IdahoUSA: THINGS MONEY CAN'T BUY 1. MANNERS 2. MORALS 3. RESPECT 4. CHARACTER 5. COMMON SENSE 6. TRUST 7. PATIENCE 8. CLASS 9. INTEGRITY 10. LOVE
Hammertime: They are trying to decide about whether the Zim will go or not
GGee: They’ve been kicking the can for too long. It’s finally time to let it all go.
Briona: The problem I see is that Zimbabwe is a mess right now and their currency value continues to go down. I can understand there being hesitancy in jumping into a huge revaluation.
Ludy: i belive the zim has been the holdup for years
LisaJ: Hope We get an Update sooon. Whether the zim goes Or not
Fitzgerald: THE TRUTH IS AT THE BANK, WE WILL KNOW IT THE MOMENT WE GET THERE TO EXCHANGE… BETTER TO HAVE ZIM AND NOT NEED IT VS NEEDING ZIM AND NOT HAVING IT
Tex20071: Also re Italian held Gold. Italian Govt. seized all gold from Central Banks today. They say it belongs to the PEOPLE not the banks. https://www.zerohedge.com/news/2019-04-05/it-belongs-people-not-bankers-italy-moves-seize-gold-central-bank
NWMontana: The Italian Gov. is trying to pass a law regarding gold in the banks.. The ruling coalition of the anti-establishment 5-Star Movement and the League parties proposed two bills that have evoked nationwide controversy over the country’s long-standing financial and monetary system. One draft law may, reportedly, oblige the central bank’s owners to sell their shares to the Italian Treasury at prices from the 1930s, while the second law is set to declare Italian nationals to be the owners of the Bank of Italy’s reserves
Have You Been Listening To The Economic Clues? - Episode 1836a
X22 Report: Published on Apr 8, 2019
Don961: Signs of a global economic crisis
Sunday, April 07, 2019
Dr.. In the name of Brahimi
A group of economists speculate that the global economy may be hit by an economic crisis similar to the Great Depression that hit the world economy during the third decade of the last century. These weights are based on five current economic and political data:
First, the incomplete recovery, as experts note that the major global economies have not yet recovered from the global financial crisis of 2008, which makes them unable to cope with problems New.
This is confirmed by an IMF report on reforms undertaken by countries after the recent global crisis and inadequate reforms to protect the global financial system from any future collapse.
The second is the unfinished BRICEST crisis. The EU does not want to leave Britain randomly because of its negative effects. Nor does it want to comply with London's conditions so as not to tempt others to do the same.
The economic war between Beijing and Washington will cut global growth, and this could worsen as a result of the election pressure on the US president, which could push it to take more punitive measures against China, pushing the global economy back.
Fourth, the increasing indebtedness. In the years following the global financial crisis, the debts of many countries have increased and the global indebtedness has reached (184) trillion dollars currently. With the keeping of interest rates low, this encourages more borrowing, which is likely to deepen the debt crisis. Global.
China's economy has slowed to its lowest level in the last 19 years. China has achieved strong growth in recent years driven by external demand for its products, so any decline in demand will have negative repercussions on the global economy as these exports weigh heavily. In international trade reaches 20 percent of the total international exports.
These issues are now traded at the level of experts and they need to study in depth and to hedge their potential effects Here I call the Ministry of Finance to hold a consultative seminar involving the ministries concerned and in the presence of elite academics to discuss Subject. link
Don961: Is the IMF launching a new international currency to compete with the dollar?
- 7 Hours Ago
In the midst of the dollar's dominance of the global monetary system and the dangerous consequences of using it as a political tool by successive US administrations, especially the current administration of President Donald Trump in striking the economies of countries that do not conform to its policies, the search for a new global currency is enthusiastic by many countries and major economies .
The dollar still controls 61.7 percent of the global cash reserves held by central banks, and it also controls nearly 80 percent of global financial settlements. In practice, the global accounting unit, the reserve currency and international trade.
With the annual Spring Meetings of the International Monetary Fund and the World Bank, which began today in Washington, the former UN official, José Antonio Ocampo, who served as Assistant Secretary-General for Economic and Social Affairs of the United Nations, proposed the conversion of the International Monetary Fund, R "to a real global currency that is traded alongside other currencies.
"The current IMF meetings offer an ideal opportunity to turn the IMF currency into a real currency to strengthen the global monetary system ... Monetary policymakers must seize this opportunity," said Ocampo. The currency of the Fund is currently denominated in currencies of five countries.
The Special Drawing Rights (SDR) currency is the international reserve currency introduced by the International Monetary Fund in 1969 to complement the official assets of member countries. The value of the "currency of the Fund", based on a basket of four major international currencies, could be exchanged for any of the freely traded currencies, and was finally joined by the Chinese currency, the yuan.
The value of the SDR is now determined by a basket of five major currencies: the dollar, the euro, the Japanese yen, the British pound and the Chinese yuan. Based on this combination of currencies of the countries that make up most of the world trade and the global monetary reserve, this currency becomes internationally accepted.
One of the benefits that Ocampo mentions in his research in an article in Project Syndicate last Friday is that the IMF can use the SDR currency to address imbalances in the global monetary system in times of global financial crisis, Such as the financial crisis of 2007, in which the world relied on the US Federal Reserve to provide liquidity to global central banks and major commercial banks.
In 2009, the International Monetary Fund (IMF) issued SDRs worth $ 250 billion at the request of the G-20 summit to help ease the global financial crisis. But this was very small compared to the requirements of countries, especially the economies of poor countries and emerging economies.
