Truemors
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 may propose devaluing all currencies, including the U.S. dollar and the euro. “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.
Most RecentMost Recommended Comments (2)
at 11:24 on November 14th, 2008
I fail to see how adopting a new bill worth say ten cents of a dollar ( call then quats) could alter a contract between me and another that says I must pay him 100,000 DOLLARS at the end of ten years plus 5% compound interest at that time, to force the lender to accept 100,000 quats plus interest at that time.
No court would sustain such a thing. It would make the lender whole, and at the least require payment of 1 million quats plus interest, so what have I or anyone gained by such a change?
Whether gold was also given a new value is irrelevant to the prime question above.
Please walk thinking readers through an example explaining how the lender is forced to accept ten percent of the contract value, to make my payoff easier.
at 11:11 on May 20th, 2009
The problem today is not that the dollar is so valuable it can't be used. The problem in 1933 existed because the great depression caused massive deflation. I remember my dad talking about being paid $0.10 per day! Perhaps the reason gold was such an issue had to do with the fact it was used as an "alternate" currency. Today commodities in general have been used by speculators as an alternative international currency. International trade still operates extensively on the barter system. The hoarding of oil by speculators as an alternate to currency is probably the reason for $4.00+ gasoline in July, and $1.40 gasoline a few months later. This single action is likely the final component root cause of the credit system collapse. The US consumer in particular has been squeezed to the limit by low wage inflation, massive housing inflation, and the deportation and elimination of high paying "value adding" jobs form the US economy. In this case the problem has to do with the value of labor in the global economy. The reason there are no good paying jobs left for the American middle class, is because an hours worth of work in China, or India, does not result in comperable benefits and rewards as it does in the US. The free market system cannot correct itself as long as such inequalities exists.