By Dee McLachlan
In 1988, the Economist had an article entitled, “Get Ready for the Phoenix”. A phoenix, of course, obtains new life by arising from the ashes of its predecessor. Well, in volume number 306 (p 9-10), this is what was written:
“Thirty years from now, Americans, Japanese, Europeans, and people in many other rich countries, and some relatively poor ones will probably be paying for their shopping with the same currency. Prices will be quoted not in dollars, yen or D-marks but in, let’s say, the phoenix...
“In all these ways national economic boundaries are slowly dissolving. ..The phoenix zone would impose tight constraints on national governments. There would be no such thing, for instance, as a national monetary policy. The world phoenix supply would be fixed by a new central bank, descended perhaps from the IMF.
Talking about the IMF. This is what Christine LaGarde said when interviewed at a World Economic Forum at Davos, 2014.
“I think the reset is on multiple fronts… They’ve [Central Banks] done a great job at keeping the crisis the at the level where it was, but now gradually they’re going to have to move to another monetary policy. I don’t know whether it would be the old monetary policy but it will certainly be different from what we have seen…”
Gold and Global Reset?
It was several years ago, when there was all the talk about the monetary collapse, I followed the advice offered on several alternative sites and bought two ounces of gold. It was at its very peak — and a month after my very humble purchase, the price of gold dropped dramatically. Since then, I have pondered why gold has been so low — and it seems logical that it has been deliberately depressed, so that those in the know could accumulate the metal cheaply.
I quote Shftplan’s article “A Global Financial Reset Is Coming: A Deal Is Being Made Between All The Central Banks”:
“There is an unprecedented reset coming to world financial markets and if you’ve been paying attention it’s impossible to ignore the signs. In fact mega-investment funds, governments and central banks have been secretly buying up and storing physical gold in anticipation of an event that will leave the US dollar effectively worthless and governments around the world angling for a new global currency mechanism, according to mining executive Keith Neumeyer. [Video here]
“…the dollar will be allowed to crash and we should prepare for a total financial, economic and monetary realignment… And though Western mainstream media pundits argue that the recent strength of the U.S. stock market and the U.S. dollar are proof positive that an economic recovery has taken hold, Neumeyer says exactly the opposite is happening.
“Once deleveraging by governments and central banks has been completed they will unleash an economic, financial and monetary storm that will change the very fabric of the global order.”
It makes sense that those running the banking monetary system are planning a reset. They don’t want to crash and burn. Nick Hubble writes:
“Every few decades, the world’s financial system goes through a reset. Just before a complete collapse, the powers that be come together in an obscure place and hash out the terms of the new currency system. That new system usually gets named after the random place they decided to meet…”
Presently, the debt problem seems so big, that inflation can’t even solve it. Inflation is needed to pay off future debt — but then more debt is required to deal with inflation. You only need to look at house prices in Australia to understand future paid employees will never be able to buy into the system — let alone rent in the system.
Now property is being sold for bitcoin. The owner of a mansion on Victoria’s Mount Macedon is the first Australian to sell in exchange for cryptocurrency bitcoin.
Money is created in several ways. You can dig gold (or resources) out of the ground, or, if you are a central bank, you can loan money into creation. And then that money becomes a claim against resources, or a claim against future resources. Or you can be great at maths.
On 18 August 2008, the domain name bitcoin.org was registered (linked to “Satoshi Nakamoto”). On 22 May, 2010, two Papa John’s pizzas were paid for using 10,000 units of bitcoin — about $30 at the time. A few years later that $30 stake was worth millions.
Now you can mine Bitcoin. Someone please explain! Here is a photograph (right) of Haobtc’s bitcoin mine site manager, Guo-hua, checking the ‘mining equipment’. Huh!
So where do Bitcoins come from? I’m still trying to get my head around Bitcoin (and cryptocurrency) creation — that “miners” use special software to solve math problems, and are thus issued bitcoins in exchange? Sounds similar to how the central bankers create money… puzzle through some maths. But for the banks it’s much easier — they have a licence to just add a couple zeros to a number.
And while banks try “centralize” control, cryptocurrencies operate as a decentralized payment system. People exchange coin directly — not through the banking system. They function outside government control, and beyond the influence of central banks.
The creators of cryptocurrencies have found a way to play the money game, so to speak.
I also had no idea of how many new cryptocurrencies there were — and they are gaining traction — fast. There will soon be 260,000 stores in Japan accepting bitcoin using the Air Regi app.
And in the Daily Reckoning, Louis Basenese writes:
“There are now over 831 cryptocurrencies exchanging hands on the ‘open markets.’ The vast majority trade for just pennies, just like Bitcoin did back in 2010. That means there’s a chance to strap yourself to the next cryptocurrency rocket before it launches into the stratosphere.”
1210% rise in one day? What!
But James Rickards, in the Daily Reckoning, writes:
“Governments have been patiently watching blockchain technology develop and grow outside their control for the past eight years. Libertarian supporters of blockchain celebrate this lack of government control. Yet, their celebration is premature, and their belief in the sustainability of powerful systems outside government control is naïve.
“Governments don’t like competition especially when it comes to money… A group of major companies, all regulated by government, have announced a joint effort to develop an open-source blockchain as a uniform standard for all blockchain applications.
“Cryptocurrencies and the Super-Elites Plan …developments all point toward an elite group including the IMF, JPMorgan, the Davos crowd, the IRS, SEC, and other agencies converging to shut down the existing free-wheeling blockchain ecosphere, and replace it with a ‘permissioned’ system under ‘consortium’ control.”
Over the next few months, there is probably an opportunity for the little guy to amass a fortune. Maybe I should try. But the powerful “elite” have invaded countries that opposed the central banking system — so what are they going to do about cryptocurrencies? It would have to be in their “reset” plan. And they are probably working on how to tax and control all the Bitcoin wallets out there.
In the meantime, maybe Gumshoe should start a Crytocurrency subscription — that might, for a few pennies now, fund the organisation into the future?
Will governments ban cryptocurrencies? (video)