The UN official believes that if the currency is supported, it could become the main currency in the IMF's funding for its global programs in reforming the economies of countries experiencing financial crises. As it will be able to expand its funding through the issuance in large quantities.
So far, the IMF has been relying on global economic programs for IMF member countries' quotas and borrowing from major powers such as the United States, EU countries and Japan.
But these funds, according to Ocampo, are inadequate in moments of crisis. The dollar on which the IMF depends on funding is not a "multinational currency", so the dollar is not a currency acceptable to some countries, but a currency that imposes itself. Dollar-borrowing countries usually import their many problems of inflation and exchange rate volatility, which may suit the US economy, but do not suit the receiving countries of the IMF's debt.
United Nations experts believe that the Fund's current funding is not commensurate with the scale of expansion in the world economy. According to these experts, the fund needs annually to issue special units ranging between 200 to 300 billion dollars. So far, the United States and the European Union have been benefiting from the new fund.
If the Special Drawing Rights (SDR) of the IMF becomes an international reserve currency, many countries in the world will benefit from and participate in the new issues.
The Ocampo proposal does not mean the disappearance of the currencies of the national countries, as these currencies will continue to be traded, but all that will happen is that central banks will shift their reserves from other currencies into the currency of the IMF. The Special Drawing Rights (SDR) currency can also be used to issue private bonds and bonds.
The International Monetary Fund had proposed at its meeting last year 2018, to convert the currency of the Fund into a "cash sheet", which are traded with banks and financial institutions in the purchase of bonds and co-financing together with international currencies.
Despite its monetary and financial dominance, the dollar is currently facing a range of problems, especially those related to US sovereign debt that has exceeded $ 21 trillion. President Donald Trump's administration does not know how to pay off the debt, especially since the interest it pays to bondholders is more than half a trillion dollars a year, according to estimates by the Congressional Budget Office.
If Donald Trump's US spending continues, the debt will rise to more than $ 22 trillion, and its service will become a heavy burden on the US budget.
The Federal Reserve has finally proven the interest rate on the dollar, a move many economists have seen as helping the US economy grow, but in fact there is another obstacle that prevents the US central bank from raising rates, The higher the interest rate on the dollar, the higher the cost of debt. US debt continues to rise at a time when Trump is cutting taxes on the wealthy. The United States relies on financing its deficit to sell global treasury bills and print dollars. The value of the purchasing dollar is eroding amid the lack of actual coverage.
Thus, according to observers and international financial institutions, there are global fears of the collapse of the global monetary system in the event of the collapse of the dollar suddenly, because of rising US debt and trade disputes with China, which has bonds and reserves of more than $ 3 trillion dollars.
There is also hidden pressure by China, which has become the world's largest oil importer, to the OPEC countries, led by Saudi Arabia to sell oil in the yuan currency denominated in gold in future contracts set by the Chinese Petroleum Exchange, which was founded last year.
If the Cold War develops between Beijing and Washington, China may refuse to buy oil in dollars. In the event of such Chinese pressure, it will block the OPEC countries and put them in front of two options, either the loss of marketing its oil in the huge Chinese market, or bow to the sale of oil in gold-denominated yuan.
Oil is one of the most important commodities to cover the value of the dollar since the agreement signed by the US Treasury Department with Riyadh in 1976. Reuters quoted three sources familiar with Saudi energy policy last week that the kingdom threatens to sell oil in currencies other than The dollar, if Washington approved to sue the Organization of Petroleum Exporting Countries (OPEC), under a law called "Nobk".
The idea of creating a global currency alongside the dollar is not new. The world economist John Maynard Keynes, the famous theoretician, has already proposed the creation of a global currency for international settlements.
In the 1960s, the American economist of Belgian origin, Robert Triven, suggested creating an alternative global currency for the dollar. These proposals came to address the problems of the global monetary system, caused by dependence on the dollar.
These calls increased following the Federal Reserve's abandonment of pegging the value of the dollar to gold in 1976.
In a similar vein, a report by the UN Conference on Trade and Development in 2010 calls for a new system of currency reserves to stabilize the system Global Finance. Russia and China, whose relations with America have deteriorated, are spearheading the campaign to abandon the dollar.
In May, Russia's second financial institution signed a cooperation agreement with the Chinese central bank in the presence of Russian President Vladimir Putin and his Chinese counterpart, Xi Jinping, to make payments in the national currency.
The New Arab link
John Rubino – Next Recession Could Blow Up Financial Markets
Greg Hunter: Published on Apr 6, 2019
Financial Writer John Rubino says, “It is possible that a garden variety one year recession would blow-up the financial markets. That’s the stuff that they are hearing (in the White House) that is terrifying. . . .
There are probably older and wiser people whispering in Trump’s ear who are saying the next equities bear market might be the end of the financial world for us. . . .
They are so worried, they are will to experiment with monetary policy again in order to prevent the crash that could make them this generation’s Herbert Hoover.”
"Gold Is Moving Back Into The Center Of The Global Financial System"
“What’s cheap? Gold and silver. What is down and what is cheap relative to the fundamentals..."
"It’s not just the price of gold and silver, it’s how much gold and silver exists relative to how much paper wealth is in the world. The amount of gold and silver that we are bringing out of the ground is growing at 1% or 2% per year. The amount of paper wealth in the world is growing exponentially...
Gold is moving back into the center of the global financial system.”
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