"The G-20's Secret Debt Solution": A New Monetary System?
Money and Markets contributor, Larry Edelson, believes that this weekends G-20 meetings in Washington is about talks on "...the possible revaluation of gold and the birth of an entirely new monetary system."
“If we can’t print money fast enough to fend off another deflationary Great Depression, then let’s change the value of the money.”
I call it …
“The G-20’s Secret Debt Solution"
It would be a strategy designed to ease the burden of ALL debts — by simultaneously devaluing ALL currencies … and re-inflating ALL asset prices.
That’s what central banks and governments around the world are going to start talking about this weekend — a new financial order that includes new monetary units that helps to wipe clean the world’s debt ledgers.
It won’t be an easy deal to broker, since the U.S. is the world’s largest debtor. But remember: Debts are now going bad all over the world. So everyone would benefit.
Fed Chairman Ben Bernanke … Treasury Secretary Paulson … President Bush … President-elect Obama … former Fed Chairman Paul Volcker … Warren Buffett … and central bankers and politicians all over the world agree a new monetary system is needed.
So they'll start hashing out the details to get the new financial architecture deployed as quickly as possible.
Edelson claims that he is not propagating a conspiracy theory, but that historical precedent should be considered.
To end the Great Depression in 1933 Franklin Roosevelt devalued the dollar via Executive Order #6102, confiscating gold and raising its price 69.3%, effectively kick starting asset reflation.
Only this time, it won’t be just the U.S. that devalues its currency. The world is too interconnected. Instead, the world’s leading countries will propose a simultaneous and universal currency devaluation.
This time, they will NOT confiscate gold. There would be riots all over the globe if they even mentioned the “C” word.
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