion is Hinduism. That religion is over 3000 years old, and their creation tale of the world actually states the world was created by a golden egg (some variants say an egg made out of gold and silver). It can be also interpreted as an golden womb. Now you know why the Indian people gift gold at a wedding!

Many countries followed the European lead. Mr. Jim Sinclair did quite some research and posted this world map a few years ago on his site.
BRICS
In green, the currencies that mark their gold to market and issue their currency from gold. In grey, are either unknown, or that use USA treasuries to issue their currency from.  All these countries freed themselves from the bankers rule!

Read More @ TheWealthWatchman.com

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