A New Dollar, A New World


#1

If as outlined here a global currency event in 2018 has missed it’s moment - Anticipating the next crash, this time it could be money - the Dollar as we know it seemingly saved (or the plan, de-railed) through the election of Donald Trump as President too the United States, while not being part of the *roadmap are we potentially facing a scenario where a new Dollar is required, since a major global crash is going to occur either instigated perhaps by way of a collapsing Dollar (“this time it could be money”), then to the Victor the spoils, in this instance the Victor was not to be ordinary people, a new Dollar that is not backed by the current Federal Reserve! Crazy.

*alt theory: Trumps election is part of the roadmap as a viable plan B, the overseer of the demise of the Dollar, the clueless Central Banker’s patsy (can discuss but for another thread)

Q. How might a New Dollar come about and by what mechanism.

Q. How will historical Debt be dealt with (onerous? Illegal?)?

Q. If so what kind of Chaos will ensue.

Q. Can we see the warning signs of a post Dollar collapse / New Dollar world already?

Diucsuss. No matter how crazy it seems. Run with idea. Look around. Yay or nay?


The Great (Panic) Reset (Button) - Buckle Up for 2021! :popcorn:
Fallout - A Post Wuhan Coronavirus World
The National Debt
#2

As it is the Yuan has been creeping in where the USD has been previously ubiquitous in nations abutting China. The Myanmar regime operated a severe internet censorship where I found it actually quicker and cheaper to send a telegram to Ireland than send an e-mail! The Chinese traders I met in Yangon were the only ones not afraid to talk openly about the regime, they knew their money had power that could bypass the controls.

In Shan state abutting China where the Yuan was common, government censorship was negligible, there was no internet firewall. I can only imagine the Yuan’s influence has only spread to the whole country and most likely is underreported. Same could be said of all states abutting China.

Go back two decades the GBP was pretty ubiquitous in the Asia too, whereas now in Hong Kong since brexit its risk margin is wider than for the Euro and USD. A century ago it was said you could get around the world with a note from the bank of England and never be doubted. It was another three decades and a world war before the USD usurped the GBP as the global currency.

Even when I go down to the local supermarket or post office where I am in England, foreign exchange is advertised as “Travel Money”, as if the Pound is the only real currency and all other currencies are as good as tokens for rides at Alton Towers. The British psyche still hasn’t shrunk to its nations actual place in the world, although I image the average UK pensioner living off their pension in Spain is in no doubt about its diminishing value as measured by GBP.

It does seem that Trump’s obstinacy towards traditional trade allies left a vacuum for China to fill since he pulled the USA out of the TPP. The idea that the nations involved would orientate to suit Trump voters is as delusional as Brexiters belief the EU revolved around the UK.

With the EU setting up a separate SWIFT payments system to allow EU companies who trade with Iran to avoid US sanctions, it’s only likely that the more protectionist the USA gets, the more channels to avoid the USA will be availed of. So the question is, will there be an “event”, or has the process already been in motion so long that USD hegemony will be more of a realisation long after the fact?

Could an “event” be the dumping of foreign holdings of USD if it’s no longer necessary for trade, which in turn might panic those holding USD as insurance, which in turn diminishes the USAs ability to borrow. The AUD/CNY trade has held pretty steady as Australia became more reliant on Chinese demand for its resources so the normalisation of the Yuan is well underway.

Edit to add: I can imagine the realisation of the loss of USD hegemony may have a backlash effect, but Trump is already a symptom of lost confidence and his tariffs only exacerbate the decline. The Iraq quagmire make its muscle feel impotent. Considering 40% of the world privately held firearms are in the USA, I think it far more likely the US army will be needed at home, just as British forces withdrawing from the far empire were put on UK streets.

Of course the situations aren’t directly comparable but when you have a president saying the recent synagogue massacre happened because there wasn’t guns to defend against it, you can only see there’s a bonfire of bullets building. It’s disturbing that no one is really shocked anymore. There was a similar belief in the run up to WWI, who could war happen if the great powers were equally armed?

So could a domestic event like a bloody mass city sized siege cause irreparable damage to the USD status as a solid safe currency if the nation backing is considered volatile? If there are other perceptibly more stable options available then people will diversify accordingly.


#3

I can imagine a new Dollar in a new World - a Gold backed crypto-dollar-currency.


#4

#5

I can imagine a New FED, somewhat similar but unlike the Old FED not long for this world.


#6

Welcome (back) to this (placeholder) thread where the idea that the Trump Admin is going to end the Fed (as we know it) or do something that is virtually similar, soon or during his second term, is staring to bubble up to the surface more and more these days, if you had not tuned into this signal already, welcome, come in and have a sit down or run away screaming.

The net is buzzin’


#7

fed-r-002

Return of the SPVs, merely a stepping stone?

(via Bloomberg):

The Fed’s Cure Risks Being Worse Than the Disease
(March 27, 2020, 7:00 AM EDT)

An alphabet soup of new asset-buying programs will essentially nationalize large swaths of the financial markets, and the consequences could be profound.

The economic debate of the day centers on whether the cure of an economic shutdown is worse than the disease of the virus. Similarly, we need to ask if the cure of the Federal Reserve getting so deeply into corporate bonds, asset-backed securities, commercial paper, and exchange-traded funds is worse than the disease seizing financial markets. It may be…

…This scheme essentially merges the Fed and Treasury into one organization. So, meet your new Fed chairman, Donald J. Trump.

