Reserve currency, the coming reset

Rum, beer, women, movies, nice websites, gaming, etc., without interrupting the flow of martial threads.

Reserve currency, the coming reset

Postby windwalker on Sun Apr 24, 2022 7:53 pm


https://www.youtube.com/watch?v=UowzxWxlKJU

soon to be coming to a Country near you

Video outlines the how, why and what Fiat currency is and means...
The US has weaponized the world reserve currency system, thereby causing a lack of confidence in it required for countries to continue using it.

Recent events with Russia, forcing countries to rethink...for their own protection.

Image

Why is setting a fixed price for gold in rubles significant?

By offering to buy gold from Russian banks at a fixed price of 5,000 rubles per gram, the Bank of Russia has both linked the ruble to gold and, since gold trades in US dollars, set a floor price for the ruble in terms of the US dollar.


https://www.rt.com/business/553099-gold ... nger-west/
Last edited by windwalker on Sun Apr 24, 2022 7:57 pm, edited 1 time in total.
If you cannot find the truth right where you are,
where else do you expect to find it?

Dogan
windwalker
Wuji
 
Posts: 9362
Joined: Sun Mar 25, 2012 4:08 am

Re: Reserve currency, the coming reset

Postby everything on Sun Apr 24, 2022 8:11 pm

I have a really hard time understanding macro economics and "money". It seems more understandable than taijiquan, but not really, lol.
amateur practices til gets right pro til can't get wrong
/ better approx answer to right q than exact answer to wrong q which can be made precise /
“most beautiful thing we can experience is the mysterious. Source of all true art & science
User avatar
everything
Wuji
 
Posts: 6633
Joined: Tue May 13, 2008 7:22 pm
Location: USA

Re: Reserve currency, the coming reset

Postby windwalker on Sun Apr 24, 2022 8:25 pm

everything wrote:I have a really hard time understanding macro economics and "money". It seems more understandable than taijiquan, but not really, lol.


Thought the clip explained very well..

Fiat money is a government-issued currency that is not backed by a commodity such as gold.

From 1944 to 1971, the Bretton Woods agreement fixed the value of 35 United States dollars to one troy ounce of gold.[28] Other currencies were calibrated with the U.S. dollar at fixed rates. The U.S. promised to redeem dollars with gold transferred to other national banks.
Trade imbalances were corrected by gold reserve exchanges or by loans from the International Monetary Fund (IMF).

The Bretton Woods system was ended by what became known as the Nixon shock.

This was a series of economic changes by United States President Richard Nixon in 1971,
including unilaterally canceling the direct convertibility of the United States dollar to gold.

Since then, a system of national fiat monies has been used globally, with variable exchange rates between the major currencies.[29]



The US dollar, the reserve currency that everyone uses starting after the second world war.
In the 70s no longer tied to gold...

As long as other countries agree that it's worth something it continues to be.

The problem, the US weaponized the currency, enabling it control over other counties, based on it's own interest.

What happens when other countries no longer use the dollar, or use their own currencies something that they have control over.

Notice the sanctions put on Russia, so that none of them affect the other countries tied to Russias energy or food.

Think about it, the sanctions intended to destroy an economy, that still produces items needed by those imposing the sanctions to destroy it :P
Last edited by windwalker on Sun Apr 24, 2022 8:34 pm, edited 1 time in total.
If you cannot find the truth right where you are,
where else do you expect to find it?

Dogan
windwalker
Wuji
 
Posts: 9362
Joined: Sun Mar 25, 2012 4:08 am

Re: Reserve currency, the coming reset

Postby Quigga on Sun Apr 24, 2022 10:57 pm

Finally, about time it happened
Enjoying the illusion is true freedom
Quigga
Wuji
 
Posts: 624
Joined: Mon Mar 19, 2012 1:08 pm

Re: Reserve currency, the coming reset

Postby origami_itto on Mon Apr 25, 2022 4:18 am

Whenever somebody starts going on about the superiority of the gold standard, I thank them for letting me know right away they don't understand what they're talking about.
It don't mean a thing, if it ain't got that jing.
"What is essential is invisible to the eye"
Have Peng, Will Travel.
User avatar
origami_itto
Wuji
 
Posts: 2931
Joined: Wed Oct 05, 2016 10:11 pm
Location: Palm Bay, FL

Re: Reserve currency, the coming reset

Postby Quigga on Mon Apr 25, 2022 5:11 am

Care to enlighten me?
Enjoying the illusion is true freedom
Quigga
Wuji
 
Posts: 624
Joined: Mon Mar 19, 2012 1:08 pm

Re: Reserve currency, the coming reset

Postby everything on Mon Apr 25, 2022 5:49 am

Check out Confessions of an Economic Hitman

TL;DR:
Instead of assassinations, the CIA switched to World Bank debt.
amateur practices til gets right pro til can't get wrong
/ better approx answer to right q than exact answer to wrong q which can be made precise /
“most beautiful thing we can experience is the mysterious. Source of all true art & science
User avatar
everything
Wuji
 
Posts: 6633
Joined: Tue May 13, 2008 7:22 pm
Location: USA

Re: Reserve currency, the coming reset

Postby origami_itto on Mon Apr 25, 2022 6:24 am

Quigga wrote:Care to enlighten me?

