Reader Comments On “The Real Reason The Swiss Peg Ended” Part 2
Sergetomiko MARCH 11, 2015 AT 6:30 PM Why would a metal the color of urine that has no use except for jewelry be an asset? It’s more like a yoke around your neck.
Money is just a number in a computer. Is the debt too high? Just change the numbers in the computers.
This entire scam that is described on this blog is based upon the lie that money is scarce. Money is not a thing. It represents the political power of a sovereignty to produce wealth.
Wealth requires natural resources and productive citizens. The false scarcity of money is done entirely to get the masses to accept their enslavement.
Michael Glenn MARCH 11, 2015 AT 7:16 PM Bullion is debt free, Serge. You may be confusing the need for utility value for the intrinsic value (to economic activity) that bullion provides.
The debt has already been paid at the time the coin or ingot has been finished. That’s why it’s debt-free. That’s also why it has market driven supply discipline.
The quick question for you is do you want the world to continue to subject itself to debt-based liquidity (fiat currency) or would you welcome asset based liquidity that only a debt-free currency can provide ??? Something to think about.
I like your mention of “scarcity”. It was an old argument against the use of gold and silver before they took on real-time values in 1971 when the price was set free.
It was not the actual scarcity of bullion that was a monetary problem. It was the FIXED peg in monetary gold systems of older systems when the price was fixed by the powers-that-be.
Now that bullion values float, keep in mind that bullion’s liquidity is completely scalable on the basis of price. The liquidity of bullion is directly proportional to the product of (weight x trade value/unit weight) —–>>> (weight x USD/oz)
JC Collins MARCH 11, 2015 AT 8:27 PM Nice explanation Michael.
Michael Glenn MARCH 11, 2015 AT 9:09 PM Thanks JC … I know of new models that are being released to the market, this year. These are payment systems that are weight based in the same spirit as the defunked e-gold system but with superior e-comm capabilities on the basis of recent block chain technology that we see with bitcoin …. but backed with real weight.
Susan Morris MARCH 11, 2015 AT 10:18 PM In light of your above article, JC, this interview becomes even more fascinating:
Truthlover MARCH 11, 2015 AT 10:26 PM JC, do you still believe that the Euro will disintegrate given it’s role in the basket of 7 outlined in this post?
JC Collins MARCH 11, 2015 AT 11:55 PM I was having this conversation just yesterday. My original expectation was that the euro would fragment.
But reader and commenter Matt McBride made a very valid point sometime last week when he wrote that a euro fragmentation would make elevating the SDR that much more challenging.
There was something which didn’t quite feel right about what we were thinking the basket composition was going to be.
The euro crisis will continue and escalate, but it makes more analytical sense that the actual zone and currency remain intact so the SDRM process can be implemented.
This is a perfect example of the level of participation and teamwork which takes place on this site. It’s what stands us apart from other virtual gathering places. Thanks for bringing this up!
Matt McBride (@MattMhmmcbride) MARCH 12, 2015 AT 4:39 AM Hi JC and team - Just an additional thought. The IMF just granted overnight an additional* 12.4B SDR loan to Ukraine.
Ukraine is one of two pipelines “bridging” the critical Russia – EZ natural gas system.
By Russia, EU, USA, IMF destroying Ukraine, it is an efficient (yet cold hearted way) to have an increasing amount of the in and outbound natural gas payments denominated in SDRs
ie Ukraine (when a kabuki peace accord is brokered) pays Russia with SDRs.
When they are at conflict weeks later, they pay EU members (in SDRs) for energy and settle in SDRs.
So in effect, isnt the key EZ natural gas system increasingly priced in SDRs?
*Excerpt: “In March 2014 the IMF required Ukraine to reform natural gas prices subsidies in order to provide it with an aid package worth about $15bn.
One of the expected effects is a hike of 50% on the price of natural gas sold to domestics consumers in Ukraine.
The hike was expected to take effect on 1 May as part of a set of intertwined contingencies required by the IMF in order to provide financial support to Ukraine.
