The Future of Money
The ability to create money is so powerful and wondrous that those with the responsibility of managing it cannot bear to lose the power. Our current money is in danger of becoming exposed for the unjust scheme that it is. It is valuable because of its long history of being a useful currency and the lack of alternatives. When everyone's idea about its value begins to diverge widely, it will make it unsuitable for exchange and trade. Money used to be a "something" with some intrinsic value that could of course vary but it has become credit or merely a right to buy using someone else's guarantee. When it disappears because of the inability of debtors to pay, we will need a new medium of exchange. People will be extremely irate that their future expectations of value have been shattered but once cheated they will be reluctant to move to another system just because it is necessary.
A global economic system cannot just "change" with a crisis. Something must replace it but those invested in the old system will be reluctant to accept the zeroing out of their previous efforts. Warren Buffet does not want to be told that dollars have no value. It is imperative to have a new system before the old system falls apart. So as it falls apart we should look for clues that it is time to jump to another system. The most likely system is a world reserve currency called the SDR(or bancor). The loss of the special privilege that the dollar currently enjoys will necessitate another reserve currency.
The method of changing a reserve currency has to be the most fraught and delicate surgery imaginable. If suddenly there is a problem then the whole effort collapses and there is a huge pile of broken promises. If somehow the promises can be honored but not at the value that was expected then a smoother transition to a new system could conceivably occur.
Currently everyone in the world wants dollars. This is fortunate for those of us who already possess some dollars but it is even more fortunate for those that can create dollars at will. If/when that changes--all dollar denominated assets become revalued. As Nietzsche said--the re-evaluation of all value.
A global economic system cannot just "change" with a crisis. Something must replace it but those invested in the old system will be reluctant to accept the zeroing out of their previous efforts. Warren Buffet does not want to be told that dollars have no value. It is imperative to have a new system before the old system falls apart. So as it falls apart we should look for clues that it is time to jump to another system. The most likely system is a world reserve currency called the SDR(or bancor). The loss of the special privilege that the dollar currently enjoys will necessitate another reserve currency.
The method of changing a reserve currency has to be the most fraught and delicate surgery imaginable. If suddenly there is a problem then the whole effort collapses and there is a huge pile of broken promises. If somehow the promises can be honored but not at the value that was expected then a smoother transition to a new system could conceivably occur.
Currently everyone in the world wants dollars. This is fortunate for those of us who already possess some dollars but it is even more fortunate for those that can create dollars at will. If/when that changes--all dollar denominated assets become revalued. As Nietzsche said--the re-evaluation of all value.
Money is a pleasant illusion
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