Deflation.
https://www.investopedia.com/terms/d/deflation.asp
It don't mean a thing, if it ain't got that jing.
"What is essential is invisible to the eye"
Have Peng, Will Travel.
User avatar
origami_itto
Wuji
 
Posts: 2931
Joined: Wed Oct 05, 2016 10:11 pm
Location: Palm Bay, FL

Re: Reserve currency, the coming reset

Postby Quigga on Mon Apr 25, 2022 6:42 am

I don't think deflation is the issue when talking about fiat. Rather compound interest, creating money out of nothing, devaluing entire nations via credit score, the ability to freeze assets, having monopoly on the fiat money production.

Deflation and inflation, I don't know much about. But if something is inherently without value and just BS we all agreed to believe in - it doesn't matter if that 'lack of being intrinsically valuable' thing goes up and down. Imo
Enjoying the illusion is true freedom
Quigga
Wuji
 
Posts: 624
Joined: Mon Mar 19, 2012 1:08 pm

Re: Reserve currency, the coming reset

Postby windwalker on Mon Apr 25, 2022 7:05 am

Image

“What is happening today in the global economy and in the world gives us a hint about how we need to rebuild our logistics, industrial cooperation, in what directions we can develop our economies. This [is] de-dollarization, and now we have added de-euroization, that is, the transition to our own currencies in order to be as independent as possible in terms of mutual settlements,” Manturov said.


Image

According to the finance minister, the “current crisis is man-made,” and the BRICS member states – Russia, Brazil, India, China, and South Africa – “have all the necessary tools to mitigate its consequences for their respective economies and the global economy on a broader scale.”

Siluanov says the current US dollar-based international financial system should be reformed to ensure “independence and continuity of economic processes.”

https://www.rt.com/business/553614-sanc ... es-russia/

A natural reaction to a situation where the world reserve fiat currency is used as means of control in the interest of one nation
If you cannot find the truth right where you are,
where else do you expect to find it?

Dogan
windwalker
Wuji
 
Posts: 9362
Joined: Sun Mar 25, 2012 4:08 am

Re: Reserve currency, the coming reset

Postby Ian C. Kuzushi on Mon Apr 25, 2022 7:19 am

As if gold and diamonds aren't things we just agree are valuable? Look into how many diamonds Deveers owns (or how Elon got his money through blood emeralds).

The funny thing is that the gold standard gave power to the gold producing countries, which included the US and Russia. So, it's not like reverting back to a system that limits Keynesian mitigations is going to prevent superpowers from manipulating other countries.

It hasn't come up yet, but I also love how many who deride fiat currency also love cryptocurrency. Real irony there.

people love to predict the sudden collapse of systems. It happens very occasionally, but more often it is a slow change and the new is not all that different from the old.

Money as a universal commodity might be a problem that alienates us from our work, communities, and society, but it's a symptom of the way we produce and consume. The mode of production as it exists is unsustainable, degrading to most folks, and inherently inequitable (we can even use the silly right-wing term inequality of opportunity here, since opportunity of outcome isn't something that anyone argues for and is just a strawman).
文武両道。

Lord Li requires one hundred gold coins per day!
User avatar
Ian C. Kuzushi
Great Old One
 
Posts: 2591
Joined: Sun May 15, 2011 10:02 pm

Re: Reserve currency, the coming reset

Postby windwalker on Mon Apr 25, 2022 7:29 am


https://www.youtube.com/watch?v=-XU6ZHZ8TDg

Talks about the dollar being challenged


As the world's dominant reserve currency the United States dollar has been a major currency for trading oil (sometimes the term 'Petrodollar' is mistakenly used to refer to this concept).[8][9] In August 2018, Venezuela joined the group of countries that allow their oil to be purchased in currencies other than US Dollars, thus allowing purchases in Euros, Yuan(Petroyuan) and other directly convertible currencies.[3] Other nations that permit this include Iran.[10]





What happens when a countries reserve currency in dollars are held because of political differences
Or a counties finance systems are prevented from using financial systems ie SWIFT.