The European Union, in turn, required Ukraine to secure this aid package from the IMF in order for the EU to financially support Ukraine under the terms of the treaty in an amount of about €1.6 billion euros.
Before the hike, all natural gas bought by the government of Ukraine was resold to consumers under government subsidies at below market prices.
Gas prices for district heating companies were also expected to rise by 40% from 1 July. Anders Aslund, a former economic adviser to the Ukrainian government, believed that Ukraine’s expenses can be cut down by 2% of its GDP if gas subsidies are stopped.
On 27 March 2014 the IMF announced it would give an $14bn-$18bn rescue package for Ukraine.
In return the IMF demanded that Ukraine would set up a (new) Anti-Corruption Bureau.
Ukraine announced on 26 March 2014 that household natural gas prices would rise by 50% from 1 May. On 4 September 2014 Ukraine received $1.39 billion from the IMF.”
Michael Glenn MARCH 12, 2015 AT 1:33 PM The SDR “solution” is another can kicking , imo …. simply another form of debt.
The ultimate solution has to be asset based, assets that provide actual liquidity (currency). The problem is not in the theoretical, but in the practical in terms of how to set the process into action because the elite have “painted themselves into an apex”.
Introducing asset based liquidity cannot be done in a top-down fashion in view of real-time factors. The legacy system (debt) would crash.
If assets are going to move into a currency role, it must be somewhat “covert” as per the organic machinations of the marketplace. A top-down approach is out of the question. We must be as wise as serpents, yet as gentle as doves.
mag51 MARCH 11, 2015 AT 10:55 PM It would indeed be very interesting to see a gold backed digital currency.
Steve Henningsen (@Stevephenni) MARCH 12, 2015 AT 12:05 AM Still catching up on my day, so I don’t know if anyone posted this yet, but IMF gave Ukraine loan and it certainly wasn’t in $ …
JC Collins MARCH 12, 2015 AT 12:13 AM You’re the first brother. Congratulations. Now lets have a look…
Dripfood MARCH 12, 2015 AT 8:30 AM Wow, it’s nice to witness it being really put into practice. Thanks to your attention to detail, Steve.
JC, reading the message posted by steve, a few questions arose.
– Are these SDR 12.348 newly created by the IMF, thus adding to global liquidity?
– Are these SDR actually transferred to the Ukrainian CB balance sheet or are they just added to the Ukrainian SDR account within the IMF?
– can a nation buy/trade SDR for their own currency or just the ‘magic 7’?
– When Ukrain wishes to exchange their allocated SDR for actual currrency, can they do that through direct trade with a foreign CB or would they always need the IMF as a trade facilitator?
I hope you or someone on this board can clarify the workings of these (still somewhat illusive) SDR. Thanks in advance.
Bruno de Landevoisin MARCH 12, 2015 AT 2:28 AM Fantastic piece J.C!
Sorry brother, I’ve been absent on the thread lately. Just returned from Australia and I’m now opening a NYC Office for Bullion Capital.
I have joined ABX / Bullion Capital LTD, an interesting up and coming company which has developed a state-of-the-art global physical PM Exchange.
The innovative platform is transparent and inclusive, offering deep liquidity providers to both institutional and retail clients(via IBs), with nine secure dealing hubs strategically located throughout the world, that directly feed into a central market making online exchange.
The bid/ask spreads are tighter than any existing PM dealer pricing. Bullion is fully allocated and directly owned by the buyers and sellers with no counterparty risk.
About 50 online FX brokers and several substantive Asset Managers have joined the platform in short order. You may have noticed some recent mentions we had in the news:
Our aim is to directly compete, through disruptive innovative technology, with the non-inclusive proprietary LBMA exchange controlled out of London by the large bullion banks.
This post is now up on http://www.stealthflation.org
Better late than never;-) All the Best, Bruno
Bruno de Landevoisin MARCH 12, 2015 AT 2:30 AM By the way, Beppe Grillo joined the Stealth team of contributors!