Assuming the US dollar devalues to a point that it loses its status as the international reserve currency - what will replace it? Around these parts I'd expect the response to be 'Gold Standard!!!' or 'Silver Standard!!!'. Some of you would want to believe this - as this would make you immensely wealthy in the new order. Do you truly believe that power-hungry politicians and their bankster accomplices would really be willing to surrender their power to conjure money from thin air? Historically we have seen 'Executive Order 6102' - FDR's Gold Seizure. In Australia, Section IV the Banking Act is still de jure and can be re-activated to enforce compulsory gold purchase at vast discounts. That is, discount to the Reserve Bank. The fiends will try to seize all private PMs to restore 'faith' in their fiat by the Sheeple. (A fine time to have a boating accident.) Then they'd opt for another fiat-paper arrangement. The closest alternative I know about is IMF Special Drawing Rights (SDRs) composed of a basket of four currencies - USD, Euro, British Pound, Yen. As far as I can tell, this is like selling whiskey branded as 'medical hangover cure' since this instrument is just the same fiat rebranded. Does any one have any other suggestions about what would be the reserve when the $US is no longer the global reserve?
euro or a new global currency, both if chosen will fail so spectactularly ypu may not survive to see it. Should be a gold and silver + certain comodity basket... But it will never be, as you pointed out things you cannot invent out of thin air are no good if you intend to be corrupt.
Whatever the units you gather in Farmville are called. Like boneyard says - digital tokens (on an implanted chip)
I posted a link to the Karl Denninger interview somewhere. In the interview, he reckons we will probably go to the SDR in determining exchange rates between currencies, and you will continue to trade in your local currency. Then we have China, whose Central Bank is reportedly buying gold hand over fist. Perhaps it is to establish their case for the RMB to be the reserve currency. Who knows?
China is on it's way of becoming the biggest superpower in the global market. So I think it will be the Chinese Yuan partially backed by precious metals. Why precious metals? It started dumping dollars and banned export on precious metals. Also they told that their citizens should buy precious metals. When they have a strong middleclass, they can start manufacturing for themselves and lessen export of goods.
Currency basket including %s of Gold/silver, China, Euro and Amero (mixed currency of the american union between Canada, America, Mexico which will form after USA goes bust)
I saw a commentary somewhere that Canada was stronger than AUD - small population, lots of resources, much less debt plus mexico has all those drug billions that the USA wants repatriated, so I see the Amero as a potential. They'd not have as much political problem as trying to get a single global currency in one fell swoop. (maybe that should be the 'one foul swoop' that everyone changes it too lol).
It would be an interesting conversation. USA: Canada, would you like to join us and combine our economies and currencies? Canada: Um, what are your credentials? USA: Well, we're pathological warmongers, we don't care about the education, employment or health of anybody except the wealthy, 20% of our population need food stamps to avoid hunger and our Government is completely owned by a handful of extremely powerful corporations. Canada: In that case, NO.
All currencies have eventually failed. The RMB has been 'goosed' just as much as the USD and the YEN, sorry, but no one really trusts the chinese. Returning to a single reserve currency would be folly... just returning to putting all one's eggs in one basket. And finally...the elephant in the room, There's no need for a world reserve currency. The FOREX and computers can instantly calculate the exchange between any two currencies...there's no need for an intermediatory currency.
USA Are you sure? We think you have Weapons of Mass Destruction in Vancouver. In fact we think you're harbouring Osama Bin Laden and you're also communists. We will probably have to save you. Canada: Would 2 of our dollars for one of yours suit.
More like, Canada: Because you've threatened us, we have just cut off 30% of your energy and water supplies. Last time you invaded us we kicked your arse, and judging by how you are going in Afghanistan against some of the most technically primitive and most impoverished people on Earth, we figure we can do it again. Good day.
My fellow Americans [youtube]http://www.youtube.com/watch?v=LAYMJnO9LBQ[/youtube] So we have to invade after their aggressive energy and water denials
What country is dumb enough to take over the reserve currency status? For a country to have the world's reserve currency, that country needs to run perpetual deficits. China? Not hardly. Barring a return to some form of the gold standard, look for a world reserve currency. The SDR of the IMF are a good blueprint as it shows what the powerful/elite have chosen. Asia is the wildcard. Without China/Asia signing off on a global reserve currency, all bets are off and no one should be able to predict what will happen. Regional currencies like the Euro, possibly. We live in interesting times and that is an old Chinese curse! Regarding Canada joining the US, why would we give them a choice? Other than the US, Russia is the only power close to CA and Putin would likely welcome a US takeover of CA. Why? It would give Putin cover to remake the old Soviet Union Empire. The US would not take over CA and then commit resources against Russia retaking Kazakhstan. Publicly, Putin would renounce the move, but in private, he would be celebrating. If the US gets to the point that we would seriously take over CA, the UN would be toast and the world will be a very different place than it is now. Personally, I do not believe the US would try to take over CA, but we could. CA and AU are in similar positions, small populations with large natural resources. If the big boys want to take the resources they will. The key for countries like CA & AU will be alliances of mutual interest that will protect them from takeovers. For example, India, might protect AU from a Chinese takeover. In this situation, I am assuming that the US has withdrawn from Asia or is significantly weakened militarily. I am not sure what CA could do to protect themselves from a US takeover. China could not protect CA from a US takeover because they would have to go through Russia. And as stated above, I don't believe Russia would privately object to a US takeover of CA. I hope to live a long life and to never see any of the above events occur.
I would be interested to see how the "big boys" could just take our resources. 250,000 US troops and mercenaries and 3trillion dollars couldn't find one man, I doubt they'd be able to get 250,000,000 tons of iron ore out of the ground, from some of the most inhospitable desert in the world, and get it out of the country without trouble. Remember, unlike the Afghans, Australians have the same technology as the US and the miners have access to thousands of tons of explosives and the knowledge of how to use it to maximum effect. Our "insurgents" would have access to equipment the Afghans could only dream of and all we would have to do is wear a US uniform and they wouldn't be able to tell friend from foe. That is of course, if we're not all down at the pub.
Digital? We have that already. It's even EASIER to create money out of nothing with numbers on a screen than to print dollars. That's a recipe for disaster. I still say RB Economy. But we have to stop breeding and get over our differences REAL FAST. It's just a matter of time though. Bring on 2012, I say!