They start to develop their own systems out of self preservation controlling their own economies

In order to prevent economies from plunging into crisis, BRICS countries are working to reform their financial interaction, for instance, by creating a BRICS-based interbank messaging system, an analogue of SWIFT, which Russia was cut off from last month as part of EU sanctions, and other measures.


https://www.rt.com/business/553614-sanc ... es-russia/

Image
On July 2, 1997, Thailand devalued its currency relative to the U.S. dollar. This development, which followed months of speculative pressures that had substantially depleted
Thailand’s official foreign exchange reserves, marked the beginning of a deep financial crisis across much of East Asia.


In subsequent months, Thailand’s currency, equity, and property markets weakened further as its difficulties evolved into a twin balance-of-payments and banking crisis. Malaysia, the Philippines, and Indonesia also allowed their currencies to weaken substantially in the face of market pressures, with Indonesia gradually falling into a multifaceted financial and political crisis. Hong Kong faced several large but unsuccessful speculative attacks on its currency peg to the dollar, the first of which triggered short-term stock market sell-offs across the globe. And severe balance-of-payments pressures in South Korea brought the country to the brink of default.


https://www.federalreservehistory.org/e ... ial-crisis

Was in Thailand when this happened, had money in a S-Korean bank... The company I was working for paid in Korean currency held in one of their banks.
My account lost 50% of its value at the time :o
Last edited by windwalker on Mon Apr 25, 2022 11:13 am, edited 3 times in total.
If you cannot find the truth right where you are,
where else do you expect to find it?

Dogan
windwalker
Wuji
 
Posts: 9362
Joined: Sun Mar 25, 2012 4:08 am

Re: Reserve currency, the coming reset

Postby windwalker on Mon Apr 25, 2022 7:36 am

Ian C. Kuzushi wrote:As if gold and diamonds aren't things we just agree are valuable? Look into how many diamonds Deveers owns (or how Elon got his money through blood emeralds).

The funny thing is that the gold standard gave power to the gold producing countries, which included the US and Russia. So, it's not like reverting back to a system that limits Keynesian mitigations is going to prevent superpowers from manipulating other countries.

.



If the countries hold their own gold, gold a finite commodity, doesn't it prevent control over others as is done through dollars,
the US dollar as reserve currency allows the US to print as much as it needs selling its debt to sustain it.

The US will not default on loans made to itself. It can always print more, or increase it's own debt ceiling,
as is done every year.

Other countries using it as a basis for their own currencies, have a vested interest in continuing to buy
the US debt supporting their own currencies tied to it.
Last edited by windwalker on Mon Apr 25, 2022 9:02 am, edited 1 time in total.
If you cannot find the truth right where you are,
where else do you expect to find it?

Dogan
windwalker
Wuji
 
Posts: 9362
Joined: Sun Mar 25, 2012 4:08 am

Re: Reserve currency, the coming reset

Postby Quigga on Mon Apr 25, 2022 7:37 am

You can take gold or diamond anywhere on the globe, most people would instantly see something valuable because of their beauty and property to be crafted into even more appeasing stuff

When talking about slavery, glass pearls and alcohol were valuable enough to sell one's own people

Is education helping or hindering the determination of value in an object

I don't know, and I'll be careful not to claim to have all answers

Yes, producing gold (or value) results in jobs... One could analyze if the mining or the printing industry results in more long-term beneficial employment

But looking at our timeline, I don't think we have enough data points to safely make an assumption

I don't care about crypto. It's even worse than printing imo

80/20 pareto principle, power consolidates and doesn't exist in a vacuum

Those who had power in the past will do everything they can to remain powerful

Predictions of sudden collapses are often rooted in anxiety, existential fear and fear of death or harm

I don't really care anymore - what needs to be done, needs to be done, regardless of what seems to be changing on the outside

One big question is whether or not selfishness is inherently human. In part, yes, and our systems need to reflect that as well as some degree of altruism

I agree that splitting work and tangible result ends in increased risk of mental health problems

Inequality of opportunity
Inequality of outcome (Is what I think you were saying)

Why can't we tackle both at the same time?
Enjoying the illusion is true freedom
Quigga
Wuji
 
Posts: 624
Joined: Mon Mar 19, 2012 1:08 pm

Re: Reserve currency, the coming reset

Postby everything on Mon Apr 25, 2022 8:17 am

There have been some local currency experiments such as the Bangla Pesa
https://nation.africa/kenya/counties/mo ... es--395884

in Kenya. Not sure how it works, and not much seems written about it. It functions as a "local voucher" system so local businesses can exchange goods and services more easily. No idea how the "supply" is controlled.
amateur practices til gets right pro til can't get wrong
/ better approx answer to right q than exact answer to wrong q which can be made precise /
“most beautiful thing we can experience is the mysterious. Source of all true art & science
User avatar
everything
Wuji
 
Posts: 6633
Joined: Tue May 13, 2008 7:22 pm
Location: USA

Next

Return to Off the Topic

Who is online

Users browsing this forum: No registered users and 11 guests