Yet Another "World Currency"

[chrisild]

US Dollar? Euro? Yen? Yuan? Phhh, what this world needs is a world currency. And while some heads of state or government got together in Italy at the G8 meeting this week, the journalist Sandro Sassoli presented his vision of the future ...



But his piece may not have got too much attention, had the Russian president Medvedev not presented his piece as a sample of what could one day replace the currently "leading" currencies.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aeFVNYQpByU4
http://www.futureworldcurrency.com/Documents.asp?DocumentAreaID=47&DocumentID=204

Oh, I am sure the world has been waiting for such a piece - odd design, one language only, and with a motto that comes very close to that of the European Union. The latter may not exactly be a surprise; the side with that motto was designed by Luc Luycx (see the monogram) who also created the common sides of the euro and cent coins. The designer of the other side was Laura Cretara who designed, among other pieces, my avatar.

Christian

[bruce61813]

I think I need a stiff drink - how boring can we get!

Bruce

[Figleaf]

You have summed up the design mistakes, but maybe the biggest flaw is that Medvedev's idea doesn't need coins or banknotes.

Ever since the Bretton Woods agreement, the USD has functioned as a a world reserve currency. We have learned that a reserve currency gives advantages to the nation that issues it. The obvious one is that it can float a lot more banknotes. They end up in the hands of black money traders, the maffia and other people who do not want to leave an electronic trace, while acting as a huge interest free loan to the issuer. Meanwhile, as long as there is demand for its currency, the issuer can run up a gigantic debt that doesn't need to be repaid.

Meanwhile, the euro has come up as a reserve currency. Suppose it keeps developing in that direction. What would the consequences be? First, countries could choose which currency to hold, so that if one issuer runs up a debt, that switch to the other. The US would be forced to repay its debt to the world or devalue its currency. This would be painful in the short run, but in the long run, it would actually make the US economy stronger, as there would no longer be foreign government with enormous reserves in USD, buying up the country (Japanese companies did that in the seventies, not very successfully). Second, this makes it slightly easier to control black market money.

To see why, let's construct an exaggerated example. Say the black market consists of 70% USD, 30% EUR. Now the government forbids any cash transaction in USD. USD goes down in value until it contains a risk premium, so black marketeers take a loss, while it is still possible to do cash transactions in a reserve currency for legal purposes. Now the government permits USD cash but forbids EUR cash. Black marketeers take another loss, but USD holders profit. On balance, the black market takes a loss, because they would have switched largely to euros to avoid the risk premium. You can play this game any number of times. Black marketeers can be anyone from tax fugitives to blackmailers, bank robbers and drugs wholesalers or funny ex-dictators living in luxury on stolen cash.

Such tactics would have as a side effect to make electronic transactions more desirable and you can transfer any amount without coins or banknotes. You'd use cash for what it's meant for: small, local transactions.

Peter

[chrisild]

Medvedev's idea doesn't need coins or banknotes

Right, and I suppose he (like the others who have made similar suggestions) knows that. It was this journalist Sandro Sassoli who had this "coin" produced, and Medvedev simply used the opportunity to "advertise" his idea of some international currency unit.

What I found hilarious is that some people in the US turned that into headlines such as "Russia Hands Out Global Currency Samples to Replace Our Dollar", with the usual instant How-dare-they reactions. Guess those are the same people who think that the amero is a secret government plot.

Christian

[Figleaf]

[This disclosure signals the end of the dollar.  Just to remind you, it has been alleged in this story, that there will be a "bankers' holiday" in September, where all withdrawals are frozen, to be followed by the introduction of a totally new global currency when they reopen.
Anyone who prefers to have cash in their pockets better take heed!  Tomorrow will be very different from today.  Better hurry with those last minute purchases of shotguns and canned goods.]

Source: Therearenosunglasses's Weblog Subtitle: building an American resistance movement

[Figleaf]

Hold on! It gets even better. This one will stress your laugh muscles until you think they'll break:

http://www.renewamerica.com/columns/kovach/090712

The mark of the beast is on the new world money and the alleged president Obama is doing nothing about it!

Peter

[bruce61813]

  Well with the bio-chip we can now find out where our money goes! [TFIC] I also liked the 'connect the dots' to get the Star-of -David, that really took effort, it must have taken them a month to work that on. But I would like to know  - has the UN started issuing these ? The article said they are being issued, but not by whom. Good read for the Monday morning blahs.

Bruce

[chrisild]

Bruhahaha. But I must say that Kovach's hat cleverly hides the tin foil ...

Christian

[chrisild]

Last month Sassoli presented his "Future World Currency" at the World Money Fair in Berlin. http://www.futureworldcurrency.com/Documents.asp?DocumentAreaID=47&DocumentID=274  The company had a booth at the show, and he even gave a presentation at the WMF Media Forum: http://www.worldmoneyfair.ch/wmf/english/pdfs/2010/mediaforum_2010.pdf  The photo shows Sassoli (left) with Elettra Marconi (Guglielmo Marconi's daughter) and WMF president Hans-Henning Göhrum. Well, he sure does a lot to promote his idea ...

Christian

[Figleaf]

This clinches it, of course. The commie eurodollar world currency has already been introduced according to plan and we haven't noticed it. Isn't Berlin the place where Irving wrote "I'm dreaming of a red Christmas" and "God smash America"? And wasn't he a commie red Russian? HA!

Peter

[chrisild]

Seems that even more are involved in the plot! Mints planning to rule the world! Regarding the FWC, "the number of national mints striking or designing copies continues to escalate. Belgium, Israel and Mexico have already struck copies of the UFWC Eurodollar coins, with the Italian Mint displaying its own artistic concept based on a Leonardo da Vinci design. The UK Royal Mint is considering a coin made out of palladium alloy, plus the US, Australian, Russian, Fijian, Swiss and Japanese Mints confirmed their interest for the project." http://www.ad-hoc-news.de/center-belgian-italian-israeli-and-mexican--/de/Unternehmensnachrichten/20894578  Where will this all end ...

Christian