Dec 212016
Cash Is No Longer King: The Phasing Out of Physical Money Has Begun (ANTIMEDIA) – As physical currency around the world is increasingly phased out, the era where “cash is king” seems to be coming to an end. Countries like India and South Korea have chosen to limit access to physical money by law, and others are beginning to test digital blockchains for their central banks. The war on cash isn’t going to be waged overnight, and showdowns will continue in any country where citizens turn to alternatives like precious metals or decentralized cryptocurrencies. Although this transition may feel like a natural progression into the digital age, the real motivation to go cashless is downright sinister. The unprecedented collusion between governments and central banks that occurred in 2008 led to bailouts, zero percent interest rates and quantitative easing on a scale never before seen in history. Those decisions, which were made under duress and in closed-door meetings, set the stage for this inevitable demise of paper money. Sacrificing the stability of national currencies has been used as a way prop up failing private institutions around the globe. By kicking the can down the road yet another time, bureaucrats and bankers sealed the fate of the financial system as we know it. A currency war has been declared, ensuring that the U.S. dollar, Euro, Yen and many other state currencies are linked in a suicide pact. Printing money and endlessly expanding debt are policies that will erode the underlying value of every dollar in people’s wallets, as well as digital funds in their bank accounts. This new war operates in the shadows of the public’s ignorance, slowly undermining social and economic stability through inflation and other consequences of central control. As the Federal Reserve leads the rest of the world’s central banks down the rabbit hole, the vortex it’s creating will affect everyone in the globalized economy. Peter Schiff, president of Euro-Pacific Capital, has written several books on the state of the financial system. His focus is on the long-term consequences of years of government and central bank manipulation of fiat currencies: “Never in the course of history has a country’s economy failed because its currency was too strong…The view that a weak currency is desirable is so absurd that it could only have been devised to serve the political agenda of those engineering the descent. And while I don’t blame (more…)
Sep 092015
US dollar dominance finances Washington’s reckless spending, global militarism, its empire of bases, endless wars, corporate takeovers, as well as speculative excess creating bubbles and economic crises – at the expense of democratic freedoms and beneficial social change. China, Russia and other nations increasingly trading in their own currencies pose a significant threat to dollar dominance. Mahdi Darius Nazemroaya explained Washington’s currency war on China, saying: The Chinese are in the process of displacing the monopoly of the US dollar. They are dropping their US Treasury bonds, stockpiling gold reserves, and opening regional distribution banks for their own national currency. This will give them easier access to capital markets and insulate them from financial manipulation by Washington and Wall Street. China bashing by public and private US officials is part of a campaign to denigrate its government – making inflammatory accusations without proof about hacking, defying its legitimate right to do what it wishes in its own waters, and threatening sanctions – legal only by Security Council members, never by individual countries against others, Washington’s longstanding weapon against independent governments. “As the financial architecture of the world is being altered by China and Russia, the US dollar is gradually being neutralized as one of Washington’s weapon of choice,” Nazemroaya explained. The post-WW II US-dominated international monetary system is threatened with unraveling. Washington is fighting back with propaganda, energy, financial, economic and currency wars against China and Russia, said Nazemroaya. Russia sold a fifth of its $125 billion in US Treasuries holdings last March. China’s US Treasuries holdings exceed $1 trillion dollars. It’s been aggressively dumping them. It’s gone from the world’s largest buyer to its biggest seller. Will other countries follow suit? Nations are increasingly trading in their own currencies. Weakening America’s financial strength is the best way curb its imperial ambitions. Russia drafted legislation aimed at eliminating dollars and euros in trade between Commonwealth of Independent States (CIS) countries: Armenia, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan, Russia, and other former Soviet republics. A Kremlin statement said “(t)his would help expand the use of national currencies in foreign trade payments and financial services and thus create preconditions for greater liquidity of domestic currency markets.” It would facilitate regional trade and help achieve economic stability. It would reduce dependency on the world’s two dominant currencies. China’s central bank launched a Heilongjiang Province yuan/ruble program – Russia’s currency replacing the dollar. Both countries are increasingly trading (more…)
Aug 242015
What is a currency war? Currency wars are also referred to as “competitive devaluations.” They occur when a number of nations seek to deliberately depreciate the value of their domestic currencies. The goal is to stimulate their respective economies. You see, a weaker currency will make a nation’s exports more competitive in global markets and simultaneously makes imports more expensive. Higher export volumes increase economic growth, while more expensive imports encourage consumers to shift to local alternatives instead of imported products. While currency devaluation is a common occurrence in the foreign exchange market, the hallmark of a currency war is that a number of nations engage in devaluation attempts simultaneously. Presently, more than 20 countries have reduced interest rates or implemented measures to ease monetary policy from January to April 2015. And in August, China – the world’s second-largest economy – jumped on board in a major way, placing a strain on the world reserve currency, the U.S. dollar… Currency Wars: China Has U.S. Dollar on Puppet Strings Peter Schiff, CEO of Euro Pacific Capital and best-selling author of “Crash Proof,” issued a warning about currency wars and an impending U.S. dollar collapse. He spoke to Newsmax TV on Aug. 11: “We’re on the verge of a much worse financial crisis than the one we went through in 2008, and it’s going to take the form of a currency crisis. You’re talking about currency wars. America is going to win the currency war, which is a race to the bottom, and you don’t want to win a currency war because a currency war is different from most wars in that the object is to kill yourself and unfortunately, we’re going to succeed.” You see, no other country has had this much impact on the U.S. monetary policy in quite some time – or arguably, ever. The U.S. Federal Reserve must now reconsider the dollar’s role in foreign exchange markets as it decides whether to raise interest rates this year. “It is very possible that we could see a 10% to 15% drop in the exchange rate against the U.S. dollar in the next week or two,” Duncan Innes-Ker, of the Economist Intelligence Unit, told The Guardian on Aug. 13. In an Aug. 13 report, Morgan Stanley analysts Hans Redeker, Ian Stannard, and Sheena Shah said China has exported “deflationary pressure” for global central banks to depress their countries’ own exchange (more…)