posted on Nov, 30 2011 @ 11:27 PM
reply to post by goldcoin
Yep, it is garbage.
Associated Press - Central
banks move to stabilize financial system
The linked article which is not as childish as the CNN one lays out some more specifics. I felt the CNN video (not a complaint about your choice, more
of a comment about how they are trying to spoon feed the nation) took something incredibly important and ignored all of the possible ramifications.
What CNN left out was that they are allowing their commercial banks (not just their central banks) borrow dollars (buy dollars) with their currency.
What happens if the exchange rate changes? This action basically makes the dollar a world reserve currency and will blurry the valuation of any
countries currency as they will all be intertwined with ours and the Federal Reserve has already proven that we can just print more money with nothing
to back it up.
Lets say that the United States "lends" ten billion "dollars" to Greece in exchange for ten billion euros. They agree to pay 5% interest a year
for three years. In the meantime the euro drops in value to where 20 billion euros is worth ten billion dollars. The 5% interest will not mean
anything when the return has already been cut in half. In other words their payment is worth half of what we lent them. This could also work the other
Bottom line, this is a very risky move that could destabilize all currency. It also makes all currency truly global in that each one's valuation is
determined by what happens in the other country. This will have dire consequences and lead to a call to set a standard for the valuation of all
currencies that uses a common formula, it means regulating how much currency each country can print. It might sound good at first; but, it means that
we will constructively have one currency worldwide.
Currencies valuation is currently based on the trust that others have in your country paying your bills. Trust is a funny thing and I don't trust any
central banking system. The new system will be based on what we can take from a country to honor it's promises. Hard promises as currencies will have
to be backed up by assets that are measurable and capable of being transferred.
This was planned awhile back, there was the recommendation that the International Monetary Fund or the World Bank create a reserve system that was a
combination of currencies from certain countries. The reserve would not be in a single currency; but, was to be a collection of currencies from many
which makes each currency interdependent.
Through a series of odd events I happened to meet with someone involved in international banking. I asked her if she believed that all currencies
would be pegged to specific assets within countries so that the valuation was standard. She stated that the idea was being seriously considered. It
had nothing to do with why I was talking to her and we did not follow up on the conversation; but, this person moved around a lot of money