When the Fed was rightly alarmed by the current dysfunction in the fixed-income markets, they felt they needed to act. This was the correct thought. But, to get the authority to stabilize these “private” markets, central bankers needed the Treasury to agree to nationalize (own) them so they could provide the funds to do it.

In effect, the Fed is giving the Treasury access to its printing press. This means that, in the extreme, the administration would be free to use its control, not the Fed’s control, of these SPVs to instruct the Fed to print more money so it could buy securities and hand out loans in an effort to ramp financial markets higher going into the election. Why stop there? Should Trump win re-election, he could try to use these SPVs to get those 10,000 Dow Jones points he feels the Fed has denied everyone.

https://www.bloomberg.com/opinion/articles/2020-03-27/federal-reserve-s-financial-cure-risks-being-worse-than-disease


#8

https://usdebtclock.org


#9

Well, If trump succeeds in eliminating an entire layer of economic parasites, it will be the best thing he will ever achieve.

Just for some background viewing, here is the original Money Masters video.


#10

@Open_Window - the Fed staff probably took time off to isolate, like every other company.

The system is a fantastic system but it has been abused to prevent recessions to please politicians.
Unfortunately this is coming home to roost.

The worst thing that could happen is to hand the Fed reserve powers over to the politicians. If you thought printing was bad now imagine what they would do with “free” money.

However, I do believe the end of the reserve currency status is getting closer. How it ends is anyones guess.


#11

With great power comes great responsibility, the Fed and other central banks have being abusing that power for decades, in some cases centuries.
Having a government managing the “presses” will mean that they will have that same responsibility, print too much and they’ll be punished come the next election.
The “free” means that the government introduces the money debt free into the economy with capital expenditure & UBI (which is a must in a future where most work is mechanised) and tax it out at the top.

The only losers are the bankster classes and the casino economics of the “markets”.

Everyone else will see a real improvement in personal wealth without the enormous burden of debt that the current system loads onto us.


#12

That’s absolute rubbish. Socialism and the break of the system with the discipline of the gold standard has loaded the system with debt. Socialism doesn’t work because people are free agents and will abuse it. And any government that institutes it must necessary impose more draconian controls to make it work. Our only hope is and has always been the free market. The free market will eventually be brought to bear on this unlimited currency creation in the form of a bond market collapse and currency crisis. No fiat reserve system has lasted as long as the dollar. It’s lost 96% of its value since the foundation of the federal reserve system. There is nothing new under the sun and all of this has happened before. The dollar will fail and god help us all when it does.


#13

Who said anything about socialism!
A debt free monitory system is as capitalistic as a debt based system, the main difference being is that an elected government is responsible for the issue of debt free money, as opposed to a private banking institution that is unelected that releases money at interest as and when they decide, their decisions based entirely on whether they can profit from it.


#14

It sounds like socialism to me. Let’s have a debt jubilee and hang the bankers etc. Governments and their free spending on welfare for not only the people and the banks and corporations are to blame for this mess. To blame “the markets” is letting the central planners and their disastrous policies off the hook. You seem to think that governments are less corrupt then the free market which is totally naive and nonsensical. We don’t have a free market since the central banks/governments constantly intervene in their function in particular price discovery thus make the inevitable crash all the more cataclysmic.


#15

You do realise that the central banks are privately owned and are only answerable to their select few major shareholders, they control the money supply and depending on what the government does, they and they alone decide whether to play ball or not.

The central banks management could decide to “harvest” all their investments by simply limiting the money supply to bankrupt a large number of small to medium businesses, then their shareholders can buy the remains of those companies on the cheap and become even more powerful.

They have done this at each and every recession since they were given this power.

It’s like being managed by the Mafia, if you think that a government managed banking system is “socialist” then I would prefer that to one that is run by the Mafia any day.


#16

The signal continues to gain.

Well on Sunday March 29th, the most stunning of them all fell like a ton of bricks on social medias: confined onlookers learned that Trump had taken control over the Federal Reserve, that is now handled by two representatives of the Treasury of State. Of all the crazy news within the last month, this is by far the best and most shocking. After three years in power, Trump has finally fulfilled his electoral promise of taking private banks out of the US public affairs, ending a century of exploitation of the American citizens. He has put the infamous Blackrock investment group to start buying important corporations for the Fed, meaning that he’s nationalizing chunks of the economy, while avoiding the crash of the market by implicating important private investors in the deal.


#17

I hope you’re right and it’s not just a smokescreen.
But Zerohedge, can we really believe what’s written there?


#18

@syberspud @dolanbaker


#19

Are we about to see the US dollar be replaced by the Yuan as the world’s reserve currency, or are the US going to issue a new debt free currency (like the greenback)?


#20

Correct and that’s the way it should be. It was setup so that the large commercial banks “own” meaning run the central bank and a central bank is effectively a not for profit organisation. Any earnings after expenses are handed over to congress/the public. The problem with this is it is also the other way around, any liabilities are to be paid for by congress/the public. And as of lately, central banks have been taking on a shit ton of liabilities.
The large commercial banks are on the stock exchange so if you are jealous or bitter about them owning the central banks, why don’t you buy shares in the commercial banks and have some indirect ownership.
It was setup so that government wouldn’t intervene in the free market but that has been lost over the years as central bankers have become less independent (and bending over when government calls for it). If congress or government took control you would see complete and utter destruction of the purchasing power of the dollar within a very very short period of time. Absolutely no doubt.